It has been almost a month since Indian Prime Minister Narendra Modi’s decision to invalidate all 500-rupee and 1,000-rupee notes. And so far, it’s been an absolute failure, with angry mobs across India protesting the government’s sudden decision.
India’s actions are aligning with my war cycles that I’ve been talking about until I’m blue in the face.
Plus, it’s just another chapter in the foolish drive for a cashless society that I’ve warned you about here as well. This kind of policy is going to make the bad guys go deeper underground, and could potentially devastate economies of every shape and size.
Modi’s move, known as demonetization, is designed to crack down on tax evasion by forcing people to tender their cash to the bank, where it then can be tracked and taxed.
But it’s not about to work.
In fact, his decision has sucked out 86 percent of currency in circulation and blindsided the nation. This has left Indian citizens scrambling to get their hands on valid currency.
To make matters worse, this is an economy where 98 percent of consumer payments are in cash. With banks functioning with about half the amount of currency they need, the consumer is getting slammed.
It is only a matter of time before India’s economy is crippled by even more dangerous money shortages. And that’s going to put India’s economic output at risk … and the government itself as well.
But this kind of misguided thinking isn’t limited to India. Consider …
Less than a week after the Indian government announced it was withdrawing large bills from circulation, Citibank said that it was going cashless at some of its Australian bank branches.
Plus, Swiss giant UBS called for the elimination of the Australian 100-dollar and 50-dollar bills because it would be “good for the economy and good for the banks.”
Then, just last week, it was reported that Greek banks have proposed a series of measures to limit the use of cash in the economy. And one of the measures proposed is a special tax on cash withdrawals.
That’s right: Greek banks want to tax customers for access to their own money.
Ridiculous!
Government rational: Cash money can easily and largely be channeled in the underground economy. Therefore, a tax on cash withdrawals will drastically reduce cash transactions and by extension the underground economy.
And while that may sound nice on the surface, it’s not the REAL reason governments across the globe are on the hunt for cash.
You see, as governments watch their revenues fall and are unable to curtail their spending, they start to go broke. As they go broke, they turn against their citizens and seek more ways to bleed money from them while at the same time cutting and even backing out on promises.
As I’ve said before, in bad economic times, the self-interest of government rises to the top. And that’s aligning perfectly with my war cycles, which have been ramping up since late 2013.
This is not the end — it’s just the beginning.
Best wishes,
Larry Edelson
Barry December 10, 2016
I don’t see what the big deal is,anything can be worked out,especially the debt.
However what do I know,I only have a 7th grade education.
Its all about cracking a deal,just like going to the flea market,and I read Art Of The Deal a very long time ago from Trump,and I think Larry’s right,I think he Mr. Trump will restructure the debt,its in everyone’s best interest around the world,but what do I know.
Barry December 10, 2016
I don’t see what the big deal is,anything can be worked out,especially the debt.
However what do I know,I only have a 7th grade education.
Its all about cracking a deal,just like going to the flea market,and I read Art Of The Deal a very long time ago from Trump,and I think Larry’s right,I think he Mr. Trump will restructure the debt,its in everyone’s best interest around the world,but what do I know.
Barry December 10, 2016
I don’t see what the big deal is,anything can be worked out,especially the debt.
However what do I know,I only have a 7th grade education.
Its all about cracking a deal,just like going to the flea market,and I read Art Of The Deal a very long time ago from Trump,and I think Larry’s right,I think he Mr. Trump will restructure the debt,its in everyone’s best interest around the world,but what do I know.
gordon December 10, 2016
ron goddard
If you check your constitution there is supposed to be NO standing army during peace time. A navy is allowed. Your the victim of a war machine in peacetime. Empty your pockets.
gordon December 10, 2016
ron goddard
If you check your constitution there is supposed to be NO standing army during peace time. A navy is allowed. Your the victim of a war machine in peacetime. Empty your pockets.
gordon December 10, 2016
David
You only get what people voted for a loose cannon that is capable of anything.
gordon December 10, 2016
David
You only get what people voted for a loose cannon that is capable of anything.
Tim reddington December 10, 2016
You all have good points and sound real smart but nobody mentions the possibility that it is going exactly as planned? Read agenda 21 and agenda 2030? Economic prosperity is NOT in the plan folks, the “useless eaters” as Henry Kissinger called them are going to be culled to bring about NWO thru war, pestulence, famine. All in the name of “save the planet”, lol what a joke they even put a monument up to tell you what their plan is called the Georgia Guidstones, 500 million world population in perfect harmony with the earth! It will be the ultimate war cycle but this time with thermonuclear weapons, the ultimate useless eater remover, when it happens I won’t go underground, I’m going on the roof and stare into the light lol. Merry Christmas
Tim reddington December 10, 2016
You all have good points and sound real smart but nobody mentions the possibility that it is going exactly as planned? Read agenda 21 and agenda 2030? Economic prosperity is NOT in the plan folks, the “useless eaters” as Henry Kissinger called them are going to be culled to bring about NWO thru war, pestulence, famine. All in the name of “save the planet”, lol what a joke they even put a monument up to tell you what their plan is called the Georgia Guidstones, 500 million world population in perfect harmony with the earth! It will be the ultimate war cycle but this time with thermonuclear weapons, the ultimate useless eater remover, when it happens I won’t go underground, I’m going on the roof and stare into the light lol. Merry Christmas
Tim reddington December 10, 2016
You all have good points and sound real smart but nobody mentions the possibility that it is going exactly as planned? Read agenda 21 and agenda 2030? Economic prosperity is NOT in the plan folks, the “useless eaters” as Henry Kissinger called them are going to be culled to bring about NWO thru war, pestulence, famine. All in the name of “save the planet”, lol what a joke they even put a monument up to tell you what their plan is called the Georgia Guidstones, 500 million world population in perfect harmony with the earth! It will be the ultimate war cycle but this time with thermonuclear weapons, the ultimate useless eater remover, when it happens I won’t go underground, I’m going on the roof and stare into the light lol. Merry Christmas
Rob Lee December 10, 2016
WOW !
THE OVER SIZE MONEY – that did not fit ATMs – WAS A GOVERNMENT SCAM.
I can’t wait for this to hit America. “fully-digital system based on your identity and biometrics.”
“iris or thumb identification system” – PayPal mobile app.
“digital payments,” to move towards a more “cashless society.”
Introducing the UIDAI
In a matter of one month, India may enter some sort of economic time warp. On Nov. 8, 2016, the Indian government and banking system implemented its demonetization policy that removed its most popular currencies out of circulation, almost immediately. Now, the Indian government has announced plans to implement a fully-digital, biometric payment system less than 30 days later, and over 10 mln daily transactions in India have already been performed.
The Unique Identification Authority of India has developed a mobile app called Aadhaar which can already handle 10 crore, or 100 mln, biometric authentications daily. This will be ramped up to 40 crores, or 400 mln, per day.
People can link their Aadhaar 12-digit number with their bank accounts and use Aadhaar Enabled Payment System (AEPS) for the transfer of funds, balance inquiries, cash deposits or withdrawals and inter-banking transactions. Think of a PayPal mobile app, only a much more high-tech version with a citizen number and fingerprint or iris retinal scans for verification.
UIDAI Chief Executive Officer Ajay Bhushan Pandey said:
“We will create awareness about this mode of transaction. We will eventually create capacity for 40 crore authentications. Yesterday, 1.31 crore Aadhaar-enabled biometric authentications were reported. We will increase it gradually.”
This is tantamount to the technological leapfrog that took place in Kenya earlier this decade. Being a mostly cash and barter-based economy, with a fairly low percentage of debit/credit card transactions, like India, the digital phone-based payments system M-Pesa took the nation by storm. M-Pesa went from a concept to the nation’s leading payments method, measured by GDP, within three years.
India is a massive society dealing with over 1.2 bln people that use cash for transactions over 90 percent of the time. This would effectively have India skip over the PINs, passwords and debit cards the Western civilizations have used for more than a generation into a fully-digital system based on your identity and biometrics.
“We are asking mobile manufacturers to see if all mobiles made in India should be inbuilt with iris or thumb identification system to help Aadhaar-enabled transactions,” said NITI Aayog CEO Amitabh Kant.
India’s Prime Minister Narendra Modi announced last month that he would enact a war on “black money” or undeclared income through black markets. This was done primarily by demonetizing the 500 Rs and 100 Rs notes last month, the most popular notes in India, accounting for over 80 percent of the currency circulation. New replacement notes have been promised but are not in supply to handle the massive population, meaning that ATMs run dry in hours.
Modi has stated that people should get comfortable using “digital payments,” with the demand and price of Bitcoin within the region reaching all-time highs ever since, passing $1000 at times. The goal is to move towards a more “cashless society.”
Rob Lee December 10, 2016
WOW !
THE OVER SIZE MONEY – that did not fit ATMs – WAS A GOVERNMENT SCAM.
I can’t wait for this to hit America. “fully-digital system based on your identity and biometrics.”
“iris or thumb identification system” – PayPal mobile app.
“digital payments,” to move towards a more “cashless society.”
Introducing the UIDAI
In a matter of one month, India may enter some sort of economic time warp. On Nov. 8, 2016, the Indian government and banking system implemented its demonetization policy that removed its most popular currencies out of circulation, almost immediately. Now, the Indian government has announced plans to implement a fully-digital, biometric payment system less than 30 days later, and over 10 mln daily transactions in India have already been performed.
The Unique Identification Authority of India has developed a mobile app called Aadhaar which can already handle 10 crore, or 100 mln, biometric authentications daily. This will be ramped up to 40 crores, or 400 mln, per day.
People can link their Aadhaar 12-digit number with their bank accounts and use Aadhaar Enabled Payment System (AEPS) for the transfer of funds, balance inquiries, cash deposits or withdrawals and inter-banking transactions. Think of a PayPal mobile app, only a much more high-tech version with a citizen number and fingerprint or iris retinal scans for verification.
UIDAI Chief Executive Officer Ajay Bhushan Pandey said:
“We will create awareness about this mode of transaction. We will eventually create capacity for 40 crore authentications. Yesterday, 1.31 crore Aadhaar-enabled biometric authentications were reported. We will increase it gradually.”
This is tantamount to the technological leapfrog that took place in Kenya earlier this decade. Being a mostly cash and barter-based economy, with a fairly low percentage of debit/credit card transactions, like India, the digital phone-based payments system M-Pesa took the nation by storm. M-Pesa went from a concept to the nation’s leading payments method, measured by GDP, within three years.
India is a massive society dealing with over 1.2 bln people that use cash for transactions over 90 percent of the time. This would effectively have India skip over the PINs, passwords and debit cards the Western civilizations have used for more than a generation into a fully-digital system based on your identity and biometrics.
“We are asking mobile manufacturers to see if all mobiles made in India should be inbuilt with iris or thumb identification system to help Aadhaar-enabled transactions,” said NITI Aayog CEO Amitabh Kant.
India’s Prime Minister Narendra Modi announced last month that he would enact a war on “black money” or undeclared income through black markets. This was done primarily by demonetizing the 500 Rs and 100 Rs notes last month, the most popular notes in India, accounting for over 80 percent of the currency circulation. New replacement notes have been promised but are not in supply to handle the massive population, meaning that ATMs run dry in hours.
Modi has stated that people should get comfortable using “digital payments,” with the demand and price of Bitcoin within the region reaching all-time highs ever since, passing $1000 at times. The goal is to move towards a more “cashless society.”
Rob Lee December 10, 2016
WOW !
THE OVER SIZE MONEY – that did not fit ATMs – WAS A GOVERNMENT SCAM.
I can’t wait for this to hit America. “fully-digital system based on your identity and biometrics.”
“iris or thumb identification system” – PayPal mobile app.
“digital payments,” to move towards a more “cashless society.”
Introducing the UIDAI
In a matter of one month, India may enter some sort of economic time warp. On Nov. 8, 2016, the Indian government and banking system implemented its demonetization policy that removed its most popular currencies out of circulation, almost immediately. Now, the Indian government has announced plans to implement a fully-digital, biometric payment system less than 30 days later, and over 10 mln daily transactions in India have already been performed.
The Unique Identification Authority of India has developed a mobile app called Aadhaar which can already handle 10 crore, or 100 mln, biometric authentications daily. This will be ramped up to 40 crores, or 400 mln, per day.
People can link their Aadhaar 12-digit number with their bank accounts and use Aadhaar Enabled Payment System (AEPS) for the transfer of funds, balance inquiries, cash deposits or withdrawals and inter-banking transactions. Think of a PayPal mobile app, only a much more high-tech version with a citizen number and fingerprint or iris retinal scans for verification.
UIDAI Chief Executive Officer Ajay Bhushan Pandey said:
“We will create awareness about this mode of transaction. We will eventually create capacity for 40 crore authentications. Yesterday, 1.31 crore Aadhaar-enabled biometric authentications were reported. We will increase it gradually.”
This is tantamount to the technological leapfrog that took place in Kenya earlier this decade. Being a mostly cash and barter-based economy, with a fairly low percentage of debit/credit card transactions, like India, the digital phone-based payments system M-Pesa took the nation by storm. M-Pesa went from a concept to the nation’s leading payments method, measured by GDP, within three years.
India is a massive society dealing with over 1.2 bln people that use cash for transactions over 90 percent of the time. This would effectively have India skip over the PINs, passwords and debit cards the Western civilizations have used for more than a generation into a fully-digital system based on your identity and biometrics.
“We are asking mobile manufacturers to see if all mobiles made in India should be inbuilt with iris or thumb identification system to help Aadhaar-enabled transactions,” said NITI Aayog CEO Amitabh Kant.
India’s Prime Minister Narendra Modi announced last month that he would enact a war on “black money” or undeclared income through black markets. This was done primarily by demonetizing the 500 Rs and 100 Rs notes last month, the most popular notes in India, accounting for over 80 percent of the currency circulation. New replacement notes have been promised but are not in supply to handle the massive population, meaning that ATMs run dry in hours.
Modi has stated that people should get comfortable using “digital payments,” with the demand and price of Bitcoin within the region reaching all-time highs ever since, passing $1000 at times. The goal is to move towards a more “cashless society.”
Gordon Coggins December 9, 2016
Why do we hear governments blamed for measures – like “the cashless society” -which has been the banks dearest dream for years? There is a disconnect here.
Gordon Coggins December 9, 2016
Why do we hear governments blamed for measures – like “the cashless society” -which has been the banks dearest dream for years? There is a disconnect here.
Gordon Coggins December 9, 2016
Why do we hear governments blamed for measures – like “the cashless society” -which has been the banks dearest dream for years? There is a disconnect here.
Barbara Handly December 7, 2016
No, I don’t think Trump will attempt a cashless society. Trump wants to make America great again! We who are of similar age as Trump, remember the days when employment was high due to manufacturing high in the US. The US came out of WW2 and rebuilt the economy heavy with manufacturing, govt regulations forbidding banks and investment firms to do business, the Glass-Steagal Act, Bill Clinton signed away, bringing about the subprime mortgage crisis. Obama created another crisis allowing central banks to print worthless money. How we solve this problem is anyone’s guess.
Barbara Handly December 7, 2016
No, I don’t think Trump will attempt a cashless society. Trump wants to make America great again! We who are of similar age as Trump, remember the days when employment was high due to manufacturing high in the US. The US came out of WW2 and rebuilt the economy heavy with manufacturing, govt regulations forbidding banks and investment firms to do business, the Glass-Steagal Act, Bill Clinton signed away, bringing about the subprime mortgage crisis. Obama created another crisis allowing central banks to print worthless money. How we solve this problem is anyone’s guess.
UDO December 7, 2016
Ottman
lets not talk about it for a while
UDO December 7, 2016
Ottman
lets not talk about it for a while
Como651 December 6, 2016
Military spending is only 16% of budget. If we cut military spending in half that only closes the budget by 8%. Over half of tax dollars go to pay Medicare, Medicaid, and social security since previous tax cuts caused us to spend our social security funds. If you put a consumption tax on people it would have to be so high that middle class earners would would end up paying more than under progressive income tax laws and it would discourage spending by the middle class and poor who are the main drivers of consumer spending. Consumption tax sounds good in theory but won’t work unless people had higher incomes. Very little consumption tax would be gained from the weakthy since they don’t consume as much. They save and invest. We don’t have enough taxes. We are in a budget deficit. How will tax cuts via a consumption tax help our economy? Tax cuts have already created almost a 20 trillion dollar debt. Reagan and bush tax cuts have been horrible long term for our economy. It’s created msssive budget deficits. No politician dares bring back higher taxes since people’s incomes could not absorb higher taxes and that would be a gaurenteed loss next election so we go on deficit spending but eventually this will cause inflation. Worse yet, stagflation. Around 6% of our annual budget just goes to pay interest on our federal debt. A 6% annual drain on our economy that grows bigger is horrible for our economy. Any short term gain by stimulus tax cuts gets overshadowed down the road. Low Corporate taxes also do not promote reinvestment or hiring and retaining of employees. Higher taxes do since companies would have to give their profits over to the government if they did not reinvest into capital expenditures and employee wages and more hiring. Low taxes leading to better economy is a myth and the last 3 plus decades has proven this. I’m not a liberal either just and engineer with a lot of math and history lessons.
Como651 December 6, 2016
Military spending is only 16% of budget. If we cut military spending in half that only closes the budget by 8%. Over half of tax dollars go to pay Medicare, Medicaid, and social security since previous tax cuts caused us to spend our social security funds. If you put a consumption tax on people it would have to be so high that middle class earners would would end up paying more than under progressive income tax laws and it would discourage spending by the middle class and poor who are the main drivers of consumer spending. Consumption tax sounds good in theory but won’t work unless people had higher incomes. Very little consumption tax would be gained from the weakthy since they don’t consume as much. They save and invest. We don’t have enough taxes. We are in a budget deficit. How will tax cuts via a consumption tax help our economy? Tax cuts have already created almost a 20 trillion dollar debt. Reagan and bush tax cuts have been horrible long term for our economy. It’s created msssive budget deficits. No politician dares bring back higher taxes since people’s incomes could not absorb higher taxes and that would be a gaurenteed loss next election so we go on deficit spending but eventually this will cause inflation. Worse yet, stagflation. Around 6% of our annual budget just goes to pay interest on our federal debt. A 6% annual drain on our economy that grows bigger is horrible for our economy. Any short term gain by stimulus tax cuts gets overshadowed down the road. Low Corporate taxes also do not promote reinvestment or hiring and retaining of employees. Higher taxes do since companies would have to give their profits over to the government if they did not reinvest into capital expenditures and employee wages and more hiring. Low taxes leading to better economy is a myth and the last 3 plus decades has proven this. I’m not a liberal either just and engineer with a lot of math and history lessons.
IZA December 6, 2016
Evidently, we are heading into a disaster. Trump is clueless about his spending bills and about the reaction of our global trade partners to his plans to challenge them. He is clueless about the fact that we borrow trillion of dollars every year to maintain the consumption. It would be not too long before we see a collapse in US bonds when they get dumped in great amounts.
IZA December 6, 2016
Evidently, we are heading into a disaster. Trump is clueless about his spending bills and about the reaction of our global trade partners to his plans to challenge them. He is clueless about the fact that we borrow trillion of dollars every year to maintain the consumption. It would be not too long before we see a collapse in US bonds when they get dumped in great amounts.
IZA December 6, 2016
Evidently, we are heading into a disaster. Trump is clueless about his spending bills and about the reaction of our global trade partners to his plans to challenge them. He is clueless about the fact that we borrow trillion of dollars every year to maintain the consumption. It would be not too long before we see a collapse in US bonds when they get dumped in great amounts.
Bob December 6, 2016
It became a buy!!!
Bob December 6, 2016
It became a buy!!!
Manohar singh December 6, 2016
i am with you all the way. Hospitals are not accepting patients without cash. It is horrible
Manohar singh December 6, 2016
i am with you all the way. Hospitals are not accepting patients without cash. It is horrible
Gareth December 6, 2016
Rational? Really? I expect that from a millennial. Everything–just everything–is going to crap these days.
RATIONALE
Jon Davis December 6, 2016
In India, it is taking about 3 days of filling out forms and standing in lines to convert your money. And if you can’t adequately explain where your cash came from, the government keeps about half the face value, so you get 500 rupees for each 1000 you present.
Jon Davis December 6, 2016
In India, it is taking about 3 days of filling out forms and standing in lines to convert your money. And if you can’t adequately explain where your cash came from, the government keeps about half the face value, so you get 500 rupees for each 1000 you present.
Jon Davis December 6, 2016
In India, it is taking about 3 days of filling out forms and standing in lines to convert your money. And if you can’t adequately explain where your cash came from, the government keeps about half the face value, so you get 500 rupees for each 1000 you present.
gordon December 6, 2016
Nothing and the governments, big business, COMEX bullion banks and large banks(who control bullion banks) want to keep it that way a nothing investment.
gordon December 6, 2016
Nothing and the governments, big business, COMEX bullion banks and large banks(who control bullion banks) want to keep it that way a nothing investment.
Dave December 6, 2016
Remember if you have any funds in a regular IRA, the government has been giving you a 10% tax break over the years. In a crisis (eg funding Trump’s ambitious agenda) the Feds could “borrow” your tax sheltered money issuing you “Patriot Dollars” in return….not worth the paper they’re printed on just like Social Security Fund IOUs.
Dave December 6, 2016
Remember if you have any funds in a regular IRA, the government has been giving you a 10% tax break over the years. In a crisis (eg funding Trump’s ambitious agenda) the Feds could “borrow” your tax sheltered money issuing you “Patriot Dollars” in return….not worth the paper they’re printed on just like Social Security Fund IOUs.
Lynn Peterson December 6, 2016
Very good article Larry, I couldn’t agree with you more. This is going to end badly. I just hope the American people will wake up before it is too late. But, I suspect they won’t. It is such a shame and a waste. This used to be such a great country, but where can we go to escape the wars, catastrophes, and total chaos that will inevitably come to our Country?
UDO December 7, 2016
Lynn ,
I read this line ” this is going to end up badly ” for 3 yrs. now on Martin Armstrong’s web site – has it end it ? What was it ?
Lynn Peterson December 6, 2016
Very good article Larry, I couldn’t agree with you more. This is going to end badly. I just hope the American people will wake up before it is too late. But, I suspect they won’t. It is such a shame and a waste. This used to be such a great country, but where can we go to escape the wars, catastrophes, and total chaos that will inevitably come to our Country?
UDO December 7, 2016
Lynn ,
I read this line ” this is going to end up badly ” for 3 yrs. now on Martin Armstrong’s web site – has it end it ? What was it ?
Lynn Peterson December 6, 2016
Very good article Larry, I couldn’t agree with you more. This is going to end badly. I just hope the American people will wake up before it is too late. But, I suspect they won’t. It is such a shame and a waste. This used to be such a great country, but where can we go to escape the wars, catastrophes, and total chaos that will inevitably come to our Country?
UDO December 7, 2016
Lynn ,
I read this line ” this is going to end up badly ” for 3 yrs. now on Martin Armstrong’s web site – has it end it ? What was it ?
Professor James December 6, 2016
Historically, $500.00 & $1,000.00 bills were used to settle accounts between banks. This, of course, was before the digital age. Large purchases by customers were almost always by check.
Having worked in retail for over 30 years, I can tell you a check, now, is a rare phenomenon. Most purchases are credit or debit card. Even cash purchases for small items are shrinking.
Far from bringing back large bills, the government will seek to eliminate the $100.00 bill as we move towards a cashless society.
Professor James December 6, 2016
Historically, $500.00 & $1,000.00 bills were used to settle accounts between banks. This, of course, was before the digital age. Large purchases by customers were almost always by check.
Having worked in retail for over 30 years, I can tell you a check, now, is a rare phenomenon. Most purchases are credit or debit card. Even cash purchases for small items are shrinking.
Far from bringing back large bills, the government will seek to eliminate the $100.00 bill as we move towards a cashless society.
Frank December 5, 2016
“…governments watch their revenues fall and are unable to curtail their spending, they start to go broke. As they go broke, they turn against their citizens and seek more ways to bleed money from them while at the same time cutting and even backing out on promises…”
So what else is new? As the “governments” should have done with their privatized central banks in the U.S. in 2008, others in the world should do now – let ’em fail. The price of civil and financial unrest must be paid, no matter what tinkering they come up with. What a shameful legacy to leave our children in a society and economy that by now should have known and acted better.
No quick fix exists. Governments can’t bail out their favored corporate banks, and political-economic unions can’t bail out their favored governments. Capiche?
Frank December 5, 2016
“…governments watch their revenues fall and are unable to curtail their spending, they start to go broke. As they go broke, they turn against their citizens and seek more ways to bleed money from them while at the same time cutting and even backing out on promises…”
So what else is new? As the “governments” should have done with their privatized central banks in the U.S. in 2008, others in the world should do now – let ’em fail. The price of civil and financial unrest must be paid, no matter what tinkering they come up with. What a shameful legacy to leave our children in a society and economy that by now should have known and acted better.
No quick fix exists. Governments can’t bail out their favored corporate banks, and political-economic unions can’t bail out their favored governments. Capiche?
Frank December 5, 2016
“…governments watch their revenues fall and are unable to curtail their spending, they start to go broke. As they go broke, they turn against their citizens and seek more ways to bleed money from them while at the same time cutting and even backing out on promises…”
So what else is new? As the “governments” should have done with their privatized central banks in the U.S. in 2008, others in the world should do now – let ’em fail. The price of civil and financial unrest must be paid, no matter what tinkering they come up with. What a shameful legacy to leave our children in a society and economy that by now should have known and acted better.
No quick fix exists. Governments can’t bail out their favored corporate banks, and political-economic unions can’t bail out their favored governments. Capiche?
Como651 December 5, 2016
Why is putting tariffs on imported goods bullying corporations? This will create jobs for American workers who will pay taxes and spend more and generate more revenue for all companies. He plans to cut corporate taxes to less than half which will offset having to pay higher wages. If companies want to remain abroad and pay the import tariffs that is great for our economy since we import far more than we export. Back in the depression era America was an exporter not importer like today. Tariffs and a trade war is to our benefit not China’s. All that added revenue will help in tax cuts for those companies staying or returning to America. The massive corporate tax cuts and less regulation he proposes could hardly be called bullying. The strengthening of consumer spending by adding more jobs in America also benefits corporations.
gordon December 10, 2016
Sorry Como651 the genie is out of the cheap wages bottle never to be stuffed back in. I see articles of the Chinaization of America lots of $15 an hour wages no benefits no unions and pollution on a large scale overlooked by a government grateful for the jobs the same as Asia. China’s whole phony Silk Road charade is built on this concept. A car windshield make from China is opening up manufacturing in Ohio in an old car plant using this model. These are the so called jobs that Trump will tout as making “America Great Again” Its a sham and a charade. You will end up as serfs in your own country.
Como651 December 5, 2016
Why is putting tariffs on imported goods bullying corporations? This will create jobs for American workers who will pay taxes and spend more and generate more revenue for all companies. He plans to cut corporate taxes to less than half which will offset having to pay higher wages. If companies want to remain abroad and pay the import tariffs that is great for our economy since we import far more than we export. Back in the depression era America was an exporter not importer like today. Tariffs and a trade war is to our benefit not China’s. All that added revenue will help in tax cuts for those companies staying or returning to America. The massive corporate tax cuts and less regulation he proposes could hardly be called bullying. The strengthening of consumer spending by adding more jobs in America also benefits corporations.
gordon December 10, 2016
Sorry Como651 the genie is out of the cheap wages bottle never to be stuffed back in. I see articles of the Chinaization of America lots of $15 an hour wages no benefits no unions and pollution on a large scale overlooked by a government grateful for the jobs the same as Asia. China’s whole phony Silk Road charade is built on this concept. A car windshield make from China is opening up manufacturing in Ohio in an old car plant using this model. These are the so called jobs that Trump will tout as making “America Great Again” Its a sham and a charade. You will end up as serfs in your own country.
Tom December 5, 2016
In the first place, if the government was an entity for the people instead of against the people, there wouldn’t be much of an underground economy. After reading James Rickard’s latest book, “The Road To Ruin”, I am more than convinced that this is just the beginning as Larry has said. I don’t believe for a second that the reason is to stop tax evasion. The reason is so that a small group of elitists and power hungry leftists can take control of the world, making most of us slaves to do their bidding. These power hungry retards have created this mess by sabotaging the financial system to their benefit. I pray that it backfires and leaves these elitist bums in ruins.
Como651 December 6, 2016
Not just elitists on the left but right also. Corporate lobbyists have taken over Washington. Our politicians on both the left and right are no longer of the people for the people. It’s the reason why Trump won the republican nomination and presidency. The elitists are made up of wealthy right wing donors like the Koch bros not just left wing elitists like Soros.
Carolyn December 7, 2016
George Soros is a criminal guilty of treason and sedition against the United States. He has brought financial/social ruin throughout the world. Absurd to compare him to the Koch brothers. Soros is so vile and evil there is only one entity he can be linked to –Satan.
Tom December 5, 2016
In the first place, if the government was an entity for the people instead of against the people, there wouldn’t be much of an underground economy. After reading James Rickard’s latest book, “The Road To Ruin”, I am more than convinced that this is just the beginning as Larry has said. I don’t believe for a second that the reason is to stop tax evasion. The reason is so that a small group of elitists and power hungry leftists can take control of the world, making most of us slaves to do their bidding. These power hungry retards have created this mess by sabotaging the financial system to their benefit. I pray that it backfires and leaves these elitist bums in ruins.
Como651 December 6, 2016
Not just elitists on the left but right also. Corporate lobbyists have taken over Washington. Our politicians on both the left and right are no longer of the people for the people. It’s the reason why Trump won the republican nomination and presidency. The elitists are made up of wealthy right wing donors like the Koch bros not just left wing elitists like Soros.
Tom December 5, 2016
In the first place, if the government was an entity for the people instead of against the people, there wouldn’t be much of an underground economy. After reading James Rickard’s latest book, “The Road To Ruin”, I am more than convinced that this is just the beginning as Larry has said. I don’t believe for a second that the reason is to stop tax evasion. The reason is so that a small group of elitists and power hungry leftists can take control of the world, making most of us slaves to do their bidding. These power hungry retards have created this mess by sabotaging the financial system to their benefit. I pray that it backfires and leaves these elitist bums in ruins.
Como651 December 6, 2016
Not just elitists on the left but right also. Corporate lobbyists have taken over Washington. Our politicians on both the left and right are no longer of the people for the people. It’s the reason why Trump won the republican nomination and presidency. The elitists are made up of wealthy right wing donors like the Koch bros not just left wing elitists like Soros.
ron goddard December 5, 2016
thanks larry. once again a good article. governments all over the planet want complete control over our lives. they don’t seem to have a lot of ‘intelligence’.
if we have the chance to cut back severely on government and its tentacles : armies, navies, airforce, police, civil service and release us from income tax theft(by the government) what a different place this earth would be. a consumption tax would give people the chance to decide how and where they spend their money; the fruits of their labour. but, alas, the vested interests would whine. people like accountants, lawyers, tax consultants, super funds managers etc. as you can see with that barrage of service industries there is a huge amount of money spent unnecessarily, without them more money can go into productive entities and less money needed to buy homes to live in. negative gearing would be useless, so house prices would become more affordable. many other benefits would flow.. but, i am being idealistic. man being the voracious, greedy, fearing animal that he is will not allow such a situation.
income tax, apparently, was ‘brought in’ early last century by the USA and OZ governments to support the ‘war effort’ and i guess because war is constantly on our doorstep we have to ‘support’ it. those buggers over the hill might attack at any
moment..so lets build up our armies and so tax the people to defend them.(the people not the buggers over the hill).. and cash.? well fiat money ain’t that good but gold and silver coins are real stuff. so lets get some right now. and if any bugger wants it from me they gotta pay.
Como651 December 6, 2016
Military spending is only 16% of budget. If we cut military spending in half that only closes the budget by 8%. Over half of tax dollars go to pay Medicare, Medicaid, and social security since previous tax cuts caused us to spend our social security funds. If you put a consumption tax on people it would have to be so high that middle class earners would would end up paying more than under progressive income tax laws and it would discourage spending by the middle class and poor who are the main drivers of consumer spending. Consumption tax sounds good in theory but won’t work unless people had higher incomes. Very little consumption tax would be gained from the weakthy since they don’t consume as much. They save and invest. We don’t have enough taxes. We are in a budget deficit. How will tax cuts via a consumption tax help our economy? Tax cuts have already created almost a 20 trillion dollar debt. Reagan and bush tax cuts have been horrible long term for our economy. It’s created msssive budget deficits. No politician dares bring back higher taxes since people’s incomes could not absorb higher taxes and that would be a gaurenteed loss next election so we go on deficit spending but eventually this will cause inflation. Worse yet, stagflation. Around 6% of our annual budget just goes to pay interest on our federal debt. A 6% annual drain on our economy that grows bigger is horrible for our economy. Any short term gain by stimulus tax cuts gets overshadowed down the road. Low Corporate taxes also do not promote reinvestment or hiring and retaining of employees. Higher taxes do since companies would have to give their profits over to the government if they did not reinvest into capital expenditures and employee wages and more hiring. Low taxes leading to better economy is a myth and the last 3 plus decades has proven this. I’m not a liberal either just and engineer with a lot of math and history lessons.
gordon December 10, 2016
ron goddard
If you check your constitution there is supposed to be NO standing army during peace time. A navy is allowed. Your the victim of a war machine in peacetime. Empty your pockets.
NIZAR MECKLAI December 5, 2016
Corruption is encouraged by Oppressive laws and even more oppressive Rules and Regulations to apply the oppressive laws viz INCOME TAX and in turn send POWER to the lowest level of GOVERNMENT which impacts the average citizens and can only lead to revolutionary thinking to change the government. To REVERSE such a situation ABOLISH income tax so everyone will focus in optimising earnings and not, as in the present situation, avoiding/evading income taxes.
Como651 December 5, 2016
If income tax is abolished how will governments pay for roads, schools, bridges, military, police, fire rescue, FDA, SEC, FBI, CIA, NASA and every other government agency or function we need as a nation? If we only impose a sales tax we will need to make it so large that it can cover our federal budget. Sales tax is much more likely to lead to black market economy. Your proposal doesn’t seem realistic. How would it work?
NIZAR MECKLAI December 5, 2016
Corruption is encouraged by Oppressive laws and even more oppressive Rules and Regulations to apply the oppressive laws viz INCOME TAX and in turn send POWER to the lowest level of GOVERNMENT which impacts the average citizens and can only lead to revolutionary thinking to change the government. To REVERSE such a situation ABOLISH income tax so everyone will focus in optimising earnings and not, as in the present situation, avoiding/evading income taxes.
NIZAR MECKLAI December 5, 2016
Corruption is encouraged by Oppressive laws and even more oppressive Rules and Regulations to apply the oppressive laws viz INCOME TAX and in turn send POWER to the lowest level of GOVERNMENT which impacts the average citizens and can only lead to revolutionary thinking to change the government. To REVERSE such a situation ABOLISH income tax so everyone will focus in optimising earnings and not, as in the present situation, avoiding/evading income taxes.
Como651 December 5, 2016
If income tax is abolished how will governments pay for roads, schools, bridges, military, police, fire rescue, FDA, SEC, FBI, CIA, NASA and every other government agency or function we need as a nation? If we only impose a sales tax we will need to make it so large that it can cover our federal budget. Sales tax is much more likely to lead to black market economy. Your proposal doesn’t seem realistic. How would it work?
Ottman empriorement 2 December 5, 2016
what happen to GOLD ?
gordon December 6, 2016
Nothing and the governments, big business, COMEX bullion banks and large banks(who control bullion banks) want to keep it that way a nothing investment.
Bob December 6, 2016
It became a buy!!!
UDO December 7, 2016
Ottman
lets not talk about it for a while
Toby Howes December 5, 2016
Can you confirm that all subscribers are to go long US indices … as per your recommendation based on a DOW monthly close above 18,500.
Thanks
JD December 5, 2016
But aren’t they exchanging them for new 500 and 2000 (to replace 1000) notes (according to BBC)?
Marc December 5, 2016
Hey Larry, I couldn’t agree with you more. This is going to turn ugly very quickly. I think Trump inadvertently will fan the flames with his protectionist policies and bullying corporations to stay at home. They tried that in the 30’s too. What do you say to Chinese and Japanese holding trillions in treasuries so that US citizens buy the products…”Oh we are going to hit these products with tariffs”. What the hell are they going to say? Seems we are all on a giant merry go round where no one knows where to get off. I don’t see this ending well at all. In fact war seems eminent. Hope I am wrong.
Como651 December 5, 2016
Why is putting tariffs on imported goods bullying corporations? This will create jobs for American workers who will pay taxes and spend more and generate more revenue for all companies. He plans to cut corporate taxes to less than half which will offset having to pay higher wages. If companies want to remain abroad and pay the import tariffs that is great for our economy since we import far more than we export. Back in the depression era America was an exporter not importer like today. Tariffs and a trade war is to our benefit not China’s. All that added revenue will help in tax cuts for those companies staying or returning to America. The massive corporate tax cuts and less regulation he proposes could hardly be called bullying. The strengthening of consumer spending by adding more jobs in America also benefits corporations.
gordon December 10, 2016
Sorry Como651 the genie is out of the cheap wages bottle never to be stuffed back in. I see articles of the Chinaization of America lots of $15 an hour wages no benefits no unions and pollution on a large scale overlooked by a government grateful for the jobs the same as Asia. China’s whole phony Silk Road charade is built on this concept. A car windshield make from China is opening up manufacturing in Ohio in an old car plant using this model. These are the so called jobs that Trump will tout as making “America Great Again” Its a sham and a charade. You will end up as serfs in your own country.
Bryan Leithiser December 5, 2016
The American people are sheep. They won’t Left a finger till it’s too late. With the lying news feeding them lullaby’s they won’t know what to do.
Jim Robertson December 5, 2016
Mr, E.
About 30% of my investment accounts are currently in cash while I search for stocks that can return a reasonable return.
? is: does having cash vs. stock investments increase the risk of subject accounts.
Does having Stock Certificates provide less risk of confiscation of any one’s assets? ie. being the Holder of Stock Certificates offer any protection over Cash and, if so How?
Thanks for clarification if their is any – Jim R.
Dave December 6, 2016
Remember if you have any funds in a regular IRA, the government has been giving you a 10% tax break over the years. In a crisis (eg funding Trump’s ambitious agenda) the Feds could “borrow” your tax sheltered money issuing you “Patriot Dollars” in return….not worth the paper they’re printed on just like Social Security Fund IOUs.
Fred Halbrooks December 5, 2016
I remember l929-1932 When the banks would not cash checks and people lost their savings Also there was an event called “Bank Holiday” As for me I am keeping cash available as Mr. Trump takes over.
Edouard D'Orange December 5, 2016
I don’t want to just halt the war on cash, I want to bring back the $500 & $1000 bills. I started a petition at change.org.
Professor James December 6, 2016
Historically, $500.00 & $1,000.00 bills were used to settle accounts between banks. This, of course, was before the digital age. Large purchases by customers were almost always by check.
Having worked in retail for over 30 years, I can tell you a check, now, is a rare phenomenon. Most purchases are credit or debit card. Even cash purchases for small items are shrinking.
Far from bringing back large bills, the government will seek to eliminate the $100.00 bill as we move towards a cashless society.
Manohar singh December 6, 2016
i am with you all the way. Hospitals are not accepting patients without cash. It is horrible
Ken Quarles December 5, 2016
What do u think Gold and Silver is going to do
David December 5, 2016
do you think trump will put demonelization in the U S A
Barbara Handly December 7, 2016
No, I don’t think Trump will attempt a cashless society. Trump wants to make America great again! We who are of similar age as Trump, remember the days when employment was high due to manufacturing high in the US. The US came out of WW2 and rebuilt the economy heavy with manufacturing, govt regulations forbidding banks and investment firms to do business, the Glass-Steagal Act, Bill Clinton signed away, bringing about the subprime mortgage crisis. Obama created another crisis allowing central banks to print worthless money. How we solve this problem is anyone’s guess.
gordon December 10, 2016
David
You only get what people voted for a loose cannon that is capable of anything.
Supersonic Scientist December 5, 2016
…Modi’s move, known as demonetization, is designed…
It’s no coincidence that the word DEMON is front-and-center in that word…..just saying!