News & Analysis
Now Mexico Bans Cash
Large Cash Transactions Banned In Mexico ... Outgoing Mexican President Felipe Calderon has signed into law a ban on large cash transactions. The ban will take effect in about 90 days and it is part of a broader effort to control monetary flows within the country. Under the law, a Specialized Unit in Financial Analysis operating within the Attorney General's Office will be created to investigate financial operations "that are related to resources of unknown origin." For real estate transactions, cash payments of more than a half million pesos ($38,750) will be forbidden and, for automobiles or items like jewelry, art, and lottery tickets, cash payments of more than 200,000 pesos ($15,500) will be forbidden. The law carries a minimum penalty of five years in prison. – Forbes
Dominant Social Theme: Terrorism must be combated by controlling people's money.
Free-Market Analysis: What we consider to be the "phony" war on terror is the gift that keeps on giving to those who run our governments.
The phony war on drugs only adds to the rationales for telling people what they can and cannot do with their resources.
What is going on is a pattern, not a series of defensive moves taken out of desperation. The power elite intends to lock down the world, it seems, in order to track every monetary transaction of any significance.
We wrote about this trend previously in "Spain Bans Cash." Here's an excerpt:
... As we have long predicted, the phony "sovereign debt" crisis in Europe is being used to justify all sorts of authoritarian measures.
It is government pols that gladly borrowed what European banks threw at them. And somehow the upshot earlier this week is that Spanish citizens now lose the right to conduct many transactions in cash.
Spectacularly, the reports such as this one, excerpted above, don't even both to hide the real point. The Spanish government wants to ensure that it can "track transactions and make sure that people and businesses are paying taxes."
Of course, anyone who has visited Spain of late knows that the tax burden in Spain is onerous indeed, and is one reason that the truculent tribes that have co-existed uneasily with Madrid are again beginning to beat the drums of secession.
The taxes that the central government levies on small businesses especially are verging on punitive. But there are no apologies. The official position is one of unflinching demands.
And now Mexico is going the way of Spain. Always there is a justification. But the reality of the project is much broader and has to do with a power elite wish, apparently, to create a world government that is fully in charge of what people can and cannot transact. Here's some more from the Forbes article excerpted above:
In 2010, Mexico instituted strict limits on foreign exchange cash transactions to $1,500 per person per month, which caused several cash dollar exchanges to withdraw from the business and had the effect of penalizing tourists.
Of course, US dollars are a huge portion of the actual paper cash that this effort is aimed at, but the Mexican peso is the 12th most traded currency in the world and by far the most traded currency in Latin America.
Reuters reported that, "Sales of drugs from marijuana to cocaine and methamphetamine in the United States are worth about $60 billion annually, according to the United Nations. About half of that amount is estimated to find its way back to cartels in Mexico."
The Woodrow Wilson International Center For Scholars' Mexico Institute published a comprehensive study in May 2012 entitled "It's All about the Money." The report recommended tight integration and coordination with the United States in the areas of legal framework, financial institution regulation, intelligence on cross-border currency flows, and non-conviction based asset forfeiture.
Two years in the making, the new law also requires notaries, real estate brokers, and other dealers to report the forms of payment for transactions above the respective limits. Financial institutions will also be required to report monthly credit card balances in excess of 50,000 pesos ($3,875).
The article mentions that Italy has also banned cash transactions above a certain amount. Certainly this is a growing trend.
The Forbes article mentions the prevalence of the Mexican drug trade but it is well known at this point in alternative news circles that US Intel is behind much Western drug trade in order to fund various black and gray ops. Presumably, MI6 and the Mossad are also involved.
The British Crown made a fortune in the 1800s selling opium to the Chinese. Government drug trafficking is an ancient business. In order for something to be maximally profitable, it has to be in short supply. Making something illegal is one way to damp supplies and raise profits.
Conclusion: We figure at some point gold and silver will also come under attack, as that's the way the world is trending. But in the meantime, these national bans continually pressure more and more freedoms, including the freedom of shielding one's wealth from prying eyes. And that's just the point ...
Posted by Abu Aardvark on 10/18/12 11:16 AM
DB: "We figure at some point gold and silver will also come under attack, as that's the way the world is trending."
At some point, eh?
From German daily "DIE WELT" - todays edition:
"German government wants silver coins to be taxed more"
Here's a google translation of the article:
Click to view link
This is not about increasing fiscal revenue, imho.
Reply from The Daily Bell
Posted by kenprice on 10/18/12 01:26 PM
Gold coins are available at nearly every Mexican bank, with the 50 Peso gold coin (35 grams pure gold) being the most common. Mexicans well remember the devaluations, when the Peso went from 12.5 to 3000+ to the U.S. Dollar. Gold was the only reliable "store of value", as it has always been.
Posted by Danny B on 10/18/12 09:02 PM
A couple of quotes;
Click to view link
"The U.N. Organization on Drugs and Crime estimates that illegal narcotics represent the world's third-biggest export, after oil and the arms trade, "
"In 2010, Wachovia admitted that it had essentially helped finance the murderous drug war in Mexico"
"Senate investigators found that HSBC had for a decade improperly facilitated transactions by Mexican drug traffickers,"
"ABN Amro, Barclays, Credit Suisse, Lloyds and ING have reached expensive settlements with regulators after admitting to executing the transactions of clients in disreputable countries"
"In 2009, Antonio Maria Costa, an Italian economist who then led the United Nations Office on Drugs and Crime, told the British newspaper The Observer that 'in many instances, the money from drugs was the only liquid investment capital' available to some banks at the height of the crisis. 'Interbank loans were funded by money that originated from the drugs trade and other illegal activities,' he said. 'There were signs that some banks were rescued that way.' The United Nations estimated that $1.6 trillion was laundered globally in 2009, of which about $580 billion was related to drug trafficking and other forms of organized crime. "
"In 2010, British currency exchange offices stopped accepting 500-euro bills after discovering that 90 percent of transactions involving them were connected to criminal activities"
"Criminal organizations siphon 100 billion euros from the legal economy, a sum equivalent to 7 percent of G.D.P" (Italy)
It seems that organized crime has quite a hold on money laundering. Gareth Williams supposedly came up with software to track hot money. He was found stuffed into a gym bag.
Click to view link
Reply from The Daily Bell
"It seems that organized crime has quite a hold on money laundering."
By this you must surely mean the CIA, BATF ("fast and furious") and other various government agencies, banks, etc. ...
Posted by Danny B on 10/19/12 10:53 AM
Posted by expatriot on 12/14/12 03:24 AM
Dominant Social Truth : State Terror (total control) starts by controlling people's money.
Posted by expatriot on 12/14/12 06:39 AM
Well that's simple. 60 billion you say? Well, legalize thus tax it. People for whom it becomes a health problem may thus seek medical help (without added shame of illegality). And if taxing doesn't work because of cash... ho ho, make a people's govenment monopoly by undercutting the market! You know, "create jobs".
May the government be paid cash? Well, maybe only in small suitcases at dark cafés ... At "transanywhereearth" (fictive example airline) some may claim "immunity" thus be bowed to... from the D circle...
Well : so it is supposed. Our general undercurrent of panic (fear of ignorance) ; there are sides to this arguement so we are all on a side. Perhaps not the one with the green-printing press. Sounds ecological!
The question we each need ask ourselves is how well do we really understand either side of the coin?! (assuming we also know what coin to look at) It is partly a matter of bibliography, references, source and proof of source (most of which do not invite prying). This is what the internet reformation needs : it's own bibliograhy...
There's perhaps not enough to panic about, yet reflecting on amounts of people who've alresdy been taken out, the well known ones being the K brothers & son, MLKing, JWLennon, but the list goes on all over the world down into obscurity, via the various mafias, etc.. No matter how you cut it, all taken out. That is the similarity. Now for whom or why? Ha! There the questions lie.
... in most senses of the word.
Then of course the guy with the smoking gut is either dissappered (John John), killed (JFK), or doesn't remember who (RobertK) is is or what he is doing there. I've seen such as the latter case close up (a family matter).
Along with it's answers.
But back to cash... What about gold?
Of course the curse threatened here is being chipped so our beloved banks can turn people on...
According to law, not the rule of the jungle!
Maybe we need Tarzan's wild call ! Who's law? Has there been a vote or public debate? Frankly I do not know.