Now, so far they’ve only banned the 1000 and 500 rupee notes, but it’s just the beginning. It’s the first stage of a plan to digitise currency entirely.
This is a cruel, insane act in a country in which only half the population has a bank account. The country has been thrown into turmoil since, and there is a revolutionary anger growing among the population. Why would the Indian government do something so crazy?
The official reason given by the Indian government is, of course, a lie. The Indian political establishment is telling people that the ‘shadow economy’ (they mean ‘untaxed’) will be eliminated by the ban and that this is what is driving the move.
Utter nonsense. Politicians are relying upon their populations thinking of the briefcases full of money they’ve seen in the movies when the drug deal goes down at the docks. Or the slum, in the case of Bollywood. If governments around the world really wanted to curb the so-called shadow economy, they could stop using it to fund their intelligence and covert operations, for starters.
The real reason the Indian government is banning physical cash is to prevent a bank run once they begin bank bail-ins.
The reason the mainstream media is not reporting on the Indian government’s lunatic decision is that governments around the world have agreed that they’re going to do exactly the same thing. This is the beginning stages of a plan by the global political elite to establish a form of economic totalitarian control over their populations.
It is also the beginning of a mass depreciation of the world’s currencies and probably a widespread loss of faith by people everywhere in the system that is pre-dating upon them. Brexit and Trump are just the beginning of the revolt in my view. Might need those FEMA camps after all.
To understand how we have reached such a perilous time, we need to take a few steps back and understand how the global economy has been structured over the past few decades.
One of the things that an empire both creates and relies on is what’s called reserve currency status. What this means is that, because of public confidence, people around and even outside an empire begin to rely upon an imperial currency as a means of exchange. Examples include Tokugawa Japan, in which the people had lost faith in the constantly depreciating local currency, and instead used Chinese coins and bags of rice for 600 years. Another example is the Byzantine gold solidus, which was the currency used for trade throughout Europe during the Middle Ages.
Reserve currency status is a massive economic advantage for an empire. It’s one of the reasons imperial states become so rich – you can create surplus currency, export it and then get real goods in return. You basically get stuff for free.
The US dollar has been the reserve currency of the world since World War II. Until 1973, the Americans were constrained somewhat from printing too much currency because other countries could demand gold in exchange for the US dollars they didn’t want. Richard Nixon changed this when he closed the gold window; at the same time his Secretary of State, Henry Kissinger, organised a deal in which the oil exporters of the Middle East agreed to only accept US dollars in exchange for their oil. This created the petrodollar system, which is key to understanding America’s interventions in the Middle East. The petrodollar system created essentially infinite demand for US dollars around the world, and has given what French Finance Minister Giscard d’Estaing called an ‘exorbitant privilege’ to the US.
This is why the United States has been such an economic powerhouse over recent decades, and also why the US has thirteen aircraft carrier battle groups sailing the seas while other big powers can barely scrape together one. Reserve currency status is a mighty potent thing, and it’s one of the benefits of being an imperial conqueror. Props to Uncle Sam, I say.
The other piece of the puzzle necessary to understand what’s happening with the coming cash ban is that currencies these days are fiat currencies. This means that most money in circulation around the world was not printed by governments; instead it is issued by private banks when they make loans. Around the world, the monetary system is based on debt. Constant economic growth, required by governments to stay in power, requires constant currency expansion; constant currency expansion requires constant debt expansion.
This is why interest rates have been at or near 0% for the last ten years. We’re reaching the point when the debt supernova becomes the debt black hole. With up to half the population in the ‘developed’ world relying on social welfare to survive, this is something politicians cannot tolerate and it is driving them to desperate measures.
If you look carefully at bank notes from any country, you’ll notice that they are not even issued under the authority of the government. They are issued by the central bank of each nation, most of which are privately owned. It is my view that these central banks are owned and controlled by and for the global financial oligarchy. Just a little research on the topic will open up a rabbit-hole from which you may never return. It gets crazy in there.
The problem that the world now faces is that, by having a global reserve currency detached from precious metals or any constraints upon its creation and based on debt, debt has exploded around the world. It is debt which is at the black heart of all the economic problems facing humanity today.
In September 2008, this black heart gave way and the global financial system went into cardiac arrest. We were about a week away from complete global economic meltdown. The financial oligarchy held a gun to the heads of governments around the world, and demanded a ransom of trillions of dollars of taxpayer money in order to bail them out. As you would expect, our crooked political establishment gave them what they wanted, lied to us about it and then pretended nothing ever happened. We’re now supposedly eight years into the ‘recovery’.
There will be no recovery. The meltdown is only ever postponed, never avoided. 40 years of exponential debt growth fuelling a lavish social welfare state, massive arms expenditures and enormous private debt creation will not end well. The music is going to stop, and only then will the people of the world realise there are no chairs for them.
The Indian government’s decision to ban physical cash is the first indication that the music may be about to stop. Indeed, Australia may be one of the next countries to begin implementing a physical cash ban.
The G20 governments have known since 2009 that their response to the GFC of transferring the private debt of the banking system onto the public balance sheet of taxpayers was only a temporary measure. Throughout 2009 and 2010 they held a series of gabfests to decide how they would deal with the coming catastrophe. They decided they’re going to steal the money they need from you. They’re not calling it that, though; they’re calling it ‘bail-ins’.
A bail-in is when a bank seizes a proportion of depositors’ deposits in order to meet financial obligations. The depositor is usually compensated with a worthless bond note or other trinket. A test run was held in 2013 in Cyprus. People had millions taken from them. I’m sure the wonks at the Bank for International Settlements in Basel, Switzerland analysed what happened in great detail in order to roll it out globally.
The main problem for the financial oligarchs and their puppet politician representatives has been people’s response to fears of bail-ins. There would be bank runs the next day, and the run on the banks would bring down the banking system anyway. How can the banksters make sure the debt serfs can’t just withdraw all their money before they’re squeezed?
Get rid of money itself. That is what they’re beginning to do now around the world. We can expect them to move quickly now they’ve started. All currencies will soon be digitised.
There will be great fear and anger around the world when the bail-ins begin. It is not my intention in writing this to bring that fear on early for you. It is far better to be prepared should the politicians and their masters carry out their plan, however.
Personally, I see the recent drop in gold prices as a good buying opportunity. Interest rates will most probably spike as we head into this crisis of confidence in the financial system. When that happens, gold usually does well. This is what happened in 1980. Don’t be like most people in 1980 though and hold it too long – there is a time to buy and a time to sell. Don’t marry an asset class, in my opinion. Don’t be Smaug.
Physical assets that are directly useful are always good value during an economic downturn or a depression. If it gets bad enough, a veggie patch and a goat in the backyard might be the most valuable things you could own as long as you can guard them.
On that bleak note, let’s take a moment to acknowledge the magnitude of the end of money. Money has been many things throughout history – shells, stones, Irish slave girls, rum. Gold coinage started in Lydia in what is now the west coast of Turkey about 2700 years ago. Banknotes started in China not too long after, and took off in Europe after the Renaissance. We are now moving into a post-money world. Currency won’t even really exist. Do these puffed-up lawyers running our governments really understand the magnitude of what they are doing? Do they care?
Which leads me to one final troubling thought. If they make all the world’s money digital, what happens if the internet goes down? We might be back to trading stones. Or Irish slave girls.
Moses writes regularly and brilliantly at http://mosesapostaticus.com
Photo by Artist in doing nothing.