The sovereign debt crisis is ramping up as the hunt for taxes and the spread of global cash bans continues. As I‘ve said before, it started with India and is now progressing to Europe.
In fact, the war is so bad that Greece has unveiled a “soft” ban on the use of cash.
You read that right: Greece is banning the use of cash altogether! Here are the ridiculous details …
As of January 1st, taxpayers are granted tax-allowances or tax-deductions only when they have made payments via credit or debit cards. And the amount required to spend via electronic payments is based on a percentage of the taxpayer’s annual income.
It gets worse.
If a taxpayer is unable to spend the necessary percentage of annual income, according to the government’s guidelines, the punishment will be a penalty of 22 percent imposed on the missing difference!
Translation: If you were supposed to spend 10,000 euros based on the guidelines, but ended up only spending 8,000, you would be penalized on the 2,000 euro difference.
And if the penalty, itself, wasn’t bad enough, Greece’s ban will likely force households to spend money even if they don’t want to, just to avoid the financial punishment.
Talk about a quick train to an even bigger debt-and-austerity crisis.
Banks also want people to switch to paying by debit and credit cards, because people spend more money when they use those payment methods. And the reason is simple: Most people are more reluctant to hand over cold, hard cash than to whip out their debit or credit card.
But, what if Greece is just trying to kick-start consumer spending?
I seriously doubt it. In fact, I think the reasons for this cash ban are much more diabolical.
You see, by limiting cash and forcing spending electronically, Greece can track income from both spenders and the companies that receive these payments. And that means most money will be forced to stay in the banking system AND be subject to 24/7 monitoring
I guess Greek citizens can kiss their civil liberties good-bye.
But that’s not all.
Greece has been the poster child for the sovereign debt crisis. So I’m not one bit surprised that they would stoop to these kinds of draconian — and in my view downright illegal — actions.
And the fact is you’ll likely see similar actions by other European countries as the EU’s debt problems continue to pile up. Italy looks to be the next to fail and with plunging confidence in governments’ ability to pay their debts and plunging confidence in the ability of Europe and the euro to survive. The hunt for taxes will intensify all over Europe.
The European Union is already trying to change the banking system to instantaneous transfer, so they can eliminate physical money and track everything Europeans do all the time.
As I’ve said before, in bad economic times, the self-interest of government rises to the top. We are advancing toward the elimination of physical money. And the times are changing, quickly, AND dangerously.
And that’s aligning perfectly with my cycle forecasts, which are all converging.
Mark my words: Ridiculous cash-ban moves like Greece’s — coupled with the looming sovereign debt crisis — will wreak havoc across Europe, bringing down many economies and governments in the process.
That’s why now is not the time to go it alone. You need my proprietary Artificial Intelligence and Neural Net models at your back, just like my members enjoy. You can find them in Real Wealth Report and Supercycle Trader
Stay safe and best wishes,