The War on Cash (2)

On February 16, 2016 the Washington Post published an op-ed piece by Larry Summers titled “It’s time to kill the $100 bill” in which he makes it clear that the war against paper money is only just starting. Not surprisingly, just like in Europe, he argues that killing Benjamins will help eradicate crime, saying that “a moratorium on printing new high denomination notes would make the world a better place.”

Who is Larry Summers, you may ask? A very well connected American economist and Professor of Harvard University. He was the Chief Economist at the World Bank from 1991 to 1993 and Undersecretary for International Affairs for the US Treasury from 1993-1995 in the Clinton Administration. In 1995, he was promoted to Deputy Secretary of the Treasury under his long- time political mentor Robert Rubin of Citibank fame. In 1999, he succeeded Rubin as Secretary of the Treasury. While working for the Clinton administration, Summers played a leading role in the deregulation of the U.S financial system, including the repeal of the Glass-Steagall Act. Following the end of Clinton’s term, he served as the 27th President of Harvard University from 2001 to 2006.

Larry is the faithful voice of the financial and economic establishment. When he speaks, you should reach for your wallet before he does.

Screen Shot 2016-05-31 at 10.05.00 AM
This is Larry Summers trying to look thoughtful and wise.

Mr. Summers proposes in the Washington Post “a global agreement to stop issuing notes worth more than say $50 or $100. Such an agreement would be as significant as anything else the G7 or G20 has done in years.”

France has already banned residents from making cash transactions of €1,000 ($1,114) or more. The biggest banks in Norway and Sweden are urging the outright abolition of cash. And there are reportedly plans at the highest levels of government in Israel, India, and China to remove cash from circulation.

Deutsche Bank CEO John Cryan predicts that cash “probably won’t exist” 10 years from now.

Governments want you to use money they can easily control, tax, and confiscate. Paper currency gets in their way. Do you think this is paranoid, dear reader? Are these not already the motives you have learned to expect from the authorities?

I suggest you follow the advice of Bill Bonner ( Always do the opposite of what they tell you to do. As he notes: when cash is outlawed, only outlaws will have cash. We should all be among them. And we should all own some gold.