by Nick Giambruno, International Man:
Editor’s Note: Financial repression is a devious tactic, and at some point, every heavily indebted government uses it. It’s inevitable. And no entity on the planet is more indebted than the US government.
The Financial Times defines financial repression like this:
A term used to describe measures sometimes used by governments to boost their coffers and/or reduce debt. These measures include the deliberate attempt to hold down interest rates to below inflation, representing a tax on savers and a transfer of benefits from lenders to borrowers.
Financial repression is also used to describe measures to facilitate a domestic market for government debt and the imposition of capital controls. The combined effect of all these measures means funds are channeled to the government that would otherwise flow elsewhere.
Financial Repression Authority (FRA): Let’s begin with your thoughts on the war on cash. Where do you see that trending?
Nick Giambruno: I’m not going to mince words. The war on cash is evil. It’s an all-out assault on your privacy.
George Orwell once wrote, “If you want a picture of the future, imagine a boot stamping on a human face—forever.”
Not exactly a cheery thought. Unfortunately, we may be headed toward this dark future… and soon.
It’s a world where privacy is dead, where the government knows everything about you. And we’re almost there.
The government already knows what you watch on TV, what you read on the internet, whom you call, and everything you do on your smartphone and computer.
It has a record of every penny you’ve ever earned, saved, borrowed, or spent. It knows where you’ve been, where you are, and where you’re going.
This is all possible thanks to the mountain of laws and regulations that sprouted from the war on (some) drugs, the war on terror, and so forth. Over the years, these schemes have incrementally destroyed your privacy.
Now, with the war on cash, the government is going in for the kill.
There’s not much about your life the government doesn’t already know. The last vestiges of privacy may vanish very soon. Once that happens, governments will have almost unbreakable control over the individual.
This is exactly the opposite of how a free society should work.
The war on cash does not protect you from drug dealers or terrorists. It only helps the government seize more power. This is why proponents of big government reflexively support it.
There’s also a psychological aspect to this relentless anti-privacy campaign. The government and its media allies have convinced the average person that “privacy” is a dirty word.
They’ve duped people into believing that only criminals and wrongdoers want privacy. “If you have nothing to hide, you have nothing to worry about,” as the popular, but wrongheaded, adage goes.
Many have forgotten that privacy is fundamental to preserving human dignity and protecting individuals from government overreach.
Financial privacy is by far the most demonized aspect of privacy.
This is a huge clue. Governments wouldn’t hate financial privacy so much if it weren’t so important to individual liberty.
Politicians around the world see people as milk cows. They merely exist to be squeezed to the last drop. That’s why politicians are so eager to kill financial privacy. They’re building a giant tax farm and erecting electric fences to keep the cows and their milk from escaping.
Overzealous governments have been attacking financial privacy for decades. Now, they’re within striking distance of killing it once and for all.
The war on cash is their final push.
The death of privacy in general, and financial privacy in particular, will have far-reaching sociopolitical consequences. It will irrevocably skew the balance of power in favor of the government and against the individual.
I call it “the new feudalism.”
A world without privacy is a giant step backward for human freedom. It’s the new Dark Ages that Orwell grimly predicted.
That’s why the war on cash is such a disturbing trend. But it’s a growing trend, nonetheless—not just in the US, but around the world.