News & Analysis
Spain Bans Cash
Spain Bans Cash Transactions Over 2,500 Euros ... Spain has outlawed the use of cash in business transactions in excess 2,500 euros in order to crack down on the black market and tax evaders. The motivations behind the push for digital currencies is exposed as Spain heads down the road of the Greeks in combating their sovereign debt crisis. As the government scrambles for every tax dollar it can get its hands on, even though they already gave every Spaniard $23,000 Euros in debt last year alone (approximately $32,500), they are now banning all large cash business transactions. Why? So they can track the transactions and make sure that people and business are paying taxes. Being able to track the transactions is also aimed to combat the growing black market in Spain. – Alexander Higgins' blog
Dominant Social Theme: This cash has gotta go. It's evil.
Free-Market Analysis: They are not even making a pretense anymore that the West is run via market economies. 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.
Spectactularly, 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.
It is surely part of a larger meme having to do with a "cashless" society. Just recently the UK Telegraph asked "Is mobile the way we'll all be paying?" The answer, as can be expected, was a qualified yes, but issued in the predictable upbeat way.
The cashless society has been a much-mooted concept ever since consumer credit cards were widely introduced in the 1950s. Now it seems that “mobile money” is the new gold rush. The term – used to describe the way the mobile phone is used to pay for goods – yields no fewer than 126 million results on a Google search ...
Market research firm Yankee Group believes that global mobile transactions will become a $1trillion market by 2015. While Berg Insight says there will be 894m worldwide users of mobile banking by the same year. Peter Ayliffe, chief executive of Visa Europe, who sits on the Monitise board, believes 50pc of all Visa transactions in Europe will be on a mobile device by 2020.
The top men are beginning to issue their predictions. The march to a cashless society has begun. Perhaps we owe Spain a debt of gratitude for revealing the REAL reason for a cashless society. It makes tax collecting so much easier.
But this is only part of the story. Taxes are certainly to be paid ... but the RESULTS of tax payments and the government expenditures they give rise to are seemingly more questionable every day.
In Spain this is certainly evident. The REAL problem that Spain faces as its depression spirals out of control is the infrastructure that politicos built over the past decade. Every small town has bike paths, outdoor parks and other unnecessary public venues that will soon prove, well ... unsupportable.
Gradually, the infrastructure sinks into disrepair, further exacerbating the loss of what was once gratifying. These expanding open sores in civic centers create additional dissonance. Spain has created public places everywhere with giddy exuberance. Soon it will be a kind of national "tragedy of the commons."
There is not much discussion of this plight, however. Most of the conversation centers around putting young people to work. Up to 50 percent of Spanish youngsters are out of work or can't find jobs and many of the rest live in fear that they will lose their positions.
There is now, in fact, starting to be a Diaspora of young people from Spain. Virtually all of South America speaks Spanish – and many countries are doing rather well. Argentina, especially, is attracting youngsters; Chile, too, presumably.
The cash ban is probably looked on by many in Spain as yet one more petty annoyance but these annoyances are piling up over time. When mixed in with the larger difficulty of the dysfunction of the Spanish economy, such issues can surely create an explosive situation. Here's more from the article:
Those who violate the ban will face fines of 25% of the payment made in cash. The Prime Minister, Mariano Rajoy, has announced on Wednesday that the plan to combat tax evasion on Friday approved the Cabinet prohibit the payment in cash transactions of over 2,500 euros and which at least involved a businessman professional.
During the control session the Government in the House of the Congress of Deputies and in response to a question about the tax amnesty made by the general coordinator of IU, Cayo Lara, the Prime Minister, has revealed that those who violate the ban will face fines of 25% of the payment made in cash.
The Government had already advanced the plan to combat fraud limitations include the use of cash for certain operations, although he had not yet specified which would place the threshold (yes at the time there was talk that it could be 1,000 euros for self-employed).
This measure aims to prevent the use of black money in commercial transactions and, in the case of companies, give them an obstacle to not resort to false invoices. The plan to combat fraud adopted on Friday, the Cabinet intends to raise up to 8.171 million euros in 2012.
We can see clearly the conflation between fraud and bad times. Of course, desperate people will do desperate things – and the "austerity" program that the Spanish government is following will only exacerbate matters.
To their credit, Spanish officials have generated some tax-forgiveness programs of late, but these, too, are proving controversial. Spanish politicos, like their counterparts elsewhere, are inclined to accept Brussels' dictates for "austerity" as the ultimate solution to the current mess.
But is it really so simple? As we have often pointed out, the elites running the Southern PIGS were basically bribed by Brussels money to bring their countries aboard the EU. Now that the EU is collapsing, these individuals are nowhere to be found. The citizens are faced with the bill – and with paying back the banks.
Increasingly, we believe, those trapped in this situation are well aware of their manipulation. What we call the Internet Reformation has made them well aware of their manufactured plight. At some point there will be serious repercussions.
This is what the power elite – a few dynastic families behind the EU and much of the world's globalist mischief – may not have entirely anticipated. We have to think that the EU takedown was created to further the aims of globalism. But those at the top did not take into account the dawning realizations that the Internet was capable of generating.
Now the trap has been sprung. The "sovereign debt crisis" is creating a larger globalist presence, puffing up the IMF and creating further EU integration. This was all part of the plan, no doubt.
The move to get rid of cash is also part of the larger plan, we're sure. The idea is for every transaction to be tracked and controlled. The mass of people is to be further disciplined and herded. Global government is to be the result
Conclusion: The mechanism is increasingly transparent. They hardly bother to hide it anymore. But here is our question: Do they believe that people cannot read ... or think? Do they believe people will hold their aggregate resentment in check forever? There seems to be a kind of baiting going on, and it may not end well.
Posted by amanfromMars on 04/22/12 01:42 PM
Regarding the supposed wealth that is stored in the banking system and the nature of money and its surreal unnatural invention for use in control of power and the purchase of assets and toys, baubles and beads, would this be an accurate public service film ... ... ... . http://youtu.be/lsmbWBpnCNk ... ... . or is it simply perverse and compellingly subversive misinformation presenting false facts in an elaborate fiction?
And if what is shared there is true, would the elaborate fiction be tales spun around facts to conceal the truth in order for orders and lodges/cabals and conspiracies to present a global virtual reality and big picture show which now would be comprehensively hacked and cracked.
And there we all were, dismissing and arguing against the fact that Virtual Reality is the true nature of primitive Man's existence, and the future is best created and better governed with humans elevated to the status of virtually programmable machines ... ... .. with SMART Pleasure Robots particularly treasured.
So, who wants to Output some Sublime Input into AI and ITs SMART Global ProgramMING Initiatives/IntelAIgent Projects?
Posted by Bischoff on 04/22/12 01:33 PM
A: "Human beings don't need government. It's against their nature."
B: See, that is where you are absolutely wrong. As a matter of fact on this subject you are downright clueless.
Nature did not adapt man with genetic instinct to survive on the ground. He has to create an artifical cocoon to make survival possible. Government is part of that cocoon. How much government is the question, not whether government.
The founders had figured that it out correctly. They clearly understood human nature as it had to be controlled in the terrestrial setting. They designed the Constitution to promote government at the local level. They knew that natural law through the fertility/usability of land, provided all the costs neceessary for goverment by collecting payment for its use according to value. That is the Anglo-Saxon principle which Sir Thomas Dale employed in saving the Jamestown sttlement in 1618.
I am sorry to say, but all your quotes while they apply to humans, do not apply to humans at the local level when they get together to create a government to guard against the detrimental effects of basic human instincts suited for life in the trees.
If you were involved in a local government meeting, where government truly matters, or at least should be, you and your slogans would have been laughed out of the meeting. That's how much weight your slogans carry... .
Posted by Bischoff on 04/22/12 01:11 PM
It isn't "taxes" as such which the ruling elite collects. They appropriate the fruits of your labor, and they will keep doing it to the extent that all you will have left is enough to survive to expand more effort in producing wealth which then will be confiscated.
When they undermine the Constitution, they undermine the application of Anglo-Saxon priinciples necessary for government of free people. They undermine personal liberty and private property concepts.
Do people have to wake up as full fledged "serfs", before they get a clue as to what is happening to them... ???
Posted by Bischoff on 04/22/12 01:02 PM
"Only sheep will hold still enough to have the mark or number impressed upon them."
Quote by Ingo Bischoff: 4/22/2012
Posted by Bischoff on 04/22/12 12:56 PM
I agree with you that Herr Popp has a clear and logical way of explaining things. The most important point he makes, is that people simply do not understand money. He points out that a college education in business emphazises "Waren" and "Dienstleistung", but never explains the nature and function of money.
Then Andreas Popp launches into the description of the Keynesian/Friedmanite central bank monetary system which prevails in the world today. While he gives a good account of it, he cites the common mistake about creating ten times the credit from a single deposit.
How seemingly educated individuals, can make such statements, at least with regards to the USD/FRN, I don't know.
People simply do not borrow money, unless they mean to employ it. Fed Agents do not extend additional credit, unless the loan payments are collected (meaning productivity, that is prior to TARP and QEs). Evidence has to be provided to the Fed Agent through the submission of T-Bills. To the extent that Andreas Popp repeats the erroneous interpretation of the reserve requirements set by the Fed, and confuses them with fractional reserve lending against positive assets, his credibility must be questioned.
On one hand, he makes the absolutely correct observation that irredeemable USD/FRNs amount to circulation of debt obligations, while on the other hand he maintains that fractional reserve lending can be conducted with debt. Who lends debt... ???
In any case, the discussion on the Click to view link clip turns on "cash" or "cashless" transactions through the facilities of a worldwide central banking system. The question is, central banking or no central banking.
IOW, the question is to create currency against credit/debt, or to create currency against socially circulating capital under the Real Bills Doctrine.
The only answer to that questions is catagorically "RBD currency". With RBD currency, it doesn't matter whether there is cash or not. As a matter of fact, RBD currency works at its optimum as a digital currency.
As long as gold as the standard of value, as well as the standard of measure is attached to the digital RBD currency, people will always be in charge of their earnings, their savings and the prime interest rate. At that point, it matters little how much gold exists, or who owns it.
Of course, this brings me back to Herr Popp's most cogent point. People fail to possess the faintest clues about the nature of "Money", and the elites will ensure that they will stay clueless.
Hosea 4:6 "My people are doomed for lack of knowledge".
Posted by davidnrobyn on 04/22/12 11:11 AM
I think a little quote might be very appropriate here: "And he causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name." (Rev. 13:16,17)
Wowee! This was written nearly 2000 years ago at a time when technology necessary for the fulfillment of the vision was yet distant future. That future is now. The cashless society is not only necessary, but predicted.
Posted by davidnrobyn on 04/22/12 10:59 AM
Great article. But the emphasis on tax collections is for a purpose. Under the current system of fiat currencies, tax collection is only a smokescreen. Tax collection is not the only, nor is it even the primary, means of governments obtaining the resources they need to grow and metastasize. But if states quit collecting taxes, the jig would be up. Governments rely on people's perception of taxes as the primary source of income. If they quit collecting, and relied totally on their REAL primary sources, which are borrowing and currency debasement, people would (finally!) start wondering, "Where are they getting all the money?" Then there would (finally!) be hell to pay.
Posted by Siegfried on 04/22/12 10:20 AM
Spain is known for exporting the inquisition (though historically speaking this might not be accurate), and now it's time to export a brave cashless society free from the impediments of silly cheap metal coins of countless sizes. Now for the first time since so long ago, you won't have to double check your trousers' pockets to prevent the bank notes dissoving away in detergent. It's so practical!
Posted by Abu Aardvark on 04/22/12 09:41 AM
Bischoff: "you are still stuck with basic human instinct which no virtual anything can alter for you. It's nature which has genetically imprinted these instincts upon your behavior over millions of years. If you think that you can overcome these basic instincts with electronics, you will better off to head back to Mars."
I think you're basically right here, Bischoff. That's why I think you're entirely wrong, however, when you write, "we had the perfect blue print with the Constitution."
Why do I think you're wrong? For the SAME reasons YOU GAVE to show amanfromMars is wrong.
Human beings don't need government. It's against their nature. "It's nature which has genetically imprinted these instincts upon your behavior over millions of years". It will turn against them at the end of the day - even when government is established with the best of intentions and/or a bold concept like the US Constitution.
Why do think it got "screwed up", as you phrased it?
Power corrupts, absolute power corrupts absolutely, that's why.
"The danger is not that a particular class is unfit to govern. Every class is unfit to govern."
Posted by AlephNull on 04/22/12 08:15 AM
i'd just like to share this with Daily Bell ( for German Language speakers ) :
One of best & 'serious' interviews (VIDEO) that I have seen for a long time , with ANDREAS POPP :
"Elimination of cash"
Quote: Update 22/04/2012:
Spain wants to allow only cash payment of up to 2,500 €. In Greece, cash transactions are prohibited from 1.500 €. Italians may be paid only up to 1.000 € in cash. And Sweden wants to abolish cash altogether. Model for the EU?
Click to view link
German original : "Abschaffung des Bargeldes"
Click to view link
... . Just a shame that it is in German !
A few of the highlights :
# Elimination of cash will make 'Bank Runs' impossible
# No one is anonymous if cash is eliminated
# Orwell did not exaggerate , the Matrix is highly intelligent
# Cash ( coin ) means 'freedom' from the Matrix
# Those that refuse to comply , will be cut off from the Matrix
# …. which means : jobless, homeless, hungry etc. etc.
# some German supermarkets already accept 'only CCs '
# etc. etc. … & many other good points
Andreas Popp explains the relation between Bank Money and Real Money ( which all here already appreciate , I guess ), and why 'Eliminating Cash' is so important for the PTB … = 'total control' so that 'Trust in the PTB' is forced upon the populace and impossible to question.
He explains everything in a brilliant way ... & as I said, it is a great shame that the video is not in English.
Of course, assuming that a pending Euro-Crash may force Cash Elimination ( before or after ), then the next question will be to what extent they will criminalize Gold and Silver holders : Either by taxing 'profits' ( LOL, stealing value , not profits ) on Gold/Silver or by ' 'fixing' the price' ( like they do today already ).
Thanks to 'Globalization' of the Western Banking System , there is nowhere to hide … or emigrate to where ? … China ?
Reply from The Daily Bell
This is great. Thanks.
Posted by amanfromMars on 04/22/12 07:12 AM
"and your inability to relate to what I say." ….. Posted by Bischoff on 04/22/12 12:51 AM
And there was me thinking that everything was plainly enough expressed for all to comprehend. Pray tell, what part of ….."and your reasons put forward for justification/explanation of those disagreements, and which I can fully understand but would in no way be in agreement with," …… do you not understand or relate to. I can easily understand and relate to what you say but consider that you may not say nearly enough, which is probably entirely due to being stuck in that basic human instinct rut which you appear to have decided you can do nothing about, and which I do hereby dispute, and to imply that Mankind can do nothing about it either, would be a quite crazy delusional imposition of a subjective individual opinion, would it not, ….. especially in the light of the revelations in this thread, that with SMART Media, can such basic reprogramming be easily done, and with IT support is it for real and already virtually a done and dusted project.
Indeed, you are somewhat of a contradiction, because in the excellent informative post of 04/21/12 08:12 PM, do you very ably describe California in, and as a State of Virtual Reality, completely divorced from the responsibility and accountability of its actions and on a rapid road to collapse and ruin in the greater system of things. And that is so very little different from a Live Operational Virtual Environment as to make no appreciable difference.
And you ask finally there,… "How can the country survive with such a voter pool... ..????? Tell me…" ……. and here would you dismiss the notion that a simple complex reprogramming of poorly programmed/undereducated Virtual Machines/humans, by others with a completely different mindset and remote virtual ability, would be an obvious first step with results guaranteed by the process.
More on what is to be done is also found here*, challenging and embedding itself into systems and/or services which are perceived of as being SMART and in positions of power and control, but which may be just empty hollow vessels in the tow of a petrified intellectually bankrupt status quo. And that makes such status quo systems easy, defenceless prey to virtual zeroday vulnerability exploitation of their …… well, it would analogue conditioning in a new digital world of binary magic, methinks, and that would quite perfectly enough describe the enigmatic Catch 22 dilemma which rules/blights your existence which has been intentionally made dependent upon pretty printed paper and electronic credit transfers for the display of personal wealth and purchase of an artificial power and control with inventions of weapons of mass destruction and wars on terror and drugs and their ilk, rather than free and selfless distributive of global collective prosperity.
* Posted Sunday 22nd April 2012 04:51 GMT amanfromMars 1 …. on Click to view link in reply to Anonymous Coward who Posted Saturday 21st April 2012 12:22 GMT
And does not Dave, with the post on 04/22/12 03:19 AM, voice a valid immediately available alternative which appears to be a most attractive proposition, fronting a solution, which would find favour and support with most probably at least 99% of the population ……. "The Spanish could do the same as the people in Iceland did. Iceland told the bankers they were out of luck and could not expect the people to pay for the bankers stupidity. Now Icelands economy is doing fine and the Icelandic government is busy throwing the bankers in jail.
A win win situation."
Whenever the situation is descending as it is into deepening crises and increasing social unrest, would one be surely classed as a classic arrogant fool and useless ignorant tool to not to conclude that past and present programs at resolution are failures and are actually contributory factors in fuelling the systems collapses.
Let's try something different and completely new and novel and noble, for a change and for that change that was earlier promised by that presidential hopeful who turned out to be such a crashing disappointment.
Posted by Dave on 04/22/12 03:19 AM
The Spanish could do the same as the people in Iceland did. Iceland told the bankers they were out of luck and could not expect the people to pay for the bankers stupidity. Now Icelands economy is doing fine and the Icelandic government is busy throwing the bankers in jail.
A win win situation.
Posted by Dave on 04/22/12 03:10 AM
Posted by Bischoff on 04/22/12 12:51 AM
"and which I would suggest is indicative to all that it is your mindset which is still stuck in a basic human instinct rut ….. and indeed you have admitted it being so …. is that which will separate us and be an ever increasing chasm between us... "
Well Mars Man, I am not as fortunate as you are. I am an earth bound being. I am not able to escape my human genetics impressed upon me over millions of years. You, being a Mars creature are not settled with these sort of problems.
Therefore, I am quite understand your mindset toward earthlings in general, and your inability to relate to what I say.
Posted by amanfromMars on 04/21/12 11:34 PM
Good day, Bischoff,
Then shall your disagreements with that which is freely shared here about that which we are discussing, and your reasons put forward for justification/explanation of those disagreements, and which I can fully understand but would in no way be in agreement with, and which I would suggest is indicative to all that it is your mindset which is still stuck in a basic human instinct rut ….. and indeed you have admitted it being so …. is that which will separate us and be an ever increasing chasm between us, as you remain unconvinced that Man can do quite phenomenally significantly better than he has ever been able and enabled to do before, by virtue of his being better advised and edutained by what can be so easily and effortlessly done by those who would not be so hindered in thought and ability.
And it is misleading to say ……."If you think that you can overcome these basic instincts with electronics,…" ….. for that is not ever something which I would have said. In clarification on that matter, and in further explanation of that which you may be alluding to, I would offer the observation that if one considers the brain as a computer with an operating system/operating systems and a driver/drivers, is basic human instinct and genetically imprinted information/instruction easily transformed by Advanced IntelAIgent ReProgramMING and Novel NeuroLinguistic Assaults on Base Operating System and Driver Assumptions/Core Protocols.
Posted by Bischoff on 04/21/12 08:21 PM
My disagreements with you have nothing to do with the willingness to learn, or to use virtual anything to do so... ...
I am all for learning. However, you seem to neglect that with all your Virtual Environment and IT techniques, you are still stuck with basic human instinct which no virtual anything can alter for you. It's nature which has genetically imprinted these instincts upon your behavior over millions of years. If you think that you can overcome these basic instincts with electronics, you will better off to head back to Mars.
Posted by Bischoff on 04/21/12 08:12 PM
"BTW, California, that bankrupt state (for all practical purposes, even if not in strict legal sense)... ."
In a legal sense, California nor any other state is unable to go bankrupt. States are sovereign entities which are barred from using federal bankruptcy courts to discharge their debt obligations. All a state can do is "default".
California long ago has defaulted, not in a legal sense, but by being unable to pay its obligations on its own. California needs the U.S. Treasury and thereby the other 49 states to pay untold sums to meet its current payment obligations.
This situation is kept very hush, hush... though no investor is fooled into buying California bonds. Instead, it is the federal government, and the rest of the 49 states which keep California from declaring default, lest the panic spread, and people would dump their state and municipal bonds before it is too late.
Why is this happening... ??? California modified its Constitution and violated one of the principles contained in every other state constitution to qualify it for acceptance into the Federal Union. It constitutionally changed the Anglo-Saxon principle of assessing land values for taxation purposes. This created an outrageous real estate boom in California which on its decline has effected the entire California economy, as well as the U.S. economy. The full collapse of the real estate market, particularly the commercial real estate market hasn't arrived. It is the last phase in the process. The politicians here in California, as well as those in Washington are trying everything to manage this collapse and have it come to benefit the land owners.
However, the whole effort to keep California real estate speculators from going bankrupt is against the intent of the original U.S. Constitution in a magnitude too great to be appreciated by the people. In the early days of the American Republic even two of the delegates to the Constitutional Convention ended up in debtors prison, because their real estate speculations went sour. Now a days, with the federal bankruptcy laws, these real estate speculators wouldn't even have to go to prison. They would just lose everything. Yet, the voters tolerate the crony capitalism, or rather the crony feudalism played by these California and federal politicians.
It is the intent of the real estate interests to turn California and subsequently the entire United States in to a feudal type land ownership system, such as exists in Mexico, and in the rest of Latin America. It is the European feudal system that was specifically rejected with the U.S. Constitution.
All the turmoil created by the liberal press, and by the public service unions are merely a smoke screen. The real purpose is to divert attention from the effort of the commercial real estate speculators to keep land from being assessed and taxed on assessed value.
The dumb California homeowners are pitted against each other in this game. They have no clue as to what is happening to them. The voter is totally incapable of unravelling and understanding the economic mess that was created in California. This ignorance comes to the benefit of the large real estate owners who aim to do away with land value assessments.
Again, and again, the California voter falls for this propaganda crap put out by the Jarvis/Gann people. They insinuate themselves into the tea party movement by claiming to fight government taxation. Most of the tea party people fall for their arguments, because that is the only thing they know, "fight government and fight taxes". That the voters first pay for their share of the cost of government, and then pay a second time for the share of the cost of government the commercial real estate owners owe, never ever enters their minds.
Yet, it is the commercial real estate owners who disproportionally benefit from the taxes and monies collected from small business owners in rent and consumers in the form of higher prices.
But, hey... the education system isn't there to explain these things to Americans. It's there to serve the punderers and looters by keeping the average American like mushrooms, "in the dark and fed lots of bullshit".
How can the country survive with such a voter pool... ..????? Tell me... .
Posted by Bischoff on 04/21/12 07:13 PM
" If we can't figure out how to organize our society without the government having a monopoly on the use of force, then we're too pathetic to live."
We are too pathetic to live. Look, we had the perfect blue print with the Constitution. We screwed it up. The ratification of the 16th and 17th Amendments cemented the screw up. Then California modifies its Constitution with Prop. 13 to where it no longer complies with the intent of Article IV of the U.S. Constitution, and no one says "boo".
When you look at it that way, you are right, "we are too pathetic to survive".
However, if you think you can do better with crypto-currency, dream on...
Posted by BladeMcCool on 04/21/12 02:19 PM
Everyone should start using crypto-currencies and just ignore the government. Keep your ledgers and records encrypted. Proclaim that no economic activity took place. No you dont know why product got manufactured and then vanished. Inventory shrinkage these days ... lol. If we can't figure out how to organize our society without the government having a monopoly on the use of force, then we're too pathetic to live.
Posted by amanfromMars on 04/21/12 01:38 PM
The Dutch government coalition has collapsed over plans for austerity measures which the people will not accept to keep in place a corrupt system of finance, which is more akin to a dodgy protection racket into extortion?