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February
27
2016
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How to Protect Yourself from the “War on Cash”
If you’ve been following the financial news, you’ve probably noticed a disturbing trend. Governments and their lapdogs in the mainstream media want to eliminate paper cash. The reason is simple. As a Casey reader, you know world governments are using extremely dangerous policies in an effort to stimulate their economies. They’ve printed trillions of currency units. They’ve borrowed trillions more. Their latest scheme is “negative interest rates.” All of these crazy actions are a desperate attempt to get you to spend money. Mainstream economists wrongly believe that spending is the key to prosperity. By printing money and using negative interest rates, the government is punishing you for saving money. It’s hoping this will get you to spend more. Holding paper cash lets you “opt out” of these horrible policies. If you hold paper cash outside the bank, banks can’t charge you a negative interest rate (likely disguised as a “fee”) for saving money. And if you hold paper cash outside the bank, governments can’t track your every financial move. This makes it harder for them to monitor and control you. • Many governments have made large cash transactions illegal… Italy and France recently banned cash transactions over 1,000 euros. Spain has banned cash transactions over 2,500 euros. Russia has outlawed cash transactions over $10,000. In the U.S., try withdrawing more than $10,000 of your own money from your bank. You’ll be subject to lots of questions, treated like a criminal, or flat-out denied. • The U.S. government wants to get rid of the $100 bill… In the U.S., we used to have big bills like the $500 and the $1,000. Franklin Delano Roosevelt banned them in the 1930s. Today, the biggest bill is the $100. And now the government wants to take that away, too… Last Tuesday, Lawrence Summers wrote a piece for The Washington Post titled “It’s time to kill the $100 bill.” Summers, who is a former U.S. Treasury Secretary, thinks the government should pull the $100 bill out of circulation. Less than a week later, the editorial board of The New York Times argued the same thing in an article titled “Getting Rid of Big Currency Notes Could Help Fight Crime.” It’s happening in Europe, too. Last week, the head of the European Central Bank, Mario Draghi, said he will likely phase out the 500-euro bill. • Governments claim the War on Cash is to fight crime… They say drug dealers and terrorists use big bills. If you get rid of big bills, you reduce crime. This is propaganda. It’s meant to distract you from the real reason for the War on Cash. As Casey Research founder Doug Casey explained in the latest issue of The Casey Report, …[T]here is definitely a War on Cash. It was inevitable. It’s part of a long-standing trend toward more state control of people’s finances. If you can’t use cash, everything has to go through the banking system. Everything that goes through the banking system, of course, is extremely easy for the state to track. The rationale they will use is obvious; it will supposedly make it impossible for drug cartels, terrorist organizations, and other real or imagined bad guys to “launder” their “dirty” money. Of course, abolishing the use of cash will also make tax collection easier. It enables them to track everything you buy and sell and, effectively, everything you own. • Governments want to herd everyone into the digital financial system… As we mentioned earlier, holding paper cash lets you “opt out” of the financial system. Holding and using paper cash makes it much harder for governments to track, monitor, and control you. Holding paper cash also thwarts the government’s ability to take money directly from your bank account via “negative interest rates.” This is exactly why the government hates paper cash. By banning cash, the government is closing the escape hatch. It’s penning us in like sheep for a shearing. If all your money is in a digital bank account, you’re helpless. The government can confiscate your cash via negative interest rates, and there’s nothing you can do about it. • What can you do? Own physical gold. Gold has been used as money for thousands of years because it is easily divisible, easily transportable, has intrinsic value, is durable, and has consistent form around the world. Unlike paper currencies, governments can’t destroy gold’s value. And unlike digital cash in a bank account, the government can’t confiscate physical gold with a keyboard stroke. This year, the price of gold is up more than 16%. It’s the year’s top performing asset. Doug Casey thinks gold’s value could go even higher as the War on Cash heats up. …[M]ore and more people around the world will start seeing gold as money again. That could happen faster than almost anyone expects, since gold seems to be coming out of the bear market it’s been in since 2011. If gold is shooting up when paper is falling—or being outlawed—it will just make people that much more interested in using gold as money and a safe haven for savings. Owning physical gold is essential. If you only take one step to protect yourself from the War on Cash, make it this one. We also encourage you to read our new report, “How to Protect Yourself from the War on Cash.” It contains all the best research we’ve done on this topic…including the seven essential steps to protect your money from the government’s War on Cash. Click here to claim your copy of “How to Protect Yourself from the War on Cash.” Chart of the Day People are worried about the War on Cash. Today’s chart shows the number of internet searches for “war on cash” over time. As you can see, people are researching the War on Cash like crazy. It’s never been a hotter topic. Nick Giambruno, editor of International Man, points out the War on Cash has gone into “overdrive” lately. The following has all happened within the last five weeks…
Regards, Justin Spittler We want to hear from you. If you have a question or comment, please send it to [email protected]. We read every email that comes in, and we'll publish comments, questions, and answers that we think other readers will find useful.
How We Do It... We watch every sector, looking for opportunities. More often than not, market dislocations are created by governments which, by trying to "fix" or "manage" a situation, create unintended consequences that can be profitably acted upon. We are believers in the free markets and understand the fundamental reality that the more a government interferes in a market, the more likely there will be consequences… negative for the inattentive, but potentially very positive for the aware. We focus on the investment sectors with significant upside potential. Investing in garden variety mutual funds or low-yielding money market funds will never make you rich. Investing in sectors with significant upside, on the other hand, can. But with significant upside comes significant risk. We research, Research, RESEARCH. To manage the risk, we employ multiple proprietary research methodologies including legendary investor, and best-selling author, Doug Casey’s 8 P’s of Resource Stock Evaluation.
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For over a quarter of a century, legendary investor and best-selling author Doug Casey and his team at Casey Research have been helping self-directed investors to earn superior returns through innovative investment research designed to take advantage of market dislocations..