EU to Ban Large Cash Transactions

January 14th, 2013

One of the great insights in Friedrich Hayek’s famous work “Road to Serfdom” is that socialism and fascism are not polar opposites on a spectrum. In fact, they have the same essential nature, and totalitarianism is the consequence of both, not corruptions of them. Socialism doesn’t work, economically, sociologically, or empirically. So, when faced with the failure of the central plan the socialist has a choice, return to the drawing board and devise a philosophy based on reality, or advocate an ever increasing number of micromanaging regulations to try to force the central plan to work. Those regulations, and the mounting force with which they must be enforced, leads a society inexorably toward a tyrannical society, no matter how much the fascists and socialists abhor or deny it.

With the failure of the Euro looming, now it seems the EU has taken the road most traveled by governments throughout history.

The finance ministry for the European Union has announced that cash transactions over 500 euros would soon be banned. Large transactions will only be allowed via credit card, or by check, which essentially amounts to mandating that people have bank accounts. Believe it or not a lot of people don’t have, and don’t want bank accounts. The finance ministry hopes this will help combat tax evasion.

According to the ministry all companies and even self-employed individuals will have to obtain the POS (point-of-sale) terminals that provide for card transactions.

Deputy Finance Minister Giorgos Mavraganis said, “We must see how we can make it easier for Greeks to change their years-long habit of paying for goods and services in cash and instead use other means of payment. This is a problematic situation in our country that has to change, albeit without upsetting social cohesion.”

See, the Greek economy is in shambles, and as a result many Greeks are resorting to barter and cash transactions to protect themselves from the failed policies of the central planners. But always and forever central planners will claim that their grand scheme is failing because people don’t cooperate. And always and forever people will not cooperate with their grand scheme because it’s cumbersome and bureaucratic and micromanaging and ultimately doomed to fail.

The finance minister also stated outright that that this was a way to gather intelligence on citizens.

Don’t hold your breath. These policies will spread to the US in no time. Most policy think tanks in the US are populated by Europhiles convinced that socialism works over there, and could work here if only we’d emulate them. And you can bet the international banking elite are whispering in their ears about how fantastic a global fiat currency would be if only everyone, everywhere was trading in the same intangible currency.

When their central plans fail, even in the realm of currency itself, they don’t go back and reexamine their premises. They simply enforce new laws. And laws must be enforced. In addition, laws have unintended consequences. 500 euros may seem like a large transaction today, but a few years of hyper inflation and you won’t be able to buy a pack of gum without the government peaking in.

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About the Author: Davi Barker

In grade school Davi refused to recite the pledge of allegiance because he didn't understand what it meant. He was ordered to do as he was told. In college he spent hours scouring through the congressional record trying to understand this strange machine. That's where he discovered Dr. Ron Paul. In 2007 he joined the End The Fed movement and found a political home with the libertarians. The Declaration of Independence claims that the government derives its power “from the consent of the governed." He does not consent.