PDF Summary:The War on Cash, by David McRee

The shift towards a cashless society has sparked concerns about privacy and personal liberty. In The War on Cash, David McRee explores how authorities, financial institutions, and organizations are actively pushing for the elimination of physical currency through mandates, economic incentives, and promotional campaigns.

He outlines the repercussions of phasing out cash—the erosion of privacy, loss of economic independence, and potential wealth diminishment. McRee also examines tactics used to restrict and monitor cash usage, such as mandatory transaction reporting and civil asset forfeiture laws. Finally, he suggests strategies to counter the movement, including legal action, advocacy, and alternative payment methods.

(continued)... The absence of tangible currency can lead to the gradual depletion of savings, which are susceptible to the devaluing impact of inflation and the application of negative interest rates. The text implies that although keeping wealth in cash might not be the most effective method, depositing money into bank accounts that are affected by negative interest rates does not offer a solution either, since it could result in the diminishment of the assets of those saving.

Discussions frequently center around the Consumer Price Index when evaluating the challenges of accurately determining the diminishment of purchasing power as a result of inflation. The visual depictions of statistical information vividly illustrate the significant impacts over a period resulting from the escalation in expenses and the baseline wages permitted.

Moreover, the threat to personal wealth is intensified by escalating inflation and taxes, as well as regulations that permit assets to be seized without requiring a court process. This scenario fuels unease about maintaining physical currency, despite its role as a safeguard against pervasive economic issues.

In summary, the move toward a cashless society might lead to diminished personal privacy, less control over one's own financial assets, and a gradual diminishment of personal savings.

Tactics used to restrict and monitor cash usage

Global financial transactions continue to depend significantly on physical money. Governments and financial institutions have implemented a range of measures to monitor and restrict cash transactions in an effort to tackle financial crimes, fraud, and the laundering of money.

It is mandatory to report transactions that involve cash.

Banks and other financial entities must disclose any substantial cash transfers, regardless of the direction of the flow of funds.

Worldwide, financial institutions are required to report significant cash transactions to the relevant authorities. Banks are required to file a Currency Transaction Report (CTR) for any cash transactions exceeding $10,000 in a single business day. This includes not only the transfer of money into and out of accounts but also the exchange of different currencies and various other financial transactions. The directive encompasses a broad spectrum of financial activities, such as contributing to personal retirement accounts, repaying loans, using ATMs, and acquiring certificates of deposit, in addition to depositing, withdrawing, and exchanging money. Businesses, including car dealerships, are required to alert the relevant agencies if a transaction includes a customer making a cash payment exceeding $10,000.

In France, the law requires that any instance where cash is deposited or withdrawn in excess of 10,000 euros within a month be promptly flagged to the Tracfin anti-fraud agency. When exchanging a sum of 1,000 euros in cash for another currency, presentation of an identity card is required.

Intentionally structuring financial transactions to bypass mandatory reporting obligations is considered unlawful behavior.

Intentionally structuring financial exchanges in a way that avoids required reporting is deemed illegal and can result in harsh consequences. For instance, Janet Malone faced charges for depositing sums under $10,000, resulting in the IRS seizing $19,000 from her account, and she submitted a guilty plea to avoid incarceration.

The utilization of asset forfeiture laws for the confiscation of money.

Officials possess the authority to seize funds if they are suspected to be linked to criminal endeavors.

In some regions, laws allow authorities to seize funds merely on the grounds of suspected involvement with illicit activities. Civil Asset Forfeiture necessitates that individuals prove their funds were lawfully obtained. The contentious nature of these statutes is highlighted by cases like that of Lyndon McLellan, whose over one hundred and seven thousand dollars were seized. McLellan had to prove his money was legitimate despite the absence of any criminal activity being identified. In the end, the government agreed to reimburse the entire sum, despite their initial proposal to keep half, but they tried to avoid paying the accumulated interest.

Legislation related to the seizure of property without the need for a criminal conviction has evolved significantly since the Racketeer Influenced and Corrupt Organizations Act of 1970 laid the foundation, and it has experienced substantial modifications after the enactment of the Controlled Substances Act of 1970 and the Comprehensive Crime Control Act of 1986.

Observing and classifying people based on their propensity to engage in cash-based transactions.

Bank workers are obligated to monitor and report to the relevant officials any cash dealings that appear out of the ordinary.

Employees at banks and other financial entities are educated to recognize cash transactions that seem out of the ordinary or atypical. Upon noticing such behavior, the institution must thoroughly record the dubious transactions within a detailed report. The IRS seized $67,000 from South Mountain Creamery following a recommendation from a bank teller to keep their deposits under the threshold that triggers mandatory reporting.

The Internal Revenue Service steps up its examination and investigative efforts for businesses that primarily conduct transactions in cash.

The tax authority implements targeted programs and training to uncover undeclared cash earnings. They focus on businesses that primarily engage in transactions involving cash, such as laundromats with machines that operate on coins, entities that deal in scrap metal, and car wash establishments. The tax authority performs lifestyle assessments on individuals whenever their declared income appears inconsistent with their observable way of life. Tax authorities indicate that indicators of concealed financial activities may consist of filtering incoming calls, utilizing P.O. box addresses rather than residential ones, favoring the cashing of checks over depositing them, not having insurance to protect the business against liability, and predominantly conducting transactions in cash.

In today's economic climate, where mandatory reporting is the norm, the risk of government seizure of assets without criminal charges, and persistent surveillance and profiling exist, every transaction involving physical currency is potentially scrutinized and may carry legal implications. Attempts to hinder illicit financial transactions also have significant repercussions for the privacy and individual liberties of people.

Strategies and methods to counteract the assault on physical currency.

The growing preference for transactions that do not involve cash has sparked worries about potential effects on personal privacy and liberty. This article explores various tactics used to counteract the movement towards the eradication of physical currency, including initiating legal actions, organizing local advocacy efforts, and adopting alternative assets and means of trade.

Legislative initiatives and court cases are being pursued to address the concerns related to asset forfeiture and surveillance.

Lawmakers with the power to enact legislation have been actively resisting government overreach that involves seizing funds within the United States. Bills have been introduced to restrict the government's ability to seize cash without substantial evidence of criminal activity.

Organizations such as the Institute for Justice are instrumental in launching legal actions against government entities that seize assets from individuals. For instance, the support given to a specific distribution company when they commenced their lawsuit targeting the Internal Revenue Service garnered significant negative scrutiny, ultimately leading to the recovery of their funds.

Congressional actions have resulted in notable progress, with the House of Representatives passing the Financial Institution Customer Protection Act, which targets the discontinuation of a program known as Operation Choke Point, but it has faced an impasse in the Senate. Following the Congressional hearings on IRS misconduct, the policy underwent changes, leading to the IRS discontinuing the seizure of business assets based solely on structuring allegations unless there were further indications of criminal activity.

Community-driven initiatives are advocating for the continued use of physical currency and the protection of personal privacy.

Individuals can bolster the confidentiality of their financial activities and reduce the surveillance of their personal expenditures by primarily using cash for their transactions. Advocates can use digital community platforms to raise awareness about the importance of physical currency and the protection of privacy rights. It is essential for advocates of freedom to engage in conversations, both online and in person, to resist the erosion of personal freedom and privacy.

Customers should also be thoroughly educated on the particular regulations their banks enforce regarding the storage of currency within safety deposit boxes. This understanding forms the basis for a widespread campaign promoting the utilization of physical currency. Certain eateries encourage cash transactions by only allowing payments in that form.

Some individuals advocate for a lifestyle of inconspicuousness, commonly known as "the gray man" approach, to avoid attracting undue attention from authorities and various entities, thus protecting their financial resources and personal privacy.

Exploring different methods for carrying out transactions.

Exploring diverse assets and utilizing alternative methods for executing financial exchanges is a multifaceted strategy to combat the assault on physical currency. Investing in tangible assets like precious metals, durable goods, and machinery can provide protection in times when society increasingly favors transactions that are digital, since these assets usually retain intrinsic value and are not reliant on the banking system's framework.

Likewise, some are turning to decentralized cryptocurrencies and alternative payment systems which can provide autonomy and financial privacy. It is essential to understand that although these methods may offer a means to oppose the movement towards a cashless society, they encompass complex procedures and require a profound understanding of technological and security measures.

The outlined strategies encompass a mix of legislative initiatives, public campaigning, and individual financial decisions. The growing opposition is a response to the increasing control that businesses and state authorities exert over monetary exchanges.