This is not exactly a newsflash for our readers.
India looks like a trial run to us.
Sadly it really has been a trial for the Indian citizenry.
Since the War on Cash began about a year ago (in earnest) we have seen a concerted effort to get all financial activity into the “matrix” before it’s too late. (From the globalist/control freak perspective.) Have a pile of cash? You must be a criminal. Have some silver and gold? You must be a criminal. The state wants its eyes on all transactions. It wants to make sure it always gets its cut. This has nothing to do with fighting “terrorists.”
The whole place is economically dysfunctional. This is what happens when prices are restricted by the government and the totalitarians refuse to let in the light of the market. It’s really that simple fundamentally.
It should be noted also that the Indian government pulled a similar thing a couple of weeks ago and also threw its economy into a spin.
The War on Cash is on.
India’s decision to ban Rupee notes above 500 has become the financial media’s topic du jour.
However, India is in fact just the latest in a series of countries to ban physical cash in higher denominations.
The war on cash has been going on since at least 2014 if not earlier.
To that end, France has banned any transaction over €1,000 Euros from using physical cash.
Imagine if suddenly the $100 bill just went away.
The strong central government in India wants to crush the free untaxed “black market” economy and has thrown the lives of many everyday people into chaos.
There is a reason why many people seek to buy gold in India when they can.
The War on Cash is on. The opening salvos were launched months ago, and now we are getting into the meat of the campaign which is being driven by central banks, governments, and by industry. They all want to kill cash.
The central banks hate cash particularly because it limits their power. There is real concern that in the event another significant recession rolls around central banks will have a hard time pushing down interest rates,
The war on cash is a war on anonymity. Cash transactions are private and discreet. Electronic transactions are recorded and can be sifted through for all sorts of things.
Central planners hate cash. It puts power in the hands of the awful, terrible, ignorant consumers, and limits the power of the bankers and their allies in government.
We’ve already heard quite a lot about the War on Cash this year. The opening salvos have been volleyed.
In a negative interest rate environment (which we might find ourselves in come the next recession) cash produces a relative yield. In other words the yield of the cash under your mattress is 0% but that is still better (in a negative rate environment) than what the bank will give you for said cash.
Central bankers hate cash because it limits the power of central bankers to experiment and manipulate (more often screw up) the economy as they wish.
“Hoarding” is code for savings certain people don’t like. These same people then argue that your “hoarded” property is illegitimate and so subject to confiscation in the name of the “greater good.”
This is of course silly and hearkens back to old dusty ideas about the “velocity of money” etc. Wealth comes from ideas not money supply. If the economy provides enough opportunity for return on investment people will exit any “hoards.” (At least to a very large degree.) But in a world in which ROI is increasingly difficult due to poor economic and societal management people are going to be inclined to save.
Seems reasonable. Cash makes one a criminal. OK.
Who would have thought that using cash would become a political statement?
As we said in the previous post, the War On Cash is a war for power. (Like pretty much every war is.) On one side are the central planners, governments, central banks. On the other side is the rest of the world.
The central planners see that their vast experiment post-2008 is failing. As such they are getting desperate. The planners are increasingly of the opinion that the real problem is that they don’t have tight enough control over the world economy (let that sink in) and that cash in the hands of everyday people is a danger to their centralized regime.
More from the War on Cash. The European front is the hot one at this moment as the European Central Bank flirts with the idea of sub-0% interest rates. I mean, because they are worried about terrorism.