Contact us
CALL US NOW 1-888-GOLD-160

Danish Proposal the Latest Salvo in the War on Cash

  by    2   0

The war on cash continues to heat up with a proposed law in Denmark that would open the door to what Jim Leaviss called “the first step towards an economic revolution that sees physical currencies and normal bank accounts abolished,” in a recent Telegraph column.

Last month, we reported on the reasons central banks would love to do away with cash. In a nutshell, these central planners believe they can more effectively manipulate the economy in a cashless society.

15 05 15 credit_card_terminal_Servebase

The proposed Danish law would take a step in that direction, allowing shops to refuse cash and require some form of electronic payment. Policymakers claim the law would “ease administrative and financial burdens,” but Leaviss gleefully sees it as part of a much bigger picture.

A proposed new law in Denmark could be the first step towards an economic revolution that sees physical currencies and normal bank accounts abolished and gives governments futuristic new tools to fight the cycle of ‘boom and bust’… The move could be a key moment in the advent of ‘cashless societies’. And once all money exists only in bank accounts – monitored, or even directly controlled by the government – the authorities will be able to encourage us to spend more when the economy slows, or spend less when it is overheating.”

With all money held and controlled by the central bank, economic planners could directly manipulate spending and saving. When an economy begins to slow, the bankers could impose a negative interest rate on everybody’s money – effectively a tax on savings that would encourage spending. When an economy gets too hot, the bankers could impose a tax on every transaction to discourage spending.

Leaviss talks in terms of macro-economic policy – preventing recessions and cooling down “overheating” economies. But when you read between the lines, it becomes clear a cashless society would allow governments to exercise a tremendous amount of control over you and me individually. He writes:

At the moment it’s easy for individuals to avoid seeing their money eroded this way – they can simply hold banknotes, stored either in a safe or under the proverbial mattress. But if notes and coins were abolished and the only way to hold money was through a government-controlled bank, there would be no escape.”

No escape.


Even if you accept claims that central bankers and the political class only want to use this power for good, the idea of a handful of central planners manipulating the economy should send shivers up your spine. It’s simply impossible for a few men and women to grasp all of the contingencies and potential unintended consequences of a given policy decision. Despite what they’d like you to believe, they aren’t that smart.

And when you consider the potential for abuse, manipulation and outright tyranny inherent in a government controlled cashless society, the prospect becomes downright terrifying.

Despite these concerns, the war on cash continues to gain steam and savvy investors will take these developments into consideration as they plan for the future. Owning physical gold and silver allows you to keep your savings safely in your possession in a liquid form that the government cannot manipulate. That means physical gold and silver not only provide a hedge against inflation, but also security should a large-scale cashless society come into existence.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Death of Iranian President Carries Gold, Copper to New Record Highs

Amid ongoing tension in the Middle East, Iranian President Ebrahim Raisi and the foreign minister have been confirmed dead Monday after a helicopter crash. The officials’ shocking demise casts additional investor doubt on a region already plagued by economic upheaval, with supply chain uncertainties fueling record-high metal prices this week.


South Korea’s New Way to Pursue Safety

While gold bullion is most often sold in bar or 1oz coin form, the Korean retail market is benefitting from gold’s latest success with a very atypical marketing strategy. It has been traditionally thought that investors prefer larger increments of bullion because they simplify calculations and have a lower transaction cost than buying the same amount of gold in smaller increments. Demand for traditional bars and coins in South […]


What Will CBDCs Mean for Gold?

With the eventual introduction of central bank digital currency (CBDCs) now seemingly inevitable, there are a lot of directions central banks could take with their digital currency projects that would have dramatic implications for the price of gold.


Will the World’s Most Pro-Bitcoin Politician Embrace Gold?

Since Nayib Bukele became president of El Salvador, El Salvador has been in American media and global political discussion more than ever. While much of the attention focuses on Bukele’s mass incarceration of gang members and a decline in homicide of over 70%, Bukele has also drawn attention to his favoritism towards Bitcoin and how he […]


Too Hot to Handle: Gold Due for a Correction?

With gold hitting yet another awe-inspiring all-time high in the wake of Powell’s remarks reassuring markets (more or less) to expect rate cuts in 2024, a few analysts are pointing out risk factors for a correction — so is there really still room to run?


2 thoughts on “Danish Proposal the Latest Salvo in the War on Cash

  1. JoeSnow says:

    Let’s not forget that the Federal Reserve was sold to the American people as a means of evening out the boom-bust business cycle, too. How well is that working out for you?

  2. Darell Provost says:

    Just yesterday I was reading an article about gold.

    It appears in China for example they view gold as a place to store wealth whereas in the West we view it as a commodity to be traded.

    I wonder if there is a similar difference of opinion regarding the term “cashless society.” Most of use Interac on a regular basis where there is no cash used in the process. This is referred to as “digital currency I believe. It would appear the reservation about a cashless society is not the disappearence of paper and coins but rather “state control” of the economy. Manipulation if you will. Legislation or laws must be created to prevent this from happening.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now