The War on Cash
“The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.” ~Ron Paul
If you follow economic or international news, you may have already heard about the elites’ War on Cash.
The elites, particularly the left-wing ones which are in the majority all over the world, hate cash. When you conduct cash transactions, they can’t regulate them, they can’t tax them, and they can’t spy on them. Cash transactions also make it harder for the elites to restrict the sale of things they’d prefer you not to buy, such as marijuana, sugar, guns, gold, and many other things.
The elites know they can’t suddenly take your cash away. You’d revolt, and the elites don’t like revolts. Instead, the elites are well aware of the concept of the slowly boiling frog. They know that if they very slowly take your cash away, bit by little bit, in a few decades, you will consider it “normal” to not use cash any more. And they’re right.
So, they’ve started doing things like making certain large-denomination bills illegal and large cash transactions illegal. The stated reason for these things is to make it harder for drug dealers and terrorists, but this is bullshit, since most of the nations with the highest denomination cash bills have the lowest levels of organized crime and violence.
The real reason they’re doing this is to make sure you eventually do all of your transactions without cash so they can tax and regulate your ass (as if they don’t do that enough already).
The most recent and stark example of this was India. As Donald Trump was being elected president, Prime Minister Modi decreed that the 500 rupee note (equivalent to $7.50), and the 1000 rupee note ($15) were no longer legal tender. Also, that ATM withdrawals will be limited to INR2000 ($30) for some.
Just think about that. Imagine if Obama suddenly announced that you couldn’t use $20 bills anymore.
Needless to say, this was a very bad idea for the people of India, because:
Over half of India’s population doesn’t have any sort of bank account at the moment and about 300 million don’t have basic ID such as Aadhaar either and hence, cannot access the banking system at all. About 130 million Indians have mobile wallets (about 25 million have credit cards) and there are maybe 550 million-600 million debit cards in circulation. So access to cash is very, very important for average Indians.
Liquidity in the economic system will be sucked out for several weeks at the very least, due to the very stringent restrictions on cash withdrawals from ATMs, and bank accounts. Plus there’s the sheer logistics of getting that massive volume of new notes into circulation. In addition there will be a cost to printing and distributing the new notes and taking the old currency out of circulation.
India is a cash economy. Well over 90% of all transactions are done in cash. Most of these transactions are legal, consisting of relatively small amounts, and frequently done by people who don’t make enough money to pay income tax. Your domestic worker pays for her bus ticket. You pay her husband, the plumber, for fixing your flush. The security guard at the bank ATM buys cigarettes.
So what happened? Mass chaos of course…
Tempers frayed as hundreds of thousands of people queued for hours outside banks for a third day to swap 500 and 1,000 rupee bank notes after the notes were abolished earlier in the week.
The banned bills made up more than 80 percent of the currency in circulation, leaving millions of people without cash and threatening to bring much of the cash-driven economy to a halt.
“There’s chaos everywhere,” said Delhi Chief Minister Arvind Kejriwal, a rival of Prime Minister Narendra Modi, accusing the premier of wreaking havoc on poor and working Indians while the wealthy found ways to skirt the new rules.
Customers argued and banged the glass doors at a Standard Chartered branch in southern Delhi after security guards blocked the entrance, saying there were too many people inside already.
And that’s not all…
Although deliveries of notes to the ATMs has increased, the banks simply cannot make up for the sudden loss of 86% of the nation’s money. Not only can the delivery trucks not meet the demand, the machines cannot store the volume of notes needed.
The result has been a partial breakdown of commerce. With millions of people beginning each day with insufficient funds to function, one byproduct of the money shortage is that over 9.3 million trucks have simply been abandoned by their drivers. (Nearly two-thirds of all freight in India moves by road.)
This is all coming soon to you, too. If you’re not paying attention to international news, you’d probably assume that “this is just India.” Oh, how I wish that were true. The amount to which elites all over the world are taking your cash is chilling.
Just in the last few years:
1. Citibank in Australia declared that it will no longer accept any cash (no coins or banknotes)
2. Italy made cash transactions over €1,000 illegal
3. Russia banned cash transactions over $10,000
4. Spain banned cash transactions over €2,500
5. ATMs in Mexico have ceased issuing the 500-peso note (US$24). The largest note is now the 200-peso note (just US$10!)
6. Mexico made cash payments of more than 200,000 pesos ($9,600) illegal
7. Uruguay banned cash transactions over $5,000
8. Switzerland has proposed banning cash payments in excess of 100,000 francs
9. France made cash transactions over €1,000 illegal, down from the previous limit of €3,000
Think the US won’t do this? Larry Summers (Former US Treasury Secretary) published an article last week saying “nothing in the Indian experience gives us pause in recommending that no more large notes be created in the United States, Europe, and around the world.”
This is a worldwide trend. It’s going to get much worse, folks. Get ready.
What Can You Do?
As I usually say, I don’t think the cash in your wallet is under threat today, or even next year, or the year after that. As a matter of fact, the US Dollar is probably going to do every well over the next year or so as more nations, like in Europe, have more problems, and international citizens flock to the Dollar, incorrectly thinking it’s safe, which it is not.
But regardless, in the long-term your cash is indeed at risk. I wish this wasn’t the case, but as left-wing and/or authoritarian governments solidify their domination over the Earth, you’re going to have to be aware of your government’s hatred of you being able to buy and sell things using cash. Nothing pisses off an elite globalist like free citizens using their own private property as they see fit.
The best ways to avoid future problems in this area are:
1. Diversify your cash reserves into several different strong currencies from reasonably stable countries (Singapore, New Zealand, etc).
2. Have a decent percentage of your savings in gold. If you have a lot of gold, store most of it outside of your country using a private vault service (not a bank!).
3. Look into cryptocurrencies like bitcoin, experiment with them a little, and start to get comfortable using them.
It’s silly that we have to eventually go through this stuff just to have something a simple as some cash reserves in our lives, but sadly, that’s the world we live in now.
Enjoy the decline!