Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

France Plans To Prohibit Cash Payments Over €1,000

IMG Auteur
Published : February 19th, 2013
609 words - Reading time : 1 - 2 minutes
( 2 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
FOLLOW : Europe, France, Italy, Spain, Trillion
Category : Crisis Watch


One of the best things about covering payments news is that you never run out of stories where various myopic governments attempt to restrict the flow of cash in a squeeze for revenue.

France becomes the latest as Prime Minister Jean-Marc Ayrault plans to erect new controls on cash transactions in order to tighten up tax collection and meet the country's optimistic budget deficit target of 3% of GDP. The government needs euros and they need some fast.

In the government
plan labeled "Fight against fraud," France's fiscal residents would see the cash transaction limit decrease from €3,000 to €1,000 per purchase. However, in a nod to the exiled wealthy and what Wolf Richter calls the "Depardieu exception," those fiscal residents of a country other than France would have their cash transaction limits reduced from €15,000 to €10,000 per purchase. Legislative measures could be finalized by the end of 2013.

Richter illustrates the ban's impact with an example of purchasing a used car: "two crisp 500-euro bills and a single coin -- voilà, an illegal transaction." Used cars could easily cost more than €1,000 and accepting cash protects the seller, but the larger problem may be finding those 500-euro bills in the first place. While the southern coast of Spain was once believed to have the highest concentration of 500-euro notes in circulation, the distinctive
purple bill has become more like the unicorn of Europe because they are rarely seen. The UK banned the sale of 500-euro notes at exchange offices in 2010.

"It has long been the dream of collectivists and technocratic elites to eliminate the semi-unregulated cash economy and black markets in order to maximise taxation and to fully control markets,"
writes Patrick Henningsen at the Centre for Research on Globalization. "If the cashless society is ushered in, they will have near complete control over the lives of individual people."

The anti-cashists have escalated this sad drama to a point where it has become like boiling a frog. The limits are incrementally lowered and lowered until one day, people wake up and realize that only fully traceable transactions are permitted in the new cashless society.

In many regions around the world, a strong and vibrant cash economy is actually underpinning the faltering national economies that no longer offer sufficient mainstream opportunities for their citizens. By some
estimates, the global off-the-grid economy represents $10 trillion worth of economic activity per year. People will produce, consume, and trade in order to survive and bearer cash plays a critical role in that process.

The futuristic cashless society is
marketed as being ultra-modern and at the forefront of technology. However, it is more like the last gasp of a dying behemoth and it is the poor that will suffer the most.

In responding to Simon's Black's description of Emperor Diocletian's 3rd-century tax reforms in All Transactions To Be Conducted In The Presence Of A Tax Collector, a reader
commented that "Tax evasion always increases along with the tax burden." He continued, "In fact, it acts as a safety-valve against rebellion.  Since the rich will always have means to escape heavy taxation, the burden of bloated government bureaucracy will eventually fall the heaviest on those of lesser means."

Is there anywhere left to go if you don't welcome the fully-traceable cashless society?
Spain recently banned cash transactions above 2,500 euros and Italy banned cash transactions above 1,000 euros.

France and other anti-cashist countries could quickly become nations of smurfs, referring to the practice of
smurfing, which is a method of structuring cash transactions into smaller deposits of money to avoid cash reporting requirements.


By Jon Matonis
Forbes
Thursday, February 14, 2013

http://www.forbes.com/sites/jonmatonis/2013/02/14/france-plans-to-prohibit-cash-payments-over-e1000/


Companies Mentionned : Southern |
Data and Statistics for these countries : France | Italy | Spain | All
Gold and Silver Prices for these countries : France | Italy | Spain | All
<< Previous article
Rate :Average :5 (2 votes)
>> Next article
Jon Matonis is an Austrian School economist focused on expanding the circulation of nonpolitical digital currencies. He argues that what is about to happen in the world of money is nothing less than the birth of a new Knowledge Age industry: the development, issuance, and management of private currencies.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Way Out
31 MarGypsy1
James, you're wrong to think the people on earth couldn't THRIVE ~ live well, eat well, enjoy great lives, advance mankind ~ with the resources we ...
Time to Eliminate Pilots in Airc...
30 MarShadowdoo1
Hi Mish, Sorry pal, I would rather take the door off than give the controls to some moron on the ground. Especially with that nitwit in t...
Gold: April 2015 Update
30 Marovertheedge
"I have been invited to speak at the Mines & Money Mauritius Conference in June 2015 again. If you would like to join you can receive 25% off your ...
Greece Needs the Magic Formula t...
30 Marovertheedge
Wow dude. "Idiocracy" is obviously not just another dumb-ass movie. I admit that I should have recognized your devotion to Brawndo (it has ...
Signs that America Will Hit the ...
30 MarFalconflight
I'll tell you what signals a return of the Dark Ages....the growing, almost hysterical screed again in the West that those Jews are responsible for...
Misunderstanding "Peak Gold"; Go...
29 MarTed S.1
Hi Mish, You make a good point about the difference between commodities and gold. It's a great point of discussion to counter people who ar...
The Finanser Interviews Jon Matonis
29 Marovertheedge
"In late 2009, I got introduced to Bitcoin by a random email from Satoshi Nakamoto. I didn’t give it much thought at the time and then 3-4 months ...
Gold Effect on Mining & Shale Wa...
28 Marneville1
Thank you Jim Willie for your open and candid report on some of the most urgent matters agrevating this economically and war torn world thanks...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Tahoe ResourcesTHO.TO
And Rio Alto Mining Announce Completion Of Merger
CA$ 14.53+4.68%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
EnLink Midstream Partners, LP Completes Acquisition of Victoria Express Pipeline in Dropdown Transaction with Devon Energy
US$ 61.58+2.11%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Natural Gas Injection Starts Before Heating Season Ends
US$ 61.58+2.11%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Sector Snap: Energy stocks rise as Iran talks continue
US$ 61.58+2.11%Trend Power :
Corporate news
Atlanta Gold(Ag-Au-Gems)ATG.V
IIROC Trading Halt - ATG
CA$ 0.00+0.00%Trend Power :
Corporate news
Fortune Minerals(Ag-Au-Co)FT.TO
Releases 2014 Annual Financial Results
CA$ 0.11+4.76%Trend Power :
Financials
IAMGOLD(Ag-Au-Cu)IMG.TO
Iamgold in talks to buy AngloGold's stakes in two Mali mines
CA$ 2.56+8.47%Trend Power :
Exploration and drilling
Canadian Natural(Ngas-Oil)CNQ.TO
CANADA STOCKS-TSX steady as a resource gains offset by banks
CA$ 39.09+0.70%Trend Power :
Corporate news
Caribou CopperCKR.V
Signs LOI to Acquire Northern Extension of Buckingham Graphite Project
CA$ 0.14+3.85%Trend Power :
Corporate news
HudBay(Cu-Le-Ni)HBM.TO
VMS Reports Update on Reserves and Resources at Reed Mine
CA$ 10.46+0.97%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.