Banning Of Cash - Here We Go

I don't think a former secretary to the treasury writing a Washington Post article about a guy from Harvard saying that the $100 is used primarily for illegal activity is hardly a reason for concern at the moment.

While I do think the Gov would probably love to get rid of cash altogether, what they want and what will happen are 2 different things.

They wont get rid of the cash all together as most of the world does not yet used Debit cards and Credit cards like the Americans.

As for getting rid of the bigger notes in Dollars the only real reason would be to force the bad guys to store bigger stacks of cash and it might become easier to find that way, but I dont think thats the reason.

The ban on cash is coming. Soon. | Sovereign Man

" The ban on cash is coming. Soon.
Simon Black
February 17, 2016
Santiago, Chile

This is starting to become very concerning.

The momentum to â??ban cashâ?, and in particular high denomination notes like the 500 euro and $100 bills, is seriously picking up steam.

On Monday the European Central Bank President emphatically disclosed that he is strongly considering phasing out the 500 euro note.

Yesterday, former US Treasury Secretary Larry Summers published an op-ed in the Washington Post about getting rid of the $100 bill.

Prominent economists and banks have joined the refrain and called for an end to cash in recent months.

The reasoning is almost always the same: cash is something that only criminals, terrorists, and tax cheats use.

In his op-ed, Summers refers to a new Harvard research paper entitled: â??Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notesâ?.

That title pretty much sums up the conventional thinking. And the paper goes on to propose abolishing, among others, 500 euro and $100 bills.

The authors claim that â??without being able to use high denomination notes, those engaged in illicit activities â?? the â??bad guysâ?? of our title â?? would face higher costs and greater risks of detection. Eliminating high denomination notes would disrupt their â??business modelsâ??.â?

Personally I find this comical.

I can just imagine a bunch of bureaucrats and policy wonks sitting in a room pretending to know anything about criminal activity.

Itâ??s total nonsense. As long as there has been human civilization there has been crime. Crime pre-dates cash. And it will exist long after they attempt to ban it.

Perhaps even more hilarious is that many of these bankrupt governments have become so desperate for economic growth that they now count illegal drug activity and prostitution in their GDP calculations, both of which are typically transacted in cash.

So, ironically, by banning cash these governments will end up reducing their own GDP figures.

Whatâ??s really behind this? Why is there such a big movement to ban something that is used for felonious purposes by just a fraction of a percent of the population?

Cash, it turns out, is the Achillesâ?? Heel of the financial system.

Central banks around the world have kept interest rates at near-zero levels for nearly eight years now.

And despite having created massive bubbles and enabled extraordinary amounts of debt, their policies arenâ??t working.

Especially in Europe, the hope of stoking economic growth (and even the sickening goal of inflation) has failed.

So naturally, since what theyâ??ve been trying hasnâ??t worked, their response is to continue trying the same thingâ?¦ and more of it.

Interest rates across the European continent are now negative.

Japanese interest rates are now negative.

And even in the United States, the Federal Reserve has acknowledged that negative interest rates are being considered.

They have no other choice; raising rates will bankrupt the governments they support and derail any fledgling economic growth.

Look at how low interest rates are in the USâ?? and yet 4th quarter GDP practically ground to a halt. They simply cannot afford to raise rates.

As global economic weakness continues to play out, central banks will have no other option but to take interest rates even further into negative territory.

That said, negative interest rates will be the destruction of the financial system.

Because sooner or later, if banks have to pay negative wholesale interest rates to each other and to the central bank, then eventually theyâ??ll have to pass those negative rates on to their customers.

Many banks have already started doing this, especially on larger depositors.

Weâ??ve seen this in Europe where some banks charge their customers negative interest to save money, and in some extraordinary circumstances, pay other customers to borrow money.

Itâ??s total madness.

Thereâ??s a certain point, however, when interest rates become so negative that no rational person would hold money in the banking system.

Eventually people will realize that theyâ??re better off withdrawing their money and holding physical cash.

Sure, cash doesnâ??t pay any interest. But it doesnâ??t cost any either.

If you have a $200,000 in your savings account at negative 1%, youâ??d have to pay the bank $2,000 each year.

Clearly it would make more sense to buy a safe and hold most of that money in cash.

Problem is, the banks donâ??t have the money.

For starters, thereâ??s literally not enough cash in the entire financial system to pay out more than a fraction of all bank deposits.

More importantly, banks (especially in the US and Europe) are extremely illiquid.

They invest the vast majority of your deposit in illiquid loans or securities of dubious long-term value, whatever the latest stupid investment fad happens to be.

And many banks have been engaging in a substantial balance sheet shift, rotating bonds from whatâ??s called â??Available for Saleâ? to â??Hold to Maturityâ?.

This is an accounting trick used to hide losses in their bond portfolios. But it also means they have less liquidity available to support bank customer withdrawal requests.

The natural side effect of negative interest rates is pushing people to hold money outside of the banking system.

Yet itâ??s clear that a surge of withdrawal requests would bring down that system.

Banks donâ??t want that to happen. Governments donâ??t want that to happen.

But since central banks have no other choice than to continue imposing negative interest rates, the only logical option is to ban cash and force consumers to hold their money within the banking system.

Make no mistake, this is absolutely a form of capital controls. And itâ??s coming soon to a banking system near you."








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yea, "here we go", someone just stated his opinion which doesn't even make sense... he makes an argument that $100s need to go because criminals use them... and yet in the 2nd paragraph: "Even bank robbers eschew these bills ('give me non-sequential $20s, no $100s')."

Can get change in "twenties" ??

I have brought my wallet!

I wonder if this will happen in our lifetime.

My wife and I are involved in a number of local charities, and cash makes up nearly 40% of our donations.

Among other things, barter systems and networks will get huge. I remember they started gaining popularity in the 90s for all kinds of professionals, partly as a tax dodge, but never took off.

I caught that too.

All the poor people that ask you for a dollar will have to get a paypal account and you can swipe your card on their smart phone.

Homeless man accepts credit card donations using square - Tech Insider

Yes, it will most certainly happen your lifetime (assuming you do not die within the next 5 years that is).

They are talking about drug dealers and moving all that cash. It would at least double the amount of space it takes to move it all but probably make it five times more since the 20 is used more than the 50.
They have been saying this for a long time though.
HIDE YO CASH HIDE YO PASTE

Psst... The border police aren't looking for itunes gift cards yet.

The Big Irony





Madoff could never have committed this level of fraud by using cash. NOT EVER!

When's the last time you got robbed of cash?
When's the last time you got robbed with a charge back?

Before we celebrate we should take a second to think about the fees.

Ain't nuthin' fees in this world baby.

Yo mama!!

40% of twenty bucks is 8 bucks. So you 2 cool kids will be ok without hundred dollar bills.
Go with it.

The point of making a retarded post is comedy; you keep missing the comedy.

Well depending on how you look at the figures, many analysts are saying that we are in a big depression ie a prolonged period of sub par growth. If you take out all the fiddled GDP figures and account for inflation, it could be almost zero. There are quite literally thousands of metric you could look at but its clear things are not working.

21 New Numbers That Show That The Global Economy Is Absolutely Imploding | Zero Hedge

China is slowing down big time and the economy has essentially stalled in the US too.

i don't think it would happen while the USD is the reserve currency

no expert, but 100 USD bills make the world go round when you're travelling.. not having them would be a problem

500 EUR bills are pretty useless for regular people.. If you need to make a bigger payment or something, then wire is more convenient. Also you will have proof for the payment (in case you buy a property or something)

?Urgent? action needed to kickstart growth: OECD - Yahoo Finance

It's amazing that for the longest time, everyone bought the mainstream bullshit narrative of recovery.

Buy Bitcoin. It's like digital cash. It's anonymous and can be sent anywhere in the world almost instantly for an extremely low fee. It's also a great store of wealth, especially if your government currency starts to tank in value.

unless you bought coins when they were 1k and are now like 250 bucks.

$415ㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤ

Nice, But its 10K and a negotiable instrument

Bitcoin will probably do quite well but I don't know about long term store of wealth. There's no limited supply when it comes to algorithms any more than there is a limited supply of paper money and anyone can make a new bitcoin.

Silver or Gold are better options

Gold Bulls Feast as More Central Banks Drive Rates Below Zero - Bloomberg Business

In the case of Bitcoin, a limited supply is actually built into the code. There will only ever be $21 million Bitcoin, each of which can be divisible up to 8 decimal places (e.g. 0.024 Bitcoin = $10 USD).

I like gold as well, but it's not very practical as a currency.

Sure but does that code also prevent other crypto currencies popping up and absorbing dollars? The answer is no.

They will stop making the penny before they stop making the $!00

Its coming for sure. Ireland, Sweden, Spain, Italy, Germany:

German plan to impose limit on cash transactions met with fierce resistance | World news | The Guardian

It starts by limiting the amount of cash you can withdraw from the bank. It wont happen over night but its a creeping thing and its almost certain to come but you wont read about this much in the mainstream news - the non-mainstream picked up on these discussions when they became serious years ago. One day, many years from now you wake up and you have to turn in all your cash and no cash will be accepted anywhere.

it wont happen anytime soon

You'd be surprised. Great update on the banning of cash and the scary reasons why:

Better explanation for the reason for "Ban on Cash" and when it will happen: