Spain to Limit Cash Transactions

First it was Italy implementing capital controls and a €300 cash transaction cap, now Spain.
Spanish PM Mariano Rajoy has announced that the Spanish gov’t will implement a hard cash transaction cap in Spain of €2,500.

While not nearly as low a level as Italy’s draconian €300 cap, Spain’s step to implement a cash transaction cap is merely the latest symptom of the metastasis of the European debt crisis.

Expect to see the exact same measures implemented in the UK & the US within the next 3 years.

SD’s acronym for the global debt crisis will catch on yet, count on it.

FUK US PIIGS

Prime Minister Mariano Rajoy said the Spanish government will implement a series of measures to fight tax fraud at a Cabinet meeting on April 13 including limits on the use of cash.

Transactions of more than 2,500 euros that “involve at least one professional entrepreneur” won’t be allowed to be made in cash, Rajoy told Parliament today in the weekly question-and-answer session. Fines of 25 percent of the transaction amount will be handed to those breaking the rule, he said.

The government chose to implement an amnesty on tax evaders, which it expects will raise 2.5 billion euros, as it wanted to avoid increasing taxes, Rajoy said.
Read more:

Comments

  1. Just as Gerald Celente has stated, as things fail and black markets emerge the governments of the world will only crack down harder and harder on the people.

    Its quite scary seeing this actually happen. 

  2. Scary and sickening.  The only good thing about things falling apart will be the eventual opportunity to replace the current system with something better.  But it could easily go the other way into a dystopia that would make Orwell and Huxley’s vision tame in comparison.  Regardless, the whole darn process could take 30 years and a lot of people are going to get hurt.

    Most in the media will not make the connection between these capital controls in “PIIG” countries and the MintChip digital currency Canada just announced.  But addressing “System-D” as I talked about here is the common thread.

  3. The implementation of this is unclear to me. Maybe that’s intentional. A lot of laws are deliberately made vague and open to interpretation. But just what does this €300 cash transaction cap specifically pertain to? It probably covers bank withdrawals (although this is only implied), but it also sounds as though it must pertains to any transaction, particularly if it involves the service or product provided by “at least one professional entrepreneur.”  What if you are using a debit card to buy precious metals or prostitutes? Do these represent cash transactions?

  4. There are two basic reasons that the government is preventing cash withdrawals.

    #1   The underground economy is alive and sort of well, conducting normally taxable transactions without including the government in the tax conversation.  Power to the people

    #2  Maybe more important,  the people are acutely aware of the fact that their banks are  still failing throughout the Euro Zone.  Spanish and Portugese banks are seeing their capital bases taken down to critical levels, with collapse imminent.

       LTRO was nothing but a bank bailout disguised as a ‘save Greece’ fiasco.  The Europeans banks were depleted of trillions of FIAT over the last year as bank runs sucked the funds out of the country, into gold and into the hands of people who stood to lose all in this debacle.  That LTRO funding came hot off the presses of Uncle Benny’s Binford 1200.  The runs continue and will not stop until the last bank fails, including the German banks.  Bix Wier, Jim Sinclair, Graham Sommers and Jim Willie are all posting like crazy about this.

  5. Cash in these cases means physical cash.  The point of the programs are to have increased tracking of everything, and to limit risk of runs on the bank for physical cash.  Debit card transactions are not subject to the limit in Italy and I think that’s the same with this new program for Spain (haven’t checked yet).  But as far as large electronic transactions from, say, an Italian or Spanish bank into a German bank, that’s a different set of capital controls and can come into play under different laws/regulations.

  6. All the more reason for all self-respecting God-and-freedom loving people to stack stack stack.  Hard to imagine the gooberment decreeing a maximum amount of silver that can be used in a transaction.  Of course, the real point here is the extreme likelihood that people transacting in that large amount of cash may already be doing so specifically to exclude big brudder from the arrangement, which isn’t going to suddenly change now that their tax evasion is even more specifically forbidden.  In other words, the growing impotence of government is writ large between the lines of such a ridiculous attempt at managing economic behaviour.
    The more they fight and thrash in the liquidity quicksand, the faster they suck themselves under.  Amen and good riddance, I say – and let’s have another drink so I can piss into that bog in the hope they’ll sink even faster!

  7. 10-4 that Flying Wombat. The paper (under the table) money will be limited for transactions. Less black market potential. I think they’ll want you to use the plastic. Easy tracking. Remember Road Warrior? Barter Town. All other commodities will be barter material including silver/gold. Hope it doesn’t come to that.

    2 OZ.
  8. I believe that the US will absolutely institute limits on cash transactions.  The banks already make it difficult to get large quantity’s of cash.  They don’t want under the table transactions.  This is coming.  I live in Panama and there is no problem getting cash.  We use the US dollar here.  If you want 20 thousand dollars you walk into the bank and if it is in your account they give you a big bag and huge bricks of 20´s and out you walk.  No one cares.  Where I live, no one accepts checks and credit cards are of limited value.  Cash is king.  At least for now.  Using cash for all transactions is old fashioned I know.  I prefer it as it gives you privacy and freedom that we took for granted years ago.  Liberty is a scarce resource in the world today.

Trackbacks

  1. [...] are being implemented all over Europe from Greece, Italy and now Spain. The U.S. will follow suit! Spain to Limit Cash Transactions – Silver Doctors Reply With [...]

Speak Your Mind