In a fantastic and well documented piece of research published by German economist Dr. Norbert Haering, the recent chaos going on in India regarding money and their monetary system is actually based on a policy out of Washington to use the world's seventh largest economy as an experiment to see how eliminating cash would effect a large population.
Last year we saw a Harvard P.H.D and a former Assistant Secretary of the Treasury write op-eds, white papers, and give speeches on the evils of using physical cash in commerce. Yet these Ivory Tower 'academics' failed to mention that nearly all funding for terrorism, drug cartels, and money laundering was done at the sovereign and banking levels, and that indictments, imprisonments, and regulation of the bankers themselves would cut these illegal activities short in a New York minute.
However, at the heart of the growing 'war on cash' is the need for governments to crack down on individual freedoms and the ability of people to spend or save their money as they see fit, especially as the global banking and financial systems crater on the precipice of total collapse with negative interest rates, asset deflation, and a 325% debt to gdp ratio.
So it appears that the United States decided to run some test cases to see how the public would react to restrictions on using cash in commerce, and chose the one economy where 98% of all transactions are cash based, and where only 36% of the people even have a bank account.
In early November, without warning, the Indian government declared the two largest denomination bills invalid, abolishing over 80 percent of circulating cash by value. Amidst all the commotion and outrage this caused, nobody seems to have taken note of the decisive role that Washington played in this. That is surprising, as Washington’s role has been disguised only very superficially.
U.S. President Barack Obama has declared the strategic partnership with India a priority of his foreign policy. China needs to be reined in. In the context of this partnership, the US government’s development agency USAID has negotiated cooperation agreements with the Indian ministry of finance. One of these has the declared goal to push back the use of cash in favor of digital payments in India and globally.
On November 8, Indian prime minster Narendra Modi announced that the two largest denominations of banknotes could not be used for payments any more with almost immediate effect. Owners could only recoup their value by putting them into a bank account before the short grace period expired at year end, which many people and businesses did not manage to do, due to long lines in front of banks. The amount of cash that banks were allowed to pay out to individual customers was severely restricted.
Almost half of Indians have no bank account and many do not even have a bank nearby. The economy is largely cash based. Thus, a severe shortage of cash ensued. Those who suffered the most were the poorest and most vulnerable. They had additional difficulty earning their meager living in the informal sector or paying for essential goods and services like food, medicine or hospitals. Chaos and fraud reigned well into December.
Four weeks earlier
Not even four weeks before this assault on Indians, USAID had announced the establishment of “Catalyst: Inclusive Cashless Payment Partnership”, with the goal of effecting a quantum leap in cashless payment in India. The press statement of October 14 says that Catalyst “marks the next phase of partnership between USAID and Ministry of Finance to facilitate universal financial inclusion”. The statement does not show up in the list of press statements on the website of USAID (anymore?). Not even filtering statements with the word “India” would bring it up. To find it, you seem to have to know it exists, or stumble upon it in a web search. Indeed, this and other statements, which seemed rather boring before, have become a lot more interesting and revealing after November 8.
Reading the statements with hindsight it becomes obvious, that Catalyst and the partnership of USAID and the Indian Ministry of Finance, from which Catalyst originated, are little more than fronts which were used to be able to prepare the assault on all Indians using cash without arousing undue suspicion. Even the name Catalyst sounds a lot more ominous, once you know what happened on November 9.
Catalyst’s Director of Project Incubation is Alok Gupta, who used to be Chief Operating Officer of the World Resources Institute in Washington, which has USAID as one of its main sponsors. He was also an original member of the team that developed Aadhaar, the Big-Brother-like biometric identification system.
According to a report of the Indian Economic Times, USAID has committed to finance Catalyst for three years. Amounts are kept secret. - Washington's Blog via Zerohedge
What is going on in India is a calculated experiment to see how a population would react to the elimination of physical money, and the forced process of getting all currency and commerce into the banking system. And as this experiment has originated from policies created by the U.S. government, it is not a stretch to believe that these same controls will be used on the American people one day in the future, and why Americans need to get their money out of banks and into physical assets both at home and offshore, before the inevitable day comes following the next planned crisis.