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The War On Cash And Then On Gold

Discussion in 'Topical Discussions (In Depth)' started by searcher, Dec 20, 2016.



  1. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    The War on Cash and then on Gold

    By: Clive Maund



    -- Published: Monday, 19 December 2016

    The global financial system continues to groan under the strain of the accumulated weight of trillions of dollars worth of debt and derivatives, which have built up to even more fantastic levels than those that precipitated the near collapse in 2008, thanks to the policy of solving liquidity problems near-term by creating even more debt and derivatives, Quantitative Easing being the most obvious example. However, while the majority consider the situation to be hopeless, there is actually “light at the end of the tunnel”.

    If only a way could be found to freely tap the funds of savers at will, by imposing duties or taxes on bank accounts, with the additional option to appropriate savers’ funds on occasion as required, then the systemic liquidity problems will be solved. Banks need never fear solvency problems again and they can simply fall back on the account holder’s funds to meet any obligations. There are in fact already names for these restorative operations, they are called “bails-ins” and NIRP (Negative Interest Rate Policy).

    Unfortunately, any immediate attempt to implement bail-ins and NIRP on a large scale will backfire because, faced with being charged significant sums for the privilege of keeping their money in the bank, savers will simply withdraw their funds and keep them as cash at home, or maybe even invest in Precious Metals. It is therefore imperative that these escape routes are blocked off.

    We have already seen an interesting “trial balloon” in recent years with respect to bails-ins. This was the celebrated Cyprus bail-in. When Cyprus banks were about to go belly up a couple of years ago, they saved themselves by raiding customers’ accounts, which is more palatably described as a bail-in. The reaction of global savers to this action by the Cyprus banks was one of horror and revulsion and they made it plain that they weren’t going to stand idly by and watch banks plunder their funds – they would withdraw them as cash if any such threat should appear over the horizon. This reaction set the great minds of the banking community to work on how to stop savers withdrawing their funds in the face of these threats. The solution was and is simple – abolish cash! Thus we have seen production of the 500 Euro note in the European Union stopped so that it gradually fades into oblivion and in the US Larry Summers has proposed abolition of the $100 bill, which accounts for most of the money in circulation. The idea is to implement the policy for a global cashless society in stages – if it is done all at once the public will revolt. They need to be trained to go cashless and this will take time. By starting with high denomination notes you actually remove most of the currency in circulation at a stroke, but the masses can still buy cigarettes and candy bars at street corner shops with small denomination notes. The excuse given for the removal of the notes is that it impedes organized crime and money laundering etc, which is of course a convenient smokescreen.

    With plans for a cashless society already well advanced it was time for another trial balloon. India was selected. Anxious to demonstrate his credentials as a card carrying member of the New World Order, and oblivious to the effects of the operation on the hapless citizenry of his country, Indian Prime Minister Narendra Modi went ahead with the withdrawal of two key banknotes. This caused chaos across the country, especially in rural areas where many don’t even have bank accounts, and citizens often had to travel long distances to get to banks to change these banknotes, only to find that the banks had in many cases run out of smaller denomination notes. Despite the economic dislocation and suffering experienced by the masses including some deaths, the experiment was deemed a success by the elites, as they had gotten away with it, with the cowed and impotent citizenry accepting it as their fate – what they should have done is rioted until the measures were withdrawn. Globally, the plan therefore is to keep chipping away at it until the cashless society is universally accepted, the only cash likely to remain being small denomination notes and coins suitable for paying street vendors and bus fares etc.

    The arrival of the cashless society will not only mean that banks will be able to avail themselves of citizens funds as and when they please, it will also mean that the banks, and by extension the government, will know all your financial business, what you do and when. Tax evasion will be impossible, and eventually you will not be able to do business with companies that are not approved of by the government.

    With the escape route into cash set to be blocked off, that leaves Precious Metals, gold and silver, gold as a store of value and silver more for everyday transactions. Gold bugs and others, especially survivalists, and many wealthy investors see this as THE way to escape the rapacious grasp of the banks and the government, and are busy squirreling away fortunes into overseas vaults etc. However, it is unfortunate that if you can think of this, so can they, so can the banks and the government, and they have plans for you and your gold hoard. Remember, their power is absolute, no-one dare stand up to them and they can and will do what they like, changing the law as required to suit their purposes. They are much more powerful than President Roosevelt, who in the 1930’s, in an act of naked piracy, seized the gold of US citizens, and furthermore their modern powers of surveillance and tracking are much more sophisticated than anything back then. Thus we can expect governments to declare the holding of gold (and silver) to be illegal, and to demand forfeiture to the government in exchange for nominal compensation. Vendors of gold bars will be closed down and mints will not sell retail gold. Unlike the 1930’s this be a be a coordinated global campaign, a kind of witch hunt if you will, and there will be no corner of the world that is safe, just as they finished off private banking in Switzerland. Those buying gold and stashing it in various pseudo anonymous remote foreign depositories will be in for a nasty shock as these vaults are arbitrarily raided and plundered, with local and international law being changed as required to facilitate this. Nothing will stand in the way of a system that will not permit alternatives.

    We will end on a positive note. No-one really wants to see a complete systemic collapse, which is what will happen if banks don’t avail themselves of savers funds quite soon, least of all the controlling elites at the top of the pyramid who live lives of scarcely imaginable opulence and luxury and wish to continue doing so. Such a collapse would lead to bank accounts being frozen, and a breakdown of the distribution system leading to anarchy and hand-to-hand fighting in the streets for essentials like food and gasoline. Should we not therefore be grateful to our illustrious masters who have ingeniously thought of a way out of the current impasse, by availing themselves of your funds as required? Is it not a small price to pay to go cashless and forego your privacy and independence, and forfeit your gold and silver on demand?

    It is tempting to blame others for all this, especially those in control of the system, but don’t forget that for decades you voted for people who routinely lied before elections, and told you what you wanted to hear, that you could have it all right now and to hell with the future – well, that future has now arrived.

    http://news.goldseek.com/CliveMaund/1482170400.php
     
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  2. edsl48

    edsl48 Silver Member Silver Miner

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    Back in the late 1970s and early 1980s I used to read a lot of this and, at the time, many proposed that the old silver coinage that we know as "junk silver" would return as circulated currency. Reading the above and considering the current state in India makes me wonder if there will be a widespread black market with prices based upon metals pricing.
    Does anyone know if there is a black market in Venezuela at the moment using metals as the currency?
     
  3. REO 54

    REO 54 Midas Member Midas Member

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    "Does anyone know if there is a black market in Venezuela at the moment using metals as the currency?" edsl48

    I suspect there is always some sort of blackmarket in any civilized economy. As to what is actually happening on the ground in Venezuela I don't know. Good question. Wish we had a Gimmer from there to share intel.
     
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  4. madhu

    madhu Silver Member Silver Miner

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    In India, there is palpable fear if you are a gold and silver merchant. There is an attempt to totally malign all gold stores with the real possibility of Income tax raids. One of the gold stores, Mussadilal and sons, banjara hills, Hyderabad. has been accused of laundering 1000 Kilograms of gold since the demonetization on 9/11/2016. In india the day/the month and the year, may be like the british system?
    Mind you that is only one branch in one city in India, google it. Unbelievable, incredible only in India. Do i believe it. It's certainly possible

    Laws have been stealthily passed that have given sweeping powers to the Income tax officials in India and they can do legal plunder of silver, gold, iron copper and whatever is left in between.

    But in the end, the government and the central bankers can only go so far to influence the market. If they have wisdom not to loose this game they would do baby steps and not loose the whole game to china and its backers
     
  5. madhu

    madhu Silver Member Silver Miner

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    Why dont the indian banks have no cash? Its because the ministers and political party officials have sacs and sacs of cash. The banker under duress was forced to take care of his rich and powerful clients first. Rest of ordinary citizens, pensioners, widows have no choice but to stand in line. Its more difficult to have a glimse of the new 500 rupee note than to have a glimse of the temple Idol!

    Which countries are going to better "nominally compensate", if they do indeed legal plunder. Theft by decree!
     
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  6. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Drifting into fascism

    -- Published: Monday, 2 January 2017

    By Alasdair Macleod

    Most people regard governments and their central banks as forces for the good. Financial crises and suchlike are therefore blamed on capitalism, and people believe our leaders do their best to pick up the pieces from market failures, because they are elected to promote the public good.

    The reality is very different, with governments acting not in the interests of their electors, but in the interest of the preservation of the administration. And the size of the administration is proportional to its degree of control over the people, so it and its burden on ordinary people just grows and grows with ever-increasing intervention and micro-management.

    The logical end-point in the reach of government is either state ownership of all private property, which is communism, or state control over what people do with their property, which is fascism. With communism discredited, the world is moving inexorably towards the latter. Every business is regulated in some way or other, and economic freedom is being progressively restricted with ever-tightening regulations.

    From a government’s standpoint, lack of control over private activities equates with risk to the state and its objectives. The more that people are directed in their actions, the more certain the state’s security becomes. We see this in attempts to remove cash-money from circulation, because the use of cash cannot be controlled. It can be used for activities beyond government’s knowledge, it can be used to evade paying taxes, and it can be used to undermine a bank’s solvency. Many people who are financially aware probably thought this was a trend only to be seen in the advanced nations, but it is equally true in emerging economies, as the recent experience in India has dramatically shown.

    Unfortunately for Indian nationals, the Indian government’s clumsiness in banning R500 and R1,000 notes is certain to lead to an economic and financial crisis. Looking on the bright side, it might lead to the collapse of the Modi government. If that happens, it may delay the same medicine being dispensed by other governments to nations in a similar state of development and tempted to pursue similar objectives.

    An impartial observer is bound to ask, what drove Modi to be so stupid? To understand government motivation in emerging nations, it is important to realise they have become two-speed economies. The first is the modern city, requiring expensive infrastructure. Skyscrapers are shooting up everywhere, international businesses are setting up offices, an elite has been educated and qualified as accountants, lawyers, bankers, and in every skill deployed in city economies in the advanced nations. These welcome developments produce tax revenue for governments, along with expenses. Above all, they fire up a politician’s desire for further development, whether people want it or not. And their focus is turning to private sector activity which is cash-based, unbanked, and untaxed.

    Even in cities like Kuala Lumpur, there is a trading underclass in which most of the population participates. Bringing these activities into the statistical and tax network would bolster Malaysia’s GDP and the government’s tax revenue. The same is true of everyone outside the major cities. Indonesia has 250 million people, most of which are unbanked, untaxed, and whose business activities are similarly unrecorded. Word is that Indonesia’s central bank is planning to do away with all cash within five years. The expected gains to the state are obvious, and one can see why politicians will favour the deployment of financial technology, such as mobile banking, to achieve these ends.

    Cash is just one aspect of government control over its citizens. Tax is another. According to an Ernst & Young report, few governments “are not investigating the incalculable benefits of digitalising their tax systems”. It includes deploying software that automatically calculates taxes due. Brazil, it seems, is leading the way, with a digital software system that accesses a company’s bank accounts, financial filings, daily invoices and sales slips to calculate taxes which become immediately due. And it’s not just companies, but individuals who are increasingly subjected to this intrusion as well. The result is Brazil’s tax revenue has been increased by some 12.5% annually, without any increase in tax rates.

    It appears all countries are going down this digital route. And when anyone objects about the loss of personal freedom, the response is predictable: people must be made to pay their fair share of taxes, and all tax evasion and avoidance must be stopped in the interests of the honest taxpayer. It is essentially the argument that India’s Modi put forward to justify banning the cash notes likely to be used for black market activities that evade taxation. Forget any argument about personal freedom, infringement of personal rights, or the economic benefits of tax competition.

    What’s particularly concerning for the individual is the way nations appear to be ganging up together into an unelected unaccountable super-state. Surely, it’s no accident that several unrelated countries are pursuing the same objectives of banning cash, and working on plans to automate tax collection. A vital executive component, which swaps information internationally, is domestic security, with every move an individual makes increasingly tracked by video and number-recognition cameras. Further movement-tracking is through payment systems, including public transport ticketing, and mobile phones. Security tracking has been enhanced and justified because of the requirement to control and bring to justice national nasties, such as child-molesters. We can expect more moves to streamline extradition to complete state monitoring, not just for paedophiles, but for anyone deemed by the state to be worth watching.

    We are already used to the state controlling the interest we pay and receive on our money. Banning cash increases the depth of this control, with savings and deposits being taxed through negative interest rates. The super-state’s cabal of central banks coordinates managed interest rate policies, either by liaising directly, or through the forum of the Bank for International Settlements. Quantitative easing, the direct control of bond prices through central bank purchases, reduces the risk that the market will challenge central bank policies, at least for the short-term.

    The western world is further down the road to national socialism than people realise, and because the journey has been so subtle, it has happened with minimal civil disturbance. Ex-communists and Marxian socialists now fully endorse fascism without realising it. It is ironic that the world fought a war seventy years ago against fascism, yet we are all sleep-walking into implementing the same ideology. But we cannot say there is a deliberate fascist plan at the highest levels. More likely, government politicians and functionaries are unaware that their mostly honest attempts to protect us from real and imagined threats amount ultimately to the same thing.

    Eventually, governments will destroy themselves following these political and economic policies, because the states and their experts delude themselves that they understand economics. They do not wish to understand the reasons why markets free of government interference lead to prosperity, and why government micro-management always ends in tears. Consequently, they do not see the risk to statist domination, because it comes not from private individuals, but from the states themselves. Banning cash will almost certainly speed up the decline of an electronic currency’s purchasing power, because its public rejection has the potential to become instantaneous.

    Just watch how the cashless rupee behaves. Compare the potential for price inflation in a cashless economy with the Weimar or Zimbabwe inflations, when cash generally had to be obtained before it was spent. Rudolf Havenstein, President of the Reichsbank in the early-1920s, had the printing-presses working twenty-four hours a day churning out currency notes to meet an escalating cash shortage. Today, not only is access to money instant, but it is to credit as well. Currency collapse could be the greatest threat to planned national socialism. During a currency collapse a state’s liabilities will rise along with everyone else’s. The growing demand to fund escalating state liabilities simply destroys the wealth upon which future tax revenue relies. A prosperous economy is one where individuals keep and invest their wealth productively, as all experience has shown. Perhaps Donald Trump understands this, but can he stand up to the forces that will be arraigned against him?

    We have learned from Brexit that any gain the people make against statist plans will be temporary, because the establishment merely replaced David Cameron as Prime Minister with a former Home Secretary, who has overseen the greatest loss of personal freedom in Britain to date. Apart from the Brexit debate, it is business as usual, with a British government continuing to tighten its control over use of cash, coordination of information to enhance tax collection, and the removal of privacy over personal affairs.

    In Euroland, there will doubtless be economic and financial disintegration, and maybe the destruction of the euro, to be replaced by the original currencies, many of which will destroy themselves even faster. By rebelling against the status quo, ordinary Italians, French, Spanish and Dutch electors will merely intensify pressure for state control, as the politicians defend their rock-solid belief that the European Union must survive all challenges, even if ordinary people become impoverished in the process.

    It is, however, no less than what would have happened eventually if the fascists had not lost the Second World War.

    The views and opinions expressed in this article are those of the author(s) and do not reflect those of Goldmoney, unless expressly stated. The article is for general information purposes only and does not constitute either Goldmoney or the author(s) providing you with legal, financial, tax, investment, or accounting advice. You should not act or rely on any information contained in the article without first seeking independent professional advice. Care has been taken to ensure that the information in the article is reliable; however, Goldmoney does not represent that it is accurate, complete, up-to-date and/or to be taken as an indication of future results and it should not be relied upon as such. Goldmoney will not be held responsible for any claim, loss, damage, or inconvenience caused as a result of any information or opinion contained in this article and any action taken as a result of the opinions and information contained in this article is at your own risk.

    http://news.goldseek.com/GoldSeek/1483369440.php
     
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  7. madhu

    madhu Silver Member Silver Miner

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    Great article. But
    80 percent of Indians support this move. It's possible that these are naive people who have been conned by Mr Modi who has unleashed harakiri on the Indian economy? When 80 percent of the havenots turn against the 20 percent is it going to be fun? Collapse of the Modi government. Wishful thinking. Before that happens a bunch of low level banks/bankers will be sacrificed for the greater good. Any one dissenting will be considered evil and a traitor to the cause.

    Surely, Mr Modi could not have done this without the blessing of the Reserve bank of India. (RBI). The question is who dictates the RBI? Its quite possible that other central banks are in testing mode and are watching what is happening. Mr P Chidambaram, an erudite scholar and ex finance minister has not been able to pry that information out. He can surely give an educated guess. The Supreme court of India has sided with the RBI to maintain the secrecy of their proprietary info.

    But how comeMr Trump understands the economy better than Mr Modi? May be western bias against asians to keep economic slavery alive. This is a biased article because it wants the people with old money and wealth to keep winning at the expense of the majority have nots.

    What are the alternatives to a cashless rupee to the ordinary Indian. They have no choice. Cannot own more than -- acres of land and x gms of gold. Bit coin is banned? The rejection of the electronic rupee is only possible by payment owed to foreign debtors.

    Currency collapse, the demonetization may be an austerity measure to just preempt that from happening.
    RBI figure, 40 percent value gross of new currency notes (6lakh crores rupees in new currency) have been issued. 60% of notes are probably not coming back. So everyone cannot spend the money. The velocity of money circulation is going to diminish. The currency might strenghten, not collapse.
     
  8. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    India - A Lot Of Pain For No Gain

    [​IMG]
    by Tyler Durden
    Jan 1, 2017 4:40 PM


    Submitted by Jayant Bhandari via Acting-Man.com,

    India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, Part-V, Part-VI and Part-VII, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions.

    India’s Pride and Joy

    [​IMG]

    Indians are celebrating that their economy has surpassed that of India’s former colonial master, the UK.

    So-called educated Indians have latched on to the above visual, with full support of the Indian government. It has been shared far and wide in the national media. When you remind them that India’s population is twenty-one times that of the UK and on top of that, the British pound has taken a huge pounding because of Brexit and associated fear in the financial markets, expect to be ignored. You will be seen as anti-Indian.

    Given the underlying irrationality and tribalism of India (read earlier updates for more on this), selected numbers are used to rationalize feelings and emotions. You see this everywhere in India: Science — very ironically — is used as a tool to rationalize superstitions and irrationalities.

    Who needs reality when we can exist in illusions? But even this illusion - that India has superseded the UK - might disappear once the reality of India’s demonetization sinks in and the rupee falls, which it likely will once the international media recognize that Modi went for demonetization not to reduce corruption, but to transform India into a police state.

    Modi’s interest was to increase tax collection, for the sake of tax collection, an approach in which rulers start to see themselves as all that matters, where citizens come to be seen as mere cogs in the service of the state.

    In Modi’s imagination, if you are not a part of the formal economy — as is the case with the vast majority of desperately poor Indians, perhaps close to a billion people — you don’t count. As they are not recorded as part of the formal economy, their pain and suffering does not count either. Indeed most of their suffering and pain goes unseen and unheard — it has for the last two millennia.

    The Indian stock market continues to fall, despite the fact that people know that selling their shares makes no sense, as their cash in the bank is effectively frozen. Could the stock market fall even more if bank accounts were to be unfrozen? Could the Indian rupee then fall as well, unless serious capital controls are instituted and gold-buying is restricted?

    It is hard to predict the future, but those owning Indian assets from which money can still be repatriated will likely soon start to discover that India’s stock market and the rupee are possibly overvalued. Could an exodus start once money managers in New York and London start arriving at their desks at the start of the new year, after sobriety kicks in with the end of socialization and partying?



    Scuffles have broken out between desperate clients and bank staff. Historically, it is commanders, kings and politicians who get all the blame. But these rulers and elites sitting in their ivory towers would never get their way if those on the front lines refused to obey unethical orders. Banks are required to provide cash to their clients when asked to do so. Their staff should have declined to accept Modi’s instructions to ration cash distribution. They should have stepped aside and let Modi deal with their clients, passing the responsibility where it belongs. Having not done that, they have become the face of Modi, or at least the face clients will take their anger out on. Banks employees are now starting to worry.

    The Last Gasps of Disintegrating Institutions
    These updates are not just about demonetization. They are an attempt to dissect the deeper, underlying cultural issues of India (and similar backward countries in South Asia, Middle East, Africa and South America) and why with the disappearance of the last vestiges of colonial institutions, India is starting to crumble. They are also an attempt to see what future might hold.

    These updates are a story of why without the British to run them, western institutions implanted on India did not work and have mutated into something horrible. For example, education has become a tool for propaganda.

    Nationalism without underlying values, is perceived by Indians as a mere geographical concept — and with indoctrination in schools it is rapidly weaving Indians into a dogmatic collective no different than those found in the Middle East. In a decade or so, India might become the Middle East on steroids.

    Given its culture, which probably cannot change for centuries or perhaps millennia, India must ideally get heavily decentralized. India’s tribalism is entrenched and unchangeable, which is creating massive pressures to devolve India into its natural constituents, namely tribes. This will happen. The earlier the underlying forces are recognized, the less painful the process will become.

    But as last gasps, there is a massively increased tendency toward intensifying centralization, toward instituting a police state. Increased militarization and equipment purchases, centralization of taxes, and now demonetization — all failing — are those last gasps.



    Bulandshahr, Uttar Pradesh: a cop fires in the air to “calm down” agitated women outside a bank How long can they hope to control the situation if people are not getting the money that belongs to them?

    A Life of Queuing: Pain for no Gain
    While people in the rich world are in the cozy comforts of their homes, celebrating Christmas and the arrival of the New Year, Indians are lining up outside banks in utter cold to take out their own savings. Most are numb to why they are doing this. To a rational foreign bystander, their lack of revulsion has a certain spiritual element.

    Indians have almost no history of revolting against oppression — they simply adjust to new situations. With respect to the demonetization policy, they have sheepishly accepted their predicament. As we discussed in earlier updates, this is a result of Indians’ utter lack of rationality, their failure to see what is wrong, their fatalism, the absence of revulsion against oppression, and their lack of moral instincts.

    The caste system finds its roots here, where might-is-right is the governing principle, with both oppressor and oppressed failing to see anything wrong with their situations. The oppressor feels no empathy and the oppressed feels no revulsion. At best — given the lack of reason — the oppressed strives to become the oppressor.

    Giving in to their predicament, many want to believe that they are queuing for some greater cause — akin to how the freshly decked out soldier feels on his way to battle — fooling themselves that this battle is needed. Of course there is no real higher cause they are worried about.

    This facade of moral superiority is merely a cover for their boring and unfulfilling lives, and perhaps an unconscious expectation to get something for nothing — since Modi has offered them a windfall once the unaccounted money has been deposited. In the face of reality, however, the initial euphoria is fading.

    Over the last 70 years since the British left, India’s entrenched interests, sociopaths and rulers have kept over a billion people — without any exaggeration— in an insect-like existence. This likely has been one of the biggest crimes against humanity, but has gone unnoticed and unseen. Demonetization once again has created massive suffering, most of which will never be documented.



    The failure to sell at prices exceeding transportation cost is forcing farmers to dump their produce. Food prices have fallen as a cascading result of the cash crunch. Farmers are suffering hugely and one must ask what poor people are eating. This is a man-made disaster. Members of India’s middle class, lacking empathy, are happy that their food expenses are down 25% to 50%. They are however failing to consider that this temporary boon will constrict supplies in the future and eventually push prices much higher.

    What did Modi Want from Demonetization?
    As the deadline of 31st December 2016 to deposit all banned notes draws to a close, it is worth assessing what Modi really wanted, what he said he wanted, and what we should expect going forward.

    Modi was after nothing else but to shock and awe society, to inculcate fear in people and to centralize control, something not too dissimilar to what Stalin or Mao did in their countries. He wanted to humiliate Indians.

    He wanted them to commit their spirit to the service of the great nation-state, which in the imagination of Modi is represented by him. He wanted society to do a ritualistic dance and to celebrate his glory and conduct a self-cleansing exercise, through these never-ending queues.

    Suffering from a massive identity crisis, non-resident Indians (NRIs) have found an emotional crutch in Modi. Not having to face any immediate problems themselves and incapable to understand the future consequences — for at the foundations irrationality rules undisturbed in them — so-called educated middle class members have euphorically approved of Modi’s demonetization.

    Moreover, they are happy, as they despise small businessmen and lower caste people, who are getting hurt the most from the initial stage of demonetization. With Modi starting to be increasingly seen as joker in the international media, the emotional crutch of NRIs will soon disappear.

    The time for India’s middle class will come, as the second-order and higher-order effects of the policy reveal themselves, but by then there will be no one to save the Indian middle class. Who said that a massive social engineering exercise like demonetization will not any have higher-order effects?

    Anyone with the slightest understanding of philosophy and universal principles knows that a massive increase in corruption is written all over what Modi has done. Rhetorically, Modi wanted to end corruption, stamp out counterfeit currency and the financing of terrorism. Let us consider each of these.

    No unusual counterfeit money was found in the process of demonetization, absolving Pakistan from the charge of having counterfeited Indian currency. Most of the banned notes have already been deposited in banks, despite desperate attempts by Modi to stall the process of depositing.

    What has indeed become a massive problem is that the new notes are extremely vulnerable to being counterfeited. There are too many parts of this developing story of demonetization, but the ease with which the new notes can be counterfeited —and their many other flaws — by itself may be a major blow to the future of India’s monetary system. What if people start to refuse to accept the new notes?



    This is one of the many problems with the new notes. Some are badly printed; some have ink that gets smeared. They have been extremely easy to counterfeit. If the government of 1.34 billion people, in this large-scale social engineering project cannot even design two new notes properly, on which the possibility of any stabilization of the money system rests, one can easily imagine how utterly and thoroughly incompetent India’s government is. Of course one probably has to spend some time in India to really understand the depth of this incompetence. It pays to remind ourselves that India is a single country only because the British left it that way. It is otherwise unmanageable and incapable of being controlled as a single unit. It is on its way to eventual disintegration. Modi will have hastened that trip.

    Agitation in Kashmir and issues at the border with Pakistan have continued unabated. With Indians increasingly nationalistic, there is enormous popular support to continue and increase the oppression of Kashmir. The North Eastern provinces, which have historically been very unstable, have in recent weeks been very volatile.

    Even if demonetization were able to control the so-called terrorism in these areas in the short-term, the problem would be back within months. India needs to solve the discontent that exists in so many of its regions and stop rampant abuses — fake encounter killings, rapes and systematic imposition of fear — conducted by its armed forces. This leaves ending corruption as the only issue.



    [​IMG]
    One billion Indians with no internet are expected to use e-transactions. How did Modi come to think this was possible? Even a lot of educated people have never used an ATM. And you must pay about 2% in transaction fees and service taxes for using e-transactions. A primary school student can explain that this does not add up.
    Photo credit: Reinhard Krause / Reuters


    Corruption in India
    As soon as one lands at the airport in Delhi, Mumbai or Chennai, one is hit with a wave of corruption, and sheer chaos. Often the custom-immigration forms are not there. Someone who acts very authoritative then rations those out. The line-ups to the immigration counter are hazy. No one really knows where one should go.

    When you go to the baggage carousel, someone from customs comes over and offers to help you leave the airport unexamined, for a fat bribe. If you have something to declare, good luck, for the customs officer will know nothing about how to put a value on what you have, despite this being the only thing he does. You will waste your time and end up negotiating with them. You will be in a dark alley with no support.

    When I arrived in Chennai a couple of years back with my suitcase missing, I had no choice but to go to customs to get the paperwork signed. I was asked to pay a massive custom duty on my unaccompanied bag. When they realized I wasn’t going to pay a bribe, they let me go.

    Once you are out of the customs area, you encounter scammers of all sorts, all working hand in glove with the airport authorities. You must know which taxi counter to go to, or you risk paying a fortune.

    A European friend who arrived in Delhi last week gave me a call from the airport. She could not find a working ATM. The banks did not convert her money at the airport. She ended up going out hunting with touts to get her money converted, a whole new dimension of corruption and abuses that Modi has inflicted on people.

    A lot of girls eventually get sexually assaulted in India anyway, now even more after the demonetization. At most airports in India, you find to your surprise that you end up paying parking charges even if you never parked. The bribes are distributed from top to bottom, from the head guy of the airport to the lowest policeman in the hierarchy.

    If you want a passport, you pay a bribe. If you want a driving license, you pay a bribe. If you want water or electricity coming to your house, you pay a bribe. If you go to the police or the court, you must pay a bribe.

    My poor friends keep reminding me that I always talk about corruption that rich people — the top 2% of the population — face. They tell me I have no clue how much worse life gets once you start looking at distant rural places. Girls tell me the same. And I confess they are correct. In all these cases, apart from bribes, one must face the sadism of the police and bureaucrats.



    Instant street justice dispensed by policemen. Might is right is what rules in India, not the rule of law.

    Bribes are an essential part of India. Everyone gives and takes bribes. Everyone I know would gladly give a bribe to gain an unfair advantage over others.

    [​IMG]
    The circus continues. While India queues up in front of the banks, Modi has inaugurated construction of a $500 million statue, to support Hindutava, a religious national identity. This wretched country, containing the highest number of the world’s poorest, most stunted and malnourished, must face such wastage.
    Image credit: Chhatrapati Shivaji

    What Should We Expect Going Forward?
    Modi’s recent policies have significantly increased all-around corruption, which we have discussed in earlier updates. The Mafia has grown by leaps and bounds and tax authorities get whatever bribes they are asking for. There has been a horrendous increase in corruption among the banks for conversion of banknotes. Until now corruption did not exist at the retail level in banks.

    If Modi really wanted to control corruption, he did not even have to turn his head. Wherever you look corruption stares you into the face. But Modi has actively protected institutionalized corruption. Modi has protected political parties, bureaucrats and politicians from the consequences of the banknote ban and their corrupt activities.

    Nothing can control corruption in India except a ruthless decentralization of power in India. Instead, Modi is doing the exact opposite. Indeed, corruption has skyrocketed, particularly the worst one: destruction of whatever spirit still existed among small business and the poorest people.

    Let us remind ourselves that Modi’s interest was not to control corruption but to shock and awe society into submission, for his personal glory. In future updates, we will delve even deeper into why corruption is so entrenched in India and why it can never go away using top-down institutional mechanisms.

    Modi has set events into motion that will cripple India’s economy, with devastating effects on its poorest people. Most of the suffering will go unseen and unheard, in remote village and tribes, whose hunger and death is no one’s concern. Modi will be gone sooner rather than later, a result of his own arrogance. The problem is that whoever comes after Modi will probably make me nostalgic about Modi.

    The textile industry in Ludhiana in Punjab is in severe trouble. There will be many unpredictable cascading effects on the economy and society.

    Let us end this update with what one should expect in terms of monetary regulations in the near term.

    Modi astutely declared demonetization on 8th November 2016, when the international press was focused on the US elections. He undertook a massive — and extremely flawed — social engineering exercise of no use to society. He did manage to escape scrutiny by the mainstream media.

    He will do this again, between the start of the New Year and before Trump is installed, very likely at the turn of the year. He has promised that everything will be back to normal on 1st January 2017. Many transactions and hopes are based on the situation soon becoming normal.

    Of course there is nothing on the horizon that can normalize the monetary situation for many months. He has so far released about 60 changes in rules over the last 47 days. He will have to continue to patch things up.

    Eventually people will no longer be able to do the transactions they are currently doing informally. They will come to realize that their trust has been completely betrayed and their savings have been hugely constrained by Modi’s edicts.

    The police state will continue to advance—slowly killing the very hosts it is feeding on. Will Modi impose capital controls and a ban on gold at the turn of the year? I would not be surprised.

    I wish you very prosperous New Year 2017!

    http://www.zerohedge.com/news/2017-01-01/india-lot-pain-no-gain
     
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  9. Winston_Room101

    Winston_Room101 Seeker

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    How

    is all of this made in India newz impacting the BRICs story ( that does not seem to be getting any play these dayz )

    much of the India newz relates to demonetization

    http://economictimes.indiatimes.com/topic/demonetisation

    much relates to

    http://gocashlessindia.com/

    going " cashless " could enable the .gov to tax that which otherwise does not currently attract tax

    Bhim app { The Bharat Interface for Money }

    are promoting electronic " pay ment " ( paytm )

    some via biometrics ( finger print, no need for literacy )

    Happy Note Year
     
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  10. Winston_Room101

    Winston_Room101 Seeker

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    http://www.news18.com/news/india/ha...judicial-custody-till-january-16-1330433.html

    " New Delhi: A court in Delhi on Monday sent to judicial custody, till January 16, hawala trader Parasmal Lodha who was arrested for converting demonetised notes worth Rs 25 crore linked to industrialist J. Sekhar Reddy and lawyer Rohit Tandon into new currency. "

    ...
    " The Central Bureau of Investigation (CBI) had last month arrested Reddy, a former Tirumala Tirupathi Devasthanam Board Member, and two others from Chennai for money-laundering after Income Tax (IT) department recently seized 177 kg of gold, Rs 96 crore in old 500 and 1,000 rupee notes and Rs 34 crore in new currency from their premises. "

    http://economictimes.indiatimes.com...alaysia-by-mumbai-ed/articleshow/56137639.cms

    " The ED began tracking Lodha, one of the biggest names in Kolkata’s business circles with interests in hotels, construction, and financial consultancy, after the seizure of Rs 13.65 crore, including Rs 2.60 crore in new currency notes, from Delhi lawyer Rohit Tandon’s office. Tandon’s questioning led the investigators to sand mining tycoon J S Reddy in Chennai, from whose house Rs 135 crore of unaccounted cash, including Rs 10 crore in new currency, and 177 kg of gold bars were recovered. "

    http://economictimes.indiatimes.com...rrency-of-corruption/articleshow/56215162.cms

    Hawala Systems : https://en.wikipedia.org/wiki/Hawala

    maybe PM Modi is actually going after the Sicilians et al

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  11. REO 54

    REO 54 Midas Member Midas Member

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    Cash crunch pushed Indian factory activity into contraction in December:


    Indian factory activity plunged into contraction last month as a cash crunch following Prime Minister Narendra Modi's currency crackdown severely hurt output and demand, a survey found on Monday.

    The Nikkei/Markit Manufacturing Purchasing Managers' Index INPMI=ECI fell to 49.6 in December from November's 52.3, its first reading below the 50 mark that separates growth from contraction since December 2015.

    It was also the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis and brought on a global recession.



    "Having held its ground in November following the unexpected withdrawal of 500 and 1,000 bank notes from circulation, India's manufacturing industry slid into contraction at the end of 2016," said Pollyanna De Lima, economist at survey compiler IHS Markit.

    "Shortages of money in the economy steered output and new orders in the wrong direction, thereby interrupting a continuous sequence of growth that had been seen throughout 2016."

    The output sub-index at 49.0 was its lowest this year, though the rate of contraction was only slight.

    The new orders sub-index which measures both foreign and domestic demand was also knocked to its weakest in 2016.

    Contractions in momentum were reported across all major sub-indexes in the survey, such as purchasing activity and employment, highlighting the blow to the economy after the government's demonetization drive.

    Modi's decision to scrap high-value banknotes as part of a crackdown on tax dodgers and counterfeiters removed 86 percent of the currency in circulation virtually overnight, denting consumption in a country where the vast majority of people still rely on cash for day-to-day activities.

    Economists have begun slashing GDP forecasts and some of the more pessimistic views are that growth will halve from the 7.3 percent year-over-year rate clocked in July-September, especially as consumer spending accounts for over half of India's output.

    The survey also showed output prices rose at a subdued pace last month, while input prices climbed sharply, suggesting manufacturers had little power to pass on rising costs.

    ALSO IN BUSINESS NEWS
    With consumer inflation at a two-year low in November, that could fuel hopes of an interest rate cut by the Reserve Bank of India at its next policy review.

    The central bank unexpectedly kept its key policy rate unchanged at 6.25 percent earlier this month, despite calls for action in the face of the intense cash shortage.

    The RBI said the impact of the cash squeeze may be short-lived and it needed more time to see if the move would cause more lasting damage to economic activity.



    (Reporting by Sumanta Dey; Editing by Kim Coghill)

    http://www.reuters.com/article/us-india-economy-pmi-idUSKBN14M03P
     
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    madhu Silver Member Silver Miner

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    madhu Silver Member Silver Miner

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  15. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    A Well-Kept Open Secret: Washington Is Behind India’s Brutal Experiment of Abolishing Most Cash

    [​IMG]
    by George Washington
    Jan 12, 2017 11:53 AM

    Preface: Washington's Blog reached out to Dr. Haering after reading several excellent articles on India's cash ban. Dr. Haering then combined the information into a single article for us. We lightly edited the article for spelling and grammar.

    By Norbert Haering, a German financial journalist, blogger and PhD economist, who received the 2007 getAbstract Best Business Book award and the 2014 prize of the German Keynes Society for economic journalism. His best-selling book (in German) “The abolition of cash and the consequences” was published in 2016. Originally published on norberthaering.de (http://norberthaering.de/en/home/27-german/news/745-washington-s-role-in-india). Republished with permission of the author.

    In early November, without warning, the Indian government declared the two largest denomination bills invalid, abolishing over 80 percent of circulating cash by value. Amidst all the commotion and outrage this caused, nobody seems to have taken note of the decisive role that Washington played in this. That is surprising, as Washington’s role has been disguised only very superficially.

    U.S. President Barack Obama has declared the strategic partnership with India a priority of his foreign policy. China needs to be reined in. In the context of this partnership, the US government’s development agency USAID has negotiated cooperation agreements with the Indian ministry of finance. One of these has the declared goal to push back the use of cash in favor of digital payments in India and globally.

    On November 8, Indian prime minster Narendra Modi announced that the two largest denominations of banknotes could not be used for payments any more with almost immediate effect. Owners could only recoup their value by putting them into a bank account before the short grace period expired at year end, which many people and businesses did not manage to do, due to long lines in front of banks. The amount of cash that banks were allowed to pay out to individual customers was severely restricted. Almost half of Indians have no bank account and many do not even have a bank nearby. The economy is largely cash based. Thus, a severe shortage of cash ensued. Those who suffered the most were the poorest and most vulnerable. They had additional difficulty earning their meager living in the informal sector or paying for essential goods and services like food, medicine or hospitals. Chaos and fraud reigned well into December.

    Four weeks earlier

    Not even four weeks before this assault on Indians, USAID had announced the establishment of “Catalyst: Inclusive Cashless Payment Partnership”, with the goal of effecting a quantum leap in cashless payment in India. The press statement of October 14 says that Catalyst “marks the next phase of partnership between USAID and Ministry of Finance to facilitate universal financial inclusion”. The statement does not show up in the list of press statements on the website of USAID (anymore?). Not even filtering statements with the word “India” would bring it up. To find it, you seem to have to know it exists, or stumble upon it in a web search. Indeed, this and other statements, which seemed rather boring before, have become a lot more interesting and revealing after November 8.

    Reading the statements with hindsight it becomes obvious, that Catalyst and the partnership of USAID and the Indian Ministry of Finance, from which Catalyst originated, are little more than fronts which were used to be able to prepare the assault on all Indians using cash without arousing undue suspicion. Even the name Catalyst sounds a lot more ominous, once you know what happened on November 9.

    Catalyst’s Director of Project Incubation is Alok Gupta, who used to be Chief Operating Officer of the World Resources Institute in Washington, which has USAID as one of its main sponsors. He was also an original member of the team that developed Aadhaar, the Big-Brother-like biometric identification system.

    According to a report of the Indian Economic Times, USAID has committed to finance Catalyst for three years. Amounts are kept secret.

    Badal Malick was Vice President of India’s most important online marketplace Snapdeal, before he was appointed as CEO of Catalyst. He commented:

    “Catalyst’s mission is to solve multiple coordination problems that have blocked the penetration of digital payments among merchants and low-income consumers. We look forward to creating a sustainable and replicable model…. While there has been … a concerted push for digital payments by the government, there is still a last mile gap when it comes to merchant acceptance and coordination issues. We want to bring a holistic ecosystem approach to these problems.”

    Also in September, McKinsey Global Institute issued a report titled “How digital finance could boost growth in emerging economies”. The authors acknowledged “collaboration with the Financial Services for the Poor team at the Bill & Melinda Gates Foundation”. They thanked more than ten Gates Foundation (BTCA) people for contribution to the report, including Gates Foundation’s India head Nachiket Mor, whom we will meet again later. The Gates Foundation and USAID are key members of a Better Than Cash Alliance, which we will also look at more closely. In mid-December, seemingly unfazed by ample evidence that taking away cash in India has been the exact opposite of helping the poor and promoting “financial inclusion”, McKinsey-partner Susan Lund and study contributor Laura Tyson published “The promise of digital finance”, making fantastic claims about the advantages of pushing back cash-use in favor of digital, including ten percent higher GDP for countries like India.

    Ten months earlier

    The multiple coordination problem and the cash-ecosystem-issue that Malick mentions had been analysed in a report that USAID commissioned in 2015 and presented in January 2016, in the context of the anti-cash partnership with the Indian Ministry of Finance. The press release on this presentation is also not in USAID’s list of press statements (anymore?). The title of the study was “Beyond Cash”.

    “Merchants, like consumers, are trapped in cash ecosystems, which inhibits their interest” in digital payment it said in the report. Since few traders accept digital payments, few consumers have an interest in it, and since few consumers use digital payments, few traders have an interest in it. Given that banks and payment providers charge fees for equipment to use or even just try out digital payment, a strong external impulse is needed to achieve a level of card penetration that would create mutual interest of both sides in digital payment options.

    It turned out in November that the declared “holistic ecosystem approach” to create this impulse consisted in destroying the cash-ecosystem for a limited time and to slowly dry it up later, by limiting the availability of cash from banks for individual customers. Since the assault had to be a surprise to achieve its full catalyst-results, the published Beyond-Cash-Study and the protagonists of Catalyst could not openly describe their plans. They used a clever trick to disguise them and still be able to openly do the necessary preparations, even including expert hearings. They consistently talked of a regional field experiment that they were ostensibly planning.

    “The goal is to take one city and increase the digital payments 10x in six to 12 months,” said Malick less than four weeks before most cash was abolished in the whole of India. To not be limited in their preparation on one city alone, the Beyond Cash report and Catalyst kept talking about a range of regions they were examining, ostensibly in order to later decide which was the best city or region for the field experiment. Only in November did it became clear that the whole of India should be the guinea-pig-region for a global drive to end the reliance on cash. Reading a statement of Ambassador Jonathan Addleton, USAID Mission Director to India, with hindsight, it becomes clear that he stealthily announced that, when he said four weeks earlier:

    “India is at the forefront of global efforts to digitize economies and create new economic opportunities that extend to hard-to-reach populations. Catalyst will support these efforts by focusing on the challenge of making everyday purchases cashless.”

    Catalyst is housed at IFMR, an Indian research institute, of which Gates Foundation India’s CEO Nachiket Mor is a board member, has many US-Institutions as funders, including many members of a group called Better Thank Cash Alliance, including USAID, Gates Foundation, Ford foundation, Citi. IFMR is a member of the “Alliance for financial inclusion”, which is financed by the Gates Foundation (BTCA).

    Veterans of the war on cash in action

    Who are the institutions behind this decisive attack on cash? Upon the presentation of the Beyond-Cash-report, USAID declared: “Over 35 key Indian, American and international organizations have partnered with the Ministry of Finance and USAID on this initiative.” On the ominously named website http://cashlesscatalyst.org/ one can see that they are mostly IT- and payment service providers who want to make money from digital payments or from the associated data generation on users. Many are veterans of what a high-ranking official of Deutsche Bundesbank called the “war of interested financial institutions on cash” (in German). They include the Better Than Cash Alliance, the Gates Foundation (Microsoft), Omidyar Network (eBay), the Dell Foundation Mastercard, Visa, Metlife Foundation.

    The Better Than Cash Alliance

    The Better Than Cash Alliance, which includes USAID as a member, is mentioned first for a reason. It was founded in 2012 to push back cash on a global scale. The secretariat is housed at the United Nations Capital Development Fund (UNCDP) in New York, which might have its reason in the fact that this rather poor small UN organization was glad to have the Gates Foundation in one of the two preceding years and the MasterCard Foundation in the other as its most generous donors.

    The members of the Alliance are large US-Institutions which would benefit most from pushing back cash, i.e. credit card companies Mastercard and Visa, and also some U.S. institutions whose names come up a lot in books on the history of the United States intelligence services, namely Ford Foundation and USAID. A prominent member is also the Gates Foundation. Omidyar Network of eBay founder Pierre Omidyar and Citi are important contributors. Almost all of these are individually also partners in the current USAID-India-Initiative to end the reliance on cash in India and beyond. The initiative and the Catalyst program seem little more than an extended Better Than Cash Alliance, augmented by Indian and Asian organizations with a strong business interest in a much decreased use of cash.

    Reserve Bank of India’s IMF-Chicago Boy

    The partnership to prepare the temporary banning of most cash in India coincides roughly with the tenure of Raghuram Rajan at the helm of Reserve Bank of India from September 2013 to September 2016. Rajan (53) had been, and is now again, economics professor at the University of Chicago. From 2003 to 2006 he had been Chief Economist of the International Monetary Fund (IMF) in Washington. (This is a cv item he shares with another important warrior against cash, Ken Rogoff.) He is a member of the Group of Thirty, a rather shady organization, where high ranking representatives of the world major commercial financial institutions share their thoughts and plans with the presidents of the most important central banks, behind closed doors and with no minutes taken. It becomes increasingly clear that the Group of Thirty is one of the major coordination centers of the worldwide war on cash. Its membership includes other key warriors like Rogoff, Larry Summers and others.

    Raghuram Rajan has ample reason to expect to climb further to the highest rungs in international finance and thus had good reason to play Washington’s game well. He already was a President of the American Finance Association and inaugural recipient of its Fisher-Black Prize in financial research. He won the handsomely endowed prizes of Infosys for economic research and of Deutsche Bank for financial economics as well as the Financial Times/Goldman Sachs Prize for best economics book. He was declared Indian of the year by NASSCOM and Central Banker of the year by Euromoney and by The Banker. He is considered a possible successor of Christine Lagard at the helm of the IMF, but can certainly also expect to be considered for other top jobs in international finance.

    A flying-start in 2013

    In 2013, the year after BTCA was founded, Rajan, former Chief Economist of the International Monetary Fund (IMF) in Washington, took over the post of Governor of the Reserve Bank of India (RBI). One of his first decisions was to set up the “Committee on Comprehensive Financial Services for Small Businesses and Low Income Households”. He put Nachiket Mor in charge of it, a banker an board-member of the RBI. In March 2016 the Gates Foundation made Mor head of its India country office. A reward?

    Somewhat counterintuitively, the Mor Committee that was to foster financial inclusion of the poor and of rural areas, was heavily dominated by big finance and law firms, with a strong US bias and. Members included Vikram Pandit, former CEO Citigroup, a member of the Better Than Cash Alliance, and Bundu Ananth, President of IFMR Trust. A further member of the Mor Committee was a representative of the National Payments Corporation of India the umbrella organization of payment service providers, which aims to move India to a cashless society. Another member was credit Rating Agency CRISIL, majority-owned by the US Rating giant Standard & Poor’s.

    In May 2016, RBI announced plans to print a new series of banknotes and announced in August that it had approved a design for a new 2,000 rupee note.

    As a Central Bank Governor, Rajan was liked and well respected by the financial sector, but very much disliked by company people from the real (producing) sector, despite his penchant for deregulation and economic reform. The main reason was the restrictive monetary policy he introduced and staunchly defended. After he was viciously criticized from the ranks of the governing party, he declared in June that he would not seek a second term in September. Later he told the New York Times that he had wanted to stay on, but not for a whole term, and that premier Modi would not have that. A former commerce and law Minister, Mr. Swamy, said on the occasion of Rajan’s departure that it would make Indian industrialists happy:

    “I certainly wanted him out, and I made it clear to the prime minister, as clear as possible…. His audience was essentially Western, and his audience in India was transplanted westernized society. People used to come in delegations to my house to urge me to do something about it.”

    A disaster that had to happen

    If Rajan was involved in the preparation of this assault to declare most of Indians’ banknotes illegal – and there should be little doubt about that, given his personal and institutional links and the importance of Reserve Bank of India in the provision of cash – he had ample reason to stay in the background. After all, it cannot have surprised anyone closely involved in the matter, that this would result in chaos and extreme hardship, especially for the majority of poor and rural Indians, who were flagged as the supposed beneficiaries of the badly misnamed “financial inclusion” drive. USAID and partners had analyzed the situation extensively and found in the Beyond-Cash-report that 97% of transactions were done in cash and that only 55% of Indians had a bank account. They also found that even of these bank accounts, “only 29% have been used in the last three months“.

    All this was well known and made it a certainty that suddenly abolishing most cash would cause severe and even existential problems to many small traders and producers and to many people in remote regions without banks. When it did, it became obvious, how false the promise of financial inclusion by digitalization of payments and pushing back cash has always been. There simply is no other means of payment that can compete with cash in allowing everybody with such low hurdles to participate in the market economy.

    However, for Visa, Mastercard and the other payment service providers, who were not affected by these existential problems of the huddled masses, the assault on cash will most likely turn out a big success, “scaling up” digital payments in the “trial region”. After this chaos and with all the losses that they had to suffer, all business people who can afford it, are likely to make sure they can accept digital payments in the future. And consumers, who are restricted in the amount of cash they can get from banks now, will use opportunities to pay with cards, much to the benefit of Visa, Mastercard and the other members of the extended Better Than Cash Alliance.

    Who knew?

    In a report of news agency Reuters from December named “Who knew?”, unnamed Indian official sources want to make us believe that only the prime minister himself and a handful of people, knew of the plans. The Reuters report names only one of the supposedly five who knew, a high-ranking official of the finance ministry. Tellingly, there is not a single mention of any foreign involvement, despite a formal cooperation of the finance ministry with USAID, aimed at pushing back cash in favor of digital payments. This makes the Reuters piece another piece of evidence in favor of the hypothesis that a strong and not fully legitimate force behind the brutal intervention that happened in November is being covered up.

    The hypothesis that a main driver behind the demonetization were U.S. interests, does not at all imply that the Indian prime minister and other Indian constituents did not have their own interests associated with it. It is hardly possible to get the elite of a country to do something that goes against their own interests, but it is fairly easy to get them to do something that helps significant fractions of them, but hurts the majority of the people. A few possible such interests, taken from readers’ suggestions are recapitalising the public banks, which were staggering under the weight of bad loans to cronies, the interests of online payment platforms and online marketplaces as well as retail chains, which, curiously, as an Indian journalist tells me, were well supplied with cash in their in-store ATMs and benefited from the wiping out of informal competition.

    Why Washington is waging a global war on cash

    The business interests of the U.S. companies that dominate the global IT business and payment systems are an important reason for the zeal of the U.S. government in its push to reduce cash use worldwide, but it is not the only one and might not be the most important one. Another motive is surveillance power that goes with increased use of digital payment. U.S. intelligence organizations and IT companies together can survey all international payments done through banks and can monitor most of the general stream of digital data. Financial data tends to be the most important and valuable.

    Even more importantly, the status of the dollar as the world’s currency of reference and the dominance of U.S. companies in international finance provide the US government with tremendous power over all participants in the formal non-cash financial system. It can make everybody conform to American law rather than to their local or international rules. German newspaper Frankfurter Allgemeine Zeitung has recently run a chilling story describing how that works (German). Employees of a German factoring firm doing completely legal business with Iran were put on a US terror list, which meant that they were shut off most of the financial system and even some logistics companies would not transport their furniture any more. A major German bank was forced to fire several employees upon U.S. request, who had not done anything improper or unlawful.

    There are many more such examples. Every internationally active bank can be blackmailed by the U.S. government into following their orders, since revoking their license to do business in the U.S. or in dollar basically amounts to shutting them down. Just think about Deutsche Bank, which had to negotiate with the US Treasury for months whether they would have to pay a fine of 14 billion dollars and most likely go broke, or get away with seven billion and survive. If you have the power to bankrupt the largest banks even of large countries, you have power over their governments, too. This power through dominance over the financial system and the associated data is already there. The less cash there is in use, the more extensive and secure it is, as the use of cash is a major avenue for evading this power.

    http://www.zerohedge.com/news/2017-...-india’s-brutal-experiment-abolishing-most-ca
     
  16. madhu

    madhu Silver Member Silver Miner

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    http://economictimes.indiatimes.com...rore-of-banned-notes/articleshow/56536621.cms

    The people of India have the last laugh. More notes were returned to Banks than was expected officially. In the chaos that erupted after the poor implementation of a good ideal, a substantial amount of fake? notes were deposited? And officially laundered into new money.

    The officials now have stopped releasing all the numbers related to this move. Incompetence.
     
  17. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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  18. Po'boy

    Po'boy Midas Member Midas Member Site Supporter

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    Not surprising that a war on real money is going on.

    Most never were taught by their parents what a "Dollar" is and how the choice of money is a choice of government.

    Pieces of Eight the resource written by the lecturer in the video has some interesting reviews on Amazon.

    Want a constitutional government then use it's money.

    Want communism FRN is the sure fire way to bring it to pass.
     
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  19. andial

    andial Sir Midas Member Site Supporter ++

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    Great reading here guys.
     
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  20. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    This is someone's opinion. Take it fwiw and dyodd.

    CASHLESS SOCIETY DANGERS HAPPENING RIGHT IN FRONT OF US
    FreedomForceUSA



    Published on Jan 18, 2017
     
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  21. madhu

    madhu Silver Member Silver Miner

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  22. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    In the Banker War on Cash, New Zealand and Canada Are the Next Major Countries on the Banker Hit List

    -- Published: Sunday, 29 January 2017

    By JS Kim

    As we warned more than 4½ years ago in this article here, the criminal banking cartel’s end game involves restricting freedom of speech and curbing any criticism of their criminal banking industry by banning cash and imposing an end game of 100% digital money upon all of us. Now with the benefit of 4½ more years, there can be little doubt that indeed, that the banking industry has advanced their war against all of us by accelerating their war on cash, and attempting to disguise this war on cash as a war on corruption.

    Any logical person would understand the vast irony in such a statement, especially since bankers are leading these false charges of a war on cash as a war on corruption, not only given the fact that the banking industry is the most corrupt industry on the planet, but also given the fact that bankers provide much of the dirty money that feeds global stock markets by laundering tons of dirty money for the world’s most violent drug cartels. Recall that in 2012, HSBC bankers had to pay a $1.9B fine for willingly laundering hundreds of millions, and more likely billions of dollars, of dirty money for the largest and most murderous Mexican drug cartels. Though HSBC CEO Stuart Gulliver unconvincingly denied approving of these transactions, any logical person would conclude that it is next to impossible for the CEO of a bank not to know that origin of the source of hundreds of millions of dollars of cash flowing into his bank.

    In addition to profiting handsomely by conducting business with the largest, most violent drug cartels in the world, such as the Sinaloa drug cartel, HSBC bankers were also convicted of openly conducting business with terrorists linked to Al-Queda, Hezbollah, and Russian mobsters, and for openly moving money for rogue states like North Korea and the Sudan. In fact, Jack Blum, a former US Senate investigative attorney, stated, “[HSBC bankers] violated every goddamn law in the book. They took every imaginable form of illegal and illicit business.” Of course HSBC bankers were not the only bankers convicted of laundering huge sums of illicit money and profiting from this illegal act. Wachovia bankers, Standard Chartered bankers, Citibank bankers, Wells Fargo bankers, and dozens of other bankers were also found guilty of these criminal activities as well, exposing the systemic criminal nature of the banking industry.

    Consequently, when bankers now claim that their war on cash is a war on corruption, this statement is not only laughably pathetic, it is obscenely hypocritical. If the banking industry were truly sincere in fighting a real war on corruption and had any integrity in this effort, they would have to first turn the spotlight on themselves and dissolve most of the largest global banks within their own network.

    In any event, if you’ve been following our blog, most of you already know that banker puppet and Indian Prime Minister Narendra Modi already unexpectedly banned the two largest rupee notes on 8 November 2016, immediately throwing the Indian economy into chaos. Again, though Modi falsely positioned his war on cash as a “war on corruption”, we explained in this vlog why Modi’s position is patently a lie, and not even a well-disguised lie at that.

    Even former Indian PM Manmohan Singh saw easily through Modi’s collaboration with global bankers and Modi’s transparent ruse for what it really was – a declared war on basic human rights and the freedom of Indian citizens. Mr. Singh delivered a scathing condemnation of Modi’s actions: “The vast majority of Indians earn in cash, transact in cash and save in cash, all legitimately. Their daily subsistence depends on their cash being accepted as a medium of valid currency…They save their money in cash which, as it grows, is stored in denominations of 500 rupee and 1000 rupee notes. To tarnish these [notes] as ‘black money’ and throw the lives of these hundreds of millions of poor people in disarray is a mammoth tragedy…It is the fundamental duty of a democratically elected government in any sovereign nation to protect the rights and livelihood of its citizens. The recent decision by the Prime Minister is a travesty of this fundamental duty.” The searing tone of Mr. Sing’s condemnation of Modi’s actions is not only all too evident but it is also well justified.

    In addition, as we have written for years, most global banks have been committing acts of massive accounting fraud, and have refused to reveal their true, weak financial conditions in their quarterly and annual reports through various Enron-worthy accounting deceptions ranging from constantly changing their reporting parameters and using fake internal valuation models, instead of a real mark-to-market model, to value their assets. If mass media were really interested in ridding news of “fake news” then they would cease reporting these banker plays all over the world as a “war on corruption” and reveal it as an illegal forced re-capitalization of banks that lack cash. As a quick aside, it is truly ironic that one of the sources for popularizing the term “fake news”, Washington Post journalists, now want this term banned after the use of the term has clearly backfired on the mass media, similar to the time when bankers changed their message about the use of cash being responsible for enduring global poverty, once this sophomoric, fake message backfired on them.

    It would be easy to prove this above accusation that many global banks have very little liquidity simply by asking everyone to pick a day and to withdraw 50% of the cash in your deposit/checking accounts on the same day from that bank. If this were to occur, most global banks would likely run out of money before even 5% to 10% of cash was withdrawn. Luckily, for the bankers, this can never be tested, as bankers, well aware of their accounting fraud committed for years and their liquidity problems, have severely restricted daily cash withdrawal limits from the bank, making the above experiment impossible to execute. Bankers around the world have crushed daily cash withdrawal limitations to such low levels, that in many countries, millionaires would literally have to spend years withdrawing their own money, even were they to withdraw the daily cash limit every single day of every single year. In fact, one of the primary reason bankers are so keen on banning cash worldwide is to prevent the discovery that many global banks are indeed bankrupt. When bankers conduct pre-emptive strikes by restricting daily limits of cash withdrawals, and then eventually banning cash outright, this solves the threat of bank runs from ever occurring. The efforts of bankers worldwide to ban cash is just another pre-emptive strike against us.

    Antonio Maria Costa, head of the UN Office on Drugs and Crime, stated that in the latter half of 2008, that cash proceeds of organized crime were “the only liquid investment capital” available to some banks struggling with liquidity problems and that consequently, bankers eagerly welcomed criminal money into their institutions and laundered the vast majority of the $352B of drugs profits that year. Costa explained, “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence, liquid capital became an important factor.” My questions to the bankers are the following: “Where was your war against corruption in 2008 if stymieing corruption is so important to you? And, Do you only fight wars on corruption, when you can hide the true motives of your war and when it benefits you?”

    In Venezuala, President Maduro eliminated the 100 bolivar note, again citing a war on “corruption” as his motivation for doing so. Maduro further ordered State police in Venezeula to treat every single person in possession of large amounts of 100 bolivar notes as criminals and to assume guilt before innocence in his mandate that every such person should be stopped and investigated. In Venezuela, the pre-crime division of Stephen Spielberg’s Minority Report has already arrived. In reviewing Maduro’s draconian measures, enforced after Venezuelan bankers crushed people’s freedom and their hard-earned life savings by devilishly hyperinflating the bolivar, Spanish economist Willian Ruiz declared, “Any Venezuelan who keeps those notes for any reason, will lose his money, his work, and will be stuck holding worthless paper.” So we must ask ourselves, Are we suffering a war on cash, or a war of bankers against the freedoms of people?

    Clearly, bankers are leading a charge across the world not only to institute a 100% digital money world as I predicted 4 ½ years ago, but also to absurdly criminalize the possession of large monetary notes as well. If you believe this type of banker-imposed tyranny is limited to developing nations like India and Venezeula, the call for banning large notes in larger, more-developed countries with much larger economies, as is the case in Australia, may shock you. Leading the charge to “ban corruption” and the A$100 note in Australia is, drumroll, please…unsurprisingly a financial industry executive, former KPMG global chairman Michael Andrew. As “proof” of the massive black money market in Australia, Financial Services Minister Kelly O’ Dwyer stated that three times as many $100 notes exist in circulation as $5 notes, dismissing the simple explanation that perhaps the majority of $100 notes in circulation are legitimate, as people may simply find it more convenient to carry three $100 notes in their wallet as opposed to sixty $5 notes.

    And though Australia has not yet banned its large notes, as has India and Venezuela, now that the proposition has been tabled for serious discussion, expect bankers to start issuing more and more frequent press releases in the following countries to condition citizens all over the world into that possession of large cash notes equates to criminality. However, with the resistance of good people all around the world such as yourself, who actively spread articles like this to friends and neighbors, we can fight back by keeping one another informed, well-read, and educated about these brewing very serious issues. Ironically, by informing each other, we may actually be able to provide blowback to the bankers in their war against us. They wish to ban the use of cash worldwide, and to this I say, good riddance because bankers always inflated fiat currencies to steal our savings as we slept. No one should want to use fiat currencies as “money” today anyway. So perhaps we can help bankers to usher in a ban on THEIR currency by converting THEIR currency into OUR currency – physical gold and physical silver!

    Next in line after India, Venezuela and Australia for policy discussions of banning large currency notes are Canada, New Zealand, England, Scotland, Ireland, Argentina, Brazil, Spain, Switzerland, Italy and France, Japan and the United States, not necessarily in that order, but this banker movement will be pushed more aggressively in small economies first before spreading to larger economies. If you live in any of these countries and have seen media releases regarding the potential ban of large cash notes in your country, please email us links to this information at info-at-smartknowledgeu-dot-com so that we may keep every subscriber of this blog/newsletter informed of such developments in future articles.

    It is only a matter of time before the bankers’ war on all of us takes a leap into its next stage of execution. The time to stand up against such tyranny, as elegantly expressed by former Indian PM Manmohan Singh, has never been any more urgent at any other time in history as right now.

    https://www.smartknowledgeu.com/index.php

    http://news.goldseek.com/GoldSeek/1485705600.php
     
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  23. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    The Alternative Fact of the Cashless Society

    -- Published: Wednesday, 1 February 2017

    Why gold will benefit from the alternative fact of the cashless society

    • Alternative facts prevail in the European Commission’s calls for cash controls
    • Terrorism is blamed for the need to control cash
    • Evidence shows criminals find alternative ways to finance activities
    • Citizens continue to want and to use cash in day-to-day life
    • Cashless society is being used to force through other ‘agendas’
    • Gold and silver will be used as savers are forced to hold assets outside of the financial system
    [​IMG]

    Why gold will benefit from the alternative fact of the cashless society

    “Those who control the present, control the past and those who control the past control the future.”

    George Orwell, 1984

    Last week a new phrase was introduced into our lexicon by Trump Adviser Kellyanne Conway. When asked about why press secretary Sean Spicer had made statements that were (according to the press) unverifiable she said that he had used ‘alternative facts’.

    This prompted a raft of satire, journalists to flail their arms up at the audacity of Conway and Trump’s administration, and for people to rush out and buy George Orwell’s 1984.

    Penguin, the world’s largest publisher, ordered a 75,000 copy reprint last week. Apparently more than the ‘typical reprint’ for the 1949 Orwellian classic. The ‘alternative facts’ statement echoed of ‘Newspeak’ the language used by the totalitarian government in Orwell’s 1984 to influence and control its citizens of Airstrip One (previously Britain).

    European Commission Embraces Newspeak

    A day after Conway’s interview the European Commission took of the advantage of the furore that continues to surround the Trump administration (the shock that the President is doing exactly what he promised to do) and introduced a proposal enforcing “restrictions on payments in cash.”

    The EC apparently like to use their own version of alternative facts when it comes to arguing why we should be going cashless.

    The proposal is based on a plan from February 2016 that explained, “Payments in cash are widely used in the financing of terrorist activities… In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold.”

    And whilst terrorists do no doubt use cash to finance some activities (the US has purportedly blown-up stockpiles of ISIS’ cash), research shows that countries with higher denominations of cash in fact experience lower levels of crime and corruption.

    And what about those non-criminals? EC are failing to address the fact that law-abiding citizens still like to use cash and will continue to whilst negative interest rates and bail-ins remain a reality. Not to mention the privacy it affords us.

    This Newspeak is starting to feel like we’re supposed to feel bad about using cash and instead should become inclined to move to a cashless way of life. Whilst the EC is still in proposal-stage we should be reminded that the move to cashless is very much in play, as we explained in Cashless society – War on Cash to Benefit Gold?.

    Cash-free does not mean terrorism free

    As pointed out by Zerohedge the proposal is very focused on stopping terrorism, crime and money laundering. It states:

    ‘Potential restrictions to cash payments would be a mean to fight criminal activities entailing large payment transactions in cash by organised criminal networks…Terrorists use cash to sustain their illegal activities, not only for illegal transactions (e.g. the acquisition of explosives) but also for payments which are in appearance legal”

    [​IMG]

    But, as argued in the Sovereign Man blog, economists such as Rogoff and Stiglitz and government organisations such as the EC are relying on the myth that ‘cash facilitates illegal activity.’

    Who is so naive to think that a ban on cash will stop terrorism? What they have missed is that criminal and terrorist leanings facilitate such activities, they will always find some form of means of exchange to facilitate it.

    Sovereign Man explains that criminals and terrorists can, miraculously, use means other than physical cash in order to facilitate illegal activities.

    “The US military has literally blown up more than a billion dollars worth of ISIS’s stockpiles of physical cash during airstrikes.

    But this hasn’t affected their terrorist activities one bit.

    That’s because the most notorious terrorist group on the planet famously uses both the world’s oldest currency (gold) and the world’s newest currency (Bitcoin).”

    And it’s not just big terrorist groups who are able to work their way around a cash-based monetary system.

    “What Stiglitz, and perhaps many law enforcement agencies, fail to realize is that one of the biggest tools in masking illegal activity is actually Amazon.com.

    Specifically, Amazon gift cards.

    If you’re looking to quietly and easily pay large sums of money, even tens of thousands of dollars, you can do so with Amazon gift cards.

    Amazon gift cards are essentially a “cash equivalent”.

    Amazon sells just about everything on the planet, so its gift cards can either be spent or quickly resold for cash.”

    Cash will soon not be a right

    The EC, Rogoff and Stiglitz are all behaving as though cash is only used for illicit activities. There is apparently little thought to those of us who still use cash. Most of us look at cash as something that is both convenient and provides a way to spend money without it being anyone else’s business other than ours and the seller. But governments label this as suspicious with the intention to get us away from cash so that the banking system may be propped up and ‘bailed-in’ by our funds.

    There is but a fleeting mention of the fundamental right to use cash in this recent EC proposal but it is quickly dismissed:

    It should also be observed that national restrictions to cash payments were never successfully challenged based on an infringement to fundamental rights.”

    Cash is still widely used, by both citizens and big businesses but this has not stopped both governments and banks looking to move us away from using cash.

    The most recent example of a shift to a cashless society was of course the demonetisation of 500 and 1,000 rupee notes in India. Whilst Prime Minister Modi acknowledged that millions had been affected he reiterated calls for the country to become a cashless society.

    Meanwhile In Ireland companies are making investments on the basis of the future cashless society. US company EVO, a payment processing partner of Bank of Ireland, announced a €9.1 million move to the country that is embracing a cashless way of life. Brian Cleary, managing director of BOI Payment Acceptance Ireland and UK, an arm of Evo Payment International told the Irish Independent, ”With over six million debit and credit cards in the market, debit card spend on the increase year-on-year and over 35,000 Irish businesses offering contactless payment facilities, this number continues to grow.”

    [​IMG]

    In the UK, cashless is almost as popular as the likes of the Scandinavian countries. In August 2016 More than 260 million contactless transactions were made in the UK, a 200% increase from the year before. According to a Telegraph article, ATMs are close to becoming extinct as banks will no longer finance them. Rural areas will be “the hardest hit with the South West, Scotland, and the South East where 44pc, 40pc and 33pc of cash points are under threat”

    The threat of a cashless society is seemingly greater than ever, so much so that MPs are being called to investigate. As Ron Delnevo, director of the ATM Industry Association in Europe, told the Telegraph: “Some organisations want to drive people away from cash because it suits their agenda.” He also warned of a “domino effect”, saying that if one big bank pulled out of the arrangement “the whole thing will just melt”.

    Cash controls will extend beyond cash

    The EC doesn’t intend to stop just at putting controls on (or even outright banning) cash. Under the guise of preventing anonymity they believe that restrictions should be placed on all means of payment that mean people can have some privacy:

    “In view of the development of cryptocurrencies and the existence of other means of payments ensuring anonymity, an option could be to extend the restrictions to cash payments to all payments ensuring anonymity (cryptocurrencies, payment in kinds, etc.). On the other hand, restrictions on cash payments could promote the development of alternative payments technologies compatible with the non-anonymity objective pursued.”

    [​IMG]

    Aside from what this means for all forms of payments, it ultimately means that the EC has decided that anonymity, i.e. privacy, is a bad thing. To want it is to suggest that you are doing something criminal.

    This will no doubt drive up demand for tangible currencies such as gold and silver which should be held outside of the banking system, as outlined in a letter to the FT following Gillian Tett’s article in support for a cashless society:

    Sir, Gillian Tett sees some benefits in scrapping cash (February 5). I, instead, see an Orwellian nightmare where citizens’ every step is recorded in a Big Brother database for tax, financial and monetary purposes. In a certain sense cash means freedom. If cash is really scrapped by governments in the future I have no doubt that alternative tangible currencies will emerge. I will be in the front line using them.

    At the moment negative interest rates and bail-ins will only work if cash cannot be removed from the system. And central banks and government are well aware of this. This is why ‘tangible currencies’ such as gold and silver are becomingly increasingly more attractive as the push for cashless society and reduced privacy, grows.

    As Doctor Constantin Gurdgiev wrote:

    Cash and monetary assets, such as gold, cannot be expropriated or bailed-in as long as they are held in physical form and under proper storage. Cashless accounts amplify the importance of monetary assets, such as gold, in fulfilling the function of being safe havens against systemic risks – risks that are associated with high probability of Government expropriation.

    Conclusion: gold and silver

    A cashless world means a transparent world, which is great if terrorists were the only ones using cash. But they’re really not, so a cashless world means transparent bank accounts which means restricted banks accounts.

    Human behaviour and data does not support the argument for a cashless society. Instead this is seemingly a move to force to restrict our freedom and to get us to hold our wealth in a banking system where negative interest rates and bail-ins are a harsh reality and are our financial decisions are there for all to see.

    Lars Feld, economic advisor to the German government, referred to cash as ‘printed freedom.’ It seems that this will not be the case for long. Unfortunately under the Newspeak guise of protecting us from criminals our cash will no longer be the ticket to a private life.

    Money in a bank account is no longer yours- it is a bank deposit, an unsecured liability in a commercial bank that is entrenched in the global banking system. It relies on trust in a system that is inherently broken and on a downward spiral that is prepared to take savings and wealth with it.

    Fyodor Dostoevsky wrote, ‘Money is coined liberty’ and many years later this is still the case for gold and silver. Unfortunately it is no longer the case for cash. History shows multiple attempts of wealth confiscation and restrictions on freedom, each time individuals and governments have returned to gold and silver in order to protect their savings and their privacy.

    Going cashless will not rid us of people and organisations who wish to commit horrific and illegal acts. Instead it will encourage them to find additional ways to run their gangs and terrorist cells. For the rest of us it will remind us of the importance of liberty, safe-havens, security and the need to protect our wealth from negative interest rates, bail-ins and currency devaluations.

    Whilst a government using ‘alternative facts’ and telling us that something is for the greater good when it is clearly for the greater banking system is disheartening we should embrace the role of gold and silver. The role of precious metals in a cashless society are key and investors should remember the importance of diversification and holding assets, under direct ownership, outside of the vulnerable and exposed banking system.

    Gold and Silver Bullion – News and Commentary

    Gold becomes one of investors’ favorite safe havens with Trump uncertainty (Reuters.com)

    Gold rises as Trump policy fuels safe haven demand (Reuters.com)

    ETF Buyers Return to Precious Metals Amid Trump Policy Angst (Bloomberg.com)

    German inflation pick-up unsettles euro zone bond markets (Reuters.com)

    Lloyd’s of London says it can manage a $200bn event (CityAM.com)

    [​IMG]

    Ultra Easy Money: Digging the Hole Deeper? (LMBA.org.uk)

    Major Inflection Point Coming In Stocks – Hussman (DollarCollapse.com)

    ECB Assets Rise Above 36% Of Eurozone GDP; Draghi Now Owns 10.2% Of European Corporate Bonds (ZeroHedge.com)

    What totalitarianism looks like – Daily Reckoning (DailyReckoning.co.uk)

    United States Is On The Precipice Of Widespread Civil Unrest (ZeroHedge.com)


    Gold Prices (LBMA AM)

    01 Feb: USD 1,210.00, GBP 960.01 & EUR 1,122.03 per ounce
    31 Jan: USD 1,198.80, GBP 964.91 & EUR 1,119.20 per ounce
    30 Jan: USD 1,189.85, GBP 949.38 & EUR 1,112.63 per ounce
    27 Jan: USD 1,184.20, GBP 943.81 & EUR 1,108.77 per ounce
    26 Jan: USD 1,191.55, GBP 945.14 & EUR 1,111.95 per ounce
    25 Jan: USD 1,203.50, GBP 956.90 & EUR 1,119.62 per ounce
    24 Jan: USD 1,213.30, GBP 972.22 & EUR 1,130.07 per ounce
    23 Jan: USD 1,213.75, GBP 974.03 & EUR 1,130.12 per ounce

    Silver Prices (LBMA)

    01 Feb: USD 17.60, GBP 13.91 & EUR 16.29 per ounce
    31 Jan: USD 17.29, GBP 13.86 & EUR 16.07 per ounce
    30 Jan: USD 17.10, GBP 13.65 & EUR 16.03 per ounce
    27 Jan: USD 16.70, GBP 13.32 & EUR 15.61 per ounce
    26 Jan: USD 16.86, GBP 13.39 & EUR 15.71 per ounce
    25 Jan: USD 16.93, GBP 13.46 & EUR 15.74 per ounce
    24 Jan: USD 17.10, GBP 13.73 & EUR 15.92 per ounce
    23 Jan: USD 17.14, GBP 13.78 & EUR 15.97 per ounce

    http://www.goldcore.com/us/

    http://news.goldseek.com/GoldSeek/1485959750.php
     
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  24. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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  25. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Will the Banker War on Cash Spread to a War on Bitcoin?
    By: JS Kim
    Over the years, I’ve written a number of articles regarding why I prefer physical gold and physical silver over bitcoin (BTC). I believe in monetary competition, however, and believe that different forms of money should be allowed to compete, because the best form will eventually and quite rapidly always rise to the top. However, we are far from such an environment, as government/banking cartels have banned the use of gold and silver as systemically-wide accepted forms of money worldwide while ensuring that their rapidly devaluing fiat currencies remain the norm.
     
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  26. Alton

    Alton Gold Member Gold Chaser

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  27. Brio

    Brio Midas Member Midas Member

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    Fixed that.
     
  28. Brio

    Brio Midas Member Midas Member

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    So the banks get all the deposits and the gov. garnishees all your wages. Then what?
     
  29. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Cash No Longer King: Europe Accelerates Move To Begin Elimination Of Paper Money

    [​IMG]
    by Tyler Durden
    Feb 10, 2017 1:50 PM

    Submitted by Shaun Bradley via TheAntiMedia.org,

    In the shadow of Donald Trump’s spree of controversial actions, the European commission has quietly launched the next offensive in the war on cash. These unelected bureaucrats have boldly asserted their intention to crack down on paper transactions across the E.U. and solidify a trend that has been gaining momentum for years.

    [​IMG]

    The financial uncertainty amplified by Brexit has incentivized governments throughout Europe to seize further control over their banking systems. France and Spain have already criminalized cash transactions above a certain limit, but now the commission has unilaterally established new regulations that will affect the entire union. The fear of physical money flowing out of the trade bloc has manifested a draconian response from the State.

    The European Action Plan doesn’t mention a specific dollar amount for restrictions, but as expected, their reasoning for the move is to thwart money laundering and the financing of terrorism. Border checks between countries have already been bolstered to help implement these new standards on hard assets. Although these end goals are plausible, there are other clear motivations for governments to target paper money that aren’t as noble.

    Negative interest rates and high inflation are a deadly combination that could further destabilize the already fragile union in the future. With less physical currency circulating, these trends ensure that the impact of any additional central bank policies will be maximized. If economic conditions deteriorate, the threat of citizens pulling cash out of their accounts and starting a bank run is eliminated in a cashless system. So long as the people’s wealth is under centralized control, funds can be shifted at will to conceal any underlying problems. But the longer this shell game is allowed to persist, the more painful it will be when reality overrides the manipulation.

    Since former Chief Economist at the International Monetary Fund (IMF), Kenneth Rogoff, published a paper last year advocating for the U.S. $100 bill to be removed, governments around the world have pushed forward their agendas towards a cashless society. He wrote:

    “There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism. There are substitutes for cash—cryptocurrencies, uncut diamonds, gold coins, prepaid cards—but for many kinds of criminal transactions, cash is still king. It delivers absolute anonymity, portability, liquidity and near-universal acceptance.”

    This announcement comes just months after the 500 euro note was discontinued, and it follows India’s lead in subverting the financial independence of their citizens. The incremental steps currently being taken may look trivial in isolation, but the ultimate end is to lay the foundation for an entire network for economic repression.

    The German people have placed themselves in strong opposition to the action and previously pushed back hard against domestic legislation that would have limited cash. Nearly 80% of all transactions in Germany are made with paper currency, putting Europe’s economic engine in direct conflict with the vision coming out of Brussels.

    The spillover effect has affected new forms of investment, like Bitcoin, which witnessed an astronomical rise over the last months and has been brought back into the discussion as a viable alternative to fiat currencies. Of course, the E.U. Commission is also attempting to impose similar limitations on crypto-currencies to make sure no transactions fall outside of their domain. The ECB and BOJ are working towards a trojan horse blockchain network that will serve only to entrap those naive enough to trust it.

    Former Treasury Secretary Larry Summers wrote last year that the E.U. would likely be the trailblazer of the West towards this new digital model:

    “But a moratorium on printing new high denomination notes would make the world a better place. In terms of unilateral steps, the most important actor by far is the European Union. The €500 is almost six times as valuable as the $100. Some actors in Europe, notably the European Commission, have shown sympathy for the idea and European Central Bank chief Mario Draghi has shown interest as well.”

    Since the public’s attention has been drawn to emotional manipulations and political stunts, the threat the war on cash represents has gone unrecognized. Instead of feeding energy into systems meant to divide and conquer, individuals must educate themselves to secure their own financial futures. By submitting to the hive mind and following the media down whichever rabbit hole they choose, the most important issues of today will go unnoticed. The value of advocating for decentralized and physical alternatives to the banking system may not be easily grasped by the activists of today, but few other things have the potential to erode freedom on such a massive scale.

    http://www.zerohedge.com/news/2017-02-10/
     
  30. mtnman

    mtnman Gold Member Gold Chaser Site Supporter ++

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    Dotheads don't have guns. Americans are well armed and lots are willing to disregard stupid things like going cashless
     
  31. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Europe Eyes Sweeping Cash Ban: Are Gold And Silver Next?

    -- Published: Monday, 13 February 2017

    By Clint Siegner

    The global war on cash rolls on. The cabal of bankers seeking more transaction fees, busybody political leaders, and central bankers who want to experiment with negative interest rates recently threw India into turmoil by eliminating the two largest denomination bank notes.

    Now they are preparing a similar assault on Europeans’ ability to transact privately and without giving bankers a cut. European Union officials just published a "Proposal for an EU Initiative on Restriction on Payments in Cash."

    [​IMG]

    Predictably, the restrictions are being sold to citizens as a means of fighting terrorism – much like a host of other privacy and liberty-destroying power grabs in recent decades. This despite a telling admission contained in the proposal: "There remains the lack of readily available and solid evidence on legitimate versus illegitimate cash transactions." Ban the use of cash first, ask questions later.

    Officials may, however, come to regret the timing of their proposal. Many European citizens will have trouble reconciling why leaders are willing to clamp down severely on cash, but not on the flood of refugees pouring in from the Middle East. Can they really be serious about terrorism?

    Anti-EU movements are surging across the continent, with important elections coming this year in both France and Germany. Anger and frustration is already threatening to tear the EU apart. Now EU officials are floating another measure that promises to be controversial.

    In Germany, 79% of transactions are done in cash. Many there aren’t going to take restrictions lying down. Some see the war on cash for what it is – bureaucrats using the lever of fear to once again ratchet up controls and restrict privacy.

    The EU bureaucrats may just see the day when citizens stop using paper euros to make payments, but not because of the restrictions they hope to impose. It could instead be the result of the EU and its common currency being dumped.

    A European setback for the bankers and politicians behind the move to de-monetize cash would be good news for bullion investors everywhere, including the U.S. Attempts to regulate the trade of physical gold and silver will not be far behind any restrictions on cash. Precious metals are an obvious target because they are a premier form of private, off-the-grid, and portable wealth.

    With these draconian proposals gaining momentum across the globe, you can bet we will continue to follow the war on cash carefully.

    Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

    http://news.goldseek.com/GoldSeek/1487011204.php
     
  32. GOLDZILLA

    GOLDZILLA Harvurd Koleej Jeenyus Midas Member

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    I think we all know this is coming and it might be better to come up with methods to avoid losses rather than just asking if/when it will happen.

    I think barter will return big time and that once the cash phase is complete, then they will make gold/silver ownership or trade illegal.

    Bitcoin and its derivatives will become honeytraps.

    Imagine ways to maximize your freedom and privacy.
     
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  33. mtnman

    mtnman Gold Member Gold Chaser Site Supporter ++

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    Barter doesn't work cause everything has a different value. Cash of some sort will always be here.
     
  34. Zed

    Zed Size doesn't count! Midas Member

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    It's working here, after a fashion.... http://www.bartercard.com.au, has been for years.
     
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  35. mtnman

    mtnman Gold Member Gold Chaser Site Supporter ++

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    Here's a quote fron the web site:
    "Bartercard has created a secure and fully portable digital trading currency which enables business members all around the world to buy and sell from each other."
    That's not true "barter". That's just a new type of digital cash. Barter is trading a product or service directly for another product or service.
     
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  36. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    I don't see a total collapse. Could be dead wrong but what I think may happen is that for some reason tptb will want to get rid of cash and go digital in western countries. Wouldn't be too hard to do with all the stuff they have been putting in place for years. As to how to deal with it out side of the system.............interesting subject there.

    As for barter...........that's been going on for a long time and will continue to do so between (honorable) peeps. Maybe you are a mechanic who could exchange car / truck repair work for heater / air conditioning repairs with an HVAC cat. I'm sure you get my drift here. But I really don't see that on any large scale.

    What I do see is eventually the vast majority of peeps going along with the program. Eventually those who resist may be vilified and labeled terrorists. Could be they may be targeted for extinction.
     
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  37. GOLDZILLA

    GOLDZILLA Harvurd Koleej Jeenyus Midas Member

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    Well I had all night to think about it. One thing I came up with is card trading.

    Say I want an alternator and my friend wants some steaks. I buy his steaks with my card and he buys the alternator with his card. Then we trade. We both got what we wanted using the system, but the gestapo thinks we both have something that we don't and it also thinks that we don't have something that we do.

    We have thus used the system but kept our privacy. Now imagine if hundreds of people get into this card sharing?

    Their systems and their lists would not be worth a shit.
     
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  38. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Maybe not at first. But the more peeps who sign up (for the new money) the less will be out side of the system. Eventually if the majority of the population were signed up tptb could royally vilify the evil terrorists who didn't want to go along. Even having religious leaders saying they were "of the devil" and should be put to death to save the new system that was heaven sent.

    As for pm's?? Outlawed? Labeled barbaric relics with no value as money or mediums of exchange?

    Of course all this is just pure speculation on my part. Who knows what the future will bring us.
     
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  39. mtnman

    mtnman Gold Member Gold Chaser Site Supporter ++

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    In order to go digital, every person must have a device to register this digital currency. Believe it or not, not everyone in the US has a smart phone. The logistic are not there, yet.
     
  40. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    What about a card?

    Just about every time I'm in WaWa I see people buying a single bottle of water, single soda, single cup of coffee, etc and paying for it with plastic. Some times I'll be at happy hour and see peeps come in and grab one beer and a shot and pay for it with plastic.

    One time I went with a friend when he was buying a tv. TV was around $600. When we got to the cash register he pulls out 6 $100 bills. The clerk looked totally dumb-founded. Had to get a manager to complete the sale. The manager told us they weren't used to cash. Made me smile but after that I began to notice things when I'm out and about. More and more it's plastic all the way.

    For me it's actually an oddity to see peeps pay cash for any thing any more.
     
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