The Scheme To Eliminate Cash and Impose Negative Interest

By Clint Siegner – Re-Blogged From Gold Eagle

Central bankers and politicians love inflation, but they need “bag holders” to have faith in the value of the fiat currency IOUs they hold. The trick is to avoid suddenly destroying the ephemeral confidence in currencies by printing too much too fast.

Central bankers may also need to limit the options inflation wary citizens have for escaping.

They are both shifty and innovative when it comes to making sure the ill effects of perpetually devaluing currency are primarily borne by the citizenry.

Lying and trying to hide what they are doing to the currency has been tradition with politicians since Roman times. Nero began quietly reducing the silver content of the Denarius around 60 A.D.

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War On Americans

By Gary Christenson – Re-Blogged From The Deviant Investor

Wars benefit the political and financial elite. Most wars are on-going, whether they include formal Congressional declaration or military actions. The following wars will continue.

  • War on drugs.
  • War on poverty.
  • War on cash.
  • War on reality based statistics.

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Cashless Society Threatens

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

Swedish authorities concerned cashless society is happening ‘too quickly’ and heading into ‘negative spiral’
– Only 25% of Swedes paid in cash at least once a week in 2017, 36% never use cash
– Cash usage in Sweden falling both as share of GDP and in nominal terms
– Sweden may be world’s first economy to introduce a cryptocurrency, the e-krona
– Cashless is not a disincentive for illegal drug trade, Guardian finds
– Gold in safe jurisdictions will protect against raids on cash and wealth

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War on Cash Backfires on India’s Economy

Re-Blogged From Money Metals Exchange

Indian Prime Minister Narendra Modi launched a surprise attack on cash in late 2016. He gave Indians a few days to convert the two largest denomination bills then circulating to bank deposits, after which point any undeposited notes would become worthless. The move was intensely controversial. Transactions completed using cash represented the vast majority of economic activity in the country.

In order to sell the program Modi employed a familiar strategy. He vilified the users of cash as tax cheats and criminals. He promised the measure would punish black marketeers, boost the Indian economy, and increase tax revenues. The latter may be true – forcing transactions onto the grid is good for nosy bureaucrats trying to impose taxes and controls.

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Trump’s DOJ Ends Obama’s Highly Controversial ‘Operation Choke Point’ Program

By Julio Rosas – Re-Blogged From Independent Journal Review

“Operation Choke Point” — a program started by the Department of Justice (DOJ) during the Obama administration — will no longer continue under Attorney General Jeff Sessions.

Republicans have claimed the goal of “Operation Choke Point” was to pressure the banks to cut off legitimate companies from using their services. In particular, critics said the program was used to specifically target gun sellers.

The DOJ announced the discontinuation of the program Wednesday in a letter to House Judiciary Chairman Bob Goodlatte. In the letter, Assistant Attorney General Stephen Boyd called “Operation Choke Point” a “misguided initiative conducted during the previous administration”:

We share your view that law abiding businesses should not be targeted simply for operating in an industry that a particular administration might disfavor. Enforcement decisions should always be made be based on facts and the applicable law.

“All of the Department’s bank investigations conducted as part of Operation Choke Point are now over, the initiative is no longer in effect, and it will not be undertaken again,” Boyd added.

Boyd also stated because of subpoenas, some criminal activity had been discovered, adding “the Department continues to pursue those ancillary investigations, none relates to or seeks to deter lawful conduct.”

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The Real Indian Currency Crisis

By Hard Asset Alliance – Re-Blogged From http://www.Silver-Phoenix500.com

On November 8, 2016, Indian Prime Minister Narendra Modi dropped a bombshell. In a televised address at 8:00 pm, he declared that after midnight—four hours later—banknotes with face values of INR500 (US$7.50) and INR1,000 (US$15) would no longer be legal tender.

These bills comprised 86% of the monetary value of currency in circulation, so to say that panic ensued would be an understatement. The market stayed open all night as people rushed to buy gold, Rolex watches, and anything else they could get their hands on to use up their cash.

During the next two weeks, gold traded for as much as US$3,000 per ounce, a premium of almost 100% to the international price. Foreign currencies traded at similar premiums.

Soon, Indian tax authorities descended on the gold market, confiscating security camera recordings to identify any transaction that might have bypassed taxation. They were raiding people’s houses with abandon.

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When the Black Market Becomes the Real Market

By Jeff Thomas – Re-Blogged From International Man

For many years, I’ve described black markets not as the evil danger to economies that governments profess them to be, but as predictable and sensible reactions to the overregulation of official markets.

Black markets appear whenever an official market has become overregulated or otherwise unworkable due to governmental interference. They then thrive in direct proportion to the failure of official markets to function freely. They are, in fact, both a barometer and a checks-and-balances system for official markets.

Back in 2008, I commented on the growth of the black market in Zimbabwe, as that country slid from inflation to hyperinflation. At that time, the people resorted to the use of other currencies (most notably the US dollar) as black market currency. The government, desperate to force their people into the dying Zim dollar, made it illegal to use the US dollar, but this hardly made a dent in the use of what was clearly a more stable currency. The ban on the US dollar only succeeded in driving it underground. Commerce did not grind to a halt, and money did not cease to change hands. The only real change was that the Zimbabwean government was taken out of the monetary loop.

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