Prove You’re Not a Terrorist – A move towards cashless banking

Prove You're Not a Terrorist
by Jeff Thomas | April 06, 2015
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Recently, France decided to crack down on those people who make cash payments and withdrawals and who hold small bank accounts. The reason given was, not surprisingly, to “fight terrorism,” the handy catchall justification for any new restriction governments wish to impose on their citizens. French Finance Minister Michel Sapin stated at the time, “[T]errorism feeds on fraud, money laundering, and petty trafficking.”

And so, in future, people in France will not be allowed to make cash payments exceeding €1,000 (down from €3,000). Additionally, cash deposits and withdrawals totaling more than €10,000 per month will be reported to Tracfin—an anti-fraud and money laundering agency.

Currency exchange will also be further restricted. Anyone changing over €1,000 to another currency (down from €8,000) will be required to show an identity card.

Do you need to make a deposit on a car? That might be suspect. Did you just deposit a dividend you received? It might be a payment from a terrorist organisation. Planning a holiday and need some cash? You might need to be investigated for terrorism.

And France is not alone. In the US, federal law requires banks to file a “suspicious activity report” (SAR) on their customers whenever a customer requests a suspicious transaction. (In 2013, 1.6 million SAR’s were submitted.)

As to what may be deemed “suspicious,” it may be any transaction of $5,000 or more, but it may also mean a series of transactions that, together, exceed $5,000.

The reader may be saying to himself, “But that’s just normal, everyday banking business—that means anybody, any time, could be reported.” If so, he would be correct. Essentially, any banking activity the reader conducts could be regarded as suspect.

In Italy, in 2011, Prime Minister Mario Monti began working to end the right of landlords, tradesmen, and small businesses to perform large transactions in cash, which critics say help them evade taxation. In December of that year, his government reduced the maximum allowed cash payment from €2,500 euros to €1,000.

Spain has outlawed cash transactions over €2,500. The justification? “To crack down on the black market and tax evaders.”

In Sweden, the country where the first banknote was created in 1661, the use of cash is being steadily eliminated. Increasingly, expenses are paid and purchases made by cellphone text message, and many banks have stopped handling cash altogether.

Denmark’s central bank, Nationalbanken, has another justification for ending its use of banknotes—producing paper money and coinage is not cost effective.

Israel also seeks to end the use of cash. Prime Minister Benjamin Netanyahu’s chief of staff has announced a three-phase plan to “all but do away with cash transactions in Israel.”

Individuals and businesses would initially continue to be allowed to make small cash transactions, but eventually, all transactions would be converted to electronic forms of payment. The justification being used in Israel is that “cash is bad,” because it encourages an underground economy and enables tax evasion.

Across the Atlantic, banks and governments are on a similar campaign. A 2012 law in Mexico bans large cash transactions, with a maximum penalty of five years in prison.

In August 2014, Uruguay passed the Financial Inclusion Law, which limits cash transactions to US$5,000. In future, all transactions over that amount will be required to be performed electronically. The crying need for such a law? The stated reason was to improve the country’s credit ratings.

The Elimination of Paper Currency

In recent years, in commenting on the inevitability of currency collapse in those countries that are indebted beyond the possibility of repayment, I’ve made the prediction that governments and banks would jointly resort to the elimination of paper currency and replace it with an electronic one.

Some readers have understandably regarded the prediction as “alarmist.” After all, the idea is so farfetched—paper currency may be conceptually flawed, but it’s been around for a long time.

But banks and governments seek total control of money, and this can only be achieved if they possess a monopoly on the flow of money.

If a worldwide system can be implemented in which currency transactions can only take place electronically through banking institutions, the banks will then have total power over the ability of a people to function economically.

But why would any government allow the banks such dictatorial monetary control? The answer is that governments would then realise a long-held, but heretofore impossible dream: to have access to a record of everymonetary transaction that takes place for every single individual.

Governments have been both more proactive and bolder than I had anticipated and are simply imposing the restrictions worldwide under the justifications previously stated. As yet, there hasn’t been any backlash, and it may be that people worldwide may simply swallow the pill, not understanding what it means to their economic liberty.

If the public are not treating the new system as serious business, governments most assuredly are. Bankers on both sides of the Atlantic have forcibly become unpaid government spies. If they don’t comply, they can be fined and/or lose their banking charter. Directors can be imprisoned.

The US Justice Department already wants to take this overreach even further. Banks are now being asked to call the authorities whenever something “suspicious” occurs, presumably so that immediate action may be taken.

What we are witnessing is the creation of totalitarian control of your finances. The implication that you may have some sort of terrorist involvement is a smokescreen.

As the above information attests, if for any reason you object to any of these measures, you have already been forewarned—you may be suspected of money laundering, tax evasion, or even terrorism. If you use cash for any reason—to pay your rent, to buy a used car, or (soon) to pay for your lunch—you may trigger an investigation. (The onus of proof that you are not guilty good will be on you.)

The take-away from this discussion? Totalitarian control of currency is an inevitability, and it will take place sooner rather than later. The only question is whether the reader can retain some control of his wealth.Fortunately, wealth may still be held in land and precious metals, but these are only safe if they’re held outside a country that seeks totalitarian rule over its people.

The ability to retain wealth still exists and, as always, internationalisation remains a key element to its continuation.

Editor’s Note: The ultimate way to diversify your savings internationally is to transfer it out of the immediate reach of your home government and into something tangible. Something that cannot be easily confiscated, nationalized, frozen, or devalued at the drop of a hat or with a couple of taps on the keyboard—while retaining as much privacy as legally possible. Physical gold and silver stored abroad in a non-bank vault fits the bill.

Gold and silver have served as money for centuries and across many different civilizations. They have always been inherently international assets. There is nothing at all particularly American, Chinese, Russian, or European about gold or silver. Buying gold and silver is perhaps the easiest step you can take toward internationalizing your savings. The next step is to store your precious metals in a safe foreign jurisdiction.

It is now easy and convenient to own and store physical gold and silver offshore in places like Singapore and Switzerland in a non-bank private vault. Find out how you can internationally diversify your precious metals by downloading this guide.

It’s happening: more US allies join the anti-dollar alliance


March 18, 2015
Santiago, Chile

The United States government just went from “Please, baby, don’t leave me,” to frustrated threats and whining.

After the UK announced it will join new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well.

Welcome to the beginning of the end of the US dollar’s domination. It’s happening.

For the past few decades America was the undisputed global economic and political superpower.

The entire world happily used the US dollar, and hence, the US banking system. More importantly, the world happily placed its trust in the US government.

But there’s a limit to how irresponsible, reckless, and threatening you can be. Eventually such behavior catches up to you.

That time has now come.

The US government is now drowning in debt that can never be repaid. The US government’s own numbers, in fact, estimate its level of insolvency at roughly $60 trillion.

This means that when you add up all the assets of the United States—every acre of land, every tank, every drone, every drop of oil in the strategic reserve… and subtract all the debt and liabilities, the result is MINUS $60 trillion.

That is the net worth of the United States government.

On top of that, the US government has chosen to use its once-trusted currency and banking system as weapons to blackmail the rest of the world.

FATCA (the Foreign Account Tax Compliance Act) is probably the best recent example.

FATCA’s provisions require every single bank in the world to jump into bed with the Internal Revenue Service and agree to all sorts of expensive, debilitating information-sharing agreements.

And any bank which dares to defy the US government gets effectively blackballed from the US banking system and subject to a 30% withholding tax.

On top of that, the US government has taken to slamming foreign banks with the most astonishing fines—$9 billion, for example, in the case of French Bank BNP Paribas.

BNP’s wrongdoing was conducting business with countries, like Cuba and Iran, that the US government doesn’t like.

Bear in mind, BNP is a French bank and broke no French law whatsoever.

Moreover, the business was done through its Swiss subsidiary, and they broke no Swiss law either.

That didn’t matter to Uncle Sam, which fined the bank $9 billion under threat of being kicked out of the US banking system.

Blackmail. Extortion. Intimidation. This isn’t the behavior of a trusted friend. It’s the behavior of an arrogant sociopath.

And the rest of the world is sick of it.

Other countries—even allied nations—see that times are changing. There are new players on the rise, and the US isn’t the only option anymore.

Increasingly they’re turning to China, who, by some metrics, is already the largest economy in the world.

And the US government can’t do anything about it.

This is happening now with increasing speed. It’s mainstream news everywhere: the US is being shunned by its allies for the new kid on the block.

This has major implications for the United States. History shows that when reserve currencies change, the losing country almost invariably goes through significant turmoil.

But here’s the thing—the world is changing. But it’s not coming to an end.

Yes, things will change dramatically in the West in the coming years.

The standard of living that was attainable in the US because of its economic dominance will diminish.

For cues, look to Europe to see how unsustainable policies unravel when you don’t have the backing of the world’s reserve currency.

But people who recognize and embrace these changes early will prosper, for there will be tremendous opportunities throughout this process.

Modern technology means that all of our lives don’t have to be trapped within one single bankrupt country.

You can move your savings abroad to safety.

You can structure your business and assets so that you keep more of your hard-earned income for yourself and your family.

You can seek out investment opportunities out there that aren’t subjected to chasing bubbles induced by world central banks.

You can plan ahead and establish an alternative residency in a safe and thriving place, and perhaps even qualify for a second passport.

Bottom line– the world is changing. We can’t stop the end of the dollar’s dominance. All we can control is how we react to it… and when.

This is a real opportunity. Either an opportunity to gain, or an opportunity to lose. The choice is ours to make.

Our goal is simple: To help you achieve personal liberty and financial prosperityno matter what happens.

If you liked this post, please click the box below. You can watch a compelling video you’ll find very interesting.

Will you be prepared when everything we take for granted changes overnight?

Just think about this for a couple of minutes. What if the U.S. Dollar wasn’t the world’s reserve currency? Ponder that… what if…

Empires Rise, they peak, they decline, they collapse, this is the cycle of history.

This historical pattern has formed and is already underway in many parts of the world, including the United States.

Don’t be one of the millions of people who gets their savings, retirement, and investments wiped out.

Click the button below to watch the video.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

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    Physical Gold and Silver should be the global reserve currencies upon which domestic paper notes are valued. It the basis of the Bretton Woods agreement in 1944 and long before then. Gold is the ultimate canceller of debt and will be again.

    On 15 August 1971 the United States unilaterally terminated convertibility of the US dollar to gold, effectively bringing the Bretton Woods system to an end and rendering the dollar a fiat currency. This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as the pound sterling, for example), also became free-floating.

    If the Yuan went to being a Gold backed currency, Russia would follow with the Ruble and the US Dollar would implode along with the fascist dictatorship that has 3.5% of the world’s population telling the other 96.5% what to do at gun point.

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      Clearly you don’t have a very deep understanding of commodities backed currencies. The optimal currency is fiat by pure nature of the efficiency (commodity currencies are very wasteful, nor are they accurate representations of the wealth backing them) and that’s without considering the fiscal value of such tools (commodity reserve currencies tend to perpetuate recessions among other things).

      Do we need to move away from a currency dictated by a single government? Absolutely, especially in today’s age where the currency needs to flow electronically and can be controlled and used as a weapon against other countries and institutions. However, moving to a commodity backed currency isn’t the solution. The Euro for all its failings is a much closer example of where we need to head.

      The other challenge has to do with the alignment of fiscal and monetary policy. Monetary policy is generally fairly sound (arguably because those running the monetary system aren’t so swayed by politics and are educated on their roles), fiscal policy, which needs to function hand in hand with monetary policy has significant gaps (again arguably because it’s driven by politics rather than sound economic principles and politicians aren’t educated on economics). Case in point, governments tend to spend when they should be cutting back and cutting back when they should be spending.

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    Oh and having China as the major global reserve currency and them controlling world politics is MUCH better.

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    Wow — finally an explanation of why the dollar has falled 24% against most other currencies in the past year, and gold is up 15%, and silver is up 40%. Oh wait. that is dollar is up and gold and silver are down by those amounts. Stupid is an inability or unwillingness to learn. Mind numbing, dumb fuck stupid is smelling dog poop and thinking that it is a hot fudge sunday.

    So tell me Mr. Sovereign man … how much money have you made in the past year betting on the decline of the dollar and the rise in gold?

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    Japan’s next

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    This is the most encouraging post I’ve read in a long, long time.

    That is all I have to say.

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      YUP, went researching from last night how to open an account with this bank, looks not possible yet, people are pushing investing in their stock, screw that idea, I just want my money in some bank that doesn’t try and control me like the fag#$t americans and canadians and all their slaves in most of the world.

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    OK, so the Chinese takeover of the world economy is a better choice? They already own most of the US (do the research). This a just the nail in the American coffin that the Chinese are locking down. They’ve been trying to drive down and devalue the US economy for decades. How is this a good thing? What is happening here is not good for the US at all. What would be good for the US is to fix the economy by throwing out corrupt, corporate shills and banker-led representatives from the legislature, resetting dollar values and exterminating the myth of inflation, thus cutting overall costs to consumers. In turn, this will allow the nation to afford to be a nation as a whole and get it out from under the yoke of debt and indemnity to other nations, and it’s citizens will flourish in an affordable living environment. Upgrade the infrastructure, roads, railways and airways and make it easier and more affordable to travel, also opening up economic prosperity. This flattens the playing field across the board and forces places like China to play fair. Believing that China has the interests of other nations in mind economically is naive. They still want to take over the world. This is only a form of that desire. Don’t believe the hype.

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    bitcoin-the stateless currency- is still too volative- even though bitcoin can load your mastercard

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    And it seems that the US political leadership is doing all it can to hasten the decline of America.

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    The joint strike fighter is for the US empire what the Armada was for the Spanish empire. The madness of politics finally reaches their core business: violence

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