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Cash No Longer King: Europe Moves To Begin Elimination Of Paper Money

by Shaun Bradley, Activist Post:

In the shadow of Donald Trump’s spree of controversial actions, the European commission has quietly launched the next offensive in the war on cash. These unelected bureaucrats have boldly asserted their intention to crack down on paper transactions across the E.U. and solidify a trend that has been gaining momentum for years.

The financial uncertainty amplified by Brexit has incentivized governments throughout Europe to seize further control over their banking systems. France and Spain have already criminalized cash transactions above a certain limit, but now the commission has unilaterally established new regulations that will affect the entire union. The fear of physical money flowing out of the trade bloc has manifested a draconian response from the State.

The European Action Plan doesn’t mention a specific dollar amount for restrictions, but as expected, their reasoning for the move is to thwart money laundering and the financing of terrorism. Border checks between countries have already been bolstered to help implement these new standards on hard assets. Although these end goals are plausible, there are other clear motivations for governments to target paper money that aren’t as noble.

Negative interest rates and high inflation are a deadly combination that could further destabilize the already fragile union in the future. With less physical currency circulating, these trends ensure that the impact of any additional central bank policies will be maximized. If economic conditions deteriorate, the threat of citizens pulling cash out of their accounts and starting a bank run is eliminated in a cashless system. So long as the people’s wealth is under centralized control, funds can be shifted at will to conceal any underlying problems. But the longer this shell game is allowed to persist, the more painful it will be when reality overrides the manipulation.

Since former Chief Economist at the International Monetary Fund (IMF), Kenneth Rogoff, published a paper last year advocating for the U.S. $100 bill to be removed, governments around the world have pushed forward their agendas towards a cashless society. He wrote:

There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism. There are substitutes for cash—cryptocurrencies, uncut diamonds, gold coins, prepaid cards—but for many kinds of criminal transactions, cash is still king. It delivers absolute anonymity, portability, liquidity and near-universal acceptance.

This announcement comes just months after the 500 euro note was discontinued, and it follows India’s lead in subverting the financial independence of their citizens. The incremental steps currently being taken may look trivial in isolation, but the ultimate end is to lay the foundation for an entire network for economic repression.

The German people have placed themselves in strong opposition to the action and previously pushed back hard against domestic legislation that would have limited cash. Nearly 80% of all transactions in Germany are made with paper currency, putting Europe’s economic engine in direct conflict with the vision coming out of Brussels.

The spillover effect has affected new forms of investment, like Bitcoin, which witnessed an astronomical rise over the last months and has been brought back into the discussion as a viable alternative to fiat currencies. Of course, the E.U. Commission is also attempting to impose similar limitations on crypto-currencies to make sure no transactions fall outside of their domain. The ECB and BOJ are working towards a Trojan horse blockchain network that will serve only to entrap those naive enough to trust it.

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2 comments to Cash No Longer King: Europe Moves To Begin Elimination Of Paper Money

  • Ed_B

    “Cash No Longer King: Europe Moves To Begin Elimination Of Paper Money”

    LOL! Paper money, crummy as it is, is very likely to outlive the European Union. The EU is falling apart. The UK has already voted out of the EU. France will be next. Then Italy. Then several others will follow. The term “Dead Man Walking” comes to mind.

  • JMiller

    The article wrongly states “the threat of citizens pulling cash out of their accounts and starting a bank run is eliminated in a cashless system.” This is not true. Eliminating physical cash would not prevent bank runs. Bank runs can happen just as well by having large numbers of depositors take money out of a bank electronically by transferring it to another financial institution like another bank, a credit union, a mutual fund company, a brokerage, an insurance company, into a Treasury Direct account etc…or by having depositors just close out their accounts and getting a cashiers check.

    There is also something called a silent bank run.

    http://www.investopedia.com/terms/s/silent-bank-run.asp

    Only capital controls, such as preventing people from closing accounts and limiting the amount one can withdrawal from their account, can stop bank runs.

    Instead of wrongly saying that bank runs are eliminated in a cashless society, people should be saying that in a cashless society, money, in general, is prevented from leaving the banking system. Not that money can’t leave individual banks.

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