Legal Tender – Becoming Illegal and Non-tender

A new letter is being sent out to holders of safe deposit boxes through JP Morgan Chase.  Entitled, “Updated Safe Deposit Box Lease Agreement:, the letter states, “Contents of the box: You agree not to store any cash or coins other than those found to have a collectible value.”

Another change is that signatures will no longer be accepted to access the box. The next time the box holder goes in to visit their safe deposit box, they have to bring two forms of ID, and they will be issued a four-digit pin number that will be used to access the box then and in the future.

So why the push to eliminate cash?  Because by doing so, governments, through their central banks, will be able to monitor (and tax) every transaction that takes place.  And every transaction done using a bank card, whether it be a credit card or debit card, incurs a bank charge – which could add 3% to 5% to the cost of each transaction.

John Rubino, a financial book author and manager of DollarCollapse.com says, “Cash needs to exist because it’s a check on government power. Once you eliminate cash then you eliminate the possibility of private transactions.”   Proof of this can be seen in a law passed by the State of Louisiana.  It is now illegal for a person or business to sell second-hand items for cash.  Transactions must be completed using a check, money order or credit/debit card.  But for some reason, pawn shops are exempt from this requirement – they must have a bigger lobbying budget than those selling items at garage sales.  Of course, the reason for this requirement is to curb the transaction of stolen items – a very good cause indeed.

The 15 August 2011 law reads:

A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property. Payment shall be made in the form of check, electronic transfers, or money order issued to the seller of the junk or used or secondhand property and made payable to the name and address of the seller.

All payments made by check, electronic transfers, or money order shall be reported separately in the daily reports required by R.S. 37:1866.

 

The law was revised (effective 14 June 2012) to amend controversial portions of the law regarding cash transactions and clarified its intent of targeting potentially questionable resale of precious metals and scrap metals (specifically copper), requiring that payment for such items be made via check rather than cash:

(1) A secondhand dealer shall not enter into any cash transactions in payment for the purchase of copper or aluminum-copper air conditioning coils. Payment for copper or aluminum-copper air conditioning coils shall be made in the form of a check made payable to the seller of the copper or aluminum-copper air conditioning coils and mailed to the address recorded on the photo identification of the seller no earlier than five business days after the date of the transaction.

(2) A secondhand dealer shall not enter into any cash transactions in payment for the purchase of any precious metal object.  Payment for a precious metal object shall be made in the form of a check made payable to the seller of the metal.

(3) A secondhand dealer shall not enter into any cash transactions in excess of three hundred dollars in payment for the purchase of metal property other than copper, aluminum-copper air conditioning coils, or a precious metal object. Payments in excess of three hundred dollars for metals other than copper, aluminum-copper air conditioning coils, or a precious metal object shall be made in the form of a check made payable to the name and address of the seller and may be tendered to the seller at the time of the transaction. The secondhand dealer, at his discretion, may make payment by either cash or other method for transactions of three hundred dollars or less for all metals other than copper or aluminum-copper air conditioning coils, or a precious metal object.

It is interesting that although the law was amended to pertain to copper and aluminum, it does include the term “precious metals”.  Now, anything can be stolen and resold, and yes, we do have a problem with people stripping copper and aluminum from wiring, plumbing and cemeteries, but can’t this information be obtained in other ways, like getting a driver’s license number from a photo ID?

It is amazing to me how many people think that the world has evolved past the point of using coins and currency.  What if you don’t have a bank account?  What happens if you need to use your debit card, but you put it in the same pocket as your cell phone and erased the magnetic strip?  How would you be able to purchase needed items if there was a power outage that lasted more than a few hours like:

  • Power Crisis – Auckland, New Zealand – February 20 – March 27, 1998.
  • Cyclone Lothar and Martin – France – December 26-28, 1999 affecting 3.4 million people.
  • Northeast Blackout of 2003 – Ontario, Canada and eight Northeast U.S. states (CT, MA, MD, MI, NJ, NY, OH, PA) – August 14-15, 2003 affecting 10 million people in Canada and 45 million people in the U.S.
  • Ice Storm – Kentucky and Southern Indiana – January 27, 2009 affecting 769,000 people. Power not restored to 12,000 until February 15, 2009

 

These are just a few, but what if you are one of the few to go without power for 19 days, and had no way to purchase water, food, shelter because the power was out?

Who does the stoppage of currency notes and coins hurt most, and who benefits most from such a plan?

Something to think about the next time you pull out your debit card to purchase a latte.

Written by Kelly Finnegan