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The War on Cash is Now a Global Phenomenon
More and more institutions are trying to make it harder for you to move your money into cash.
Globally, over $5 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades. In the simplest of terms this means that investors are PAYING to own these bonds.
Bonds are not unique in this regard. Switzerland, Denmark and other countries are now charging deposits at their banks. In France and Italy, you are not allowed to make cash transactions above €1,000. Spain, Uraguay,
This is also at work in the US. Louisiana has made it illegal to purchase second hand goods using cash. This is just the beginning. The War on Cash will be spreading in the coming weeks.
The reasoning is simple. Most large financial entities are insolvent. As a result, if a significant amount of digital money is converted into actual physical cash, the firm would very quickly implode.
This is true for banks around the world. European banks as a whole are leveraged at 26 to 1. In simple terms, this means they have just €1 in capital for every €26 in assets (bought via borrowed money).
The US financial system isn’t any better. Indeed, the vast majority of it is in digital money. Actual currency is just a little over $1.36 trillion. Bank accounts are $10 trillion. Stocks are $20 trillion and Bonds are $38 trillion.
And at the top of the heap are the derivatives markets, which are over $220 TRILLION.
If you think the banks aren’t terrified of what this market could do to them, consider that JP Morgan managed to get Congress to put the US taxpayer on the hook for it derivatives trades. Mind you, this is the same bank that is now refusing to let clients store cash in safe deposit boxes.
This is just the beginning. As anyone can tell you, it’s all but impossible to move large amounts of money into cash in the US. Even the large banks will routinely ask you for 24 hours notice if you need $10,000 or more in cash. These are banks will TRLLLIONS of dollars worth of assets on their books.
This is just the beginning.
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It is just AAPL fanboys who want everyone to be forced to use Apple Pay.
Graham - when do you think America will hit the point where the situation is so fucked up that the hottest chicks in the local high schools will reach the level of desperation where they emulate Thai chicks and get behind a glass wall, pin on a number, and wait to be called out to fuck for an ounce of silver?
Ok ... I can't resist. I will say it: Bitcoin.
Digital cash .... ok, it is not physical, AND it compliments rather than competes with PM's
BUT - as a bearer unit of currency, it has all the same attributes as physical cash that the CB's would love to get rid of. NIRP does not apply to cash, PM's or Bitcoin.
Bitcoin is literally peer to peer.... no intermediary. I realise many morons promptly hand over their Bitcoin (digital cash) to a 'bank' (online wallet) ... and lose control just like when you deposit cash notes to a bank... but there will always be fools.
Cash (national fiat) has one major risk that PM's and Bitcoin do not have - a government can simply issue a new note format and make all the old 'cash' useless. Both PM's and Bitcoin can not have monetary policy imposed from a central source.
If the CB's ban cash, they better ban PM's and Bitcoin too - good luck with the PM's and Bitcoin ban.
Digital is how this whole fucking mess snowballed. Trading one false sense of possesion for another is useless. If I can't physically bash someone's teeth if they try to take my shit, then I don't really own it. Digital my balls motherfucker.
One more thing on this subject.
We just had a negative revision to Q1's GDP figure. It WAS barely positive prior to last Friday.
And that's AFTER the initial hoopla at the start of that quarter, with early estimates as high as +2.5% (or better)...remember?
If Q2's GDP also goes ultimately negative, after seven YEARS of games, claims, and mountains of debt...everywhere...
...I think its over.
m
"The reasoning is simple. Most large financial entities are insolvent. As a result, if a significant amount of digital money is converted into actual physical cash, the firm would very quickly implode."
I swear...these sons o' bitches (banks and the Fed) are going to set off a goddamned bloody revolution if they don't fess up, and stop the shit already.
EVERYBODY with half a neuron KNOWS we are NOT getting better, and yet these bastards continue to play games with what used to be markets and hard-earned middle class money. What the hell are these half-wits thinking?
I mean, the very idea that someone would pay for the security of loaning money to an insolvent government (negative bond yields) is itself insane.
As with the stock racket, many are thinking, I guess, that a bond or a stock certificate will at least represent a claim on assets at liquidation.
You own stock in company x, you then have a claim on that company's material assets (plant and equipment) if it goes bankrupt, and is forced to liquidate. Perhaps that represents some kind of security in the event of collapse, I dunno.
What the hell someone could take on an insolvent government, is another matter. Governments can't risk hyperinflation by printing more currency that actually gets into the mainstream money supply (which is why so much of it sits in reserves). Yet, that's ultimately what's going to happen because none of these banking or central bank whack jobs want to face a charge of great hordes of very pissed off account holders...
Don't believe it?
You wait and see what happens when Americans are fucked with by banks or pension funds, for example. This ain't Cyprus or Greece...
I've already covered the futility of PM's in other posts. That play is a fool's errand; it won't work. I would rather have the stuff I'm stacking the gold or silver to buy...now...not later. Later, it may be hard to obtain at ANY price a simple stack can afford. In a hyperinflationary environment, shit will cost what you have. Believe it.
Then what?
What WILL work is careful planning and acquisition of USEFUL goods (equipment, for example) one can actually use to maintain themselves--or others in trade--during the next financial emergency, which seems inevitable almost any day now.
I'm building productive capacity in speciality tools and equipment myself, even as I write. I am giving myself a wide variety of design and manufacturing options to make, or maintain, just about anything commonly needed. THAT'S the right play for me, because when the shit goes, you WON'T be able to find or afford those things later on, no matter what else you attempt to store as "wealth".
Bar of gold, Picasso...or a garden tiller?
I want the garden tiller; I'll barter for the gas...
History bears this strategy out time and again...
m
I see Zero Hedge doesn't even bother with a simple Google search to check facts before posting its click bait.
http://www.snopes.com/politics/business/cashillegal.asp
Still F'd up, if you own gold or silver and needed cash they will report you for being a 'criminal'
Ah yes, so Snopes is correct even though we have seen bank execs and EU countries openly talk about banning cash.
Carry on.
Snopes is technically correct, as they usually are, because they pick examples of over-reaching statements (like "Louisana banned cash transactions") and debunk them, while studiously ignoring the elephant in the room which indicates that there is a war on cash by the banksters.
It should be obvious that central banks would rather deal in ethereal invisible intangible digital money than cold hard cash.
There is no such thing as "digital money"
There is bankster generated 'credit' and there is Legal Tender Money.
Here's an interesting read on the sunject:
The Ban on Cash - Part II
Snopes is disinfo:
http://beforeitsnews.com/conspiracy-theories/2012/04/is-snopes-a-disinfo...
https://hiddenamerica.wordpress.com/tag/snopes-com/
http://dailytwocents.com/snopes-disinfo-website-spies/
Let them eat cash.
eliminating cash = eliminating freedom
As Stephan Molyneux states in his youtube vids "whatever the .gov tried to do with violence (force ) they create the opposite affect.
What if the .govs attempt to force us out of cash creates a society world wide that insists that gold and silver be the only currency again, and have it backfire.
50% Silver Brazing Alloy Sticks
So there's only $1.36 trillion in cash. What's the fukin problem? Just print a whole lot more. It's only paper for chrissakes.
If you can't purchase goods for cash then you barter them for copper, silver and gold coins.
Problem solved.
Bullets, water, glow sticks, toilet paper, propane, firewood, fishing gear etc. During Katrina paper money was useless.
Also, having cash will suddenly be worth more than the face value of the notes since it will be nigh on impossible to get any.
The bullshot is getting so high around here that hip boots don't cut it anymore.
http://www.snopes.com/politics/business/cashillegal.asp
Wow snopes, such a trustworthy website.
Word!
the ratio of paper denominated debt is actually infinity as the cb's can create moar as they see fit.
great article grams. gets to their weakness. hoarding cash doesn't excite me though, as it is a losing end game.
own anything physical, durable and represents money when money dies...
This has all the markings of total economic failure, which historically is deflationary, except this also has NWO written all over it which might mean they plan the exact OPPOSITE. Having a lot of paper crap lying around when banks are exploding right and left, soon to be followed by countries and then the Central Banks of those countries might not be a wise move.
Metals are the only second-hand and scrap goods worth anything. Other than unusual antique wood furniture and a few other rarities, non-metallic goods are worthless. Many second-hand items, such as cheap furniture, old magazines, average non-rare books, are negative value, meaning that you must pay someone to haul them away.
So the law covers almost everything worth consideration.