Why Can’t Governments Just Reset the Economy?

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Disclaimer: This article may contain distressing content for individuals affected by poverty, benefit reforms, or disability discrimination. Reader discretion is advised.

The Myth of the “Reset Button”

When budget cuts and tax hikes hit the most vulnerable, many wonder why central banks can’t simply wipe the slate clean. Here’s why the real issue isn’t ability, it’s political will. If governments are drowning in debt and slashing public services, why not just “press reset” and start again? The truth is, central banks like the Bank of England (UK) or the Federal Reserve (US) don’t operate like a video game. They can’t erase debt without devastating consequences for everyday people.

1. Debt Is Someone Else’s Income

Government debt isn’t just owed to “rich countries” or “shadowy lenders.” It’s often owed to:

• Pension funds
• Insurance companies
• Banks
• Private individuals
• Disabled people relying on investment-linked benefits

Cancelling this debt would wipe out people’s life savings, not just bank balances in spreadsheets.

2. The Collapse of Confidence

If a central bank erased its own debt:

• Confidence in the country’s economy would vanish.
• Investors would flee.
• The value of the pound would plummet.
• Prices for food, fuel, and rent would explode.

What follows is known as hyperinflation, where money becomes nearly worthless. Countries like Zimbabwe and Venezuela are tragic examples.

3. The Credit Crisis

A country that defaults on its debt or resets its obligations:

• Can no longer borrow at reasonable interest rates
• Will see its credit rating downgraded
• Would be forced to impose even harsher austerity

Instead of helping the public, a “reset” would crush public services even further, including the NHS, education, and disability support.

It’s Not That They Can’t – It’s That They Won’t

The government says there’s no money for:

• PIP payments
• Universal Credit support
• NHS waiting times
• Carer’s Allowance increases

But at the same time:

• MPs claim second home allowances
• The government pays for travel and food perks
• Corporate tax evasion costs billions annually
• There are no spending caps on defence contractors

So while the reset button can’t be pushed, smarter, fairer reforms can be implemented.

What If Everyone Invested in Gold Bullion Instead?

Gold is often considered a “safe haven” during financial crises. If governments were to “reset” the economy, some assume they could protect themselves by holding physical gold.

But here’s the reality:

1. Gold Is Not a Functional Currency

• You can’t easily use gold to buy groceries, pay your rent, or cover your utility bills.
• In a crisis, vendors would demand cash or digital payments, not bars of bullion.

2. Governments Can Seize or Regulate Gold

• In extreme cases, governments can ban private ownership or confiscate gold; this happened in the US in 1933 under Executive Order 6102.
• In a debt-reset scenario, it’s not unrealistic that gold holdings might be heavily taxed or frozen.

3. The Price of Gold Would Be Volatile

• If everyone rushed to buy gold, prices would skyrocket, making it unaffordable for most people.
• Once the panic dies down, values could fall just as rapidly, hurting those who bought in late.

4. Gold Doesn’t Replace Pensions, Benefits, or Services

• It’s not a replacement for state infrastructure like the NHS or Universal Credit.
• Vulnerable people who rely on ongoing support wouldn’t be helped by gold, especially if they have no savings to begin with.

Doomsday Money

CombiBars and small-denomination gold bars (e.g. 1g x 50 packs) for flexibility, affordability, and portability. They’re often marketed as a kind of “doomsday currency” or hedge against economic instability — and in theory, it makes total sense.

But here’s a comprehensive breakdown of why small gold bars (like CombiBars) haven’t become practical for everyday exchange, yet.

What Are CombiBars?

CombiBars are sheets of small, detachable 1g gold bars, often manufactured in formats of 10, 20, 25, 50, or 100 pieces. They’re:

• Individually stamped and certified
• Easily stored and transportable
• Popular in uncertain economic times
• Viewed as a form of tangible, divisible wealth

They offer excellent flexibility compared to a single, bulky 1oz bar.

Why Aren’t CombiBars Used as Everyday Currency?

Let’s unpack the real-world limitations that prevent them from being used in shops, online, or for services:

1. Gold Isn’t Legal Tender

• In the UK (and most countries), only government-issued currency (like GBP, EUR, or USD) is accepted as legal tender.
• Shops, landlords, or banks are not obliged to accept gold in any form.
• If you tried to pay for groceries with 1g of gold, the cashier would say, “Sorry, we can’t accept that.”

2. Valuation Is Inconsistent in Day-to-Day Use

• The price of gold fluctuates daily, sometimes hourly, and 1g of gold can vary between £50–£65 depending on the market.
• Retailers can’t be expected to track the spot price, assess authenticity, or determine purity every time someone tries to pay.

3. Testing and Verification Issues

• A real 1g gold bar might look identical to a fake without proper testing equipment.
• This opens up fraud risk, counterfeiting, or scams in everyday trade.
• Most businesses don’t have the tools to verify gold on the spot.

4. Regulations and Anti-Money Laundering Laws

• Large transactions in physical gold can trigger reporting requirements under financial crime laws.
• If gold were accepted widely, the black market would flourish, making it harder to track income or enforce taxation.

5. Businesses Rely on Digital Systems

• From point-of-sale systems to online shopping carts, nearly everything today is digital or card-based.
• There’s no infrastructure to handle physical gold payments.
• Also: staff training, insurance, and security issues would drive up costs for businesses.

When Gold Does Make Sense:

Gold, including CombiBars, can be very smart in certain scenarios:

Use Case	Why It’s Smart
Wealth Preservation	Gold historically holds its value long-term.
Inflation Hedge	When fiat currency weakens, gold retains purchasing power.
Crisis Insurance	Useful in total financial collapse scenarios (though rare).
Gifting or Portable Wealth	CombiBars are discreet, easy to pass on, and valuable.

But Will People Ever Accept Gold for Products or Services?

In niche cases, yes:

• Private transactions (e.g. barter with a contractor or survivalist communities)
• Collectors or those in prepper groups
• Hyperinflation scenarios, where local currency becomes worthless (e.g., Venezuela)

But in a modern economy with stable(ish) institutions, digital money is more practical, traceable, and scalable.

Gold, and particularly CombiBars, is a solid personal hedge against uncertainty, especially for people who distrust fiat currencies.

But to replace money or offer widespread buying power, we’d need:

• Major infrastructure changes
• Regulatory reform
• Public trust and mass adoption
• A breakdown of current banking systems

Until then, gold is best used as a reserve, not a replacement.

Realistic Ways the UK Government Could Curb the Fiscal Black Hole Without Harming the Vulnerable

Here’s a comprehensive and structured list for the report:

1. Digitise Government Communications

• Move benefit letters, NHS appointment reminders, and DWP updates to apps, emails, or online dashboards.
• Estimated annual savings: £500m–£1bn in printing and postage alone.
• Environmental benefit: Dramatically reduces paper waste and carbon footprint.

2. Make All MPs Operate Virtual Offices

• MPs currently claim huge expenses for second homes, travel, food, and staffing.
• Transitioning to virtual surgeries (e.g. Zoom clinics) would:
  • Remove the need for second homes.
  • Cut staff overheads.
  • Save taxpayers millions per year.

3. Cap Travel & Hospitality Expenses for Civil Servants and MPs

• First-class train fares, expensive hotel stays, and meal reimbursements should be capped or removed.
• Enforce travel via standard class and accommodation limits.
• Savings could be reinvested in local councils or community support funds.

4. Close Corporate Tax Loopholes

• Crack down on large multinationals that avoid tax through offshore subsidiaries and complex accounting.
• Reform legislation to target:
  • Transfer pricing
  • Tax havens
  • Delayed tax liability schemes
• This could generate £10–£25 billion annually.

5. End Harmful Subsidies

• Fossil fuel and aviation industries still receive indirect support.
• Phasing these out would:
  • Encourage green alternatives.
  • Save the government billions in environmental damage control long-term.

6. Scrap or Reform the House of Lords

• The unelected upper house costs over £120 million per year.
• Transition to a leaner, democratically elected chamber or significantly reduce attendance allowances.

7. Invest in Education to Generate Revenue

• Make higher education or skills training mandatory for the long-term unemployed (with full accessibility support).
• Encourage people to earn or learn, using student loan schemes that are repayable once earning.
• Every graduate or entrepreneur contributes back via tax, a fiscal investment, not a cost.

8. Empower Disabled Entrepreneurs

• Provide micro-loans, tax relief, and startup incentives to disabled and chronically ill individuals who wish to run businesses from home.
• This boosts:
  • Personal income
  • Tax contributions
  • Economic inclusion

 9. Clamp Down on Benefit Fraud — Without Targeting the Sick

• Most fraud is systemic, not personal (e.g., landlord overclaims, employer misclassification).
• Use AI to detect patterns in large-scale abuse instead of harassing disabled individuals with invisible illnesses.

10. Tax Ultra-High Net Worth Individuals More Fairly

• Introduce a wealth tax on assets over £10 million.
• Even a 1–2% levy could raise billions and help protect essential services.

It is not that the government has no options — it’s that they are choosing to target the most vulnerable rather than upsetting corporate donors or wealthy elites. The UK can plug the fiscal black hole ethically, smartly, and compassionately, if only the will existed to do so.

Final Thoughts

The solution isn’t a reset, it’s re-prioritising who deserves protection during tough times.
Disabled people, carers, and vulnerable citizens are not the problem; they’re victims of a system that protects the privileged.