Wealth Confiscation for the Digital Age: the New “Cash Tax”

The government and the mainstream press won’t dare call it a tax. But that’s exactly what it is. A negative interest rate policy is a tax. Any time you hear a politician, central banker, or news anchor say “negative interest rates,” just think “TAX.” Think “TAX ON MY CASH.” 

If the government makes it unattractive for you to keep cash in the bank, you can pull cash out of the bank. You can simply store it in a safe or under the mattress. Politicians know this. That’s why they’ve created another dangerous policy that works hand-in-glove with negative interest rates. 

You see, if you pull your money out of the banking system and stuff it under the mattress, you aren’t doing what the government wants you to do. You’re not spending money or investing in stocks. This is a major reason why governments are banning large cash transactions and large denomination bills. They are fighting a War on Cash. 

In just the past few years…

• Spain banned cash transactions over 2,500 euros.

• Italy banned cash transactions over 1,000 euros.

• France banned cash transactions over 1,000 euros, down from the previous limit of 3,000 euros.

And just a little while ago, former U.S. Treasury Secretary Larry Summers called for a ban on the $100 bill! Historians aren’t surprised by Summers’ idea. Franklin Delano Roosevelt banned $500 and $1,000 bills in the 1930's. You can bet that our politicians will do the same thing in a financial emergency. 

Negative interest rates and their partner, the War on Cash, will create a renewed interest in gold. This could cause gold to double or even triple in value. 

Even children know what the government is doing is crazy. And people aren’t going to take this lying down. Rather than participate in the government’s monetary farce, people will go underground. 

By enforcing negative interest rates and fighting a War on Cash, the government will create a huge underground currency market. And the ultimate underground currency will be gold and its sister metal, silver.

DYI Comments:  I do agree that this time the populous will not take such a government order lying down.  Of course this all is based upon the premise of a long term deflationary smash such as Europe is experiencing now.  However, with central banks ability to increase the money supply at will eventually they will achieve their desired inflation plus a whole bunch more, much more than the bankers expect.  Monetary policies are not a fine tuning mechanism as they try to make us believe but a blunt instrument of government force.  DYI's forecast remains the same til the end of the decade with very low inflation/deflation.  The 2020's being a time of high taxes, high inflation, due to the financial liabilities for Social Security and Medicare.  As Boomers exit the work force the country will move into a labor shortage as they will still be alive in numbers and continue to consume.

DYI