Tuesday, July 14, 2009

Wealth Confiscation and Cash

MSNBC ran an article Monday on the dangers of keeping cash. The story "Money hiders risk a wealth of woes" documents the risks involved in keeping cash stored at your home and not in banks. The story is an obvious banking industry propaganda piece planted to scare Americans into depositing their increasing and untraceable saving into lending institution where the usage and existence of those funds can be monitored by the government.

America is moving toward a policy of wealth confiscation to pay our massive dept owed to foreign countries. Soon the government will freeze American banking assets for confiscation issuing IOUs to the citizens that can be traded and used to purchase approved items such as house payments, taxes and "healthy" food. The American government issued IOUs will be "cashless" and eventually converted for pennies on the dollar into either the new North American currency or more likely a new global currency. Cash in any form will no longer exist, all transactions will be electronic and monitored. The banks will charge a heavy "convenience fee" on the usage of these IOUs guaranteeing massive profits and government compliance.

California's issuance of IOUs is being allowed and even touted not necessarily as a model but more to plant the seed of IOUs in the American conscience. We will soon start seeing stories about how great and easily traded the IOUs are in California. Remember California...or the United States for that matter...has no way to recover from this economic collapse without millions of good paying jobs being created on which taxes can be levied. There is no such thing as a jobless recovery and lost American jobs are not coming back!

Further proof of the wealth confiscation plot can be seen in the current fight between Switzerland and the United States over foreign tax shelter accounts. The United States wants Switzerland to report all monies held in private foreign accounts by American citizens to target tax dodgers. The Swiss claim that revealing information on private accounts violates centuries old privacy laws. They instead are moving all American bank accounts into "special banks" set up to comply with the United States governments requests for information.

Obviously this has nothing to do with taxes. Businessmen who utilize Swiss privacy laws are hiding money from business partners and family or because of lawsuits, not the United States government and the IRS. Clearly these businessmen can afford a good accountant who will take advantage of the existing tax laws. Moving the monies to a "special bank" allows for easier transfer and confiscation of wealth.

Once the financial networks switch over and accept only the government issued IOUs cash becomes functionally worthless everywhere accept in underground trade. For instance items that are deemed unhealthy under the new mandatory insurance/health laws such as booze, cigarettes and red meat will not be illegal but you can't purchase them with the IOUs. Home produced biofuels, ammunition and NON genetically modified produce (organic) will also be unattainable with the IOU system.

The new IOU based system will work much like the current electronic food stamp system. If an item is not approved you will not be able to purchase it. Barter and trade will flourish under this system but only as far as the American conscious will allow. In other words we are use to going to the store and buying what we need not carrying barter items to trade for booze. The old greenback will fill this void.

The government may not accept the old dollar but as longs as the people recognize its value it will still be used. Gold and silver might fill this roll but I truly don't see that happening to awkward and not enough people have the metals. So don't turn in all your cash it might be a needed commodity in the post dollar world.


HermitJim said...

Very good post with lot of timely points! California is having a problem in that some of the banks are refusing to honor the IOUs as money!

Puts the state between a rock and a hard place!

Sixforsure.org said...
This comment has been removed by the author.
Sixforsure.org said...

Makes me think I should stock up on cases of cigarettes and cheap booze. Barter items!

Mayberry said...

This is exactly why, as Sixforsure pointed out, that cash should be converted into tangibles! "Cash" is nothing but worthless paper! But it is better than "digital money" in a bank. At least you can burn paper money.....

Whit Spurzon said...

Very thought provoking post. I had considered our increasingly cashless society to be heading down a dangerous path but had not considered that it might indeed be a weapon of the nanny state.

texaswomanprepper said...

IOUs from the gov't.... now that sounds like not fun. I expect to wake up one morning to Obama telling me my dollar has been converted to a new world currency. And it will take a ton of my dollars to get the new currency. Anyone who holds the dollar will lose.

fallout11 said...

Federal reserve notes, aka "dollars" are already IOU's from the government by another name....Fiat currency. Says right on it that it is only backed by faith in the government.

Since all governments through out the history of the world cannot resist debasing their own currency through rampant, unsustainable spending, like all fiat currencies it will continue to lose value and revert to it's intrinsic value, that of the paper it is printed on.

The founding fathers of this nation, in their infinite wisdom, had already watched the FIRST fiat currency of the U.S. (the Continental) be debased to the point that it was effectively worthless, so much so that George Washington's army nearly starved to death at Valley Forge as American farmers refused to accept the worthless paper for food, included two articles in the Constitution that should have prevented this from ever happening again.
Unfortunately, our government and nation has chosen to ignore them, as well as the comments regarding the dangers of central banks from many of these same men (i.e. Jefferson, etc).

Anonymous said...

There is a way to have your cake (cash) and eat it too. Lets say you have $40k in a bank. It could be in an IRA or CDs or whatever. You don't want to just pull it out and hide it in your matress but you worry about the government, the economy and the future. So get a loan at the same bank for $40k. It can be a home loan, a loan against your deposit, etc. Put the borrowed $40k in a safe deposit box in a different bank. If TSHTF and it becomes obvious you aren't gonna get your money back you arguably have "paid off" your loan. I.e. they have YOUR $40k and you have their $40k so you are even. But you still have $40k in $20 bills. Not a perfect plan but it would work. I assume someone is going to say; why not just put your $40k in the SDB? If it is an IRA there are tax consequences to that choice. But the best thing would be if you realized the SHTF before the bank closed it's doors and you go withdraw your $40k and now you have $80k. Of course you also have a debt but if the economy falls off the edge I would rather owe someone $40k I will never be able to pay back but have $80k in cash to see me through tough times.