The United States and China are the two largest economies in the world by far, and the upcoming trade war that is about to erupt will be cataclysmic for both sides. The Trump administration and the Chinese government are both gearing up for a prolonged trade war, and this is going to have very severe implications for the entire global economy. During the campaign, Donald Trump repeatedly stated that we “can’t continue to allow China to rape our country”, and he was quite correct about that. Over the past ten years, the U.S. has run a trade deficit of over $2 trillion with China, and as a result of imbalanced trade we have lost tens of thousands of manufacturing businesses, millions of good paying jobs, and hundreds of billions of dollars of tax revenue.
So clearly something needs to be done to balance our trade with China and other countries. But the situation must also be handled delicately, because trade disruptions could bring substantial short-term economic pain.
Prior to winning the election, Trump threatened to unilaterally impose a 45 percent tariff on Chinese exports. Unfortunately, China is not just going to sit there and take whatever Trump throws at them. Every single time the U.S. has imposed tariffs on Chinese goods in the past, China has responded by slapping tariffs on U.S. goods.
And this time around, the Chinese are already preparing a very harsh response even though Trump has not officially made his move yet…
The policy advisers believe the Trump administration is most likely to impose higher tariffs on targeted sectors where China has a big surplus with the United States, such as steel and furniture, or on state-owned firms.
China could respond with actions such as finding alternative suppliers of agriculture products or machinery and manufactured goods, while cutting its exports of consumer staples such as mobile phones or laptops, they said.
Other options include imposing tax or other restrictions on big U.S. firms operating in China, or limiting their access to China’s fast-growing services sector, they added.
When this coming trade war erupts, economic activity will be reduced significantly. And considering the fact that U.S. economic growth is projected to be about one percent in the first quarter of 2017, that could be more than enough to push us into a deep recession.
Some of the biggest U.S. exports to China include airplanes, autos and agricultural products, and the Chinese are ready to attack on all of those fronts. The following comes from CNN…
Here’s what Global Times, a newspaper backed by the Communist Party, had to say about how Beijing would respond to tariffs of 45%:
“A batch of Boeing orders will be replaced by Airbus,” the paper said Monday. “U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted.”
But once again, something must be done for the long-term good of our country. We have been allowing the Chinese to flood our shores with super cheap goods, but meanwhile they have already been hitting our products with ridiculously high tariffs. Here is just one example…
U.S.-made cars exported to China face tariffs of at least 25 percent, including American-made Cadillacs. The American-made Jeep Grand Cherokee costs $27,490 at U.S. dealerships and cost at least $85,000 in China.
What we have with China today is very far from “free trade”, and if they want to trade with us they need to do so on a level playing field.
But China will never allow that to happen. As Donald Trump has correctly stated, they have been “raping” us for years, and they are going to fight very hard to keep anything from upsetting the status quo.
Trump has got to do something for the long-term good of the U.S. economy, but he has also got to try to find a way to avoid a major trade war, because a major trade war would be exceedingly painful for both countries.
Most Americans don’t realize this, but more iPhones are actually sold in China than in the United States. And it is being projected that Boeing will sell nearly 7,000 airplanes to China over the next decade…
By the end of 2015, Chinese consumers bought 131 million iPhones. The total sales to U.S. customers during the same period stood at only 110 million. And iPhones are only a small part of U.S. exports. Boeing, which employs 150,000 workers in the U.S., estimates that China will buy some 6,810 airplanes over the next 20 years, and that market alone will be worth more than $1 trillion.
So what happens if all or part of that economic activity goes away?
According to one study, in the short-term millions of U.S. jobs could potentially be at risk if a major trade war happens…
“Millions of American jobs that appear unconnected to international trade—disproportionately lower-skilled and lower-wage jobs—would be at risk,” according to the PIIE study.
And of course a major trade war would hit American consumers very hard as well.
Just think about it. When you go into a Wal-Mart or a dollar store, are more of the products made in the United States or in China?
A trade war would hit all of us in the wallet as the cost of living goes up. And considering the fact that about two-thirds of the country is essentially living paycheck to paycheck, that would not be a good thing.
So yes, our trading relationship with China definitely needs to be rebalanced, but Trump needs to find a way to make this transition as minimally disruptive as possible.
A major trade war is just one of the “black swans” that could push us into the kind of economic nightmare scenario that I have been warning about for a very long time. And sometimes a trade war can serve as a prelude to a real war. The South China Sea has become a major sticking point between the U.S. and China, and the Chinese are getting ready to cross one of the “red lines” that Barack Obama established while he was still in office…
Beijing has plans to start construction on the disputed Scarborough Shoal this year.
China has reclaimed land in both the Spratly and Paracel Islands and constructed military outposts, but it has been hesitant to start construction on the Scarborough Shoal. Xiao Jie, the mayor of Sansha — an administrative base for China’s South China Sea activities masquerading as a city — said this week that China intends to construct environmental monitoring stations on a number of territories in the South China Sea, including the Scarborough Shoal.
So how will Trump respond when construction on Scarborough Shoal actually begins?
It will be very interesting to watch how that plays out.
The relationship between the United States and China was starting to deteriorate badly even before Donald Trump was elected, and it is very easy to see how it could totally break down in the months ahead.
And considering how interconnected the global economy is today, the United States and China could easily end up dragging down everyone else along with them.
For the past eight years, Barack Obama has been using the power of the U.S. presidency to impose his vision of a progressive world order on the entire globe. As a result, much of the planet will greatly celebrate once the Obama era officially ends on Friday. The Obama years brought us the Arab Spring, Benghazi, ISIS, civil war in Syria, civil war in Ukraine and the Iran nuclear deal. On the home front, we have had to deal with Obamacare, “Fast and Furious”, IRS targeting of conservative groups, Solyndra, the VA scandal, NSA spying and the worst “economic recovery” since the end of World War II. And right at the end of his presidency, Barack Obama has committed the greatest betrayal of Israel in U.S. history and has brought us dangerously close to war with Russia.
So is the end of the Obama world order worth celebrating?
You better believe it is.
Of course Obama and his minions are in a great deal of distress that much of their hard work over the past eight years is about to be undone by Donald Trump. On Wednesday, Vice President Joe Biden warned the elitists gathered at the World Economic Forum in Davos that their “liberal world order” is in danger of collapsing…
Vice President Joe Biden delivered an epic final speech Wednesday to the elites at the World Economic Forum in Davos, Switzerland.
The gist of his speech was simple: At a time of “uncertainty” we must double down on the values that made Western democracies great, and not allow the “liberal world order” to be torn apart by destructive forces.
And without a doubt, we definitely want it to collapse.
During his time in the White House, Barack Obama has used the full diplomatic power of the government to promote “abortion rights”, “gay rights” and other “liberal values” to the farthest corners of the globe. Here at home, the appointment of two new Supreme Court justices under Obama paved the way for the Supreme Court decision that forced all 50 states to recognize gay marriage. During his final press conference on Wednesday, Barack Obama told the media that he was particularly proud of this…
Obama said he’s particularly proud of the “transformation” on gay rights during his presidency, which saw monumental Supreme Court decisions on gays in the military and same-sex marriage. Obama said his role was mostly to deliver “a good block downfield to help the movement advance.”
He said gay and lesbian activists deserve most of the credit, and singled out talk-show host Ellen DeGeneres, to whom he awarded the Presidential Medal of Freedom last year.
And the final press conference of his presidency also afforded Obama the opportunity to talk about UN Security Council Resolution 2334. Sadly, Obama still does not have any regrets for betraying Israel so dramatically…
“It was important for us to send a signal, a wake-up call, that this moment may be passing, and Israeli voters and Palestinians need to understand that this moment may be passing,” he said.
As far as many of us are concerned, January 20th cannot get here soon enough.
Somehow we have survived as a nation for the last eight years, but without a doubt a massive amount of damage has been done.
Many are hoping that Donald Trump will be able to start repairing that damage and will work hard to set this nation on a positive course once again.
It still doesn’t seem quite real to me that Donald Trump will soon be residing in the White House. Perhaps after I watch him being inaugurated on Friday I will feel differently. And I certainly am not expecting any miracles under Trump, but it sure will be nice to have a new face in the Oval Office.
Right at this moment, moving trucks are in the front of the White House and those that worked for Obama are packing up and leaving. This is a somber moment for them, but a joyous one for tens of millions of patriotic Americans. Many of us have been waiting for this for eight long years, and by Friday morning the current White House staff will all be gone…
In between closing out final projects and typing up reports on the work they’ve done, White House staffers are packing away their knickknacks, coffeemakers and photos. The boxes stack up in offices already vacated by staffers who have departed over the past few weeks.
By Thursday night, all must be gone to make way for Trump’s team.
Before they leave the building for the final time, they’ll go through a checklist that completes their formal separation from the White House: cell phones handed in, computers locked and papers properly filed to be archived. The last step, aides said, is the hardest: handing in the badge that provides access to the complex day or night.
But just because the left lost the election does not mean that they are ready to roll over and give up.
On the contrary, emotions are running extremely high on the left, and many of them are preparing to make the inauguration of Donald Trump as chaotic as possible.
For instance, on Tuesday night a man actually set himself on fire in front of the Trump International Hotel in Washington…
A protester set himself on fire outside Trump International Hotel in Washington DC on Tuesday.
The 45-year-old man, who has not yet been identified, said the act was in protest of the President-elect’s looming inauguration.
Witnesses described how he yelled ‘Trump’ several times as ‘flames ran up his back’ before lying down in the street.
And it is being reported that radical leftists plan to blockade major roads and metro lines throughout the D.C. region on Friday in an attempt to prevent people from getting to the inauguration of Trump.
So let us rejoice that the Obama world order is ending, but let us also understand that the battle is not over.
In fact, the truth is that the war for America is just beginning.
The election of Donald Trump has energized the left like never before, and they are going to hit his administration with everything that they have got.
Donald Trump is going to need our support, our voices and our prayers if he is going to have any chance to succeed.
And all Americans should want him to succeed, because our nation is at a crossroads, and if we go off on the wrong path we may never find our way back.
At this time of the year, millions of Americans are rushing to file their taxes at the last minute, and we are once again reminded just how nightmarish our system of taxation has become. I studied tax law when I was in law school, and it is one of the most mind-numbing areas of study that you could possibly imagine. At this point, the U.S. tax code is somewhere around 4 million words long, which is more than four times longer than all of William Shakespeare’s works put together. And even if you could somehow read the entire tax code, it is constantly changing, and so those that prepare taxes for a living are constantly relearning the rules. It has been said that Americans spend more than 6 billion hours preparing their taxes each year, and Politifact has rated this claim as true. We have a system that is as ridiculous as it is absurd, and the truth is that we don’t even need it. In fact, the greatest period of economic growth in all of U.S. history was when there was no income tax at all. Why anyone would want to perpetuate this tortuous system is beyond me, and yet we keep sending politicians to Washington D.C. that just keep making this system even more complicated and even more burdensome.
If you hate taxes, you are far from alone. According to NBC News, here are some of the things that Americans would rather do than pay taxes…
Six percent would rather sell a kidney, eight percent would rather name their first-born “Taxes,” and 11 percent would rather spend three years cleaning the bathrooms at noro-torious Chipotle.
Of course our system was never intended to be like this anyway. Our founders hated taxes, and they fought a very bitter war to escape the yoke of oppressive taxation. During his very first inaugural address, Thomas Jefferson clearly expressed what he thought about taxes…
“A wise and frugal government… shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.”
Why couldn’t we have listened to him?
When the federal income tax was originally introduced a little more than a century ago, most Americans were taxed at a rate of only 1 percent.
But of course once they get their feet in the door, the social planners always want more, and today we are being taxed into oblivion. Below, I would like to share with you three quick facts about our taxes that come from the Tax Foundation…
-This year, Tax Freedom Day falls on April 24, or 114 days into the year (excluding Leap Day).
-Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
-Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
That last statistic is a huge sore point with me.
How can anyone argue that we are not a socialist society when the government takes more of our money than we spend on food, clothing and housing combined?
What they are doing to us is deeply wrong and it is fundamentally un-American.
And of course the elite have the resources to be able to hire very expensive tax attorneys that help them manipulate the game in their favor. At the end of the day, many extremely wealthy Americans end up paying a much lower percentage of their income to the government than you or I do.
For example, just consider what the Clintons have been doing…
The Clintons and their family foundation have at least five shell companies registered to the address 1209 North Orange Street in Wilmington, Delaware — which is also home to some 280,000 other companies who use the location to take advantage of the state’s low taxes, limited disclosure requirements, and other business incentives.
Two of the five are tied to Bill and Hillary Clinton specifically. One, WJC, LLC, is used by the former president to collect his consulting fees. The other, ZFS Holdings, LLC, was used by the former secretary of state to process her $5.5 million book advance from Simon & Schuster. Three additional shell companies belong to the Clinton Foundation.
One could argue that they are simply “playing the game”, but why do we have to play such a complicated game in the first place?
Another thing that frustrates me is how our tax money is being wasted. Speaking of the Clintons, did you know that Bill Clinton still receives close to a million dollars from the federal government every year? Since he left office in 2001, he has been given approximately 16 million of our tax dollars.
Does that seem right to you?
Of course there are other examples that should make us all sick as well. Tens of millions of our tax dollars have been spent on Obama vacations, and Planned Parenthood received 528 million taxpayer dollars in one recent year.
Our system is deeply, deeply broken, but I am under no illusion that it will change any time soon. It will probably just continue to roll along until it eventually collapses under its own weight.
And of course it isn’t just income taxes that I am talking about. Our politicians have become masters at inventing ways to extract money from all of us. If you doubt this, just look at the list that I have shared below. It comes from my previous article entitled “A List Of 97 Taxes Americans Pay Every Year“, and it shows how the politicians are squeezing money out of us in just about every way that you can imagine…
#1 Air Transportation Taxes (just look at how much you were charged the last time you flew)
#2 Biodiesel Fuel Taxes
#3 Building Permit Taxes
#4 Business Registration Fees
#5 Capital Gains Taxes
#6 Cigarette Taxes
#7 Court Fines (indirect taxes)
#8 Disposal Fees
#9 Dog License Taxes
#10 Drivers License Fees (another form of taxation)
#11 Employer Health Insurance Mandate Tax
#12 Employer Medicare Taxes
#13 Employer Social Security Taxes
#14 Environmental Fees
#15 Estate Taxes
#16 Excise Taxes On Comprehensive Health Insurance Plans
#17 Federal Corporate Taxes
#18 Federal Income Taxes
#19 Federal Unemployment Taxes
#20 Fishing License Taxes
#21 Flush Taxes (yes, this actually exists in some areas)
#22 Food And Beverage License Fees
#23 Franchise Business Taxes
#24 Garbage Taxes
#25 Gasoline Taxes
#26 Gift Taxes
#27 Gun Ownership Permits
#28 Hazardous Material Disposal Fees
#29 Highway Access Fees
#30 Hotel Taxes (these are becoming quite large in some areas)
#31 Hunting License Taxes
#32 Import Taxes
#33 Individual Health Insurance Mandate Taxes
#34 Inheritance Taxes
#35 Insect Control Hazardous Materials Licenses
#36 Inspection Fees
#37 Insurance Premium Taxes
#38 Interstate User Diesel Fuel Taxes
#39 Inventory Taxes
#40 IRA Early Withdrawal Taxes
#41 IRS Interest Charges (tax on top of tax)
#42 IRS Penalties (tax on top of tax)
#43 Library Taxes
#44 License Plate Fees
#45 Liquor Taxes
#46 Local Corporate Taxes
#47 Local Income Taxes
#48 Local School Taxes
#49 Local Unemployment Taxes
#50 Luxury Taxes
#51 Marriage License Taxes
#52 Medicare Taxes
#53 Medicare Tax Surcharge On High Earning Americans Under Obamacare
#54 Obamacare Individual Mandate Excise Tax (if you don’t buy “qualifying” health insurance under Obamacare you will have to pay an additional tax)
#55 Obamacare Surtax On Investment Income (a new 3.8% surtax on investment income)
#56 Parking Meters
#57 Passport Fees
#58 Professional Licenses And Fees (another form of taxation)
#59 Property Taxes
#60 Real Estate Taxes
#61 Recreational Vehicle Taxes
#62 Registration Fees For New Businesses
#63 Toll Booth Taxes
#64 Sales Taxes
#65 Self-Employment Taxes
#66 Sewer & Water Taxes
#67 School Taxes
#68 Septic Permit Taxes
#69 Service Charge Taxes
#70 Social Security Taxes
#71 Special Assessments For Road Repairs Or Construction
#72 Sports Stadium Taxes
#73 State Corporate Taxes
#74 State Income Taxes
#75 State Park Entrance Fees
#76 State Unemployment Taxes (SUTA)
#77 Tanning Taxes (a new Obamacare tax on tanning services)
#78 Telephone 911 Service Taxes
#79 Telephone Federal Excise Taxes
#80 Telephone Federal Universal Service Fee Taxes
#81 Telephone Minimum Usage Surcharge Taxes
#82 Telephone State And Local Taxes
#83 Telephone Universal Access Taxes
#84 The Alternative Minimum Tax
#85 Tire Recycling Fees
#86 Tire Taxes
#87 Tolls (another form of taxation)
#88 Traffic Fines (indirect taxation)
#89 Use Taxes (Out of state purchases, etc.)
#90 Utility Taxes
#91 Vehicle Registration Taxes
#92 Waste Management Taxes
#93 Water Rights Fees
#94 Watercraft Registration & Licensing Fees
#95 Well Permit Fees
#96 Workers Compensation Taxes
#97 Zoning Permit Fees
So after reading all of this, are you still satisfied with how our present system operates?
Please feel free to share what you think by posting a comment below…
*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*
Did you know that 95 percent of all retail sales in Sweden are cashless? And did you know that the government of Denmark has a stated goal of “eradicating cash” by the year 2030? All over the world, we are seeing a relentless march toward a cashless society, and nowhere is this more true than in northern Europe. In Sweden, hundreds of bank branches no longer accept or dispense cash, and thousands of ATM machines have been permanently removed. At this point, bills and coins only account for just 2 percent of the Swedish economy, and many stores no longer take cash at all. The notion of a truly “cashless society” was once considered to be science fiction, but now we are being told that it is “inevitable”, and authorities insist that it will enable them to thwart criminals, terrorists, drug runners, money launderers and tax evaders. But what will we give up in the process?
In Sweden, the transition to a cashless society is being enthusiastically embraced. The following is an excerpt from a New York Times article that was published on Saturday…
Parishioners text tithes to their churches. Homeless street vendors carry mobile credit-card readers. Even the Abba Museum, despite being a shrine to the 1970s pop group that wrote “Money, Money, Money,” considers cash so last-century that it does not accept bills and coins.
Few places are tilting toward a cashless future as quickly as Sweden, which has become hooked on the convenience of paying by app and plastic.
To me, giving money in church electronically seems so bizarre. But it is starting to happen here in the United States, and in Sweden some churches collect most of their tithes and offerings this way…
During a recent Sunday service, the church’s bank account number was projected onto a large screen. Worshipers pulled out cellphones and tithed through an app called Swish, a payment system set up by Sweden’s biggest banks that is fast becoming a rival to cards.
Other congregants lined up at a special “Kollektomat” card machine, where they could transfer funds to various church operations. Last year, out of 20 million kronor in tithes collected, more than 85 percent came in by card or digital payment.
And of course it isn’t just Sweden that is rapidly transitioning to a cashless society. Over in Denmark, government officials have a goal “to completely do away with paper money” by the year 2030…
Sweden is not the only country interested in eradicating cash. Its neighbor, Denmark, is also making great strides to lessen the circulation of banknotes in the country.
Two decades ago, roughly 80 percent of Danish citizens relied on hard cash while shopping. Fast forward to today, that figure has dropped dramatically to 25 percent.
“We’re interested in getting rid of cash,” said Matas IT Director Thomas Grane. “The handling, security and everything else is expensive; so, definitely we want to push digital payments, and that’s of course why we introduced mobile payments to help this process.”
Eventually, establishments may soon have the right to reject cash- a practice that is common in Sweden. Government officials have set a 2030 deadline to completely do away with paper money.
Could you imagine a world where you couldn’t use cash for anything?
This is the direction things are going – especially in Europe.
As I have written about previously, cash transactions of more than 2,500 euros have already been banned in Spain, and France and Italy have both banned all cash transactions of more than 1,000 euros.
Little by little, cash is being eradicated, and what we have seen so far is just the beginning. 417 billion cashless transactions were conducted in 2014, and the final number for 2015 is projected to be much higher.
Banks like this change, because it enables them to make more money due to the fees that they collect from credit cards and debit cards. And governments like this change because electronic payments enable them to watch, track and monitor what we are all doing much more easily.
These days, very rarely does anyone object to what is happening. Instead, most of us just seem to accept that this change is “inevitable”, and we are being assured that it will be for the better. And no matter where in the world you go, the propaganda seems to be the same. For example, the following comes from an Australian news source…
AND so we prepare to turn the page to fresh year — 2016, a watershed year in which Australia will accelerate towards becoming a genuine cashless society.
The cashless society will be a new world free of $1 and $2 coins, or $5 or $10 bank notes. A new world in which all commercial transactions, from buying an i-pad or a hamburger to playing the poker machines, purchasing a newspaper, paying household bills or picking up the dry-cleaning, will be paid for electronically.
And in that same article the readers are told that Australia will likely be “a fully cashless society” by 2022…
Research by Westpac Bank predicts Australia will be a fully cashless society by 2022 — just six years away. Already half of all commercial payments are now made electronically.
Even in some of the poorest areas on the entire globe we are seeing a move toward a cashless society. In 2015, banks in India made major progress on this front, and income tax rebates are being considered by the government as an incentive “to encourage people to move away from cash transactions“.
Would a truly cashless society reduce crime and make all of our lives much more efficient?
But what would we have to give up?
To me, America is supposed to be a place where we can go where we want and do what we want without the government constantly monitoring us. If people choose to use cashless forms of payment that is one thing, but if we are all required to go to such a system I fear that it could result in the loss of tremendous amounts of freedom and liberty.
And it is all too easy to imagine a world where a government-sponsored form of “identification” would be required to use any form of electronic payment. This would give the government complete control over who could use “the system” and who could not. The potential for various forms of coercion and tyranny in such a scenario is obvious.
What would you do if you could not buy, sell, get a job or open a bank account without proper “identification” someday? What you simply give in to whatever the government was demanding of you at the time even if it went against your fundamental beliefs?
That is certainly something to think about.
Many will cheer as the world makes a rapid transition to a cashless society, but I will not. I believe that a truly cashless system would open the door for great evil, and I don’t want any part of it.
What about you?
Would you welcome a cashless society?
Please feel free to share what you think by posting a comment below…
The move to a cashless society won’t happen overnight. Instead, it is being implemented very slowly and systematically in a series of incremental steps. All over the planet, governments are starting to place restrictions on the use of cash for security reasons. As citizens, we are being told that this is being done to thwart criminals, terrorists, drug runners, money launderers and tax evaders. Other forms of payment are much easier for governments to track, and so they very much prefer them. But we are rapidly getting to the point where the use of cash is considered to be a “suspicious activity” all by itself. These days, if you pay a hotel bill with cash or if you pay for several hundred dollars worth of goods at a store with cash you are probably going to get looked at funny. You see, the truth is that we have already been trained to regard the use of large amounts of cash to be unusual. The next step will be to formally ban large cash transactions like France and other countries in Europe are already doing.
Starting in September, cash transactions of more than 1,000 euros will be banned in France. The following comes from a recent Zero Hedge article which detailed what these new restrictions will do…
Prohibiting French residents from making cash payments of more than 1,000 euros, down from the current limit of 3,000 euros.
Given the parlous state of the stagnating French economy the limit for foreign tourists on currency payments will remain higher, at 10,000 euros down from the current limit of 15,000 euros.
The threshold below which a French resident is free to convert euros into other currencies without having to show an identity card will be slashed from the current level of 8,000 euros to 1,000 euros.
In addition any cash deposit or withdrawal of more than 10,000 euros during a single month will be reported to the French anti-fraud and money laundering agency Tracfin.
French authorities will also have to be notified of any freight transfers within the EU exceeding 10,000 euros, including checks, pre-paid cards, or gold.
Of course Spain has already banned cash transactions of more than 2,500 euros and Italy has already banned cash transactions of more than 1,000 euros.
We don’t have these kinds of outright bans in the United States just yet, but what we do have are some very strict reporting requirements.
For example, if you regularly deposit large amounts of cash, there is a very good chance that you have been the subject of a “suspicious activity report”. In 2013, approximately 1.6 million suspicious activity reports were submitted to the federal government.
The following guidelines for when a suspicious activity report should be filed come from a government website…
Banks, bank holding companies, and their subsidiaries are required by federal regulations53 to file a SAR with respect to:
- Criminal violations involving insider abuse in any amount.
- Criminal violations aggregating $5,000 or more when a suspect can be identified.
- Criminal violations aggregating $25,000 or more regardless of a potential suspect.
- Transactions conducted or attempted by, at, or through the bank (or an affiliate) and aggregating $5,000 or more, if the bank or affiliate knows, suspects, or has reason to suspect that the transaction:
- May involve potential money laundering or other illegal activity (e.g., terrorism financing).54
- Is designed to evade the BSA or its implementing regulations.55
- Has no business or apparent lawful purpose or is not the type of transaction that the particular customer would normally be expected to engage in, and the bank knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.
Most people don’t realize this, but there are minimum quotas for suspicious activity reports that banks must meet. If they do not submit enough suspicious activity reports, they can be fined (or worse).
And now the Obama administration is saying that just filling out suspicious activity reports may not be good enough.
According to the Wall Street Journal, banks are actually being encouraged to directly contact law enforcement if they see something that does not look right…
The U.S. Justice Department’s criminal head said banks may need to go beyond filing suspicious activity reports when they encounter a risky customer.
“The vast majority of financial institutions file suspicious activity reports when they suspect that an account is connected to nefarious activity,” said assistant attorney general Leslie Caldwell in a Monday speech, according to prepared remarks. “But, in appropriate cases, we encourage those institutions to consider whether to take more action: specifically, to alert law enforcement authorities about the problem.”
The remarks indicate that banks may be expected to do more than just file SARs, a responsibility that itself can be expensive and time-consuming.
That should send a chill up your spine.
In a recent piece, Simon Black imagined a future scenario in which some unsuspecting American citizen goes to the bank to withdraw a large amount of cash…
Imagine going to the bank to withdraw some cash.
Having some cash on hand is always a prudent strategy, and especially today when more and more bank deposits are creeping into negative territory, meaning that you have to pay the banks for the privilege that they gamble with your money.
You tell the teller that you’d like to withdraw $5,000 from your account. She hesitates nervously and wants to know why.
You try to politely let her know that that’s none of the bank’s business as it’s your money.
The teller disappears for a few minutes, leaving you waiting.
When she returns she tells you that you can collect your money in a few days as they don’t have it on hand at the moment.
Slightly irritated because of the inconvenience, you head home.
But as you pull into your driveway later there’s an unexpected surprise waiting for you: two police officers would like to have a word with you about your intended withdrawal earlier…
Perhaps you don’t think that anything like that could ever happen to you.
Well, consider what the feds are doing to one widow in Iowa…
A widow’s bank account was seized by the IRS and she now faces criminal charges for depositing her legal inheritance money in lumps instead of all together.
Janet Malone, 68, had $18,775 seized from her — money that was legally earned and was legally bestowed to her by her late husband, Ronald Malone. The problem, according to the government, was the fact that she deposited it in several lumps instead of all at once.
According to the Associated Press, Mrs. Malone deposited the cash in increments between $5,800 and $9,000. The widow’s private financial affairs evidently set off red flags under the watchful gaze of the federal government.
Remember, she was not guilty of committing any crime other than depositing cash in lumps instead of all at once.
If this is how ruthless the feds will be with an elderly widow, how would they treat you under similar circumstances?
So why are they doing this?
The truth is that they want to discourage the public from using cash. Our government, just like governments all over the planet, is not being shy about the fact that it does not like cash. If they can make people afraid to use cash, that suits their purposes very well.
And with each passing year the restrictions on the use of cash globally will just get tighter and tighter and the role that cash plays in our lives will just become smaller and smaller.
In the end, a transition to an almost entirely cashless society will seem almost natural. Cash is being killed off one slow step at a time, and at this point hardly anyone is objecting.
When it comes to taking a chainsaw to the future of America, nobody seems more eager than Barack Obama. Despite the fact that the U.S. national debt is on pace to approximately double during his eight years in the White House, he has just proposed a budget that would take government spending to crazy new heights. When Barack Obama took the oath of office, the U.S. national debt was 10.6 trillion dollars. Today, it has surpassed the 18 trillion dollar mark. And even though we are being told that “deficits are going down”, the truth is that the U.S. national debt increased by more than a trillion dollars in fiscal 2014. But that isn’t good enough for Obama. He says that we need to come out of this period of “mindless austerity” and steal money from our children and our grandchildren even faster. In addition, Obama wants to raise taxes again. His budget calls for 2 trillion dollars in tax increases over the next decade. He always touts these tax increases as “tax hikes on the rich”, but somehow they almost always seem to end up hitting the middle class too. But whether or not Congress ever adopts Obama’s new budget is not really the issue. The reality of the matter is that the “tax and spend Democrats” and the “tax and spend Republicans” are both responsible for getting us into this mess. Future generations of Americans are already facing the largest mountain of debt in the history of the planet, and both parties want to make this mountain of debt even higher. The only disagreement is about how fast it should happen. It is a national disgrace, but most Americans have come to accept this as “normal”. If our children and our grandchildren get the opportunity, they will curse us for what we have done to them.
All debt destroys.
All debt enslaves.
And when you are talking about an 18 trillion dollar debt, you are talking about an amount of money that is almost unimaginable.
If our national debt was reduced to a stack of one dollar bills, it would circle our planet at the equator 45 times.
How could we have done such a thing?
Thomas Jefferson once said that “the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” He correctly understood that government debt is stealing. We are financially raping our children, our grandchildren and all future generations of Americans. It is an incredibly wicked thing to do.
But instead of men like Thomas Jefferson running our country, we have men like Barack Obama running it.
And to Barack Obama, running up a trillion dollars of debt a year is “mindless austerity”…
“I want to work with Congress to replace mindless austerity with smart investments that strengthen America,” Obama said in a speech at the Department of Homeland Security. “I’m not going to accept a budget that locks in sequestration going forward. It would be bad for our security, and bad for our growth.”
Yes, if we steal money from future generations it will artificially inflate our current standard of living and make our economy look temporarily better than it should be.
But it is morally wrong to do this, and our current crop of politicians have no intentions of ever bringing the debt party to an end.
Even with the ridiculously optimistic economic assumptions that are used in Obama’s new budget, the federal budget is never projected to balance within the next decade. Instead, Obama’s budget projects that the national debt will rise from 18.1 trillion dollars right now to 26.2 trillion dollars in 2025.
Of course it would greatly help if the federal government actually spent our money wisely. But instead, the feds often waste our hard-earned tax dollars in some of the most bizarre ways imaginable. The following is just one example…
The U.S. federal government has prompted controversy after spending over $33,000 on a study to find out whether same-sex couples live closer to tobacco shops than heterosexuals.
The large sum was spent on a study by the National Institutes of Health entitled, ‘Relationship Between Tobacco Retailer Density and Sexual Minority Couples.’
Thanks to this kind of insane spending, our debt is completely and totally out of control.
While Barack Obama has been in the White House, the U.S. national debt has increased by $84,266 per full-time private sector worker. Anyone that believes that this kind of debt accumulation is sustainable is absolutely delusional.
The only reason why our house of cards has not completely collapsed already is because the rest of the world has been willing to lend us gigantic piles of money at artificially low interest rates.
In December, the average rate of interest on the government’s marketable debt was 2.013 percent. But in the past, interest rates have been much higher than that. For example, in January 2000 the average rate of interest on the government’s marketable debt was 6.620 percent. If we returned to that level today, we would be paying well over a trillion dollars a year just in interest on the national debt.
And the issue isn’t just the more than one trillion dollars in new debt that we are accumulating every 12 months.
As I have discussed previously, the U.S. government has more than seven trillion dollars of debt that must be “rolled over” each year. In other words, the federal government must issue more than seven trillion dollars of new debt just to pay off old debts that are coming due.
If something were to happen which would cause the rest of the planet to either be unwilling or unable to lend us trillions of dollars at ridiculously low interest rates all of a sudden, the game would be over.
We were handed the keys to the greatest and most prosperous economy in the history of the planet, and our greed has totally wrecked it.
We were wealthy beyond imagination, but that was never good enough for us. We always had to have more.
And now we are hurtling toward financial oblivion, and we have a man in the White House that wants us to go into debt even faster.
The number of Americans that renounced their citizenship was 221 percent higher in 2013 than it was in 2012. That is a staggering figure, and it is symptomatic of a larger trend. In recent years, a lot of really good people with very deep roots in this country have made the difficult decision to say goodbye to the United States permanently. A few actually go to the trouble to renounce their citizenship, and that is mostly done for tax purposes. But most willingly choose to leave America for other reasons. Some were very serious when they said they would leave the U.S. if Barack Obama got a second term, some (such as Jesse Ventura) are dismayed at how our freedoms and liberties are eroding and are alarmed at the rise of the Big Brother police state, some are absolutely disgusted by the social and moral decay that is eating away at the foundations of our society, and there are yet others that consider “the grass to be greener” on the other side of the planet. Personally, I have a number of friends that have made the very hard decision to relocate their families thousands of miles away because they see what is coming to America and they believe that there isn’t any hope of turning things around at this point. I also have a lot of friends that are determined to stay in the United States no matter what. When it comes to the future of America, almost everyone has a very strong opinion, and these are discussions that we need to start having.
Once upon a time, the United States was seen as “the land of opportunity” all over the globe and it seemed like everyone wanted to come here.
But now that is all changing. As we have abandoned the principles that this country was founded upon, our economy has gone steadily downhill.
As I wrote about the other day, the middle class in America is slowly dying. As millions of good paying jobs have been shipped out of the country, the competition for the remaining jobs has become quite intense. At this point, there is even tremendous competition for minimum wage jobs.
Compared to exactly six years ago, 1,154,000 fewer Americans have jobs. Meanwhile, our population has gotten significantly larger since then. There simply are not enough jobs for everyone, and we continue to fall even farther behind. In January, the economy only added 113,000 jobs and in December the economy only added 75,000 jobs. Both of those figures are well below what we need just to keep up with population growth.
Looking ahead, things look even more troubling.
The number of “planned job cuts” in January was 12 percent higher than 12 months earlier, and it was actually 47 percent higher than in December.
The competition for jobs has also resulted in an extended period of declining incomes in the United States.
As I mention frequently, median household income in the United States has fallen for five years in a row, and the rate of homeownership in the United States has fallen for eight years in a row.
Those that read my articles regularly probably have those facts memorized by now.
In addition, a study that just came out has shown that the number of “low-wage breadwinners” in the United States is at an all-time high…
A staggering number of American households are relying on low-wage jobs as their leading or sole source of income.
Meet the low-wage breadwinner. There were about 21 million of them in the United States in 2011, according to a forthcoming study by University of Massachusetts Boston economists Randy Albelda and Michael Carr.
Unlike other studies which often focus just on low-wage workers, the researchers looked at those who also live in low-income households. This way, they were able to strip out the teenager making $8 an hour flipping burgers but still living comfortably with his parents. Or the mom who works a part-time job in retail to supplement her husband’s otherwise ample salary.
For tens of millions of average American families, there simply is not enough money left at the end of each month.
That is why many of them turn to debt to try to make up the difference. Consumer credit is increasing at an alarming pace once again, and when the next great economic shock arrives many of those families are going to be in for a tremendous amount of financial pain.
In this type of economic environment, it should not be a surprise that anger, frustration and desperation are rising to very dangerous levels.
It was desperation and a fear of losing everything that he had ever worked for that drove one 80-year-old man to become a methamphetamine courier.
It was intense anger and frustration that drove a 58-year-old military veteran to package up cat feces and send it to employers that had turned him down…
Rather than simply grumble to himself or complain to others, a St. Louis man aggrieved by a company’s failure to hire him took another approach.
Jevons Brown packaged up cat feces and sent it through the mail.
Brown, 58, was sentenced Friday to two years of probation after pleading guilty in August to a misdemeanor charge of mailing injurious articles.
The plea says Brown, a veteran, became frustrated with his lack of employment opportunities and lashed out at employees of companies that failed to hire him.
This is just the tip of the iceberg.
In the years ahead, we are going to see much, much worse.
And if you do lose everything, don’t expect anyone to care very much. There is already a frightening lack of compassion for those that are down on their luck in the United States today. For example, in Pensacola, Florida it is actually illegal for homeless people to use blankets or cardboard boxes to shield themselves from the cold…
So there I was with my wife and three kids, all of us huddled under blankets with the fireplace roaring, watching the temperature continue to drop from a comfortable 65 degrees down to 45. But outside it was 17 degrees and raining and sleeting, and if you were homeless, you had to consider that if you used a blanket to shield yourself from the elements, that you might be hauled off to jail for a violation of a local ordinance prohibiting using blankets, cardboard, or newspaper to cover yourself.
Once you lose everything, society just wants you to go away.
And this lack of compassion is going to get a whole lot worse during the very hard times that are coming.
So it is easy to understand why many Americans would want to get out of this country while they still can.
However, the truth is that the grass is not necessarily greener on the other side.
For instance, you may be dreaming of moving to a tropical paradise where you can enjoy the sand and the sun every single day.
In the past, many Americans considered Puerto Rico a good place to relocate to. After all, it is a United States territory and if you only speak English you can still get around pretty well.
But you wouldn’t want to move down to Puerto Rico these days. Right now it is in the middle of a full-blown economic collapse…
Puerto Rico’s slow-motion economic crisis skidded to a new low last week when both Standard & Poor’s and Moody’s downgraded its debt to junk status, brushing aside a series of austerity measures taken by the new governor, including increasing taxes and rebalancing pensions. But that is only the latest in a sharp decline leading to widespread fears about Puerto Rico’s future. In the past eight years, Puerto Rico’s ticker tape of woes has stretched unabated: $70 billion in debt, a 15.4 percent unemployment rate, a soaring cost of living, pervasive crime, crumbling schools and a worrisome exodus of professionals and middle-class Puerto Ricans who have moved to places like Florida and Texas.
In fact, Puerto Rico is a preview of the kind of societal chaos that we could be seeing inside the United States in just a few years…
Schools sit shuttered either because of disrepair or because of a dwindling number of students. In this typically convivial capital, communities have erected gates and bars to help thwart carjackers and home invaders. Illegal drugs, including high-level narcotrafficking, are one of the few growth industries.
Well, what about South America?
In recent years, South America has been an extremely popular destination for those wishing to leave the United States.
Unfortunately, many areas of South America are experiencing full-blown economic collapse right now as well. As I wrote about recently, deteriorating economic conditions have resulted in widespread crime, looting, violence, blackouts, shortages of basic supplies, and runs on the banks in Argentina and Venezuela. The following is an excerpt from a recent interview with Fernando Aguirre who actually lives down in Argentina…
Chris Martenson: Okay. Bring us up to date. What is happening in Argentina right now with respect to its currency, the peso?
Fernando Aguirre: Well, actually pretty recently, January 22, the peso lost 15% of its value. It has devalued quite a bit. It ended up losing 20% of its value that week, and it has been pretty crazy since then. Inflation has been rampant in some sectors, going up to 100% in food, grocery stores 20%, 30% in some cases. So it has been pretty complicated. Lots of stores don’t want to be selling stuff until they get updated prices. Suppliers holding on, waiting to see how things go, which is something that we are familiar with because that happened back in 2001 when everything went down as we know it did.
Chris Martenson: So 100%, 20% inflation; are those yearly numbers?
Fernando Aguirre: Those are our numbers in a matter of days. In just one day, for example, cement in Balcarce, one of the towns in Southern Argentina, went up 100% overnight, doubling in price. Grocery stores in Córdoba, even in Buenos Aires, people are talking about increase of prices of 20, 30% just these days. I actually have family in Argentina that are telling me that they go to a hardware store and they aren’t even able to buy stuff from there because stores want to hold on and see how prices unfold in the following days.
Well, what about Europe?
Isn’t Europe a lot more stable?
Unfortunately, that is not necessarily true. In recent years we have seen rioting, civil unrest and Depression-like conditions in Ukraine, Greece, Spain, Italy and Portugal.
And now you can add Bosnia to that list…
More than 150 people were wounded in Bosnia on Friday in the worst civil unrest in the country since the 1992-95 war as anger over the dire state of the economy and political inertia boiled over.
Angry protesters set fire to part of the presidential palace in Sarajevo in protests over unemployment and corruption, as well as government buildings in the capital Sarajevo, Tuzla and Zenica.
Just because you move out of the United States does not necessarily mean that you will avoid what is coming.
We are heading for a global economic collapse, and the pain is going to be felt to the farthest corners of the planet.
But of course there are many that will end up leaving the United States and will ultimately thrive.
So what do you think?
Is now a time for people to consider leaving the United States permanently?
Please feel free to share what you think by posting a comment below…