More Problems with Cash

“The New World Order is always on the winning side.”  Eustace Mullins
Gold:  $1,167.60, down $6.40     Silver:  $16.74, down $.08


        We’re approaching what is affectionately known as the Christmas Season.  Stan Freberg used to satirize this season as one of ribald spending.  Yet, there seems to be less cash around to spend.  In the war on cash, the banks have a commanding lead.  India is the most notable recent example– the embarrassing debacle a few weeks ago in which the government, overnight, “demonetized” its two largest denominations of cash, leaving an entire nation in chaos.


         Sovereign Man provided an interesting take on all this.   In the US city of New Orleans, the local government decided earlier this month to stop accepting cash payments from drivers at the Office of Motor Vehicles.


         Several branches of Citibank in Australia have stopped dealing in cash altogether.  It’s like that big mobster guy saying, “Your cash is no good here.”  Except it’s your local bank…that has all YOUR cash.


         Former US Treasury Secretary Larry Summers published an article last week stating that “Nothing in the Indian experience gives us pause in recommending that no more large notes be created in the United States, Europe, and around the world.”


         Sovereign Man did some research on this disturbing trend, and found some rather interesting data.  It turns out that countries with higher denominations of cash actually have much lower crime rates, including rates of organized crime.  The research was simple; they looked at the World Economic Forum’s (WEF) competitive rankings that assesses countries’ levels of organized crime, as well as the direct business costs of dealing with crime and violence.


         Switzerland, with its 1,000 Swiss franc note (roughly $1,000 USD) has among the lowest levels of organized crime in the world according to the WEF.


         Singapore, which has a 1,000 Singapore dollar note (about $700 USD) has almost no crime, unless you count the government’s whipping of litterbugs.


         Japan’s highest denomination of currency is 10,000 yen, worth $88 today. Yet Japan also has extremely low crime rates.  The police dislike arresting Yakusa.


        Same low crime rate for the United Arab Emirates, whose highest denomination is the 1,000 dirham ($272).


         Now if you examine countries with very low denominations of cash, the opposite holds true.  Crime rates, and in particular organized crime rates, are extremely high.


         Look at Venezuela, Nigeria, Brazil, South Africa, etc.  Organized crime is somewhere between prevalent and rampant.  Yet each of these has a currency whose maximum denomination is less than $30.


And let’s not forget Malaysia or Uzbekistan, two countries where corruption is thriving.  Malaysia’s top cash note is 50 ringgit, worth about $11.  And Uzbekistan’s 5,000 “Som” is worth a paltry $1.57.

        Bottom line, the political and financial establishments want you to willingly abolish, or at least reduce, cash.  And they’re pumping out all sorts of propaganda to do it, trying to get people to equate crime and corruption with high denominations of cash.  Sheesh, it’s like the refs have been paid to confuse the fans.  Doesn’t anybody understand the game they’re playing?


         Simply put, the data doesn’t support their assertion.  It’s just another hoax that will give them more power at the expense of your privacy and freedom.  The real problem is the realistic banker fear of people leaving banks when negative interest rates sink in to the consciousness of Joe and Suzy Sixpack.


         Then, there’s this guy.  He walked, and I mean trotted, off with a bag of gold.  This is one man who has decided to resist the message to avoid cash.


         There is street video of the guy doing it.  Public surveillance videos didn’t prevent crime.  They merely record it, like those car alarms that everyone ignores.  If you seize an opportunity like this, well, Foghorn won’t turn you in.