The War on Cash

By | July 5, 2021

The War on Cash is now going into hyper-drive.

In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK,
and now Germany have all implemented legislation that would allow them
to first FREEZE and then SEIZE bank assets during the next crisis.

These moves will be sold as “for the public’s good,” when they
happen. But the reality is that it’s all about stopping people from
moving their capital into actual physical cash.

The whole template for this was set out in Cyprus in 2013. The quick timeline for what happened in Cyprus is as follows:

·      June 25, 2012: Cyprus formally requests a bailout from the EU.
·      November 24, 2012: Cyprus announces
it has reached an agreement with the EU the bailout process once Cyprus
banks are examined by EU officials (ballpark estimate of capital needed
is €17.5 billion).
·      February 25, 2013: Democratic Rally
candidate Nicos Anastasiades wins Cypriot election defeating his
opponent, an anti-austerity Communist.
·      March 16 2013: Cyprus announces the
terms of its bail-in: a 6.75% confiscation of accounts under €100,000
and 9.9% for accounts larger than €100,000… a bank holiday is announced.
·      March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
·      March 18 2013: Bank holiday extended until March 21 2013.
·      March 19 2013: Cyprus parliament rejects bail-in bill.
·      March 20 2013: Bank holiday extended until March 26 2013.
·      March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
·      March 25 2013: Bail-in deal agreed
upon. Those depositors with over €100,000 either lose 40% of their money
(Bank of Cyprus) or lose 60% (Laiki).

The most important thing I want you to focus on is how lies and
propaganda were spread for months leading up to the collapse. Then in
the space of a single weekend, the whole mess came unhinged and accounts
were frozen.

One weekend. The process was not gradual. It was sudden and it was
total: once it began in earnest, the banks were closed and you couldn’t
get your money out (more on this in a moment).

There were no warnings that this was coming because everyone at the
top of the financial food chain are highly incentivized to keep quiet
about this. Central Banks, Bank CEOs, politicians… all of these people
are focused primarily on maintaining CONFIDENCE in the system, NOT on
fixing the system’s problems. Indeed, they cannot even openly discuss
the system’s problems because it would quickly reveal that they are a
primary cause of them.

For that reason, you will never and I repeat NEVER see a Central
banker, Bank CEO, or politician admit openly what is happening in the
financial system. Even middle managers and lower level employees won’t
talk about it because A) they don’t know the truth concerning their
institutions or B) they could be fired for warning others.

Please take a few minutes to digest what I’m telling you here. You will not
be warned of the risks to your wealth by anyone in a position of power
in the political financial hierarchy (with the exception of folks like
Ron Paul who are usually marginalized by the media).

With that in mind, now is a good time to prepare for systemic
risk. I cannot forecast precisely when things will get as ugly as they
did in Cyprus for the financial system as a whole (no one can).

However, the clear signals are clear that the Feds are preparing for
something big. The Treasury Department has ordered survival kits for the
Big Banks’ employees… and the NY Fed is expanding its satellite office
in Chicago in case something major happens that forces the market to
collapse.