“The time to protect yourself is now. The bestway is to keep a portion of your wealth outside of the banking system”…
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The War on Cash Entering Bold New Phase
15 Feb 2022
With so much news about Ukraine, inflation,massive government spending and exploding deficits, it’s easy to overlook theongoing war on cash. That’s a mistake because it has serious implications notonly for your money, but for your privacy and personal freedom, as you’ll seetoday. The war on cash is a global effort being wagedon many fronts. My view is that the war on cash is dangerous in terms of lostprivacy and the risk of government confiscation of wealth.
Governments always use money laundering, drugdealing and terrorism as excuses to keep tabs on honest citizens and deprivethem of the ability to use money alternatives such as physical cash, gold and,these days, cryptocurrencies.
The real burden of the war on cash falls onhonest citizens who are made vulnerable to wealth confiscation through negativeinterest rates, loss of privacy, account freezes and limits on cash withdrawalsor transfers.
The enemies of cash promote the ease andconvenience of digital payments. Of course, there’s no denying that digitalpayments are certainly convenient. I use them myself in the forms of credit anddebit cards, wire transfers, automatic deposits and bill payments. I’m sure youdo too.
But the surest way to lull someone intocomplacency is to offer a “convenience” that quickly becomes habit andimpossible to do without. The convenience factor is becoming more prevalent,and consumers are moving from cash to digital payments just as they moved fromgold and silver coins to paper money a hundred years ago. One survey revealed that more than a third ofAmericans and Europeans would have no problem at all giving up cash and goingcompletely digital. Specifically, the study showed 34% of Europeans and 38% ofAmericans surveyed would prefer going cashless.
But in reality, the so-called “cashlesssociety” is just a Trojan horse for a system in which all financial wealth iselectronic and represented digitally in the records of a small number ofmegabanks and asset managers.
Once that is achieved, it will be easy forstate power to seize and freeze the wealth, or subject it to constantsurveillance, taxation and other forms of digital confiscation like negativeinterest rates.
They can’t do that as long as you can go toyour bank and withdraw your cash. That’s the key. In other words, it’s mucheasier for them to control your money if they first herd you into a digitalcattle pen. That’s their true objective and all the other reasons are just asmoke screen.
That’s what they won’t tell you.
Elites know that they can’t ram their unpopularagendas through in normal times. The global elites and deep state actors alwayshave a laundry list of programs and regulations they can’t wait to put intopractice. They know that most of these are deeply unpopular and they couldnever get away with putting them into practice during ordinary times.
Yet when a crisis hits, citizens are desperatefor fast action and quick solutions. The elites bring forward their rescuepackages but then use these as Trojan horses to sneak their wish lists inside.That’s what we’re seeing.
The USA Patriot Act passed after 9/11 is a goodexample. Some counterterrorist measures were needed, of course. But theTreasury had a long-standing wish list involving reporting cash transactionsand limiting citizens’ ability to get cash.
They plugged that wish list into the PatriotAct and we’ve been living with the results ever since, even though 9/11 is longin the past.
Cash prevents central banks from imposingnegative interest rates because if they did, people would withdraw their cashfrom the banking system.
If they stuff their cash in a mattress, theydon’t earn anything on it; that’s true. But at least they’re not losinganything on it. Once all money is digital, you won’t have the option ofwithdrawing your cash and avoiding negative rates. You will be trapped in adigital pen with no way out.
What about moving your money intocryptocurrencies like Bitcoin?
Let’s first understand that governments enjoy amonopoly on money creation, and they’re not about to surrender that monopoly todigital currencies like Bitcoin. Libertarian supporters of cryptos celebratetheir decentralized nature and lack of government control. Yet their belief inthe sustainability of powerful systems outside government control is naïve.
Blockchain does not exist in the ether (despitethe name of one cryptocurrency), and it does not reside on Mars. Blockchaindepends on critical infrastructure including servers, telecommunicationsnetworks, the banking system and the power grid, all of which are subject togovernment control.
You need to understand that reality.
The good news is that cash is still a dominantform of payment in many countries including the U.S. The problem is that asdigital payments grow and the use of cash diminishes, a “tipping point” isreached where suddenly it makes no sense to continue using cash because of the expenseand logistics involved.
Once cash usage shrinks to a certain point,economies of scale are lost and usage can go to zero almost overnight. Rememberhow music CDs disappeared suddenly once MP3 and streaming formats becamepopular?
That’s how fast cash can disappear.
Once the war on cash gains that kind ofmomentum, it will be practically impossible to stop.
Besides the loss of privacy, other dangers fromthe cashless society arise from the fact that digital money, transferred bycredit or debit cards or other electronic payments systems, is completelydependent on the power grid. If the power grid goes out due to storms,accidents, sabotage or cyberattacks, our digital economy will grind to acomplete halt.
The time to protect yourself is now. The best wayis to keep a portion of your wealth outside of the banking system.
That’s why it’s a good idea to keep some ofyour liquidity in paper cash (while you can) and gold or silver coins. The goldand silver coins in particular will be money good in every state of the world.
That’s why I’m always saying that savers andthose with a long-term view should get physical gold now while prices are stillattractive and while they still can. I strongly recommend that you own physical gold(and silver). I recommend you allocate 10% of your investable assets to gold.If you really want to be aggressive, maybe 20%. But no more.
Just make sure you don’t store it in a bank,because it would be subject to confiscation. That defeats the whole purpose ofhaving this sort of protection in the first place.
I hold a significant portion of my wealth innondigital form, including real estate, fine art and precious metals in safe,nonbank storage. That’s not because I’m paranoid or a fanatic prepper. I justthink it’s prudent in these times.
I strongly suggest you do the same. The cashless society could be here quicker than you think.
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Post time 17-2-2022 08:53 AM
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