Venezuela is latest country to ban larger notes…chaos erupts!
As a long term thinker / futurist, I see patterns and strategies often long before the majority of people around me. I also conduct aspects of this in my professional life as an engineer, developing long term technical strategies and influencers over the 5 ~25 year time frames.
The fiat currency experiment that has been pushed upon the vast majority of citizens around the globe since 1940~1950s, involving the replacement of the gold standard with a promise, has created a massive debt enslavement of both current and future generations. In an effort to squeeze the last few drops of value out of a country’s population, we recently had quantitive easing (QE) which transferred wealth from the middle class to the stock exchange floated business owners. The latest, and probably last attempt – as seen throughout history as we repeat another financial cycle as per the last 3000 years, the governments of the day are choking the last few cents by banning aspects of the fiat they created in an effort to increase financial deposits into the banking sector. The theory being to bring in currency from the black market however the slippery reality is that is leads to more authoritarian oversight of people’s finance and lives. Each deposit attracts a tax and any larger deposits attract extra scrutiny from the tax department, typically a default extra tax is enforced simply as a punishment for withholding cash from the Govt.
What makes this cycle different is the traditional method for retaining personal wealth during the final stages of an economy life cycle, being gold / wine / art / gems, are also being squeezed as the digital age seeks to make personal holdings difficult (discouraged) through to illegal. These are being replaced with “managed, tracked and taxed” paper (nigh fiat) management practices which enforce taxations at the dictated levels.
For the majority of people, this might not sound so bad so far. Both history and recent actions tell us this is just the tip of the iceberg and whether you are a grade A money launderer or average Joe on the street, you both will be treated the same.
Already this year we have seen at least four countries take steps to commence banning of larger denominations of their currencies in an effort to force currency back into their systems.
Countries banning, or considering banning, larger notes;
1. Australia (banning $100)
2. India (banning R2000 & R1000)
3. Venezuela (banning B100)
4. Denmark (retail can refuse cash – all denominations)
What has me really concerned is that this is a very slippery slope to full financial control and oversight of every purchase you make. “So what?!?” some people will say…Every transaction from the sunday newspaper through to your adult sex-shop purchasing preferences. Compounding this, if you upset the government, it would be conceivable for them to turn off your complete profile; effectively removing any access to the civil system – money, bill payment, fuel and even food from the shops until you comply.
Some think this is crazy talk, well China has already started invoking such a system under the guise of a “social credit” rating system. Going back to 2012, the Cyprus financial hair cut took 10% of all funds stored within their banking system.In 1933, the good old US of A, conducted Executive Order 6102 by President Franklin D. Roosevelt “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States” resulting in people being forced to exchange those goods for promisary notes.
For myself, a darker future is very clear. As I explained in my opening, the majority of people cannot think beyond one or two stages of a future, let alone string together a complex system or collection of events. For those few whom can, it is like looking into a nightmare and not being able to awaken…
Not wanting to conclude on a “1984 style doomsday is nigh” theme, the future can be redirected however it requires the majority to do something. Doing nothing will result in a dark future where your options and true freedoms are reduced to a sequence of default options that attempt to cerate a perception of choice. I urge people to do something positive in creating a future they want for themselves and their children, push back against the demonitisation and regain your freedom to choose how to spend your money without someone looking over your shoulder!
Source articles below.