Once upon a time, the famous criminal Willie Sutton was asked why he robbed banks, and his response was simple, eloquent, and humorous: “Because that’s where the money is.” Well, soon that adage may be proven untrue. What exactly is the meaning of legal tender? In order to place money in its proper perspective, examine what the U.S. Treasury says.
The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled “Legal tender,” which states: “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.
Now one might reasonably expect that conducting cash transactions would be guaranteed by the full weight and protection of the Federal Government. Such an assumption would be false, since the Banksters operate as a power beyond the law. The Zero Hedge report in Largest Bank In America Joins War On Cash, reveals a frightening trend.
The war on cash is escalating. Just a week ago, the infamous Willem Buiter, along with Ken Rogoff, voiced their support for a restriction (or ban altogether) on the use of cash (something that was already been implemented in Louisiana in 2011 for used goods).
Today, as Mises’ Jo Salerno reports, the war has acquired a powerful new ally in Chase, the largest bank in the U.S., which has enacted a policy restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages, and auto loans; and disallows the storage of “any cash or coins” in safe deposit boxes.
There is only one conclusion that can be drawn from such an anti-cash sentiment. Your property is no longer your own. This fundamental attack on the value of money should erupt in national outrage. However, a key reason why people continue in their daze is provided in the following stats. 75 Percent Of Americans Don’t Have Enough Savings To Cover Their Bills For Six Months: Survey. If folks don’t have any significant savings, accepting further restrictions on cash just does not seem that important to them.
Such a response guarantees even further risks that the public cannot avoid. And this condition is not confined just to the United States.
The Mises Institute European cites examples of The International War on Cash, in their extensive archives. Accompanying these cases is a report that The ‘War On Cash’ Migrates To Switzerland. In addition, review The War on Cash Special Report, which provides several references on the assault to ban and eliminate cash. Lastly, The “War on Cash” in 10 Spine-Chilling Quotes provides an inclusive overview of the anti cash sentiment that is building among establishment authoritarians.
All these illustrations forecast a coming disaster. Calling in the Federal Reserve notes and replacing the last vestige of a U.S. Dollar with some new accounting medium of exchange would surely incur a diminished purchasing value, when a swap takes place.
Consumers are so conditioned to the rapid change in color and design of the “Green Back” that substituting a new currency will hardly turn into a national scandal. A run at banks to withdraw the merger sums in personal accounts will be met with the proverbial disdain that money center banks are so good at dispensing.
This is the ultimate dilemma, between a rock and a hard place. One can already imagine the public comments from Treasury. Maybe bring back Hank Paulson for his public relation skills might just be the last straw for savers, but for the dependency class, few will even change the channel from their favorite “Reality TV” episode.
“Going to the Mattresses” when your lock box is sealed by your banker is a very poor option for the average consumer. Security in a paper currency that can be recalled and pegged lower by government policy is dangerous.
As for precious metals, who among us would not reasonably conclude that hoarders will risk the criminalization of their preparedness. Electronic money such as Bitcoins could and probably will be shut down as a method to establish a counterfeit money scheme.
Remember that the legal tender laws can and will define what medium of exchange will constitute money under a fiat paper meltdown.
There is no pure play of secure means to provide peace of mind. Those who propose putting all your chickens in one basket have not taken measures to protect against a “bird flu money” pandemic.
Now is the time to place pressure on the entire banking system to demonstrate a modicum of social and economic responsibility to the customers and communities they are suppose to serve.
Defending the too-big-to-fail money center institutions with a zero interest rate flow of credit inevitably results in a climate of eliminating cash as an alternative to earning a negative rate deposit policy.
Banksters continue to operate their debt credit scam with virtual immunity. A historic financial storm is building. It will soon surpass the 2008 meltdown by an unimaginable degree.
Those who believe personal debt will be ignored or forgiven, do not understand the nature of the financial plutocrats. Their control of political power is intact. Little suggests that this will change unless the nation revolts.
The shortcomings of the Tea Party and the Occupy Wall Street movements, while valuable in raising public awareness, never solidified into a national crusade against the international banksters.
In order to grasp the opportunity, when a system-wide collapse occurs, people need to get their own house in order. Do not be part of the cashless society, because that course directly enables the monitoring, intimidation and control of your ability to survive.
Boycott the mega banks and seek local and community friendly financial franchises. The war on cash must be fought before the only money available will only buy approved items at the government company store. Act now with urgency.
Original article archived here
James Hall is a reformed, former political operative. This pundit’s formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce. Hall is the publisher of BREAKING ALL THE RULES. Contact [email protected]