The War on Cash Continues

The sovereign debt crisis is ramping up as the hunt for taxes and the spread of global cash bans continues. As Ive 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 …

Someday governments may force you to pay for everything digitally, and all your cold cash will end up in your garbage can.

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.

Absolutely mind-blowing.

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,



Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

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Comments 24

Scott Hartzler January 9, 2017

you predicted Trump victory and I was impressed (although I found that the University of Michigan had done the same thing). anyhow I'm wondering since you are so prescient why you didn't you predict interest rates to rise so much and how we could all profit by it? in all of the discussion about the potential Fed rate hike in December there was no discussion of interest rates bouncing up after the election at all.


Paul Nieto January 9, 2017

What an unbelievably mismanaged economy! The ineptness of the leaders is only climaxed by the stupidity of the solution. Draconian measures are not the solution to poor economic management.


Jim Patten January 9, 2017

I like! Draghi The Draconian! If leaders in EU countries are not careful, they'll get more than they're hoping for - like the Boston Tea Party on steroids! Does anyone smell a revolution?

Michael Carton January 10, 2017

Remember in the 1930s, when FDR made holding Gold illegal in Rich US Citizens used safety deposit boxes packed full of Maple Leaf coins across the border in banks in Montreal & Toronto. Nothing really changes

Jpfoitzik January 10, 2017

They are definitely not stupid and the solutions are exactly what was planned

vince January 9, 2017

Larry, I think you are over-reacting. Greece has a huge black economy which is hurting the country and most notably the poor. It is losing billions in tax receipts to this black market forcing the government to cut pensions and social projects. This is a way of limiting the amount spent in that black economy. Of course this is likely to be copied by other countries who would simply like to get rid of cash so that their negative interest rate policies have a better chance of working.


Ted January 9, 2017

Vince is right on the money. I am a free marketeer by training, inclination and experience but the Greeks lack of preparedness to fund their public obligations make this type of regulation inevitable.

The General January 9, 2017

Many are not even paying their normal taxes.

The Ginster January 9, 2017

I wish I had a "like" button for your commentary on the Greek economy. The Greeks are notorious tax cheats (yes--they blatantly cheat) at almost every level of their society, so of course their government is going to try somehow to force their people to finally pay up. That being said, the same seems to be happening in India and now Pakistan--places that are known for their black market economies as well.

Al McInally January 9, 2017

I really like your AI / Neural Net graphs. I studied them in my profession as a statistician engineer problem solver for IBM and Dow Corning. Of course they won't be perfect but they have been better than anything else I can find. Please keep the graphs coming. They are helping me immensely! Larry you seem to have more common sense and balance than any of 10 financial advisors I read. I feel your timing of reports is sensible. I can tell you are trying not to over react and wait for evidence where as some advisors seem to react to every market twitch i.e. over react.


jota January 9, 2017

in bad economic times, the self-interest of government rises to the top. Not really in my view because what they are in fact doing is ensuring that the next revolution will happen and quicker than they think. And what happens in a revolution - the governments will be purged. The self interest is confined to the government of the day - they are not acting in their own long term self interest.


John F January 10, 2017

Right on!

Robert January 9, 2017

The Greeks are famous for avoiding legitimate taxes. This is the government's attempt to collect those taxes. Like previous attempts, it will probably fail, leaving the government as broke as ever.


Allen W JOHNSON January 9, 2017

Hi, Larry: I understand that you don't want government knowing about all your finances. But you haven't said anything about massive tax evasion. All societies, even small-scale ones, require some kind of social and political expenditures, in the form of feasting, fighting, maintaining group resources, etc. The only way this can work is if everyone pays their fair share. When citizens con the system to avoid paying their fair taxes, other, more honest, citizens have to make up the difference. It is in the interest of honest citizens that government track individual finances to make sure the system is fair. I think this is part of what Greece and other countries are trying to do. --Allen


Richard Lamb January 9, 2017

What's happening to Greeks is what revolutions are made from.


Manipulated Middle Class guy January 9, 2017

I think there is another corrupt aspect to this. If people are being forced to use credit/debit cards, who benefits? What is the old saying..."Follow the Money"? The big banks & companies who issue cards will be raking in perhaps much more in fees (your research should be better able to estimate) from small (actually all) businesses if EVERY transaction must be done using card transactions - ultimately at the expense of the purchasers. Just another "accidential" (I doubt it) unintended consequence of some government financial policy? Seems a bit reminiscent of the bailout money being used to pay contactual "obligations" on executive perks, or low-interest money being borrowed by corporations to buy back stock to enhance executive stock & option values...


Jim Patten January 9, 2017

Wow! It's absolutely immoral and extremely evil, coupled with insane leadership. Did anyone actually believe Draghi and his Cold War Clan was anything different. The far left Socialist mindset is nothing more than a return to building a virtual WALL, between the government and the people they're supposed to serve.


Jonathan January 9, 2017

Welcome to the New World Order


Michael Carton January 10, 2017

Speaking from Europe Although European Governments are proposing crazy laws, the real targets (the rich) of these laws are simply moving from such countries, thanks to the 'freedom of movement' European Laws. High Taxes in France...The Rich French moved to Belgium or Geneva Increased Company Taxes in UK.....The Company head Offices moved to Ireland so in the end, these crazy laws are cancelled It shows the desperation of some European Governments but it is not a conspiracy but the "Gang that could not shoot straight"


Brian Taylor January 10, 2017

Speaking to friends who have recently vacationed on the Greek islands I am told that all transactions are in cash because the locals say that once money goes to the mainland it never comes back. They work on the basis that what comes to the island stays on the island. Each island is a quasi micro economy. It is understandable that the Greek government wants to get its hands on some tax revenue.


Tim January 10, 2017

Larry, you are complaining about violating the Civil Liberties of a group of people who defraud the tax man as a national sport? Really? You think the Greek govt. is trying to track their spending?! ABSOLUTELY! SO when you lie and tell the Fed that you earned only about 50% of your true gross income, they can call you on your BS, as there is an electronic audit trail behind them to back it up. Austerity measures are hard for lazy socialists. They don’t want to give you the money that is needed to pay for all those wonderful free services. Why pay the Congress if you can protest in the streets instead of working and then claim it is your right to go on strike and still be paid for it. They don’t want to repay foreign debt and they don’t want to fork over their cash. They will just cry and claim that Merkel is a fascista and it is the equivalent of the second coming of the German Occupation. ANYTHING to avoid some degree of responsibility.


Not So Free January 10, 2017

Not mentioned about Greece is the fact that food and rent are not allowed as part of the percentage required to be done electronically.


Bill Mitchell January 11, 2017

Hello Larry, I am hopeful that you get this message, I don`t comment to services like you provide too often....but I just wanted to let you know that among all the other "experts" opinions I value yours more than others. Why, I am not exactly sure but you seem to really have the pulse as to what is happening in the world. I am retiring at the end of the year, and lost at least half of my meager net worth back in 2009. I am very cautious as to where to invest my limited funds. Where do you suggest to invest about 10 grand in the next 90 days? Best regards, Mitch


Diane January 16, 2017

Larry, can this ban on cash actually come to the US? I am a caregiver for elderly people who only use cash and keep a lot of cash on hand. They are quite concerned about this. What do you suggest I tell these people?