The Real Reason Behind the War on Cash and Why Banks Want to Go Digital

According to financial expert Chris Martenson with PeakProsperity.com, the war on cash is really rooted in central banks wanting to push customers into a negative interest rate, meaning they would lose money sitting in the bank over time.

"They feel constrained by the idea that you could take your cash out of the bank and no longer be subject to their policies," Martenson said.

RELATED: Lower Interest Rates Shored Up Big Banks But Killed People on Fixed Incomes

While governments and bank executives advocate for negative interest rates and a cashless society by gallantly saying they want to protect consumers from theft and nefarious players, it's really about controlling people's money.

What does Martenson recommend the average person do?

"Well, the average person, I think, needs to get into two things . . . which are assets that are outside of this crazy system. So, listen, you know, if you're on a ship called the Titanic and you see your captain playing slalom with icebergs, get near the lifeboats. And in this story, real assets are the lifeboats," he said.

Read below or watch the clip for answers to these questions:

• What is nonproductive debt?

• What's the one thing a government or policy official dreams of?

• Why should we think of a bank as a company?

Below is a rush transcript of this segment, it might contain errors:

GLENN: A guy I believe I've been looking for, for at least ten years. Chris Martenson. I've been looking for a guy that sees the world in the way that I do, that doesn't buy into the, quite honestly, Harvard Business School or the Wharton School of Business lies that the bankers are telling themselves right now about what's coming in the economy and how do we get out of this mess.

He's from peakprosperity.com. We're proud to have him as a Glenn Beck contributor now. Last time we talked about the collapse of pensions and getting out of your pensions and taking that lump sum if you have that ability. Today, I want to talk to him a little bit about digitizing currency. Because this is not being heard in the media anywhere. They're not talking about it.

And, you know, two weeks ago, when India, all of a sudden, you can't into anything in cash over the equivalent of $7 in India, with cash. When Australia's Citibank, our Citibank says they're now going to be introducing branches completely cashless, something is coming our way. And we want to get Chris on the phone with us now. Hey, Chris, how are you?

CHRIS: Oh, I'm doing very well, Glenn. Good to be back with you and all your listeners.

GLENN: Okay. So, Chris, tell me -- first of all, for anybody who hasn't heard this, it sounds conspiratorial and it sounds crazy, that we're going to live in a cashless society.

Can you give us any evidence that is -- that shows, no, the world is changing rapidly?

CHRIS: Well, you know, this war on cash actually began a while ago with seeing somebody like Andrew Haldane, who is an official at the Bank of England or Larry Summers here in the United States. They started with this war, talking about how the high denomination bills are being used by criminals, terrorists, tax cheats.

GLENN: Right.

CHRIS: That's what it was wrapped in. But your listeners need to understand that the war on cash is really rooted in the idea that central banks would love to be able to push you into negative interest rate territory. They feel constrained by the idea that you could take your cash out of the bank and no longer be subject to their policies.

And they've been pretty open about it. They've been saying that, but they also use this criminal angle. So that's the same angle that was just used in India, by Prime Minister Modi to say, "Hey, we've got to get rid of these bills because criminals." Right? So that's the argument being used. But it's really to control the money of the people. That's really what it's about here.

GLENN: May I say, Chris, that it appears to me to be almost the angle of being able to steal our money as well.

They'll do it legally by a bail-in, as opposed to a bailout and negative interest rates. Can you explain negative interest rates and what that means to the average person that has any money in the bank at all?

CHRIS: Absolutely. I'd be glad to. It should be an easy concept, but it's hard to really understand. But a negative interest rate means, if I put a thousand dollars in the bank and there was a negative interest rate of 10 percent, in a year, I would have $900 left when we looked at it. So what happens with a negative interest rate is that you hand your money over to some institution or some entity, and you get less of it back in the future. That's the idea. And the reason they want to have a negative interest rate is if they put interest rates down at zero -- the idea is you want everybody spending. Borrowing and spending. But some people prefer to save. And those people aren't doing their job of cranking the economy up. So how do you force people to spend who don't want to spend?

Well, you punish them. And the way you punish them is with something called a negative interest rate.

GLENN: So you could -- because this is what I would do. I find out that the banks have changed their rules where they can have a bail-in, where we are now the -- the investor of last in line. Can you explain that? Do you understand what I'm talking about? If the banks go out instead of going to the federal government, they come to the people who put money in the deposits.

CHRIS: Well, sure. It's easy to understand if you think of a bank, not as a bank, but it's a company. And when a company goes into receivership, it's entered bankruptcy, it no longer -- its assets are vastly exceeded by its liabilities, well, you have to break that company up for whatever's left.

And there's a chain of -- a hierarchy of people who are in line to divvy up the spoils of what's left at this broken company. So what you're referring to is that most people have this wrong. They think that when they put money in a bank, they have money in a bank account. That's not true. What you've done is given an unsecured loan to the bank. And your asset is the bank's liability.

So in a bankruptcy or if a bank goes into what's called technically a receivership, you're actually at the -- almost at the very bottom of the list of people who are in line to receive the spoils of whatever is left of that company because you are an unsecured creditor of the bank.

GLENN: So it is a way for the bank to gamble, really, with your money, and make these crazy investments that we all know are dangerous. And they get away with it because they say, "Well, the government is going to pay -- the FDIC will pay everybody back." So they'll get their money through the government. And then we can take that money and pay off any of our debts or whatever. So when I heard about that, my first instinct is, "Well, I don't want my money in those risky banks. So I'm going to take my money out."

Well, if you do that, then the economy really collapses. So you have to trap the money in the bank. And how do you do that? Especially if they want to have negative interest rates and make sure that you're spending all of your cash.

CHRIS: Well, absolutely. For a government official or a policy official, the thing they dream about most is to have you completely trapped and contained so they can do whatever policies makes sense to them at the time. So cash gives you, as a private citizen, an outlet, a way of not being in the banking system.

But, Glenn, you've characterized it just right. So they're saying, "First of all, you have to be in the banking system. We're going to move to a cashless society. So you have to have all of your funds within this system. And then we're going to set the rules of the system," which basically comes down to, heads we win, tails you lose. Banks take big risks. The risks pay off. They pay themselves massive bonuses.

Risks don't work out. They don't get paid off. Then they come after your funds. And we've seen this happen already. That's what happened in Cyprus. That's what happened in some of the Greek banks. We're soon to see it in the Italian banks. It's spreading. It's a concept. It's coming here.

GLENN: All right. It's already happening in Australia. It's already happening in India. It is already happening in Sweden. They're talking about doing it now. Seriously moving in that direction.

Is this just a fluke that these things are happening, or is this wheel now in motion rolling down a hill and it's not going to stop?

CHRIS: Well, it really just started actually probably 15 or 20 years ago. So what's happened is that instead of allowing normal business cycles to happen -- under the Greenspan fed -- remember that name from way back -- decided, hey, we're going to defeat the business cycle. But what they really did was they blew bubbles. One bubble. Then another. Then another.

And the whole world kind of got addicted to it.

And I think the policymakers -- they feel trapped, Glenn. They're looking at this, saying, how do we possibly deal with all this money we've printed. What do we do? It's binary. It either expands, or it collapses at this point. That's, I think their fear.

And 2008 really scared them. Got a lot of people in very high places, very worried that they were looking at the proverbial light in the tunnel, coming at them.

So I think this is a reaction. I would also almost call it a normal reaction. But people need to be aware that at the same time these people, I think, were legitimately concerned, wouldn't you know it, by the time all the rules got written, they were really written in favor of the elites, the very powerful, the well-connected, and really at the disadvantage of everybody else. And that's just classic sausage-making in Washington, I think.

PAT: So, Chris -- we're speaking from Chris Martenson from peakprosperity.com. Chris, this is Pat Gray. You've said it's taken 15, 20 years to get to this point. Does that mean we still have time, or what would you consider the time line?

GLENN: May I suggest that we are one 2008 away from this happening.

PAT: Yeah. Is it something that can just start cascading now due to some -- we talk about it all the time. Some sort of event. Terrorism or whatever. Or will this draw out for a while longer?

CHRIS: Well, Pat, it's really hard to make that prediction. Because what we're talking about here is a complex system. And here's what we know about complex systems: You can't predict what's going to happen or when.

It's like a fault line is a complex system. Scientists study them like crazy. Because we'd love to know, when is the next earthquake? How big is it going to be?

We can't know that. But we can know is that the earthquake hasn't let go in a while, and it's supposed to. That the chance of the next earthquake happening sooner is higher. And it being larger is also higher. So what's happened since 2008 is we've just piled up the risks. We've just made them larger.

PAT: Because what you're saying, what the government counts on then is that, yeah, we can draw this out a lot longer. And that's what they're hoping for, right? They're just hoping to continue the policies that we've had which have led us here. But they're just going to keep going until we're --

GLENN: Right. We're already 18 months past a point where a natural recession should have happened.

PAT: Yeah.

STU: So now we never really got out of the problem that we had in 2008. We made it much worse. And going into a natural recession is going to cause all -- wreak all kinds of havoc and will -- they will try to solve it with things that will just make this bubble even more dangerous down the road.

Chris, what do we do? What does the average person do?

Like, for instance, when I saw Australia and India both go within two weeks to basically a cashless society in India, my first thought was, "Okay. I want to get gold. And I also want to get crazy things like possibly bitcoin."

What do you recommend? What does the average person do?

CHRIS: Well, the average person I think needs to get into two things you've just identified, which are assets that are outside of this crazy system. So, listen, you know, if you're on a ship called the Titanic and you see your captain playing slalom with icebergs, get near the lifeboats.

And in this story, real assets are the lifeboats. So I'm counseling people, get out of debt, stay out of debt if it's nonproductive debt. Don't do it.

GLENN: Wait. Wait. What's nonproductive debt? Like your house?

CHRIS: You know, buying a $40,000 car if you can still get to work in a $20,000 car and be happy as you can be. But anything that you're going to take on what's basically for consumption. Right?

GLENN: Right. Okay.

CHRIS: So rack up the credit card and take that nice trip. That's not going to be helpful here.

For many people, unfortunately, Glenn, it includes student loans. If you're getting a degree that doesn't really have a job attached to it, that may also be nonproductive.

GLENN: Okay.

CHRIS: So lots of things to think about. Because what we've learned in the 1930s was that when -- not if, but when these bubbles blow up, debt is a stone-cold killer. Being out from under that, very helpful if people can get there.

GLENN: And what do you do? Like assets, that's gold, that's silver, is that land? Is that, what?

CHRIS: It is. It's land. I particularly love productive land. It's either got timber on it. It's farmland. It's good commercial properties that happen to have excellent rental histories. Things like that can make a lot of sense. And this is because, what's going to happen when these currencies finally give way is there's going to be a big scramble for the exits. There's trillions and trillions of dollars floating around that are going to go out and look for real things.

And we've been down this path before in history. We've seen it a bunch of times. And it's happening -- I've seen you mention it before. It's happening right now in Venezuela.

GLENN: Chris, I would love to have you on next time. I want to talk to you a little bit about -- because I'd like to build the case on the -- you know, Donald Trump is talking about saying to China that they are currency manipulators. Well, I don't know how we have the balls to say that to China. We're the biggest currency manipulator on the planet right now. And it always leads to the same kind of thing. Trade barriers. Trade wars. Currency wars. And if you could explain that a little bit. Because what I would like to do over the next few episodes with you is get to the point to where people can understand that this currency -- what -- at least what I'm feeling, Chris -- and I'd like you to think about this and then we could talk maybe off the air -- but what I think we're headed towards is what we went through in the 19 teens, '20s, '30s, and into the '40s, where currencies were devalued, destroyed, hyperinflation happened, the gold standard. Then that was manipulated. And the whole world shifted during a war, that nobody really understood, "Wait a minute. The real power shifted with the currencies." And I think that's happening again. Would you agree with that?

CHRIS: I absolutely agree with that. And it takes a little while to go through the parts.

GLENN: Explain. Yeah.

CHRIS: But people need to understand what those big pieces are so they can decide for themselves what to do about it.

GLENN: Right. Okay. So could you -- let's -- why don't you and I talk off the air here, and maybe next week, we could have you and do one other segment and start to lay those segments out so people really understand what you and I just said and how that's going to work.

CHRIS: Fantastic. I'd love to.

GLENN: Okay. Chris Martenson. He's with peakprosperity.com. Peakprosperity.com. Chris Martenson. He'll join us again, hopefully next week.

Featured Image: People walk past Bank of America branch in Washington, DC on October 19, 2016. (Photo Credit: ANDREW CABALLERO-REYNOLDS/AFP/Getty Images)

For the first time in the history of "The Glenn Beck Program," former President Donald Trump joined Glenn to give his take on America's direction under President Joe Biden compared to his own administration. He explained why Biden's horrific Afghanistan withdrawal was "not even a little bit" like his plan, and why he thinks it was "the most embarrassing event in the history of our country."

Plus, the former president gave his opinion on China's potential takeover of Bagram Air Base, the Pakistani Prime Minister, and Gen. Mark A. Milley, chairman of the Joint Chiefs of Staff.

Glenn asked President Trump how similar the Biden administration's withdrawal from Afghanistan was to his administration's plan.

"Not even a little bit," Trump answered. "We had a great plan, but it was a very tenuous plan. It was based on many conditions. For instance, you can't kill American soldiers. ... You have to understand, I did want to get out. But I wanted to get out with dignity, and I wanted to take our equipment out. And I didn't want soldiers killed. ... What [Biden] did was just indefensible. He took the military out first and he left all the people. And then we became beggars to get the people out. I had a plan to get them out very quickly. But first, the Americans would go out."

Trump told Glenn that his plan included maintaining Bagram Air Base and explained why he would not have left "a single nail" behind in Afghanistan for the Taliban to seize.

"We were going to keep Bagram open," he explained. "We were never going to close that because, frankly, Bagram is more about China than it is about Afghanistan. It was practically on the other border of China. And now we've lost that. And you know who is taking it over? China is taking it over. We spend $10 billion to build that base. It's got the longest, most powerful runways in the world. And China has now got its representatives there and it looks like they'll take it over. Glenn, it's not believable what's happened. You know, they have Apache helicopters. These are really expensive weapons, and they have 28 of them. And they're brand-new. The latest model."

Glenn mentioned recent reports that Gen. Milley, America's top military officer, made "secret phone calls" to his counterpart in China while President Trump was in office.

"I learned early on that he was a dope," Trump said of Gen. Milley. "He made a statement to me — and I guarantee that's what happened to Biden — because I said, 'We're getting out of Afghanistan. We have to do it.' And I said, 'I want every nail. I want every screw. I want every bolt. I want every plane. I want every tank. I want it all out, down to the nails, screws, bolts ... I want every single thing. And he said, 'Sir, it's cheaper to leave it than it is to bring it.'

"The airplane might have cost $40 million, $50 million ... millions and millions of dollars. So, you think it's cheaper to leave it than to have 200 pilots fly over and fly all the equipment out? ... I said, you've got to be nuts. I mean, give me a tank of gas and a pilot and I just picked up a $40 million-dollar airplane. It was amazing. So, I learned early that this guy is a dope. But what he did, is he hurt our country ... and he shouldn't have been allowed to do it. And bad things should happen to him."

Watch the video clip below to catch more of the conversation or find the full interview on BlazeTV:


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In a shocking but underreported conversation ahead of the G7 Speakers' meeting in London last week, Democratic House Speaker Nancy Pelosi admitted that the administration knows China is committing "genocide" against the Uyghurs in the Xinjiang region, but thinks working with the regime on climate change is more important.

On the radio program, an outraged Glenn Beck dissected Pelosi's speech and broke down how — along with the Biden administration's abandonment of Americans in Afghanistan, and the Democrat decision to follow measures of medical "equity" — the far left is revealing how little they really care about human life.

Glenn played a video clip of Pelosi making the following statement:

We've always felt connected to China, but with their military aggression in the South China Sea, with their continuation of genocide with the Uyghurs in Xinjiang province there, with their violation of the cultural, linguistic, religious priority of Tibet, with their suppression of democracy in Hong Kong and other parts of China, as well – they're just getting worse in terms of suppression, and freedom of speech. So, human rights, security, economically [sic].

Having said all of that ... we have to work together on climate. Climate is an overriding issue and China is the leading emitter in the world, the U.S. too and developed world too, but we must work together.

"We have Nancy Pelosi admitting the United States of America knows that they're not only committing [genocide], they're continuing to commit it. Which means, we've known for a while," Glenn noted. "And what does she say? She goes on to say, yes, they're committing genocide against the Uyghurs, but having said that, I'm quoting, 'the overriding issue,' is working together on climate change.

"Would we have worked with Hitler on climate change? Would we have worked with Hitler on developing the bomb? Would we have worked with Hitler on developing the Autobahn? Would we have worked with Hitler on his socialized medicine? Would we have worked with Hitler on any of his national, socialist ideas?" he asked.

"The answer is no. No. When you're committing genocide, no! She said 'we have to work together on climate,' because climate is the 'overriding issue.' The overriding issue? There is no way to describe this mindset. That, yes, they are killing an entire group of people because of their ethnicity or religion. They are systematically rounding them up, using them for slave labor, and killing them, using their organs and selling them on the open market. They are nothing more than cattle. For us to recognize it and do nothing about it is bad enough. But to say, 'we recognize it, but we have bigger things to talk to them about,' is a horror show."

Glenn went on to urge Americans to "stand up together in love, peace, and harmony," or risk watching our nation become the worst plague on human life yet.

Watch the video clip below to hear more from Glenn:


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The fall of Lehman Brothers in 2008 marked the largest bankruptcy filing in U.S. history and economic collapse was felt throughout the world. But now China's own version of Lehman Brothers, Evergrande, is teetering closer and closer to that edge, too. On the radio program Thursday, Glenn Beck gave the latest update and predicted how it will affect Asian markets and what it could mean for America's economy.

Glenn explained why he believes a major collapse that is happening now in China will have a cascading effect into a "controlled collapse," a managed decline that will dramatically change America's economy and the way we all live.

"You will not recognize your lifestyle. Hear me," Glenn warned. "And that's not a right-left thing. That's a right-wrong thing. We're on the wrong track. I'm telling you now, there's new information and you are not going to recognize the American lifestyle. ... It could happen tomorrow. It could happen in five years from now, but it will happen. We are headed for a very different country. One where you don't have the rights that you have. And you certainly don't have the economic privileges that Americans are used to."

"The same thing that happened in 2008 is now happening in China," Glenn continued. "This time, it's going to take everything down. When it collapses, it will take everything down."

Watch the video below to hear Glenn break down the details:

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Justin Haskins, editorial director of the Heartland Institute, joined Glenn Beck on the radio program to expose a shocking conversation between two Great Reset proponents — Klaus Schwab, chairman of the World Economic Forum, and Christine Lagarde, president of the European Central Bank (Europe's equivalent to the Fed).

The way Schwab and Lagarde discuss the role central banks should play in establishing societal norms, determining your way of life, and defending against potential crisis is proof that the Great Reset is upon us, Justin explained. And the scariest part is that they're not even trying to hide it. The entire, unbelievable conversation has been published on the WEF website, which you can read here.

Glenn read an excerpt from the conversation:

Christine Lagarde: At the ECB, we have now wrapped up and concluded our strategy review, which was the first one in 17 years. And I was blessed to have an entire Governing Council unanimously agree that the fight against climate change should be one of the considerations that we take when we determine monetary policy. So at least the European Central Bank is of the view that climate change is an important component in order to decide on monetary policy. ...

Can we arrive at that trade-off between fighting climate change, preserving biodiversity and yet securing enough growth to respond to legitimate demands of the population? And my first answer, Klaus, to be firm, is that to have a way of life, we need life. And in the medium term, we do have major threats on the horizon that could cause the death of hundreds of thousands of people. So we have to think life, first. We have to think way of life, second. ...

So we have to think life, first. We have to think way of life, second. How can we come together to make sure that we secure the first priority, which is life, and also protect the way of life that people have? And make sure that the cost of it is not so high for some people, that they just cannot tolerate it. I think that the trade-off that we reach will probably require some redistribution, because it is clear that the most exposed people, the less privileged people are those that are going to need some help.

"Do you understand, America, what that means?" Glenn exclaimed. "You have elites, that you never elected, that are having these meetings ... deciding what is a legitimate need for you. And telling you that your needs are going to go away in your lifetime. You may not see a time where you get wants again. Just your needs are going to be addressed. Am I reading this wrong?"

"This is absolutely what is being said here," Justin agreed. "She's very clear that we need to make sure that way of life is second to life. We have to save all these people, hundreds of thousands of people are going to die from this supposedly existential threat of climate change. And their wants, and their desires, and their quality of living, all of that has to come second."

"This is a central bank saying this. This is not an elected official, who is accountable directly to the people. This is a central bank saying, we're going to print money. We're going to use monetary policy, to impose these ideas, to rework society in order to accomplish our goals," Justin added, addressing Lagarde's call for "some redistribution."

Will Great Reset elites — not elected by the U.S. — soon be dictating to the rest of the world? Watch the video clip below to hear Glenn and Justin break it down:

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