It's quite ironic that as the US Federal Reserve devalues American money into abyss, yet the American government is trying to instill more and more controls on the increasingly worthless dollar.

What's sad is that the US government now employs cash sniffing dogs at airports with the typical government explanation of "for your own protection." This is also known as a capital control. The Soviet Union did this as well. Usually when governments devalue their currency significantly enough, history has shown that governments employ capital controls. Currently one is required to declare $10,000 when entering the country or leaving the country.

Here is another kicker, if you are working in another country and your bank account balance reaches >$10,000 at any time within a year, you are required to report that bank account. The IRS requires you to fill out what is known as a Report of Foreign Bank and Financial Accounts. As you would think, it's given the same old "for your own protection" label with the argument: "If you are not doing anything wrong, then why can't we watch you?"

Sure, it is true that terrorists and other types of criminals usually operate on a cash basis; however, this does not mean that every person who carries large sums of cash is a suspicious character. It's quite funny that many parts of the world are cash based societies. Countries such as China, for example, have a mostly cash based economy. It is not so common to see people whip out their credit cards to pay for things, as in the United States.

With the growing deficit, the IRS is hungry for revenue, and the government hates cash. Why? Because the government wants to know everything you do with your money whether criminal or not. This monetary spying, as usual, is supposedly to protect us, but at what point is it taking away our freedom and rights?

Last, since I did spend several years working in banking, I will warn you if you regularly deposit larger sums of cash at the bank. While the laws may have changed, last time I checked, banks are required to fill out a form known as the CTR (Currency Transaction Report) any time a customer deposits or withdrawals any amount within 1 cent over $10,000. This CTR report goes straight to the IRS. The bank does not have to tell you they are sending this report.

If you are a customer who has been depositing and withdrawing larger sums of cash regularly and the bank believes it is "suspicious." The bank will file what is known as a SAR (Suspicious Activity Report), and for people using cashiers checks and money order, the form is known as MIL (Monetary Instrument Log).

Also, banks check every customer against the OFAC (Office of Foreign Assets Control) list.

With this in mind, if you report foreign bank accounts, cash exceeding $10,000 (silly since 10K is not much money these days), you are being a law abiding citizen and this is good; however, one has to wonder what exactly does the government do with this information? As a citizen I feel suspicious of the government's actions and feel like I am being watched. Not to mention, with the financial meltdown of 2008 being a reminder of the Great Depression, more people have less faith in our financial system; therefore, more people carry cash.

In criticism of the government's currency controls, why can't the general public require the government itself be required to leave "paper trails" we can follow on where our tax money goes, and how they use it? This would make it only fair since the government is doing exactly this to us.

With the idea of a cashless society becoming more of a reality under a fiat currency system, there is no better way to spy on citizens then to watch where their money goes. Some may think it's for their protection, or believe they have nothing to hide, but what about privacy? What about private property? Without opening a new can of worms and completely different topic, it's quite obvious something is wrong with our tax and monetary system.