Banks are beginning to demand that customers account for every deposit and withdrawal in their account before they can obtain a mortgage, another illustration of how capital controls imposed on the middle class are intensifying.
“My sister just bought a house and to get the mortgage she had to explain every deposit and cash withdrawal in her account going back five years. My mother had simply written her a check for $400 to reimburse her for picking up some medicine. They wanted her to explain why my mother gave her $400,” writes economist Martin Armstrong, adding that his sister was also grilled on the $2,000 she withdrew ever few months to pay for incidental purchases.
Another of Armstrong’s friends who shared an apartment with his girlfriend was also forced to account for five and a half years worth of rent checks he had written her before they could get a mortgage together.
“It is no longer good enough that you pay your taxes. Now they want to know to whom you are giving any money, right down to $50,” writes Armstrong, warning that the controls will have a negative impact on the housing market and force buyers to leave the United States.
The details are also reportedly being passed on to the IRS, with those who fail to account for payments being subject to five years in jail.
“This is all under the pretense of terrorism, whereby they have to know where every penny goes,” according to Armstrong, who is best known for predicting the 1987 Black Monday crash as well as the 1998 Russian financial collapse. “This is not applying a new law with notice that from this date forward you have to keep track of everything you do with anyone else, as in East Germany, Stasi, this is being applied retroactively.”
The financial elite are currently attempting to impose a myriad of new capital control on the middle class under the justification of preventing tax fraud and the financing of terrorism, including the idea of banning cash altogether which has already picked up steam in countries like Denmark and Sweden.
As we previously documented, influential voices across the spectrum have repeatedly invoked the need to ban cash in recent weeks, including former Bank of England economist Jim Leaviss, who penned an article for the London Telegraph last month in which he said a cashless society would only be achieved by “forcing everyone to spend only by electronic means from an account held at a government-run bank,” which would be, “monitored, or even directly controlled by the government.”
In France, new measures are also set to come into force in September which will restrict French citizens from making cash payments over €1,000 euros.