The Feds want the police called on anyone withdrawing $5,000 from their bank account. Banks already report to the IRS on deposits or withdrawals of $3,000 or more, and businesses that deposit cash are being charged a fee – just to deposit cash.
Western (broke) countries are desperate for cash, and it doesn’t take a rocket science to know who they are coming after – anyone with money. Does anyone see the irony in the fact that on one hand they lower interest rates to near zero (punishing savers, pension funds, etc.) to stimulate the economy, and then on the other hand they raise taxes and confiscate the money that’s suppose to stimulate?!? Of course, nothing with govt makes sense, except their desire to protect their own jobs, perks, and power.
You can be certain that the Feds are moving in the direction of a cashless society to simplify the tax and confiscation mechanism, leaving it to you and your lawyer to prove otherwise. Trends like Apple Pay, Capital One Wallet, and Bitcoin are simply ways to get the public comfortable with the idea of a cashless society. The reality is they are ensuring their socialistic collapse, just as self-centered bureaucrats have done throughout history.
The US Govt’s desperate grab for cash will only accelerate as the financial baton is passed from west to east. Obama is ensuring the transfer happens without even the possibility of a drop. Putin has played Obama and the trigger happy neocons like insecure bullies. The bumbling in Syria to protect Saudi/Qatar nat gas interest, not only turned the truthful eye of the world against us, but it propelled ISIS to the forefront with direct funding and armaments. The world also has seen the ease at which we are willing to destroy lives in Ukraine in order to park NATO forces on Russia’s border. In the mean time, Russia is flying advanced bombers, capable of carrying the most powerful nuclear bombs, closer and closer to our shores.
China is also molding Obama and our inexperienced bureaucrats into their little bitches, and the rest of the world is going along because they see the permanent ink on the walls. The latest humiliation coming with China’s announcement of the Asian Infrastructure Investment Bank (AIIB) that will compete directly with the US-centric (and corrupt) World Bank. Twenty-seven countries have already signed up for the AIIB, including Britain, France, Germany and Italy. Australia, Japan and South Korea are also close to joining. Whether intentional or mere stupidity, America’s most inept President in US history is paving the road toward the next world reserve currency, with devastating consequences for America.
Without the world’s demand for US-based assets for parking reserves and dollar-based transactions driven by the petrodollar and the 90% of commodities that trade in US dollars, interest rates will sore and all the entities that must roll their debt to survive will implode, including most of the countries in the world.
The examples of broke countries hunting and confiscating other people’s money are numerous, and can be exemplified by the US wanting to tax grill usage and Italy literally taxing shadows. Of course, we already know of the devastating harm on capital flows caused by FATCA, and the loss of business due to the NSA collaborating with our major tech companies to hunt money not terrorist.
Margaret Thatcher stated the problem succinctly in 1976: “The trouble with Socialism is that eventually you run out of other people’s money.” Sadly, we still have not evolved enough to learn the lessons of history, which repeatedly and without exception show that excessive govt debt is the source of societies downfall. Sorry, it’s not different this time.
Fortunately, there is one unselfish person with the wisdom provided by experience, and the humility to let the data guide his recommended solutions. Martin Armstrong will present the Solutions this Saturday, along with updates on the Sovereign Debt Big Bang and Cycles of War, and a demo of Socrates, the most powerful and comprehensive financial model on the planet that captures the interconnected nature of our global economy.