Earlier this year, some establishment economists, along with academics and central bankers, began throwing out the proposal of banning cash as a way to allow for the backdoor expansion of currencies in monetary policy. This of course received a huge backlash by the citizenry of several countries, and in some cases led to a run on banks from those fearing theft through negative interest rates, or through the implementation of draconian capital controls.
Surprisingly, one of the countries that was least likely to show signs of a currency collapse until recently was that of India. And as a strong emerging market nation who had just embarked on a massive Make in India campaign, their elimination last week of their two largest currency denominations stoked fears of their own government seeking a ban on cash, and has led millions to either take out their money from banking institutions, with much of the wealth going into gold.
But in a new article published on Nov. 16 at The Daily Bell, eliminating cash may be the first step towards absolute control over money as the Modi government is now mulling plans to stop gold from being imported into the country entirely.
Prime minister Narendra Modi recently decided to confiscate the cash of hundreds of millions of Indians, and now he may forbid Indians from importing gold.
This would have an immediate effect on gold supplies as India, despite the affinity of citizens for gold and silver, has very little in the way of domestic mining.
In part, this is because the government itself is consistently at war with Indian citizens over money and its control. This struggle has most recently manifested itself in India’s decision to remove, wholesale, large denomination bills from public circulation.
The country [banned] 500 and 1000 rupee notes (worth about US$7 and $14 respectively) and the mooted import restriction [banning gold imports] could be a reaction to dealers swapping the notes for gold.IBJA national secretary Surendra Mehta told the Times of India its members should be ready. “We hear from certain circles of this possibility, though nothing official is out yet,” he said.
The larger issue here has to do with banning cash on a global level. It is typical of reporting in this modern era that few if any of the mainstream articles covering India’s most recent move seemingly mention this.
Governments around the world are beginning to ban cash. Sweden is far advanced but Uruguay and now India are not far behind. Uruguay is soon to demand that employers cease to pay employees via cash and instead deposit paychecks directly in bank accounts. - ZerohedgeIndia is not the only nation looking hard at eliminating cash, or creating barriers for people to get their money out of banks and into something tangible that is outside the hands of government control. And as the world rushes towards a currency or financial crisis worse than in 2008, the days are becoming numbered on you and an individual having a choice on what you can do with your own money.