The War on Cash Intensifies

Mark my words: The war on cash is intensifying, putting our civil liberties at stake like never before.

Last month, the 2001 Nobel Prize-winning economist from Columbia University, Joseph Stiglitz, was quoted as saying: “I believe very strongly that countries like the United States could and should move to a digital currency.”

He argues that the move would give governments the ability to trace corruption, putting an end to illicit activities.

This falls in line with the thinking of Harvard’s Kenneth Rogoff. He has argued for two decades that a society awash with cash contributes to the growth of the underground economy. Rogoff believes large-denomination bank notes should be phased out.

He also argues that cash facilitates crime because it is anonymous. And big bills are especially problematic because they are so easy to carry and conceal.

But that’s not all …

India’s Prime Minister Narendra Modi has already removed 86% of his country’s currency from circulation in an attempt to curb tax evasion, tackle corruption and shut down the underground economy.

Here’s the bad news: It’s not going to work.

In 1969, the U.S. officially retired the $10,000 bill, along with the $5,000 bill and the $1,000 bill. Will all cash soon become extinct?

Sure, the bad guys would be inconvenienced for a while. But they would adapt, pushing their illegal activities deeper underground, out of sight, and further away from the watchful eye of the authorities.

Europe will most likely be next. The European Commission has already introduced a proposal enforcing restrictions on payments in cash.

And they’re pushing out all sorts of propaganda to do it, trying to get people to associate illegal activities with high denominations of cash.

But as I’ve said many times before the real reason behind this move to a cashless society is simple: Governments are going broke and these shenanigans are merely a hunt for more taxes.

After all, if they can track it, they’re going to find a way to tax it.

Governments are simply looking for more power at the expense of their citizens’ privacy and freedom. And by eliminating physical money, Big Brother will have the ability to track everything we do, ALL the time.

I don’t know about you, but the simple thought of that kind of government intervention sends chills up my spine.

Don’t forget: In bad economic times, the self-interest of government rises to the top. And it will push leaders toward more desperate measures, including taking away our ability to pay with cash.

So, hold on to your hats! All of this is aligning perfectly with my war cycles, which have been ramping up since late 2013. And make sure you have sound investment guidance, like my members enjoy in Real Wealth Report and Supercycle Trader.

Best wishes,

Larry


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Comments 40

  1. dennis morriseau February 8, 2017

    The “underground economy” is what we used to call the free market, I guess..
    I am in favor of free markets and good old anonymous cash, thank you.
    Unless you like wearing a goddamned leash, I suggest we end all talk of any so-called
    “cashless” economy.

    Dennis Morrisseau
    US Army Officer [Vietnam era] ANTI-WAR

    Reply

  2. Stan February 8, 2017

    Helpful info. Concise, clear. Thanks, Larry.

    Reply

  3. Bernhard February 8, 2017

    Not sure what you mean by Traceable ?
    https://en.bitcoin.it/wiki/Anonymity

    Use a VPN ….

    Reply

  4. Bernhard February 8, 2017

    Some info …
    Install VPN many different ones out there.
    Use google DNS servers and Bobs you uncle.

    Check you are anonymous …
    https://www.dnsleaktest.com/

    You could also use cloud Bitcoin services and TOR etc.

    Reply

  5. Bill Corcoran February 8, 2017

    When do we BUY GOLD? It seems to be going up

    Reply

  6. Linda Bux February 8, 2017

    What is more corrupt than government? Plus the globalist maggots that feed off the population and with a digital currency the possibilities are endless. Crimes against Humanity!

    Reply

  7. Not So Free February 8, 2017

    Aside from stating the obvious reason they want to do this, has anyone really addressed what would happen during a major power outage?
    People would literally starve if it lasted more than a few days.

    Reply

  8. Willaim Riley February 8, 2017

    As a 74 year old retiree on SS, I have long ago stopped seeking the highest interest rate on my savings. Now I am seeking the safest physical investments on my savings, that unlike paper assets, cannot be stripped or lost by a market or government degree. Gold and silver fill that requirement but can you name other physical assets I can hold.

    Reply

  9. Gary Vinson February 8, 2017

    I just wish you’ld put half the effort you put into promoting yourself and your cycles into understandable and effective diagnoses of the implications.
    We are onboard, the observations are accepted. So what!
    Some of us my not only be alongside but leaning ahead in the implications
    On the scale of the absolute we we are all dead. Given an infinite amount of time we could all achieve the infinite.
    Conslusions: we need effective specific recommendations now!
    And the downside risk for the average punter needs to be controlled.
    Read Dr Richard Smiths analysis. Everyone has to grow.
    So you are appreciated but the outcome is not effective.
    Maybe hear and there a few tweaks’ will change everything

    Less time and h the global picture more on the specific prescriptions.
    but it’s the pragmatic specific conclusions that count

    Reply

  10. jim crawford February 8, 2017

    Joseph Stiglitz is a nut. And any like him. With out the green back we lose out independence.
    The Government is in our homes, lives and pops the whip at its will. I give up a lot, but there is a limit. That is not the way to leave our country a better place than which we found it.
    sine die

    Reply

    • Uri February 9, 2017

      You forget that the greenback is nothing but a piece of paper, whose value relies on the promised commitment of the Federal Bank and backed by the US government. If you don’t trust them, don’t use this paper!
      You also forget that without government you would still be swinging from trees and hoard your meager wealth in a hole in the ground. If you don’t like the government, work for a better one! That’s democracy.

      Reply

    • F151 February 9, 2017

      Agreed…a far left one. He apparently believes anyone that has earned a few dollars….should not have them. He has even indicated that Obama was not far enough left! And BTW, with all of his supposed gifts as an economist….he hasn’t specifically predicted any economic downturns.

      Reply

  11. Lois F. February 8, 2017

    So, with these options to use cash closing, please explain the workings of your expected underground black market for gold. Thank you

    Reply

  12. Michael Tseghai February 8, 2017

    Dear Larry
    You mention the dow Jones will be 31000 but
    is it crashing before it gets to level.

    Reply

  13. MAP February 8, 2017

    Indian Prime Minister Narendra Modi’s demonetization effort is not because of bad economic times. He did it when the economy was chugging along well, because in a bad economy such an exercise will hurt the people hard. His main intention as to curb funding for terrorists and Maoists, and is showing positive results. The effect on the economy is short-term, but its benefits are long-term.

    Reply

  14. CHRISTIAN KIRCHER February 9, 2017

    As your so much loved president Trump is already also building walls and concentration camps I just remember that in the nazi concentration camps the rich people who came with lots of cash could not use it so they used it as toilet paper and to make a fire…. this president will prepare us the third world war. Remeber that the concentration camps are an american invention.

    Reply

    • Rick February 9, 2017

      I was far more worried about that under Obama.

      Reply

    • Josef Mueller February 9, 2017

      Christian we don’t build walls to concentrate people in rather to keep criminals and drugs out .

      Reply

    • Mark February 16, 2017

      FEMA camps (aka concentration camps) have been around long before Trump. But these arguments don’t make sense to me. Trump believes in a smaller federal government, not bigger. So by default he believes the federal government should have LESS power than it has now, not more.

      Reply

    • Margaret E Abernathy March 8, 2017

      What concentration camps? It was under Obama that the FEMA camps were established, along with casket holders, stock piling of food, etc. Yes we do need the walls if they build them correctly 6 ft high and 5 feet deep, with circular barb wire and cut glass embedded. Once we can control the illegals from coming into our nation, then we can start sorting out the problems.
      Obama had his turn; now it is Mr. Trumps. Be patriotic and support your country, not tear it down, physically or orally. We need to be patriots and try to help our Administration help our people. Have respect for each other and start assuming your obligations and return to morality versus vile sickening criticizing and bickering. If we want ot keep our Republic, our rights and freedoms along with our Constitution, we have to stop the left Liberals and we must following Kennedy’s message: Ask not what your country can do for you but what you can do for your country.,

      Reply

  15. Uri February 9, 2017

    I do not share your fear of cashless society. I have advocated it long ago. What’s wrong with taxation – all the more so when it is even-handed, as enabled by a cashless system?
    The only people who do not want Uncle Sam to observe their doings are the crooked. Honest people fill honest tax return on ALL their earnings.
    Besides, most transactions today are already carried out electronically, so what’s the big deal?

    Reply

    • masgrande February 15, 2017

      The big deal is that there are things outside of your control that can confiscate your wealth. Examples: 1) We are vulnerable to cyber crimes. Even the almighty block-chain technologies are not unbreakable. 2) Someday, various governments may increase taxes or take pension funds to cover their enormous debts and obligations. 3) Can you trust your bank? There may come a day here when banks will do bail-ins to take your deposits to cover their losses. The US is not immune to these kinds of events.

      Reply

  16. Jim Meredith February 9, 2017

    Hi Larry,
    I just want to say that that I believe that you are correct as well as wrong. You are correct in that going to a cashless society is in big part a hunt for tax dollars to fill the government coffers – which as we all know are well below empty. But I do know that there are billions of dollars in legitimately owed tax dollars that are not paid each year because of the underground cash economy. As a building contractor in Southern California for decades I saw it first hand – both from sub contractors wanting to get paid by cash and paying employees cash, as well as homeowners with small businesses wanting “discounts” if they paid in cash. As anyone from there knows, there are thousands of illegal aliens that hit the streets each morning all over So. Cal. looking to get paid in cash. My thought is that if we arent going to send them home, they should at least pay their fair share in taxes.

    Reply

    • masgrande February 15, 2017

      The higher our taxes go, the more tempted people will be to go to the underground economy. As a general rule, higher tax rates result in more tax dodging. The underground economy thrives now because people are trying to dodge the high taxes so they can keep more of what they earn. Rhetorical question: How high will taxes have to go to tempt you to find ways to dodge taxes so you can keep more of your money? 50% 60% 70% 80% The leftists want your money. The rich want your money. Others want your money. What will be left for you after they take what they want?

      Consider, if you want to earn $900 of after-tax money, with only a 10% tax rate, you need to earn $1000 gross income. But with a 50% tax rate, you need to work more (or make more per hour) to earn $1800 gross income to get that same $900 after-tax money. However, if you cannot get the extra work or higher hourly wage, you’ll end up poorer after paying the higher taxes so you’ll earn the same $1000 but pay $500 in taxes (let’s say 50% tax rate) to end up with only $500 in after-tax money.

      On one hand, I don’t like tax dodgers, but on the other, I don’t want to be taxed into poverty. Taxes are much higher now than they were 100 years ago. Government does much more now than it did then, so we “justify” the higher taxes that way. How high do taxes have to go before you say “enough, I am tired of working to support everyone else!”???

      Reply

  17. Anthony Dell'Isola February 9, 2017

    This information coincides with Steve Forbes book “Money how the destruction of the dollar Threatens the Global Economy and What we can do about it.

    Reply

  18. Kevin Beck February 9, 2017

    I find the idea of a cashless society abhorrent. It may be attempted here, but it will crash, just like every other government-sponsored disaster in history.

    To the citizens uninformed enough to support this plan: What do you do when the government decides that you may have done something wrong, and they put a hold on your funds? Or worse yet, seize it? After all, when it’s in a bank, you no longer own it; the bank does!

    You no longer have a way to protect yourself from a rogue government that has just seized all your livelihood. If you have cash, you can at least have a chance of spending it to keep you alive. With no cash, your bank account(s) under siege, and your income stream garnished, you can’t do anything to fight back.

    There are currently no protections from attack if the government decides you may be wrong. Civil asset forfeiture laws destroy any protections the Constitution gave you.

    Reply

  19. clifford r davis February 9, 2017

    How do I simply foward this article via email??

    Reply

  20. geoff bston February 9, 2017

    Great article.

    Reply

  21. CHRIS KARSA February 9, 2017

    Great insight Larry,

    As an activist , I would like to point out that a cashless society will provide the tools and opportunity for the Government to crush any dissenters (and those thinking about supporting groups not in line with the State). A mere Press of a button on a citizens’ digital ID will suspend all financial, business, and commercial activities in his/her world. Can you imagine the intimidation that would ripple out from such an action, tantamount to be Labeled a ‘suspected terrorist”.
    Democracy is not a foregone future in these United States.

    Reply

  22. Tom Beach February 10, 2017

    Dear Larry,
    So, if cash is probably going to be outlawed, what do you suggest to do with all the cash reserves that I now have as an emergency backup?
    Is there going to be any place or type of money somewhere that I can use? Will Singapore buy into this cashless commerce?
    Will gold be the new crypto currency? Or do we all have to trade in stock shares or bonds or mortgages or sheep and goats?
    Surely there is going to be someplace on earth that remains sane and solvent? Chile? Russia? China? Do you have some suggestions? Further, I would really like to know whether you would simply invest in commodities with stored cash?
    You have not addressed what to do to circumvent cashless society.
    Aloha,
    Tom Beach
    Thanks

    Reply

  23. John Texeira February 10, 2017

    If the government insists on going cashless it will only serve to drive a “Black Market: in cash. Please keep our Marxist inclined know it all “elites” out of my business. They just want to “Tax Everything”!!!

    Reply

  24. John Draughon February 10, 2017

    You say “tax” but what we really have to worry about is CONFISCATION like the Cyprus bail in and FDR with gold. They owe so much, “tax” will be woefully insufficient. Also every time you turn around, they concoct new rules penalizing people 50% per form per year (one example is F***BAR) so that even millionaires end up with less than zero. As Yanis Verifacous said in the conclusion of his book “And The Weak Suffer What They Must?”, “the strong break their own rules and concoct new ones when they think it suites their interests.”

    Reply

  25. ron goddard February 13, 2017

    george orwell must have had a crystal ball way back in the 40’s. maybe ‘1984’ should read ‘2018’.i read the book many years ago, before 1984, and it seemed even then to be prophetic, but nevertheless far off. 1984, the year, passed ok but the groundwork was ever developing. maybe george just wanted a title of some sort for his literary masterpiece. not necessarily the exact year for the event. funny how names (or titles) stick.

    we saw the self interest of government here in oz in 1942 when robert g. menzies, the biggest suck up that the british empire ever had, plus being ‘prime minister’ of oz, declared that all of the nation(oz) west and north of the infamous ‘brisbane line’ could fend for themselves. the brisbane line ran from brisbane to adelaide. the japanese were supposedly advancing from the north in great numbers. so the honorable r.g. menzies decided to defend the land of oz around sydney and melbourne and canberra. we in the wild west, perth, fremantle etc. were relatively undefended because our military was overseas fighting for the british at places we had never heard of. maybe r.g. menzies should have followed your great president george washington and defended his own country. menzies got a knighthood from the queen for that. so much for knighthoods, and the ‘royal family’. pigs arse to them too. royal my foot. just a group of bandits parading as royalty.

    there you have it larry. my breakfast is waiting, i have to go, see you next time.

    Reply

  26. Rose February 14, 2017

    Larry, I appreciate all of your insight, predictions and guidance, however two major questions come to mind regarding the upcoming Armagedon Supercycle that will totally destroy the global economy and digitalizing currencies.
    If all governments around the world are bracing for this tsunami of economic collapse and are planning to confiscate all of our property and investments why should we bother implementing your investment strategies? Shouldn’t we be buying a piece of property in the Blue Ridge Mountains, spend the next 2 years learning survival skills, start canning foods, learn to hunt and fish, raise chickens and goats and especially stockpile water and ammunition? Reading your intro suggests we’ll not survive no matter how much wealth we accumulate because it’ll all be confiscated anyway.
    Secondly, even if I attempted to take your advice my on-line trading company forbids investing in any form of options and you’re guidance calls for investing in many forms of options all of which are way over my head and appear to be extremely risky. And, with markets collapsing in Europe and Japan will there be another collapse on Wall Street the likes of Lehman Brothers?

    Reply

  27. Mark February 16, 2017

    Good article. Big brother is already way too intrusive. The government is scanning license plates everywhere, they can see our financial transactions, they’re telling us what kind of light bulbs and toilets we can buy. We are currently living in a banana republic.

    Reply

  28. John T. February 21, 2017

    If a cashless society, how would a person who had stashed away a few thousand ounces of silver in one ounce form, be able to spend it? How would transactions be made other than in a back room somewhere? I do not understand the good of owning metals like silver or gold if the risk of becoming a cashless society becomes too great. If there became a black market situation, wouldn’t the goods that were purchasable through such a market be exorbitantly priced?
    Please explain the logistics of effectively transacting with any denominational value of silver or gold in a market environment that prohibited such.
    Also, what about the mining companies? What will happen to their bottom lines if jewelry sales plummet and retail sales of bullion do the same, because it is difficult to conduct business under “black market” conditions?
    Please expound in detail upon these questions. Thank you.

    Reply

  29. Jerry Jenkins March 2, 2017

    You mentioned annuities would soon be in trouble after K-wave. I can understand why some banks will falter, but aren’t insurance companies that back these annuities about the biggest act in town? I have two annuities, both backed by large insurance companies. If they are in danger, what is your approximate timeline? If I pull them, will be penalized, and it represents our major holdings. You betcha that’s got my attention and your advice most welcome.

    Reply

  30. Norman March 3, 2017

    When (or if ) the Federal government devalues the dollar how would you revalue your existing stocks? For example, if you owned 100 shares of a specific stock and you paid $50 each for those shares, you have an investment of 5000 dollars in that stock. If the dollar was devalued to be worth 10% less than before and using the numbers specified how does that effect the cost basis of those shares when they are sold? This may be a dumb question but I am just looking ahead and need a better understanding of what could happen.

    Reply

  31. don March 3, 2017

    I have been reading you for awhile. on your 5 yr. roller coaster ride forecast, which I can agree with how about
    telling us a little more, you say currencies, stocks, etc. will collapse, I can understand not having money available
    to pay rent, mortgage, taxes, etc. What if you have the money and owe nothing. How will the govt. tale it from you.
    such as private savings or assets. If govt. can do that why bother to male these great profits you talk about?

    Reply

  32. jan March 5, 2017

    Larry, great info, here in Australia we seemed to be following America, although we never hear much from Joe Hockey our Representative in America what is really happening!!!

    Reply