Those who think the War on Cash is a new phenomenon are missing the Big Picture.
The War on Cash has been unfolding since at least 2013 if not earlier. And it’s not really a War on Cash… it’s a desperate attempt to prop up failing financial institutions.
Let’s wind back the clocks…
Back in 2013, the small European country of Cyprus implemented a “bail-in.”
This means that the bank STOLE savings (cash) from depositors, to shore up its balance sheet.
You see your cash, the money you keep at a bank, is considered a “liability.” The reason for this is that, technically speaking, you can withdraw this money at any time.
So if the bank has made a bunch of stupid loans to failing businesses… and those loans are defaulted upon… the bank NEEDS your cash to stay afloat. If a large number of depositors were to take their money out during this situation, the bank would quickly go bust.
THIS IS THE REAL WAR ON CASH.
If cash remains solely in electronic form, it never really leaves the financial system. But if you take it out in physical form, it’s out.
This is why whenever the next major banking crisis hits, the next step will be Bank Holidays and Bail-ins.
If this seems ridiculous, consider that back in 2012, the FDIC implemented plans that stated should a another crisis hit, “systemically” important financial institutions could be taken over with bank accounts frozen and used in “bail-ins.”
2012… FOUR years ago and a year before the Cyprus bail-in was implemented.
The fact of the matter is that the 2008 Crisis never ended. YES, ZIRP, NIRP and QE were all schemes to prop up the big banks… but the large banks around the world remain just as overleveraged as before.
Heck, Deutsche Bank, the 11th largest bank in the world, was in a virtual free-fall just a few months ago.
This is why the global elites are moving to implement legislation that would permit bail-ins and ban cash. India’s move to get rid of physical cash is simply the latest stage in this campaign.
It won’t be the last.
Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings.
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Survive the Fed's War on Cash.
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Chief Market Strategist
Phoenix Capital Research