Good insight into human nature.
Blatant discrimination against the poor is illegal in most western countries, i’m quite surprised this happens in Sweden.
Ending the Ownership of Money
by Jeff Thomas
As is now common knowledge, some of the world’s most powerful countries are insolvent due to ever-increasing sovereign debt. At this point, the economies are being held together through only one factor: continued faith in the currency by the average citizen. As soon as that faith disappears, the economies will crash.
Not surprisingly, the leaders of these countries and their close associates (particularly the banks) are actively seeking means by which they can escape the effects of the crisis they have created and still retain some sort of control.
For some time, I’ve predicted that one way in which they will accomplish this will be the elimination of cash, that in order to prevent a run on the banks in which the average citizen simply removes his money from the system, such a removal would be made impossible by ending the existence of bank notes. It would be replaced with an electronic currency system, so that the only “cash” that exists is a credit in a bank account.
When this prediction was first suggested, it seemed to many to be both alarmist and ridiculous. Mankind has always had hard currency in some form, something physical that could be held in the hand. But with computerisation, the elimination of physical currency is possible.
Banks, with the support of legislation, can require that all transactions (even the purchase of a candy bar) be electronically performed by the account holder. Once this has been achieved, two other advantages (to the bank, not to the account holder) become possible.
First, paper currency can be eliminated, which assures that, no matter how bad things get, account holders can’t remove their cash from the bank and stuff it in a mattress at home, since no physical cash exists. Second, banks could then charge account holders interest for their savings accounts, since transactions could take place only through the banks.
Now the concept of electronic currency is no longer the stuff of fairy tales. Most of the world’s governments have passed laws restricting the amount of cash an individual might use. Those who use cash over the designated amount are, in some cases, harassed or even investigated (generally for money laundering or drug dealing).
Ecuador’s War on Cash
In December 2014, Ecuador instituted its Sistema de Dinero Electrónico (SDE), the world’s first government-controlled electronic monetary system. (Other countries have electronic banking systems, but they are not state run.) And it is US-dollar based.
Back in 2000, Ecuador adopted the US dollar as its official currency, dumping thesucre, which, as a result of hyperinflation, had become devalued to the point of 25,000 to one US dollar. So, the Ecuadoran government scheme will be dollar based.
The system is being promoted as a new, easier way to make payments (either by card or cell phone), eliminating the need to carry cash and making it harder for thieves to steal.
It is also being touted as a way to benefit the poor, although no reasons are being offered as to why this might be so. (If this were their true goal, Quito officials might instead allow for competing private-sector systems, to drive down costs.)
The system is being introduced piecemeal. At present, you can pay for a taxi and some services with the SDE, as well as send money between individuals. By year’s end, it will be possible to pay your taxes with it.
To date, each of the steps taken by Ecuador follow the playbook as I originally put forward. Should Ecuador continue to follow the prediction, when the SDE reaches the point that virtually everyone in the country has an account and is making the majority of their payments by either a debit card or cell phone, the government will announce that paper currency is to be eliminated.
The explanation given at the time might be that cash would no longer be necessary and would be a drain on the economy. (Ecuador spends three million dollars annually replacing worn-out bills.)
Sceptics both within and outside of Ecuador have suggested that the new system may simply be a way of dumping the dollar, but, if anything, the Ecuadoran government is enhanced by the continued use of the dollar.
First, the dollar has allowed relatively low inflation and low interest rates. Second, the dollar is less likely to hyperinflate than a reinstated sucre. Third, the sceptics are overlooking the fact that, once the dollar is electronic only, Ecuador never need buy dollars again. The electronic dollar would be a dollar in name only. In reality, it would not exist. It would be an electronic concept.
(That last bit will take some getting used to, not only in Ecuador, but worldwide.)
Monkey See, Monkey Do
As Ecuador demonstrates the workability of its electronic system, I believe that neighbouring countries will jump on the bandwagon quickly. Each government will say to itself, “Government control of all monetary transactions? Where do we sign up?”
An additional benefit will be the apparent stability of the US dollar. As long as the dollar holds up, governments like Ecuador (and other countries, such as Uruguayand Argentina, that use the dollar as a second currency) will gladly base deposits in dollars.
So, that covers the larger, critically indebted countries, plus the Third-World countries. What of the smaller, prosperous countries whose currencies are presently sound?
It’s entirely possible that smaller, more stable countries, such as Bermuda, theCayman Islands and Hong Kong, will get on board with the electronic system. They’ll need to, in order to continue international banking.
However, if their own currencies are stable, there’s no real reason for them to eliminate their own currencies for local usage. These currencies may therefore continue, although there’s the danger that either the banks (realising that they can only charge interest on deposits, not on cash kept at home) or governments (who, above all, seek control over their people and recognise monetary control as a primary control) may very well opt to eliminate paper currency.
But is the loss of physical currency really such a bad thing? After all, the elimination of cash does create convenience and might just limit theft in the world to some degree.
Yes, it is indeed quite a bad thing. The overriding effect that the elimination of cash will have on people will be that they will lose their freedom of monetary movement. They will be subject to government and banking surveillance of everytransaction and, increasingly, will be subject to legislation that limits currency movement.
Once this point is reached, governments will be free to move to a stage in which they declare that money is not the possession of the individual or company. It’s the possession of the government and the government “allows” the public to use its currency in order to conduct commerce. As such, individuals and companies had best “behave,” or they might find the privilege taken away and the money confiscated.
Of course, the reader may well find this final step to be beyond the pale, even for today’s overreaching governments. Just a year ago, the very concept of a War on Cash itself was considered to be a mere fantasy, yet we are already clearly transitioning into the End of Cash.
And so, anyone who wishes to retain control of his own economic life will soon be facing the realisation that:
- All currency (in most, if not all countries) may soon be held solely in banks and transacted solely through banks.
- All currency that is in banks will be subject to bank and government scrutiny, increasing bank and governmental controls and limitations and possible confiscation and increased taxation.
- All wealth that remains within the control of the individual will be wealth that is held in a non-currency form and held outside banks.
The field for such ownership is becoming increasingly limited. It consists primarily of precious metals and real estate, and even those stores of wealth are truly safe only if located in a jurisdiction that is not on the verge of insolvency and whose government is both stable and relatively benign.
Such jurisdictions do exist, but “cash,” as it exists today, must be moved out of hazardous jurisdictions and converted to a safer form of wealth protection beforethe final legislations have been passed, making cash illegal.
Editor’s Note: We’ve discovered one of the easiest and most convenient ways 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.
Excellent Meme About How The Cabalists Work.
Who Do You Think Gets Thrown Under The Bus First When The “Political Climate” Heats Up? Will It First Be Rothschild Or The Puppet?
The U.S. Constitution identifies many pursuits suitable for generating “Tyranny Offsets”, which are grouped into broad categories.
These pursuit types include “Life”, “Liberty”, “Pursuit Of Happiness”, and when necessary, to provide new Guards for our future security.
China, working with the governments of the United Kingdom and other European powers, has moved further to boot New World Order-controlled institutions like the International Monetary Fund (IMF) and the World Bank from Asia, another sign of declining United States financial power.
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Brazilian President Dilma Rousseff is first and foremost a politician. She will make deals with the devil to stay in the game (2016 Olympic games), and possibly with a little financial incentive from the US State Dept to keep things greased. Great assessment Lada!
Lol, US begging for pyrrhic scraps? 2016 US elections should be a non-event with lowest turnout in voter history- epic disillusionment.
Brazilian president: Obama promised he would ‘just pick up the phone and call me’ for non-public info.
Brazilian President Dilma Rousseff and US President Barack Obama met at the White House, promising each other an end to the frosty relations between the two countries. Rousseff was one of the most vocal critics of American spying after NSA whistleblower Edward Snowden revealed she and other world leaders were targets. Never mind NSA scandal – the two presidents promise to trust each other going forward.
And now, I’ll reveal what’s really going on!
US and Obama:
US is engaged in a complex hybrid war against Russia, China and EU and it doesn’t have any more capability to fight on yet another front. That’s why US tries to make up with former enemies, such as Cuba and Iran. This is one of the main reasons they are also doing damage control with…
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June 30, 2015
Since my arrival into the country late May, the topic of most discussions I overhear everywhere are naturally about the debt negotiations.
I’d call opinions in support or against the Tsipras governments’ activities pretty sharply divided.
Tsipras supporters are generally fed-up with 5yrs of blood-letting “from the Germans”.
Critics, on the other hand, see the euro as some sort of abstract membership in a club that must be retained at all cost.
A minority even criticize Tsipras for—get this—being too soft.
That’s especially true where I’ve been staying here in the port-city of Piraeus, which – being the country’s biggest port, is home to mostly blue collar, working class folks where unions more or less dominate.
To illustrate the political leanings around here, I hazily recall a headline in a newsfeed summing up their worldview quite accurately: “Piraeus – a neighborhood where Syriza is not quite left-wing enough.”
Like most locals, I’ve been steadily hitting the ATM for the past weeks to amass some emergency cash.
I ventured out today for the first time since the capital controls were installed yesterday to have a look around.
In Piraeus, I saw a queue of at least 30 people at a branch of Alpha Bank, and about 10 people at the Bank of Piraeus, where I waited.
The mood among the people waiting was pretty cool, friendly and even throwing a few funny comments around to address the obvious elephant in the room.
Older pensioners who were waiting, being used to getting their money from the window, had dusted off their debit card and received generous help from others on using it.
Experiences were shared on efforts to withdraw cash the previous day, where the published daily withdraw limit of 60 EUR/day for citizens was in effect (and confirmed by to me by the folks on line).
Today however, having presumably exhausted their supply of 20 euro notes, this ATM machine imposed upon users a de-facto daily withdraw limit of 50 Euros – since it was only dispensing 50 Euro notes.
As has also been reported, these capital controls do not apply to foreign bank accounts; and I can confirm to be true as my foreign bank card allowed me to withdraw my self-elected amount (of 300 EUR on this occasion) without issue.
There is certainly an unusual feeling of calm in the air. Car traffic resembles a quieter “Sunday” level than a typical summer weekday going into the high tourist season.
Citizens seem a bit more polite and helpful to one another than before, with no shortage of clever comments to break the tension on everyone’s mind being all in the same boat.
My first thought was to assume a newfound “keep calm and soldier on” state of unity among the populace.
But this is Greece, not Northern Europe. the words “quiet” and “calm” never share a sentence here.
No, this was something different, I believe, more of a “laugh to keep from crying” state of mind.
And being very experienced with Greece and Greek culture for my entire life, this realization was off-putting to say the least.
I’ll forward along any additional observations during my stay and leave you with one final, personal thought.
For all the talk and preaching of the risks one takes by placing all their “flags” into the blind faith and trust of one government in the abstract, it’s nothing like witnessing it firsthand.
Greece, right here – right now, is where that all “gets real.”
But more importantly, all the benefits of a multiple flags approach also “gets real” when you’re the guy who the crisis can’t touch.
I’m able to merely observe and participate without worry, sleeping tight knowing that all that what I’ve worked to achieve in his life is out of the reach of supranational, unelected & unaccountable EU autocrats.
“The CIA has been in the drug running business since the 1950s. In Burma, Vietnam, Laos, Latin America, and Afghanistan, the CIA — also known as the “Cocaine Import Agency” — has remained at the forefront of the international illicit drug trade. The journalist Gary Webb and the San Jose Mercury News tied the CIA and the Contras to a large crack cocaine ring in Los Angeles. Webb paid with his life for revealing this information to the public.”