We’ve had two epic market collapses in the last 15 years. In response, the Fed desperately tried to prop up the markets by severely cutting interest rates. Cutting rates to zero badly devalued the U.S. currency, sent us spiraling into record debt, and killed savers by lowering the savings rate to zero. But with the global economy still on terribly shaky ground and interest rates already at zero, do the Obama Administration & banks have any ammo left? Shockingly, yes.
Central banks already have plans to impose negative interest rates – in other words, you get taxed on your savings! And in order to prevent you and me from storing our money in cash and avoiding the savings tax, the gov’t & banks advance toward the real end game: abolish cash altogether and force us all into the digital world controlled by the the Obama Administration & banks. Luckily, there’s still one way to escape the tyranny.
Step 1: Tax Your Savings
When economic conditions worsen, world banks react by reducing interest rates in order to stimulate the economy. But there comes a point when those central banks run out of room to cut, because interest rates are already at zero. So the answer for world banks is to impose negative interest rates. This means that instead of getting interest on your savings, you actually PAY BANKS to keep your savings on deposit. In other words, you pay tax on your savings. So you actually LOSE MONEY every day you keep your money in the bank.
So, what would any reasonable person do when the bank steals their savings every single day? Pull their money out of the bank, of course! Physical paper money provides the check against negative interest rates, because if the bank takes your savings, you can simply withdraw your funds and hoard cash. Furthermore, when you inevitably lose faith in the banking system, physical paper money allows you to pull your savings out of the bank before the bank collapses.
Step 2: Abolish Cash
But if you think pulling money out of the bank is going to be so easy, think again. Willem Buiter, the Global Chief Economist for Citi, has now come up with an answer to prevent you from pulling your money out of the bank: abolish cash entirely! You read that right. The Global Chief Economist from one of the largest banking institutions in the world is now telling the Obama minions & banks to abolish the use and private storage of YOUR cash. And guess what? The gov’t & banks are following orders.
The Banks Declare War on Your Cash
Government & banks around the world are taking swift action to abolish the use and storage of cash:
JPMorgan Chase recently informed customers that the bank will no longer allow cash to be stored in safety deposit boxes.
Chase instituted a new policy which “restricts borrowers from using cash to make payments on credit cards, mortgages, equity lines, and auto loans.”
The Justice Department has ordered bank employees to consider calling the police on customers who withdraw $5,000 dollars or more.
HSBC is now interrogating its account holders in the UK on how they earn and spend their money as well as restricting cash withdrawals for customers.
Banks in the U.S. are making it harder for customers to withdraw and deposit cash, with Chase imposing new capital controls that mandate identification for cash deposits and ban cash being deposited into another person’s account.
Chase banned international wire transfers while restricting cash activity for business customers (both deposits and withdrawals).
The French government announced it will restrict French citizens from making cash payments over €1,000 euros.
The Gov’t Seizes Your Cash
As the U.S. spirals toward insolvency due to massive over-spending and Fed money-printing, the U.S. government is pulling out all the stops to gain access to your money – no matter where it is across the globe.
First, the government started seizing citizen bank accounts with no due process.
Then, the IRS threatened foreign nations and financial institutions across the globe to turn over your private data and financial accounts, with the threat of financial warfare if they don’t comply.
And now, the Department of Justice and local police have started seizing cash from innocent citizens. That’s right, the executive branch of government has been aggressively taking citizens cash without due process of law.
So in short, your ability to take your savings out of banks and storing it in cash is coming to an end. And even if you do take possession of your savings in cash, how secure do you feel when the government comes knocking on your door asking about your stockpile of cash?
If our government is going to these lengths to track down your money and even confiscate citizen savings without due process, isn’t it much easier to track and control digital accounts than cash? Yes. So how does the government remedy this challenge? Join the banks in a war against cash.