Friday, January 27, 2017

European Commission proposing ban on using cash for payments following push at Davos for cashless society

This year's Davos World Economic Forum saw lots of economists and central bankers discussing ways in which they could con the public into giving up their cash, and bringing about a completely digital cashless society.  And the conference was a also carryover to the numerous experiments conducted in several countries last year in which they tried to remove certain bill denominations from their monetary systems.

Yet despite the clear backlash of populist movements in the United States and in Europe, the European Commission on Jan. 27 has decided to pointedly ignore them and is proposing a program in which to restrict, and eventually eliminate the use of cash in all commerce and monetary transactions.


One Step Closer to a Cash Ban in Europe
Having discontinued its production of EUR500 banknotes, it appears Europe is charging towards the utopian dream of a cashless society. Just days after Davos' elites discussed why the world needs to "get rid of currency," the European Commission has introduced a proposal enforcing "restrictions on payments in cash."
With Rogoff, Stiglitz, Summers et al. all calling for the end of cash - because only terrorists and drug-dealers need cash (nothing at all to do with totalitarian control over a nation's wealth) - we are not surprised that this proposal from the European Commission (sanctuary of statism) would appear... 
The Commission published on 2 February 2016 a Communication to the Council and the Parliament on an Action Plan to further step up the fight against the financing of terrorism (COM (2016) 50). The Action Plan builds on existing EU rules to adapt to new threats and aims at updating EU policies in line with international standards. In the context of the Commission's action to extent the scope of the Regulation on the controls of cash entering or leaving the Community, reference is made to the appropriateness to explore the relevance of potential upper limits to cash payments.The Action Plan states that "Payments in cash are widely used in the financing of terrorist activities… In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold." 
Cash has the important feature of offering anonymity to transactions. Such anonymity may be desired for legitimate reason (e.g. protection of privacy). But, such anonymity can also be misused for money laundering and terrorist financing purposes. The possibility to conduct large cash payments facilitates money laundering and terrorist financing activities because of the difficulty to control cash payment transactions. 
Potential restrictions to cash payments would be a mean to fight criminal activities entailing large payment transactions in cash by organised criminal networks. Restricting large payments in cash, in addition to cash declarations and other AML obligations, would hamper the operation of terrorist networks, and other criminal activities, i.e. have a preventive effect. It would also facilitate further investigations to track financial transactions in the course of terrorist activities. Effective investigations are hindered as cash payments transactions are anonymous. Thus restrictions on cash payments would facilitate investigations. However, as cash transactions are moved to the financial system, it is essential that financial institutions have adequate controls and procedures in place that enable them to know the person with whom they are dealing. Adequate due diligence on new and existing customers is a key part of these controls in, line with the AMLD. 
Terrorists use cash to sustain their illegal activities, not only for illegal transactions (e.g. the acquisition of explosives) but also for payments which are in appearance legal (e.g. transactions for accommodation or transport). While a restriction on payments in cash would certainly be ignored for transactions that are in any case already illegal, the restriction could create a significant hindrance to the conduct of transactions that are ancillary to terrorist activities. - Zerohedge
The fact of the matter is that the banks, rather than individuals, are the ones aiding and abetting money laundering for terrorist and criminal activities.  In fact, it has been surmised that money laundering for the drug trade was the only thing that saved many U.S. and European banks before the Fed and government bailouts of 2008.

The banning of cash, or restricting its use by the public for normal monetary transactions, has nothing to do with illegal activity, or in the funding of terrorism.  And instead it is a desperate attempt by the elite to protect themselves from a coming liquidity and financial crisis.  Because like the growing censorship that is proliferating social media sites, and the ongoing war to try to ban gun ownership in the U.S. and Europe, the ability to hold and use one's money as they see fit is one of the most important liberties a person has.

Got gold?  You might want to as governments will not stop in trying to steal your wealth held in cash.

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