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The War On Cash: Officially Sanctioned Theft
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
While the benefits to banks and governments of banning physical cash are self-evident, there are downsides to the real economy and to household resilience.
You've probably read that there is a war on cash being waged on various fronts around the world. What exactly does a war on cash mean?
It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.
These limits are broadly called capital controls.
The War On Cash: Why Now?
Why are governments suddenly acting as if cash money is a bad thing that must be severely limited or eliminated?
Before we get to that, let’s distinguish between physical cash—currency and coins in your possession—and digital cash in the bank. The difference is self-evident: cash in hand cannot be confiscated by a “bail-in” (i.e. officially sanctioned theft) in which the government or bank expropriates a percentage of cash deposited in the bank. Cash in hand cannot be chipped away by negative interest rates or fees like cash held in a bank.
Cash in the bank cannot be withdrawn in a financial emergency that shutters the banks, i.e. a bank holiday.
When pundits suggest cash is “obsolete,” they mean physical paper money and coins, not cash in a bank. Cash in the bank is perfectly fine with the government and its well-paid yes-men (paging Mr. Rogoff and Mr. Buiter) because this cash can be expropriated by either “bail-ins” or by negative interest rates.
Mr. Buiter, for example, recently opined that the spot of bother in 2008-09 (the Global Financial Meltdown) could have been avoided if banks had only charged a 6% negative interest rate on cash: in effect, taking 6% of the depositor’s cash to force everyone to spend what cash they might have.
Both cash in hand and cash in the bank are subject to one favored method of expropriation, inflation. Inflation—the single most cherished goal of every central bank—steals purchasing power from physical cash and digital cash alike. Inflation punishes holders of cash and benefits those with debt, as debt becomes cheaper to service.
The beneficial effect of inflation on debt has been in play for decades, so it can’t be the cause of governments’ recent interest in eliminating physical cash.
So now we return to the question: Why are governments suddenly declaring war on physical cash, the oldest officially issued form of money?
The first reason: physical cash has the potential to evade both taxes as well as officially sanctioned theft via bail-ins and negative interest rates. In short, physical cash is extremely difficult for governments to steal.
Some of you may find the word theft harsh or even offensive. But we must differentiate between taxes—which are levied to pay for the state’s programs that in principle benefit all citizens—and bail-ins, i.e. the taking of depositors’ cash to bail out banks that became insolvent through the actions of the banks’ management, not the actions of depositors.
Bail-ins are theft, pure and simple. Since the government enforces the taking, it is officially sanctioned theft, but theft nonetheless.
Negative interest rates are another form of officially sanctioned theft. In a world without the financial repression of zero-interest rates (ZIRP—central banks’ most beloved policy), lenders would charge borrowers enough interest to pay depositors for the use of their cash and earn the lender a profit.
If borrowers are paying interest, negative interest rates are theft, pure and simple.
Why are governments suddenly so keen to ban physical cash? The answer appears to be that the banks and government authorities are anticipating bail-ins, steeply negative interest rates and hefty fees on cash, and they want to close any opening regular depositors might have to escape these forms of officially sanctioned theft. The escape from bail-ins and fees on cash deposits is physical cash, and hence the sudden flurry of calls to eliminate cash as a relic of a bygone age—that is, an age when commoners had some way to safeguard their money from bail-ins and bankers’ control.
Forcing Those With Cash To Spend Or Gamble Their Cash
Negative interest rates (and fees on cash, which are equivalently punitive to savers) raise another question: why are governments suddenly obsessed with forcing owners of cash to either spend it or gamble it in the financial-market casinos?
The conventional answer voiced by Mr. Buiter is that recession and credit contraction result from households and enterprises hoarding cash instead of spending it. The solution to recession is thus to force all those stingy cash hoarders to spend their money.
There are three enormous flaws in this thinking.
One is that households and businesses have cash to hoard. The reality is the bottom 90% of households have less income now than they did 15 years ago, which means their spending has declined not from hoarding but from declining income.
While Corporate America has basked in the glory of sharply rising profits, small business has not prospered in the same fashion. Indeed, by some measures, small business has been in a 6-year recession.
The bottom 90% has less income and faces higher living expenses, so only the top slice of households has any substantial cash. This top slice may see few safe opportunities to invest their savings, so they choose to keep their savings in cash rather than gamble it in a rigged casino (i.e. the stock market).
The second flaw is that hoarding cash is the only rational, prudent response in an era of financial repression and economic insecurity. What central banks are demanding--that we spend every penny of our earnings rather than save some for investments we control or emergencies—is counter to our best interests.
This leads to the third flaw: capital -- which begins its life as savings -- is the foundation of capitalism. If you attack savings as a scourge, you are attacking capitalism and upward mobility, for only those who save capital can invest it to build wealth. By attacking cash, the central banks and governments are attacking capital and upward mobility.
Those who already own the majority of productive assets are able to borrow essentially unlimited sums at near-zero interest rates, which they can use to buy more productive assets, while everyone else--the bottom 99.5%--is reduced to consumer-serfdom: you are not supposed to accumulate productive capital, you are supposed to spend every penny you earn on interest payments, goods and services.
This inversion of capitalism dooms an economy to all the ills we are experiencing in abundance: rising income inequality, reduced opportunities for entrepreneurship, rising debt burdens and a short-term perspective that voids the longer-term planning required to build sustainable productivity and wealth.
Physical Cash: Only $1.36 Trillion
According to the Federal Reserve, total outstanding physical cash amounts to $1.36 trillion.
Given that a substantial amount of this cash is held overseas, physical cash is a tiny part of the domestic economy and the nation’s total assets. For context: the U.S. economy is $17.5 trillion, total financial assets of households and nonprofit organizations total $68 trillion, base money is around $4 trillion, and total money (currency in circulation and demand deposits) is over $10 trillion (source).
Given the relatively modest quantity of physical cash, claims that eliminating it will boost the economy ring hollow.
Following the principle of cui bono—to whose benefit?--let’s ask: What are the benefits of eliminating physical cash to banks and the government?
Benefits To Banks And The Government Of Eliminating Physical Cash
The benefits to banks and governments by eliminating cash are self-evident:
- Every financial transaction can be taxed
- Every financial transaction can be charged a fee
- Bank runs are eliminated
In fractional reserve systems such as ours, banks are only required to hold a fraction of their assets in cash. Thus a bank might only have 1% of its assets in cash. If customers fear the bank might be insolvent, they crowd the bank and demand their deposits in physical cash. The bank quickly runs out of physical cash and closes its doors, further fueling a panic.
The federal government began insuring deposits after the Great Depression triggered the collapse of hundreds of banks, and that guarantee limited bank runs, as depositors no longer needed to fear a bank closing would mean their money on deposit was lost.
But since people could conceivably sense a disturbance in the Financial Force and decide to turn digital cash into physical cash as a precaution, eliminating physical cash also eliminates the possibility of bank runs, as there will be no form of cash that isn’t controlled by banks.
While the benefits to banks and governments of banning physical cash are self-evident, there are downsides to the real economy and to household resilience.
In Part 2: What To Do With Your Cash Savings, we'll look at the most influential forces in play in this war, and consider strategies for preserving purchasing power, avoiding bail-ins, fees and other threats to cash savings.
Click here to read Part 2 of this report (free executive summary, enrollment required for full access)
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Then I'll be about a bartering motherfucker.
They want to ban cash because they have run out of rope. The zero lower bound is the end of the Keynesian experiment unless they can push rates significantly negative. Cash prevents this so instead of admitting defeat like any rational person, the Keynesian powers that be just want to change the rules again and ban cash. Society has forgotten the dangers of the banking system with the death of those who where adults during the great depression. They understood the freedom physical cash afforded, and used that freedom for much of their lives.
Even if they do ban cash and push rates significantly negative it will only exacerbate the current bubbles and make them super bubbles, explained here.
That's exactly right. Banning cash is Keynesian end point desperation.
The system is failing because the system is corrupt, I've been teaching this stuff for years now, and I applaud this well written article, I'm glad someone is playing the guard dog for the sheep, because the foxes are most defnitely going to bail in those banks & inflation is likely going to continue to soar (worldwide)...
We are at a unique connundrum, obviously the elite are expecting huge pushback (e.g. Jade Helm), and I'm afraid the worst has yet to surface..
http://galeinnes.blogspot.com/2014/08/seeing-agendas.html
All I have left to say is, if you don't want to become a victim America, it's high time you start COLLABORATING....
https://youtu.be/Glny4jSciVI?t=66
"Since 1971, the banks don't need your savings." Robert Kyosaki.
Correct, they just need your servility, your labour.
Welcome aboard, now shackle yourself to an oar (job) and start contributing.
"Those who already own the majority of productive assets are able to borrow essentially unlimited sums at near-zero interest rates, which they can use to buy more productive assets, while everyone else--the bottom 99.5%--is reduced to consumer-serfdom"
You load sixteen tons, and what do you get
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store
https://www.youtube.com/watch?v=jIfu2A0ezq0
I like how Charlie tries to play bail-ins off of taxes, as if taxes aren't also legalized theft. Income tax does not go towards any programs. Government programs are paid for through other taxes, fees and assessments the citizen slave pays. Income taxes go to the international banksters for providing you with the means to transact in their banking systems. You are taxed on your income for your use of Federal Reserve Notes and the Federal Reserve System.
I am Chumbawamba.
Less cash equals deflation. More bad news for the gold bugs. King dollar remains on top.
in '33 gold was "confiscated"
this time the barbarous relic is "cash" itself...
Astute observation.
Barbarous relic.. that what they also consider liberty to be.
I sense an inflection point coming.
I went to Ikea with the family today. We got coffee and garlic bread after a couple of hours of walking around, just like I remember the last time I went five or six years ago. I wanted to chow on the carrot cupake after - it was damn good commodity baked food, mind you. Cost: $0.99. Fool wouldn't take cash. Only card. For a $1 item. I had a dollar and a dime ready to roll. Fucking A!
This place is FOOKED.
Another reason they want to ban cash..
I buy as little as possible new and I fix stuff right and left.
The P to P resale market is mostly cash.
They want to kill it as much as possible.
The kids are already in the zone.
They consume new stuff and throw away perfectly good stuff like crazy.
Only the exceptional kids want to fix things.
Save the planet?
A well rounded young adult can:
Read/write English, have some understanding of western civilization fron Aristotle to Adam Smith as well as the the founding of the USA, but also sweat and thread pipe, join wood, wire/stick/gas weld a bit, wire primary electric, de-solder/solder some bad parts out and into a PCB, write a script for an Arduino and or some C/Python for Rasberry Pi, and go to church occasionally.
But if on a farm, the whole horticulture and animal husbandry thing needs to be added.
http://legal-dictionary.thefreedictionary.com/Theft
Carry on...
The NAR will obtain a housing market exemption from a cash ban.
How will the cops steal your cash if you don't have any? Will they ask to see your bank balance, and if it is too high force you to write him a check if the balance is suspiciously high?
"The War On Cash: Officially Sanctioned Theft"
No different than taxes and all other wealth transfers.
Taking someone else's property and using it for your own purposes is considered theft unless you have a banking license.
On a side note regarding fixing things - I have noticed that only mildly broken shit seems to be getting sold at such an deep discount nowadays it's just amazing. I can get stuff that only requires minor repairs for less than scrap value fer Christ's sake. It's almost like no one either knows how to fix and maintain stuff, or wants to bother. . .
Craigslist some tools and and a pickup, and you are in business.
Kings whore why dont you go lick the dragon ladys pussy.
"You can't turn the Internet off."
You can't turn the comments off either though too.
Interesting that people even listen let alone react.
And of course "the reaction to a COMMENT is always negative."
Which brings up the question "if ZIRP is the answer why have bail ins?"
Sounds like Europe is flat broke to me.
"Too poor to have bailouts so they just steal."
Is anyone lacking in inflation ever?
Hilarious to even ask the question.
So, yeah...I get the point of "where is my return on paper?"
But then people bitch about the stock market? What sense does that make. That is the ultimate arbiter of actual cash via the extension of actual credit...not currency, coin or gold.
Is it the market's fault that Detroit went bankrupt? I don't think so.
Interestingly this has sanction in the law.
Europe? What do you call $18 trillion of just public debt which can not be payed back, thriving??
There'll come a point where banker suicides -- falling from high windows -- are no longer a mystery as the people won't be giving them a choice.
The move to ban cash is but another variation of the banksters protecting their debt-based franchise.
And equally explains why Gold has been manipulated and capped. We don't want the plebs to feel that they have ANY way out now do we?
They’ll come to a point where negative interest rates will spark MASSIVE inflation.
1. When negative rates of 6% become fact, investment booms into assets and commodities will rocket to the moon.
2. Commodities form our base for products and services and those will follow in price
3. They’ll try price controls which will push for a renegade currency outisde the system
And that’s where gold, silver and bitcoin will become ruler and where toilet paper will be a price asset...
I hate bitcoin, but I met a guy who’s going on the run to Australia because he’s going to go bankrupt. He’s buying everything he can to sell for peanuts to get as much cash he can get his hands on. And he’s putting it all into bitcoin.
Why? He won’t be able to own a normal bank account and he can onoy take 10k in cash with him to australia. And there’s bitcoin tellers in sydney and that will be his bank account.
So cash isn’t criminal, it’s stuff like bitcoin because nobody controls it.
cash, gold, silver, all have volume. And volume for travelling isn’t good.
This place is fooked.
Volume? Gold? Well, yes, technically, but have you ever held a single 100 gram bar in your hand? A few of those don't take up much space – at all.
Bitcoin defeats capital controls? Whoda thunkit?
Bitcoin Report Volume 12 (Bitcoins and Borders)
A million dollars would fill a 2-liter soda bottle only 3/4 of the way up.
No, this is exactly where they were heading. First ban gold, then cash. Offer people digital credits attached to a card or chip implant (aka cattle) so they can trace everything everyone does, all their income, all their expenses, and turn the chip off at will. They can also go into people's bank accounts and take whatever they want out of it.
And Pelosi will qweef about how Congress must stay exempt for national security reasons. Fucking slime.
You can talk about legal tender laws, debt backed currency, the petrodollar system, etc... but you'll find that this is something that congress cannot exempt itself from as a practical matter. Everything that I brought up is why those little rectangula greenr pieces of cotton rag still have value. Those are not, however, why I will still accept them. I will still accept them simply because everybody else will. Make it illegal for the masses to accept them, and they either go deep into the black market, or they lose value. This affects congress the exact same way that it affects us. This isn't about effects than be legislated into or out of existance.
Power outages happen. Not even talking EMP, just simple, everyday thunderstorm or ice storm power outages. Hurricanes are good for multi-day outages. The electronic system cannot function -people can't buy food or gas - without electricity. If there aren't enough conveniently-timed outages, targeted insulators and transformers will reduce system reliability enough to keep social pressure roiled.
They cannot ban cash unless and until there's a way around that simple fact.
Thus logically you should also keep a fair amount of emergency coin as well: quarters, dollar coins, nickels and dimes.
There is also a distinction between Fed Res notes and Treasury-issued coins, although how important that is as a technicality remains to be seen.
Nickels are still below cost but not for long. Bags and bags of them are good for making things very heavy, like safes.....
http://www.coinflation.com/
"Er, those arn't PMs Mr. IRS man. . . They're 'safe ballast'"
Hilarious.
PS I notice that coinflation only lists nickles to 2014 - have they not minted nickles in 2015, or have they changed the composition?
They don't need to ban the possession of cash, just make it Illegal Tender, in other words prohibit stores from accepting it.
Then you can use your cash as toilet paper
One of the misunderstood things about the legal tender laws is that they apply only to situations where there already exists a debt. I can refuse to sell you a pack of gum if all you have is a $100 bill, and as a practical matter, if you owed me $0.25 and all you had was a $100 and I didn't have the change, nobody would expect you to pay me back right then and there. (Note: I would pull that shit on a bank, because it would be expercted that they have change, and they'll charge late fees and disgusting interest on those late fees.) For transactions where the exchange of the currency happens at the same time as the debt would be created, but you hand over the FRNs right then and there, legal tender laws don't apply, because there is no debt involved. You have the choice to walk out without the goods, and no debt will have existed. But if you accept something on credit, i.e create a situation where you owe somebody something, then legal tender laws apply.
Like the Founding Fathers. When the Empire found out how much they were bartering, it inflicted a host of stamp taxes and such on them, and those taxes led to the Revolution. Same bankers doing same things now that they did 200 years ago.
All wars are banker wars
I see the banning of cash as a great motivator for leaving the ussa. better to take the money (while it is still in my possession) and find someplace in the world where I can live as a free man.
if the cartel has its way, there will be nowhere to go. but I don't think they will win, at least not immediately. there will be pockets of holdouts, people who refuse to be shackled by the collar of financial fascism.
They're already testing it in parts of the UK
http://www.manchestereveningnews.co.uk/news/greater-manchester-news/chor...
The theft was unofficially sanctioned a long time ago.
Has the term 'Fractional Reserve Banking' lost all meaning?
This is how safe your 'money' is when it is deposited in a U.S. bank; it is stolen by the bank at the moment of deposit (assuming the 'money' existed in the first place) and your account is credited with the amount stolen. This means that the richest amongst us have exactly the same amount of 'money' in their deposit accounts as the poorest amongst us have in theirs, $0.00.
That a bank maintains some 'money' on hand to placate a few requests for the medium, does not negate the fact that all deposit accounts maintain a zero monetary balance. A ledger book entry denoting the amount of 'money' the bank owes to (stole from) the depositor, is not 'money', regardless of your ability to 'spend' that ledger book entry with a debit card. Passing around bank debt from one recipient to another, is not payment for anything. Crediting an account with the amount and actual payment are two different things.
Some people bitch, howl, whine and complain all the time about 'gold' and 'silver' being 'real money' and denounce the 'fiat paper', and they're not even getting or using the 'fiat paper', which is the money as defined by law. Do you know what is not listed in that legal definition of money? Ledger book entries made by the Fed and the banks denoting the amount of money they owe.
The only reason any government issuing a fiat currency can be in debt is due to the fact that it did not print the payment. This also means that the U.S.G. does not need to 'borrow' or 'tax' to meet any of its obligations. So, stop accounting Fiat Legal Tender, as if it's gold. The whole U.S.G. debt mime, is B.S..
**By the way, I just gave you a description of the actual meaning of 'fractional reserve banking', did you spot it?
There is a difference between Money and Credit.
Right!...and what i can not trade in skill or goods, silver n gold will be your friend.
My Grandmother will in the front lines of the mob baying for blood.
7 years from now illegal bartering will be punishable, not by death, but my SWAT team inspection and search of your home. (Or in other words, punishable by death).
Remember during the French era (just before the French Revolution) it was punishable by DEATH to simply ask for a price other than in Assignats. (really, look it up)
If I could graph an average citizen's "fear quotient" I think that since the 70's you would see an ever increasing slope to the line.
That cell phones are so ubiquotous makes it possible for ALL transactions even those of a dollar or so to be done electronically.
For the time being, for instance, I have a tenant that I've been having trouble with and who I would not take a personal check from.
Se he paid cash, about ~$2600. For the first time in my life I wrote two receipts. One that I signed to show I received the cash.
The other for him to sign to PROVE that I received the cash legitimately. At the bank I casually showed and mentioned that it was rent money. I really don't want to show up an any radar screen.
Travel with more than $1200 I suggest that you take physical copies of the withdrawal receipts AND scan them and put them on the cloud. Mere mention that "cash receipts are with the money, and scanned images are instantly retreivable will likely leave the cash in your possession. Or so that's my opinion.
You...my friend are an idiot. You take the cash to the bank...Really? You are a good citizen... You sound as though you will go to the FEMA camp as one of the first volunteers for the free "Re-education" training. Good...Luck...Wow.
I'd estimate that a quarter of the rent paid in this country is in cash, especially in poorer areas (non-section 8).
I had a tenant back in the 90's that paid with money orders. Never missed a payment. Took good care of the place. He was from Saudi Arabia, which I thought was cool back then, kind of scary now. He said he was in the oil businiess.
If you are talking about to private landlords I would say that number is much much higher probably over 75%.
You can prove it is the same cash you took out of the bank!
Are you going to have the bank list the serial numbers?
Civil forfeiture is never about the source of money. The cops who rob you blind don't care where the cash originated. They don't want proof. They care about how you were going to spend it, and you were obviously going to spend it on drugs, weren't you? Hand it over now! Be a good boy!
Don't want to show up on them radar screens you say? Well, the fee for that is... it's your lucky day! It's the exact amount you've got in your wallet!
If they go to negative interest rates it will also drive the price of gold and silver much higher as it will be a sign that banks are unstable and money velocity non existent. American will finally wake up to their fiat currency destruction. Gold is pure money because it is not based on debt and will be sought out as Gresham's Law kicks into overdrive....
Raise cash now outside the banking system and buy physical gold and silver....Just like Kyle Bass did in Texas.
go ahead and ban FAKE money......nobody cares....
@ Usurious
Correct. Everything from here on in is Useless Chit-Chat. A complete waste of talk and time.
Most on Z/H will continue to engage on a rational basis even though the titanic has sunk.
The Cabal have snatched annihilation from the jaws of a massacre and then Doubled Down on the very same BASTARDS who got us here.
While tea-boy Obama does the rounds for his NeoCon Masters pouting WAR to save face, in truth that's their last resort in order to return to Power after the coming Great Crash.
While Cameron states we're ALL in this together and Osborne sips Crystal Shampoo at the Bilderbergs, WE CLOWNS await the DATE they have set to wipe out the Planet.
Remember those commercials where a customer would swipe their credit card for purchasing things and be on their way. Whatever happened to that idea? When I visit my local WAWA for my morning brew on the way to work, many use their credit cards and often have to sign a receipt after paying. Sometimes they pay cash for part of their purchase and then get their credit cards out to pay the rest of the bill. I always pay with cash which I find much quicker then searching for the right card. Many have cards that have been maxed out so they have to pull out another card and hope that one works. lol!
They will not ban cash. How will politicians get bribes?
They'll still get paid in ass on the side like they do today.
Someone said this is like dresden without the bombs.
Banning cash would put all of the drug dealers out of business. How will the CIA fund itself?
Also, how will the CIA sell drugs? It is not going to happen - the drug trade is that big. If it ever becomes not big, banning cash will create a barter environment once all of the PMs have been spent. Barter can work quite well - it is not as ideal as tally sticks but it can work. It did work before what we call money happened.
just like they used to, thirty pieces of silver.
Simple. Switch to hard assets. There are many options available.
It's already pretty bad. A few years ago I pulled a stupid stunt at the bank. I got myself into too many things and too little cash while I was selling a property and ended up having to sell some shiny. The business loves me and took me in the back and paid me in cash... old bills. The look on the bank tellers face was priceless and I emediately realized my error in thinking I was clever. I should have atleast made a couple trips.
I told them I sold an engine drive welder and the guy was from out of state and I didn't trust taking a check. What I wanted to do is tell that old broad to go fuck herself but oh well. I'm still smarter than the truly paranoid guy I met who told me he had close to 200,000 in cash buried in pvc pipe. Apparently, it was everything he had and he has been doing it for years.
Have to careful about that one, cash actally molds. On the other hand, they are still finding buried gold and silver treasure. Those old pirates weren't so dumb after all eh?
Silver For The People
Throw the bills into the wash machine before burying. It's the bacteria on the bills that causes decomp. True dat
Taking our gold and silver money and replacing it with paper that said we owe a debt to them was not enough. Now even the paper is too much freedom for them to tolerate. http://localismaphilosophyofgovernment.blogspot.com/2015/05/the-coming-w...
Going cashless would not be politically expedient. Instead, if they want to flush out all of the cash holdings, they could do a Zimbabwe and reissue new currency forcing people to declare their cash holdings when they go to the banks to swap currency.
Russia
Problem is the criminals know that the bankers are watching them closely and that a huge influx of cash would raise many eyebrows. A much smarter move would be to buy up hard assets before the window closes. Hello hyperinflation!
JUst in case the cops stop me for a search and seizure of cash I always carry at least a million dollars
http://www.ebay.com/itm/Lot-of-100-Liberty-One-Million-Dollar-Bills-/121...
Banning cash will be my line in the sand. Thats when Ill quit my job and drop out of society. I dont know exactly what Ill do at that point but it wont be what Im doing now.
hell....am already there.
Different parts of the government have contradictory goals:
(1) To know what everyone is doing at every moment by tracking every penny they spend.
(2) To raise money for the government to waste -- I mean, spend.
Banning cash only makes sense if (1) is more important than (2). If fools want to stuff their mattresses with $100 bills, we ought to print them on cottony-soft Cottonelle so dollar-hoarders can sleep more soundly, and have use for that money should they wait too long to spend it.
Easier to raise money for the government to waste if every penny is tracked, so (1) fits neatly into (2).
Not really, hookers and drug dealers will switch to some other untraceable cash-like substance for which the government gets no seigniorage. Besides, why "raise" money when you can just print it?
Who cares about NFC and Apple Pay. You taught us how to print counterfeit fiat. Why should we worry about you? You should be in prison. We'll just mask the same alternative solutions without central banking middleman banking. You fucked it up for yourself.
It's all a matter of easy control over population and cash make such a control more difficult though not impossible, and requires army of people dedicated to it.
Only easy tracking IT technologies were allowed to be invested and developed and here we are tracked for location and content everywhere we go through smartphones, credit cards, cameras, internet, job, medical,ss, law etc. systems exactly as they want us.
As much as electronic cash is wide open to banksters direct theft so is paper cash by old trick of exchanging old currency for new currency (old dollar to new dollar or amerigo, or globo). In such case electronic money is exchanged (stolen) in arbitrary rate while paper is not and becomes worthless. Old tricks known by bankers for centuries.
The fact is that money and everything else they do is about control by power elites over their slaves.
For all those what are wondering how it came to be that bankers in US and all over the world ended up with power and influence surpassing those of governments over almost all world population and metaphorically and actually tell people (even with no bank account) what to do in their intimate private lives every day, should definitely read unique and telling story about money, it’s origin and its true role and purpose in society.
https://contrarianopinion.wordpress.com/2015/04/14/plutus-and-the-myth-o...
They'll whine and bitch, threaten and confiscate, and make an arrest or two to show the people who still watch tv.
They'll never go to a completely electronic currency because they know that would be shooting themselves in the head.
The extremely vulnerable centralized power grid guarantees a reset to zero, the thing they are most desperate to avoid.
Cash won't be banned, per se. The $100 FRN is the largest note printed now, and they will never print any higher denominations; inflation will render $100 FRN's irrelevant.
On the Alex Jones web site, Infowars.com/store there is a DVD by Arron Russo. Arron Russo was the director for Bette Midler and the movie trading places with eddie murphy, anyways in the movie that is in the store he talks about the Rockerfella's wanting digital cash and a RFID chip inserted in your hand so that they can have complete control over everyone no one can challenge them, they can just turn your chip off and your penniless. Total control. Buy ammunition and they know you have a gun. How about paying for a prositute? Drugs? They know what you buy where you shop, evil as hell.
The chip wins in the end, the digital cash goes away.
The big issue with this is that the Government will have to have a way to deal the drugs without being tracked or make drug dealing legal. No getting around major attacks by drug cartels, including the Forbes and Kerry aristocracy. There is a problem here and I don't see it being easily resolved without a battle between banking families and drug running families.
There is no such thing as "Digital Cash" in the bank. All deposit accounts are credited accounts, bank debt, ledger book entries denoting a bank's legal obligation to pay to its depositors, upon demand or over time, legal tender cash.
Definition
Bank Bail-in: The art of stealing 'again' what was already stolen, or never really existed in the first place.
The Ban on Cash - Part II
Phenomenal blog mate, I shared it on my social.
Yes, ban the "Full Faith and Credit Clause". Really reinforces it for sure!
It is quite a stretch going from limiting and restricting CASH withdrawals from your bank accounts and outlawing CASH altogether.
CASH withdrawals are sure to be prohibited when you are standing at the teller's window trying to empty your account as is the gentleman behind you and the line behind him that goes out the door and down the street and around the corner.
The Chinese have had family bookkeeping systems for I think thousands of years that enable them to keep track of barters, for generations, and thereby avoid government tracking and taxation of every breath of air they take and every sip of water they drink.
Lived in Jilin province for two years. Big center for the shadow bank. When you talk to people on the street the shadow bank is as legitimate a source of a loan as the Bank of China. Though if you default.. I saw many one armed men in China..
I suppose the loss of an arm is more humane than what the banks do to people here.
Thanks.
Humans are a an ingenius species. If cash was eliminated, there is no doubt that some serf will find a way to by- pass the system. No one likes to be controlled by these bankster control freaks.
https://www.youtube.com/watch?v=-wntX-a3jSY
People will just use the next most convenient thing.
In Australia the gov claims there's a lot of counterfeit $100 floating around so want to change the design and anyone with the current design can deposit them in their bank to exchange them.
Great way to flush out cash and then ask how you came about having it. Then when you go to withdraw it they'll ask you what for.
i tested a new pistol today, online said it was iffy but i didnt have any trouble at all. no brass in the face, no feed nothing, buttery. oh yeah thefted currency......................................................i am like a bird in a, tree just watching til maybe i can escape, if not duke it out, jesus i guess i sound like everyone else.
fuck you all in the nicest way possible, good night.............greedy prick
https://www.youtube.com/watch?v=wz-x9FBDmyY
It's much easier to create super deflation in a cashless environment. They will lure all cash out first thru super inflation. Be prepared.
I don't see a ban happening right away. But they might stage it in by:
1. Issue new currency Zim style and place a 1 year expiration on the notes, publishing every 6 months.
2. Allow refresh exchanges at your friendly bank, for a small fee of course.
3. Once we're all rotated through for a few years, then announce its a bit silly and let's stop doing this.
4. Deposit what you have outstanding and go digital, since this paper exchange is "inconvenient".
5. We're only thinking of you.
They want to ban cash because they want to force people to trust banks.
They want to force people to trust banks because banks have proven themselves untrustworthy.
Birth of the underground economy ?
There already is an underground economy, it will just get bigger if these fucks start zirp and outlaw cash
Transition of the underground economy from cash to crytocurrency.
Getting rid of paper cash will certainly benefit the gov and banks but OTOH it is another example of something whose time perhaps has come just like the vinyl record and video tapes. I just read that the zimbabwean dollar is literally worth less than toilet roll. Maybe zimbabwe can sell its notes to venesuela for that very purpose.
That is why Zim was a live test study for banksters. Look up List of Zimbabwe Banks, Barclays was there. Barclays was founded in 1690. That is sure a lot of wars to participate in.
“The reality is the bottom 90% of households have less income now than they did 15 years ago, which means their spending has declined not from hoarding but from declining income.”
It is convenient to model the economy as two loops. There is an upper financial loop, and a lower “real economy” loop. The upper and lower loops have banks at intersection point. The lower loop is always in drain to the upper loop. P>P+I Principle of a loan can never be greater than principle plus interest, and since 97% of money supply is credit loans, then this equation exacerbates the two loop economy. The bottom loop must continuously take out new loans in order to transact their production. In a balance sheet recession, the bottom loop is trying to de-leverage.
QE rewards the upper loop, and upper may create new instruments (example: derivatives) or may deign to shower some of their usury money down onto desperate draining lower loop. QE does not help bottom loop of consumers/producers deleverage and hence is the wrong medicine in a balance sheet recession. How stupid are economists with their bad advice? The proper response is direct spending of exogenous money into lower loop. Other possibility is to haircut debts. Or, even better, shit-can the flawed private credit money system –it came into being with fraud, and still is fraudulent.
“The second flaw is that hoarding cash is the only rational, prudent response in an era of financial repression and economic insecurity. What central banks are demanding--that we spend every penny of our earnings rather than save some for investments we control or emergencies—is counter to our best interests.”
Some savings is good. Savings represent past wealth accumulation and also latent demand. In other words, savings could make demand today. It is the upper loop that has savings due to the two loop economy, and upper loop is Oligarchy and Finance. How many pairs of pants can an Oligarch wear? Real demand resides in lower loop of producers, which are being starved by a credit money system that can only do monetarist magick swaps instead of directed spending.
“This leads to the third flaw: capital -- which begins its life as savings -- is the foundation of capitalism. If you attack savings as a scourge, you are attacking capitalism and upward mobility, for only those who save capital can invest it to build wealth. By attacking cash, the central banks and governments are attacking capital and upward mobility”
In a private banker credit money system, cash is on-account liabilities. When one takes out a loan, this new credit becomes on-account and liability for banker. This digital credit can then morph form and become cash. In other words, cash is not currency, but instead is the tangible form of banker credit. Virtually all money in money supply is ENDOGENOUS banker money, and hence it is under drain pressure – including cash. And to repeat, cash is not currency in this system. So, the next question: How is it possible for lower loop producers to save cash in an endogenous two loop banker system? It is not possible. Productive capitalism is undone by credit banking finance.
Those who want to apply demurrage (interest on cash) are confused. This confusion is palpable amongst economists. Credit as money already is taxed at its inception, when it is hypothecated into existence. Usury applied to credit can be extensive, for example a house loan can double or triple the costs. Banker credit as money type is already under velocity pressure due to demands of its debt instrument, hence a continuous drain of lower loop. Applying demurrage to bottom loop, who are already under drain pressure is the height of ignorance.
If western money system was instead debt free currency, a money type relating to goods and services (not debt instruments), then there would be circumstances where demurrage is appropriate.
“Those who already own the majority of productive assets are able to borrow essentially unlimited sums at near-zero interest rates, which they can use to buy more productive assets, while everyone else--the bottom 99.5%--is reduced to consumer-serfdom: you are not supposed to accumulate productive capital, you are supposed to spend every penny you earn on interest payments, goods and services.”
This word “asset” can have many meanings. Assets may be debt instruments that are attracting usury from lower loop. Assets may be financial paper in upper loop that are making claims on money supply. Assets could be real productive plant and equipment residing in lower loop. QE aims FED keyboard money at financial assets that are magikally swappable. These assets are always something fungible located in upper loop, and hence are easily transferred as numbers on double entry ledgers. The FED simply expands its balance sheet with swaps. The FED can only buy in its banker marketplace, the overnight market, where it has central bank control over reserves. If financial assets show up in the reserve “market” then the Fed can do a magick swap.
So, FED keyboard general purchasing power is swapped for financial assets. This mechanism does not fund real productivity, but instead rewards finance and paper. Finance and financial paper usually always relates to debt instruments or insurance games (derivatives) and has little to do with lower loop producers of goods and services.
Interesting explanations – thanks.
And those foolish enought to buy into Obamacare, just had another big chunk of their moneys cut from their income.
Make sure you understand, the war on cash does not apply to banksters, politicians, or drug lords. This is for the sheeple. They are the ones who might become terrorists at any minute. Sheeittttt.
Ban cash and force usage of cash digitally so that every transaction can be traced and tracked and easily prosecute ANYONE in the false name of anti-money laundering.
No, withdrawing all deposit from the banks will not cause any bank run. Why? For a start, the idea that banks loan money from deposit is already a falsehood. Banks don't get deposit and then lend them out. Bank lends money out first and get the reserve from either the deposit or from the Fed. Thus if there is no deposit left, banks can easily get the necessary reserve from the Fed, thus no bank run.
Bank run is an excuse, a false front, to do capital control.
Bail In’s:
Cyprus style: Swap bank stock for on-account liabilities.
Note the magick swapping; this is a legal power government has conferred upon private banking corporations. Money at its root is always law, whether a gold coin gets legal stamp, or if fiat credit is conferred upon a banking corporation.
In the case of Cyprus, there was lots of Russian money they wanted to confiscate. Take the on-account liability and convert it with bank stock. The cash liability is now magickally transformed to a stock liability.
Stock liabilities now have tracking means. General purchasing power is pay to the bearer on demand, and bearer can be anybody or anything. Stock liabilities are assigned to a specific bearer (Russians?).
These stock liabilities are then swept into a shell corporation, and then the shell can be collapsed. Good luck converting your “stock” back to general demand. You will get tied up in court forever.
What about the former on account “cash” the bank stole? It can now be funneled into paying off derivatives. Banks have gotten themselves into a gamblers hole, where they are on the hook to pay derivatives should interest rates go back up.
This derivative exposure is part of the reason for LIBOR, for bail-ins, and their desire to apply demurrage to their banker credit as cash.
Article has left out the obvious behind banning cash. Ration everything. You can only spend $20 a month on sugar. You can only spend $50 a week on meat. You can only spend $30 on ammo a year. You can only buy a firearm every two years. See where this is getting at?
hmmm...a curious way to control inflation eh? Or I should say price controls.
do you hear anyone on welfare complaining about their EBT cards? demanding they get welfare payments in cash or that funny monopoly money it used to be?
you guys who think the government won't outlaw cash are not paying attention. Think.
You seem to be the one that needs to think. The 2008 bail-out was financed in part by the drug cartels. Behind great wealth lies great crime. Hello?
I have said this before. The issue is property rights. Your labor is your property and what ever it is exchanged for is also your property. You go to work and exchange that work for US dollars. But you are not paid in dollars. Actual possession is banned Even now, many are on direct deposit which is what? Does that deposit retain a property right? Or are you automatically divested of that property right because of what the deposit converts it to?? From the War on Cash. And think about it/ The LAW aka the LEGAL FRAMEWORK set up by Congress would ban the possession of PROPERTY in a constitutional sense wherebynegation the constitutional requirement that NO person shall be be deprived of property without due process of law. Nor shall property be taken without just compensation.
So its simple. Contract in dollars and then by law CONVERT (See Blacks |Law dict on CONVERSION) DESTROY the property right and then walk around the constitution. If Congress cannot do this directly, the USSC says they cannot accomplish the same indirectly through legislation that accomplishes the same. Restated. If the federal and State legislators cant do it, they cannot by ststute give some other entity the power to do it.
The only ones who benefit from the conflation of money and credit are the issuers of credit with no money.
Has the term 'Fractional Reserve Banking' lost all meaning? This is how safe your 'money' is when it is deposited in a U.S. bank; it is stolen by the bank at the moment of deposit (assuming the 'money' existed in the first place) and your account is credited with the amount stolen. This means that the richest amongst us have exactly the same amount of 'money' in their deposit accounts as the poorest amongst us have in theirs, $0.00.That a bank maintains some 'money' on hand to placate a few requests for the medium, does not negate the fact that all deposit accounts maintain a zero monetary balance. A ledger book entry denoting the amount of 'money' the bank owes to (stole from) the depositor, is not 'money', regardless of your ability to 'spend' that ledger book entry with a debit card. Passing around bank debt from one recipient to another, is not payment for anything. Crediting an account with the amount and actual payment are two different things.
Americans use cash more than any other country. Cash in America will never disappear except through the dismantling of US society not some law.
WTF did you ever get support for THAT statement?
Link?
PRoof?
roadhazard, I wish you were right, but you are completely wrong on this.
Cash is already disappearing. They are now working to accelerate the process. The globe populace's material enslavement is nearing final totality. There are few solutions, and the vast majority will wait around for someone else to go first while reading about these crazy terrorists conducting random attacks and conspiring against our government protectors and corporate employers.
And roadhazard realized he has always loved Big Brother.
Once they remove cash the bankers will have total control over society by holding all accounts, even the government's. Then in order to get a bank account you will have to permit a RFID chip to be implanted to access your account. Piss anyone that matters off and see your account shut down, after which you starve to death or turn yourself in for re education which entails thirty years of slave labor at a re education center (formally prisons). The death penalty, by burning at the stake, will be reserved fro those that dare use home grown local barter currencies.
ban cash and gold, silver and gems will take its place in a black market. the black market becomes the real economy. you can pay 100 paper dollars for a roll of toilet paper or a silver dime. your choice. of course, you will be considered a ttttuuuuurrrrriiiiissssttttt if you do and will probably be turned in by your neighbor who will be paid with a jumbo pack of toilet paper for his patriotism.
Jackgoff and Biteme...two dicks in the butthole of finance.
Another scary thought to take to bed with you to sleep upon....
If transactions are all done by 'cards' then [they] can even direct where you can travel.
If you want to go anywhere and they don't want you to, all they have to do is set your account so that the care will only work in the allowed zip codes. So if there is a disaster or pandemic, your card will only work in those areas you are allowed to travel to (if you are allowed to travel at all).
As far as the CIA being able to continue their drug trade, that can still happen. Much like our immigration policy and laws appear to have an allowable loop hole or two the drug trade would also be controlled. Only those selling CIA approved drugs would be allowed to set up a shell company to do the transactions. Easy peassy.
nevermind
I have a friend that sells annuities. He ran into two clients that were seriously paranoid because one had all their moneyfrozen by the IRS at one point.
The other made the horrible mistake of wiring $20K somewhere. DHA using the Patriot Act froze all his accounts until he could show that the money was legit.
They froze EVERYTHING and he was without resources for a couple of weeks.
This is not in our best interest.
It's ulitmate object is to move everyone to Borg and/or Matrix status, i.e., total collectivism, the Hive. Who is behind this, who funds it, and who pushes for it? You know who, that tribe that sometimes considers itself White and other times not, depending on the advantage.
The genes that create the control modules in the brains of control freaks.
It is a drive for control which equates to survival.
Stopped reading after this statement:
"But we must differentiate between taxes—which are levied to pay for the state’s programs that in principle benefit all citizens—and bail-ins, i.e. the taking of depositors’ cash to bail out banks that became insolvent through the actions of the banks’ management, not the actions of depositors."
I think Bonner has a very good answer for this.
Because credit has skyrocketed beyond the ability of anyone
to repay...and the FEDs literally cannot "print" fast enough
to cover an implosion in the derivatives market.
Therefore, only "cash" ( those physical pieces of paper )
are real money ( so to speak ) and there is actually very
little of it around. Therefore the whole financial system implodes.
If theres another credit crunch, then only real paper $$$
mean anything, and if you outlaw that, then the FED can
at least try to "reliquify" the system. What xactly gets "saved"
here is a highly academic question as well.
Problem, is that as soon as they outlaw US$, then you and
I are left with foreign currencies, Bitcoin and gold. Nobody
will even bother with the US$ or whatever you want to call the FEDs
digital script.
bank runs will NOT be eliminated..just changed. one will not withdraw cash but rather purchase real things with it, whether canned corn or silver bars.....
unless of course they don't let you
Should it go 100% digital, the hackers will have a field day! From what i understand, at anytime they can make the whole FAKE system a big fat ZERO. They are just waiting for the right moment...please give em a reason to do it sooner rather than later.