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More and More Outlets Are Suggesting a Carry Tax on Physical Cash
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….
http://www.phoenixcapitalmarketing.com/cash.html
Best Regards
Phoenix Capital Research
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Debt Servitude is an ancient concept. My wife and I had too much debt back in the mid 90's.
Corrected.
Never Again.
Live and Learn.
One can try hoarding Federal Reserve notes in the home safe (providing that you can keep it secret). Then, the risk is that the Fed will call in their notes for replacement with a bank deposit.
Towards the end, Zimbabwe's money had expiration dates on it. There were issues of "second dollar", "third dollar" and "fourth dollar" notes, the issue of each making the previous notes null and void. The expiration date on the note was also a nice touch I thought.
There are probably many more examples of historical precident. There is no limit to how far they will go to achieve their goals. We are useless eaters to them and the sooner we realize that the better.
>>There is no limit to how far they will go to achieve their goals.
They are indeed creative little coscksuckers.
The New Zealand government has taken to treating as a taxable event unrealized gains or losses on foreign currencies held by individuals. Last year, due to a rise in the Kiwi dollar, I had nominal losses on my foreign currency holdings, and got a $9,000 tax refund. I can't wait to see what excitement next year holds in store....
The major risk is that no institution (government, large business, bank) will accept cash as payment for purchases or debts.
This is already true in the U.S. for all but small purchases. You cannot buy a house, a farm, an automobile, or many other large items with cash; you can only buy groceries, small items of clothing, or gray-market items such as used tools and equipment.
I personally am a believer in the Bible. And I believe we are in the "end times". Part of that, I believe, is spoken about in Revelation. I think there will be "mark of the beast" in which everyone has to accept in order to buy or sell.
How else can that come about if cash is accepted. Cash will have to be done away with and a electronic currency put in place. It's all playing out as already foretold....
Ive heard this stuff all my life and I think it is a distraction.
Wouldn't a SS number be the "mark of the beast"?
You can't work without one legally, AKA make money to buy and sell.
Religion is the biggest con of all. They can win every argument by falling back on the old standby of: You have to have FAITH. No facts, no proof, no answers, just faith.
Great, but that don't feed the bulldog.
So....end times?
God, I hope so. I can't stand to watch this f*ck-show any longer.
You crazy Bible people. You know when it really looked like end times? WWII. This is nothing compared to that.
What about if the Pope is going to announce that we are invaded by aliens ...... would you believe him ? I will not , I have seen Carol Rosin video ( The former secretary of Verner Von Braun) : https://www.youtube.com/watch?v=RR4rZ2bD8CE
That is probably the biggest reason it will never happen. There are too many who would see it as fulfillment of that whole 'mark of the Beast' stuff.
I just can't see that selling to the heartland. Nor can I imagine a politician who would want to be seen as being the guy who helps bring it about.
You'd have to do away with a cherished religious belief before you could even TRY to pull that one off. That's on top of the whole privacy crowd and THEIR cherished beliefs...
And when was the last time the "heartland" pushed back?
open carry in Kansas
People get acclimated to devolving.
What an old Donna Reed show rerun . See how far we've fallen since 1963.
The chip will be the neatest innovation since the cell phone. All your data will be on that little implant on your forehead, you know, so the overhead scanners and satellites can see it(you).
Like the tag in a cows.ear.
I disagree for a couple of reasons. First, most people will dismiss it as folklore or coincidence and preceed away...
Second, I think it is an error to think it will fail because a politican won't sell it or people in the heartland won't accept it. I've been reading the abridged version of the Gulag Archipeligo. It makes me think, how did they get people to enforce such a system? The same way in Germany, how did they find guards to run the camps in WW2? Or Cambodia, or Rhwanda, or China? There will always be people to do the unthinkable. So someone will come along and find a reason to impliment a electronic currency, or there will be some currency crisis of "biblical" porportions which will cause people to be willing to accept anything just so they can eat.
We'll see, I think it's time for the "religious right" to put up or shut up...
;-D
Well I think the "pre trib rapture" school of thought would say the the "religous right" won't be around and have to make the choice of accepting it or not... just sayin... ;)
I'll believe it when I see it. ;-) By all the negative marks I'm getting, the acolytes of the great bearded guy in the sky don't have much of a sense of humour about these things. My mama (great bearded guy in the sky rest her soul) often told me, "Avoid zealots, they are generally humourless...".
;-D
"You can lead a whore to Vassar, but you can't make her think."
“you can lead a horse to water, but you cannot make him drink.”
True, unless the horse at Guatanamo Bay's US operated stable.
"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."
This kinda crap has no place here in ZH............everybody likes a good crap now and then
shit, I come here for the advertizing!
Nonsense, this kind of crap is the reason why ZH exists. The useful articles are a side effect.
Well thankfully I already have very little USD cash, go ahead and try to tax fractions of my physical Au, Pb & BTC holdings.
I suspect that you had BTC at some point, but like me, had their computer hacked and lost them (and your Au thingy had a H2O encounter).
I do not collect FRN's ..... no one accepts them around here.