Wealth Confiscation for the Digital Age: the New “Cash Tax”

As I have been warning you.-Lou

stealing

Wealth Confiscation for the Digital Age: the New “Cash Tax”

Directly from your bank account.

“Negative interest rates” have become a phenomenon with economists and the media. But I’m writing to tell you something about negative interest rates you haven’t heard. You certainly won’t hear about it in the mainstream press.

What’s coming at you is a historic event. It’s something our grandchildren will hear stories about, much like the Great Depression or the Cold War. It could send the price of gold much higher in the coming years.

If you know what’s coming, it could mean the difference between having lots of free cash in retirement and barely getting by. And please remember this warning: Social Security will help even less than you think.

To understand the gravity of this moment, let’s cover one of the most bizarre ideas in the world…

Negative Interest Rates.

In a normal world, your bank pays you interest on your savings. It takes your money, pools it with other people’s money, and loans it out. The bank makes money by paying out less in interest on your deposit than it earns in interest from borrowers. For example, it might pay out 3% to depositors while earning 6% from borrowers. This is how it has worked for decades.

Negative interest rates turn your “normal” bank account upside down. They could only exist in a crazy world where idiot politicians are in control. Unfortunately, that’s just what we’re dealing with right now.

Politicians all over the world are ordering banks to charge depositors (you) a fee for storing cash. It’s a perversion of saving. It’s a perversion of capitalism. It’s a perversion of planning for the future.

And it’s going to result in disaster.

Politicians think that by making it unattractive for you to keep money in the bank, you’ll save less money. Instead, you’ll spend more money on things like smartphones and cars. You’ll invest in things like stocks and real estate. This would “stimulate” the economy.

This thinking is very, very wrong. No matter what the government does, it can’t force you to spend money. It can’t force you to make investments if you don’t see good opportunities. Forcing people to pay banks to hold their money is a tax.

It is wealth confiscation for the digital age.

The government and the mainstream press won’t dare call it a tax. But that’s exactly what it is. A negative interest rate policy is a tax. Any time you hear a politician, central banker, or news anchor say “negative interest rates,” just think “TAX.” Think “TAX ON MY CASH.”

Negative interest rates are going to result in financial disaster that will wipe out many people. But you don’t have to be one of them. I’ll explain how you can sidestep this disaster—and even make a lot of money as a result of it—in a moment.

But let’s quickly cover one more thing about negative interest rates…

If the government makes it unattractive for you to keep cash in the bank, you can pull cash out of the bank. You can simply store it in a safe or under the mattress. Politicians know this. That’s why they’ve created another dangerous policy that works hand-in-glove with negative interest rates.

That policy is banning cash.

You see, if you pull your money out of the banking system and stuff it under the mattress, you aren’t doing what the government wants you to do. You’re not spending money or investing in stocks. This is a major reason why governments are banning large cash transactions and large denomination bills. They are fighting a War on Cash.

In just the past few years…

  • Spain banned cash transactions over 2,500 euros.
  • Italy banned cash transactions over 1,000 euros.
  • France banned cash transactions over 1,000 euros, down from the previous limit of 3,000 euros.

And just a little while ago, former U.S. Treasury Secretary Larry Summers called for a ban on the $100 bill! Historians aren’t surprised by Summers’ idea. Franklin Delano Roosevelt banned $500 and $1,000 bills in the 1930s. You can bet that our politicians will do the same thing in a financial emergency.

More…

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