International Man: Australia has proposed a law that provides a $25,000 fine and two years in jail for those who make cash transactions of $10,000 or more. If passed, the Currency (Restrictions on the Use of Cash) Bill could be implemented in 2020.
Do you see this legislation as Orwellian?
Jeff Thomas: Oh, yes, very much so. The claim by the Australian government’s Black Economy Taskforce is that the law will help stamp out tax evasion, money laundering and other crimes.
What we’ll be seeing is a plethora of laws popping up in all the countries that were a part of the post-war prosperity boom – the US, Canada, Japan, Australia, Europe and others. All those jurisdictions dove headlong into the debt pit that the US created after 1971. All of them are now facing an economic crisis as a result.
Consequently, all of them will be creating capital controls. My belief is that each will host several of these laws, and the others will all adopt them. Each law will be justified as protection against money laundering, terrorism, tax evasion, a rising black market or a combination of those scare tactic focal points. As such, the populace of each country will welcome them, not understanding that the real purpose is to have the banks determine how much you’re allowed to spend.
By having each country put forth a portion of the laws, then having all the others copy them, they’ll hope to make the laws appear to be less draconian. After all, how bad could they be, if all these countries support them?
Many of these laws will be based on the assumption that cash will be eliminated and all transactions must be undertaken by the banks. Banks will also be authorised to examine what you’re spending the money on. At first the oversight would relate to large expenditures, but later, it would be smaller expenditures, that, together, make up larger amounts. The outcome would be that all outlays would be suspect and could be refused by the bank. Those depositors who had a history of transactions having been in question would find that all transactions would be monitored in future (as though they weren’t already).
International Man: How can people combat the laws that are coming?
Jeff Thomas: Anyone who lives in any of the countries that are most seriously at risk still has time, prior to the passage of the laws, to liquidate his holdings in those countries. Then he may move the proceeds to a jurisdiction that’s likely to be safer.
If you own a home, sell it now and rent it back from the new owners. That way, you get to remain in the house you like, but the value of your house would have been taken out of the country. That gives you a nest egg elsewhere, in addition to making it easier to walk away from the house after things begin unravelling.
In a crisis, your true net worth consists of the amount of wealth that you have already succeeded in expatriating. So, you liquidate all assets and get the proceeds safely out. If things don’t go so badly, the money can always be repatriated, but if things do go badly, you will have kept your family from becoming casualties.
International Man: Is a cashless society the only way for governments and central banks to continue to wield their power through debt-based paper currency?
by Jeff Thomas for International Man