More and More Outlets Are Suggesting a Carry Tax on Physical Cash

Phoenix Capital Research's picture

A carry tax… or tax on physical currency… is coming.


The Fed and other Central Banks literally took the nuclear option in dealing with the 2008 bust. Collectively, they’ve printed over $11 trillion and have cut interest rates to zero for nearly six years.


All of these efforts were focused on driving in trashing cash and forcing investors/ depositors into risk assets.


But these policies have failed to generate growth.


Rather than admit they are completely wrong, Central Banks are reverting to more and more extreme measures to destroy cash and force investors to move into risk against their will.


Things went into hyperdrive last June when the ECB cut interest rates to negative, thereby CHARGING depositors to keep their money in cash.


Since that time, Denmark, Switzerland and other nations have followed suit.


The banks are following in their footsteps. Julius Baer, JP Morgan, and other firms have begun to charge large account holders for parking in cash. JP Morgan openly stated it wanted to LOSE $100 billion in deposits.


This is just the beginning. More and more we’re seeing hints that Central banks are planning on charging individuals who sit on cash… or possibly even banning physical cash entirely.


Now comes the interesting part. There are signs of an innovation war over negative interest rates. There’s a surge of creativity around ways to drive interest rates deeper into negative territory, possibly by abolishing cash or making it depreciable


As long as paper money is available as an alternative for customers who want to withdraw their deposits, there’s a limit to how low central banks can push rates.


The old adage says “you can lead a horse to water, but you cannot make him drink.” The Fed and other Central Bankers lead the horse to the water. The horse wouldn’t drink. So now they’re talking about holding the horse’s head underwater until he does.


Again… a carry tax is coming. The Fed and other Central Banks are going to do everything they can to incinerate cash going forward. In Europe over 40% of sovereign bonds are NEGATIVE in nominal terms (meaning investors are paying to own these bonds).


This is just the beginning.


It sounds like absolute insanity, but we can assure you that Central Banks take these sorts of proposals very seriously.  QE sounded completely insane back in 1999 and we’ve already seen three rounds of it amounting to over $3 trillion.


No one would have believed the Fed could get away with printing $3 trillion for QE in 1999, but it has happened already. And given that it has failed to boost consumer spending/ economic growth, we wouldn’t at all surprised to see the Fed float one of the other ideas in the coming months.


Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings.


We detail this paper and outline three investment strategies you can implement

right now to protect your capital from the Fed's sinister plan in our Special Report

Survive the Fed's War on Cash.


We are making 1,000 copies available for FREE the general public.


To pick up yours, swing by….


Best Regards

Phoenix Capital Research


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
dizzyfingers's picture

Let me see if I've got this straight: Banks collude in devaluation of our money and then want to tax us for their decision?

Do we need them or do they need us?

Ckierst1's picture

This really makes a lot of sense.  Everybody knows that fiat currency is a barbarous relic. ;-)

Salzburg1756's picture

Use "horticulture" in a sentence.

You can lead a horticulture but you can't make her think.

Gargoyle's picture

Just thinkin' out loud.....


You're the last of the middle class, working but not earning much, saving less, just getting by.  No debt.  If you're a working stiff, wouldn't it make sense to take on a shitload of unsecured debt, and use the cash now to stack, then when all you have is your bank credit from your W2 job , pay the debt with that shite and use the stacks to eat?


For the short term?

lunaticfringe's picture

Ya know, if ya own silver and gold- you don't really give a fuck whether they call the currency in, charge negative interest rates, or try to steal it. It's passe' but I'm just saying it anyway.

Flying Wombat's picture


Let's be frank.  More than half of the trillions (and it was probably over $30 trillion, not what is reported above) went into buying directly or just backstopping bad debt and derivative positions on bad debt.  It was not just "All of these efforts were focused on driving in trashing cash and forcing investors/depositors into risk assets."

Anyone ever read any of these Pheonix Capital reports?  Their teaser articles leave much to be desired.

exartizo's picture

oh my.. my oh my...this guy is just a shameless SHAMELESS Fearmongering Bullshit Peddler.

TeethVillage88s's picture

"The bank coined a euphemism: Beginning on May 1, it said, it will charge certain customers a “balance sheet utilization fee” of 1 percent a year on deposits in excess of the money they need for their operations. That amounts to a negative interest rate on deposits. The targeted customers—mostly other financial institutions—are already snatching their money out of the bank."

My first thought was currency war between banks.

Liquidity Crisis also comes to mind.

I like to check the slope on these charts every once in a while.

Bank Private Credit to GDP for United States
2011: 55.47615 Percent (Data spans from 1961 to 2011, Bubble is clear in 2003)

Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for United States, 2011: 189.51640 Percent,

From 2007:

Taking Out the SIV Garbage, By: John Mauldin, Sat, Oct 20, 2007

"This week we learned that Structured Investment Vehicles or SIVs should more properly be termed SIGs or Structured Investment Garbage. Several SIVs worth over $20 billion are closing shop, and investors will lose money. More SIVs are selling assets to meet loan demands. SIVs had issued at the peak about $400 billion worth of asset-backed commercial paper. The total of asset-backed commercial paper was $1.2 trillion. Since July, that has plummeted, nose-dived, crashed to $888 billion, and is on its way to a small fraction of that. In effect, we are taking a trillion dollars of financing for a wide variety of things we need, like credit cards, autos, homes, and corporate loans out of the credit market. That is going to have an impact."

Well how much credit are we creating every month? They provide the Credit, then sell it off at a discount. No wonder they have to continually create more create to stay Liquid.

Last report was that Households and Non-profits had $14 Trillion in Liabilities.

Households and Nonprofit Organizations; Credit Market Instruments; Liability, Level
2014:Q4: 13,496.88 Billions of Dollars

Now what is coming up in September or November requiring new Credit besides the Federal Government Treasury requirements?

Everything is Rigged. They don't even need your bank deposits any more. Somehow they rigged the system - knowing that they could never raise FED Interest Rates as high as 5% ever again. Rigged so they will stagnate in Negative Interest Rates (NIRP). But they still have to get people to buy on Credit.

_SILENCER's picture

I cash my paychecks, which are drafted from Bank of America. Now the hot girl at the BofA stops asking me to open an account after I explained to her a few times I don't trust banks - especially BofA - and am not willing to risk it.

I showed her a 10 ounce silver bar. Let her hold it. Her eyes lit up.

FredFlintstone's picture

Be fukin her soon?


Keep us updated.

Palladin's picture

I'm not sure exactly what this means, but I don't think it's in my best interest.

I got the normal eMail from Wells Fargo saying my monthly statement was available. I usually just delete it, but something caught my eye that I hadn't noticed before.

The statement was for my Checking Account, but they have labeled it a Deposit Account. It could be nothing, and I searched around Wells Fargo's site to see if I could come up with why they refer to a Checking Account as a Deposit Account.

My guess is that it has something to do with how much cash you can withdraw, and how often, should the need arise to limit how you can access your money.

The last time I made a cash withdrawl asking for 100's the teller asked me "what are you going to do with all these 100's?" I was going to tell her to mind her own business, but I thought I'd have a little fun.

So I said, "Valentines Day is coming up, and I like to give a little something to my lady friends."  She looked at me and said, "gee, I wish I was one of your friends." I just smiled, counted the 100's and left.



August's picture

>>>The last time I made a cash withdrawl asking for 100's the teller asked me "what are you going to do with all these 100's?"

I'm always going shopping for antiques or used cars.

Beats any discussion as to why I actually prefer cash cash.

Okboss's picture

Thanks Phoenix, I won't need any of the free copies you are giving away.  Nobody is going to ban cash because the drug trade is the most profitable and 'solid' industry on the planet.  It runs on cash which runs through the banking system and goes mostly to those friendly folks and their friendly friends who create currency from nothing and charge the world interest on it.  

minosgal's picture

Interestingly, some bank tellers now ask why anyone would want old $hundred bills, not the new ones with the RFID strips in them.

OT, but hey, specs on those Stingray systems seem to be pretty hush hush. Tampa, FL prosecutors even let drug dealers go, rather than submit to discovery in open court.

I'm rambling here, but it sure seems that various LE agencies are really, really lucky and very highly skilled at civil forfeiture patrol.

Maybe old bills might have value as collectibles.



Oldrepublic's picture

In 1991 the Soviet Union only gave a 3 day period for all people to convert to a new soviet currency with a limit of 1000 rubles

CitizenPete's picture

Cash already depreciates and carries a negative return.


Just crank up the Inflation Tax.  A few carefully planned "misguided" government market subsidies with a good peppering of Moral Hazard should do the trick.

I know:  Zero interest 100 year loans for all food stamp recipients to buy houses, new cars, and gas.

the grateful unemployed's picture

the government is in the business of manufacturing economic growth. they are interested in seeing that no one hoardes cash. Hillary says government is the only one (which creates economic growth) in 2008 when the fed saw the private sector creating new money so fast that the feds policies were being overshadowed and the government no longer controlled the economy, THEY crashed the market.... and so far your worst nightmares about a centrally planned economy have come true, but that is about to change. they handed too much power to the big banks who are now in a place where they can do the feds job. (you could alter the narrative slightly to make the fed look like good guys, just pretend they stepped in to rescue the economy, lovers of bernanke may say aye)  in 2008 the government owned the economy, as the fed had been set up by George W Bush to be a branch of UST. Bush was a globalist, NWO kind of guy. now the powerful USG owned fed has quietly wound down its operation. the banks are ready to take a more constructive role. its convenient to label this a conspiracy theory, but in simple terms they gave the banks too much power and the banks came roaring back. take it as a sign that the banks refusing to hold bens helicopter money on account is indication that the banks and the fed have different agendas. the fed is made of academic bureaucrats. would the fed heads crash the market again? frankly i dont think they have the jam to do it. in crash redux they would have to walk over to the treasury and ask them to take their balance sheet assets (back) and since unloading these assets is what made the banks more powerful, well nobody will put that line together and blame the banks. they will blame the fed. in 2008 another GSE fannie mae became a toxic waste dump for bad loans, and the fed, which is another GSE transferred that MBS to their account, next time it goes off balance sheet. you can blast the banks if you want, but they are the only ones who can run the economy. so go short the fed and long the banks. and if we get a nasty libertarian for potus you get that in spades.

theprofromdover's picture

"I'm mad as hell and I'm not gonna stand for it anymore"

You betcha!

Grumbleduke's picture

the electrical grid must be fail safe, not?

Someone has to come up with a new way of power generation and transmission aka wireless. Until then a few good placed assaults on power plants end this "cashless" theater rather quickly.

escapeefromOZ's picture

The banks can forget about me putting money in their coffers . 

That's for insurance companies too , forget about me paying insurances . It is the death sentence for the banks and insurance companies . Boycott all financial institutions . 

GreatUncle's picture

The central bankers need to wake up that they run a fraudulent economy is one thing but two instances occur.

1.) With cash the capitalist or hybrid capitalist / socialist cross society exists where the capitalist part requires a certain amount of cash to sustain it. Maintaining this has be their fight these last 5 years with all the fucking QE pumping the economy trying to keep the capitalist heart beating. Get it?

2.) Remove cash, reckon you would transistion to a socialist state and a matter of time before the capitalists running the show get hanged. They would take every penny you had leaving you with nothing and so visible those with more basically WERE NOT STOLEN FROM and time to kill. At that point people would be forced to kill capitalists to prevent the stealing and that INCLUDES THE CENTRAL BANKERS / POLITICANS.

Fools, but go on I don't mind should be interesting to see the ingenuity of people to trade but without the convenience of cash look to trade in other ways.


The Darwin Mode's picture

"The Fed and other Central Banks literally took the nuclear option in dealing with the 2008 bust." --Phoenix Collapse Porn Research

"Literally"? "LITERALLY"?!  AAAAHHHHHHHHHHHHH! Fail, thumbs down, poor.

divingengineer's picture

I would think FDR took more of a nuclear type option(s) than the current bunch.  That man really pulled some good ones, an people just took it. 

PleasedToMeatYou's picture

"Literally' - the new "figuratively", literally. 

Oscar Mayer's picture

I get so sick and tired of these stupid fukers who don't know the difference between money and  bankster generated credit.

There are $1.36-Trillion in U.S. Legal Tehder Money in circulation around the globe.  That's all the money there is, there ain't no more.

All the rest is bankster credit, a promise to pay money and that's why they're trying to get money (cash) banned, to get out of their obligations to pay.

There is a difference between Money and Credit.

deja's picture

I get so sick and tried of these stupid fuckers who continously vomit out their "secret document we are making the first 1000 copies free" horsecrap. Fucking doom porn.  They're as bad as the banksters.

Fun Facts's picture

An assault on cash is an assault on freedom.

wolfnipplechips's picture

The Tribe care for neither, and would like to abolish both.

BoPeople's picture
BoPeople (not verified) May 28, 2015 7:12 PM

My guess is that this more than anything will kill the economy.

August's picture

Most of us know that some "economies" deserve to die.

allgoodmen's picture

This article does not jibe with what I am seing. In the last month I have received two unsolicited offers from Chase: Deposit $10,000 in "new money" and receive a $150 account credit.

Google this and see for yourselves.

HenryHall's picture

Good luck ever getting your $10,000 back after the six months, or however long it is that they require you to keep the account open.

You do understand that "Deposit $10,000" means "make a $10,000 loan to a bank proven to be dishonest"?

divingengineer's picture

Walk in and ask for $7,000 of your own money in cash and watch the hillarity ensue.  You'll get every excuse from "we don't have it", to "it's against our policies" to "it's not safe to carry that much money around".  

They'll try their level best to send you out of there with a cashier's check. They treat you like there is no possible reason for anyone, anywhere to need $7,000 in cash unless they are going to buy cocaine or finance a terror plot. 

I'm sure they filed a suspicious activity report the second I walke out the door with the money.  Poor dumb bastards never considered the possibility that I might want to buy a used car out of state, I guess.  

I have no doubt that you would never face such difficulty while depositing $7,000 in a bank.


g speed's picture

persons of means show up with large amounts of cash for tax deed sales on the court house steps all the time---$50,000 cash is chump change when beach front tax sales happen-- just saying that cash is used all the time --its just not on most peoples radar-

OC Sure's picture

"All of these efforts were focused on driving in trashing cash and forcing investors/ depositors into risk assets."

You're lying.

What was exchanged for the 11 trillion?

Did the 11 trillion represent the production of value or the theft of value?

Who stole and who produced?

Please re-evaluate those efforts. 

Boris D Blade's picture

Hi OC Sure,


I have tried to find your blog (which i read around 6 months ago), but now the link you provided on ur ZH profile says that the blog is private and that I need an invite from the author...

Would you mind providing me with one?

thanks in advance

Bemused Observer's picture

Fuck them and their negative interest rates! No one is going to banish cash, so get it out of your minds...What do these idiots think,that they just flip a switch and cash is gone?
WANTING to do something and actually being ABLE to do it are two different things.

divingengineer's picture

Outside of US/Canada and Europe, is a debit card useable? Does a falafel vendor in Peshwar take Visa? Does the average restaurant in Bejing? A hotel in rural Catalonia? I have no idea, personally, but it seems like 2/3 of the world kinda needs cash from a purely pragmatic view.

LostAtSea's picture

There are laws already in place to effectivly banish cash.  Just seach for structuring laws and civil forfeiture laws.

You can no longer deposit or withdraw more than $10,000 without extensive paperwork explaining why you need the cash.  Think you can maybe take out $5000 now, and $5000 in a couple of weeks?  That's a felony, and all your assets will be taken from you until you can prove your innocence in a long court battle.  Good luck with that.



Bagbalm's picture

They don't have to remove it - just stop accepting it. How many people all over the world are sitting on $100 bills that would be awkward to have to deposit?


Bemused Observer's picture

They can stop accepting it for tax payments and such, but all those folks holding all that currency aren't just going to throw it into the trash. Nations that try to ban currency will see their black markets using it as exchange. God knows there's enough of it out there, enough to keep the little guys functioning anyway. The big guys? Not so much, but that's what you get for fucking around with the money.

mtl4's picture

A govenment can and has (certainly in Europe) cancelled their currency in circulation requiring everyone to either deposit it or lose what they have.........this is not speculation, it is fact.  There is absolutely no reaosn why they can't do the same thing again and simply tell people the new currency is now electronic.  Doesn't matter how stupid it sounds to you, remember politicians are lawyers and most think they can just write laws to close the exit doors, just you watch.

Fourmyle's picture

The slave trade has always been profitable. With modern innovation the vast majority willingly sells itself into slavery ( reward points if you use this card ) and can be convinced that all their problems are caused by the poorer ones "sponging". But a few escape and those must be hunted down and made an example of.