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They’re Coming to Take Away Your Cash
by Keith Weiner
The stories are all over the Internet. Governments are forcing us into a cashless society. Supposedly the pretext is terrorism, and the real reason is to take more control. No doubt more power appeals to politicians, and banning cash seems like the next step after mandatory reporting of cash transactions. However, I think there is a more serious driver than simple power lust.
A more compelling case is that cash banning is the logical follow up to bail-ins. Most people think a bail-in is when banks steal your deposit. So it seems to make sense that governments want to force people to keep their cash in the bank. Then they are easy meat for the next bail-in.
However, a bail-in isn’t theft by your bank. There’s theft, alright, but the culprit is upstream. For example, in the case of Cyprus, the theft occurred in plain sight. The thief was Greece. That country sold instruments which it fraudulently called bonds, but it had neither means, nor the intent to repay. Those bonds are bogus paper. The Greek government stole the money, in the guise of borrowing it.
The Cypriot banks invested considerable deposits in Greek bonds. When depositors realized this, they began to withdraw their cash—a run on the banks. The banks were insolvent, so someone had to take losses. A bail-in shifts the losses from bondholders and other creditors to depositors.
It’s an example of how a corrupt monetary system causes corruption in banking. If government bonds are defined as the risk-free asset, then banks must hand depositors’ funds over to governments to spend. That can’t end well.
An honest bank will shut down operations before it burns through so much capital as to harm depositors. However, regulation obliges banks to buy government bonds (typically using short-term deposits). Thus the bail-in was devised to protect banks, though it violates law developed over centuries.
Neither control for its own sake, nor bail-ins, are the primary drivers of going cashless. Central banks don’t care about regulating the people, though they do support this new war on cash. Bail-ins are not a consideration in the US yet, though already American economists and bankers have expressed support for cash banning. So what’s really going on?
Citi’s Willem Buiter and Harvard economist Kenneth Rogoff are quite explicit. Central banks are grappling with the limit to their planning. As they push down the interest rate, more people withdraw their cash. This squeezes the banks, which make money by borrowing from depositors and lending at higher interest. Banks cannot pay a positive rate in order to earn a negative rate. If the interest rate on the government bond is negative, then the bank must set the interest on deposits at an even lower negative rate.
For some odd reason, depositors don’t like paying the bank to deposit their cash. It’s weird, I know. Instead, they withdraw their deposits. Withdrawals reduce bank funding, forcing banks to sell bonds. This pushes interest up, contrary to the plans of the central bank. It’s worth noting that bank runs and interest rate pressure are the reasons why President Roosevelt outlawed gold in 1933.
This simple preference not to lose money is dangerous to central banks. It threatens the monetary system to its foundations, because it’s an escape hatch allowing people to opt out of the central plan. If central banks don’t respond, then they accept a hard limit to their power over people. They’re stymied in their desire to set negative interest.
Thus they’re coming to take away your cash. However, they had better be careful. People will react to the central bank response, which forces another policy response, to which people will react, and so on. Central banks risk the destruction of their currencies.
This article is from Keith Weiner’s weekly column, called The Gold Standard, at the Swiss National Bank and Swiss Franc Blog SNBCHF.com.
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No matter how often Central bankers beat off to the idea of a cashless economy, it isn't going to happen.
I don't know why this even keeps coming up. It's like those 'microchips in your forehead' stories...scary, but not a realistic fear.
The banksters could then lower their reserve levels to nothin'. The serfs won't be able to access their slave script. A banker's wet dream.
A friend wants to know what is the safest cheapest best way to get into AU.
I hear HSBC and MF Global are reputable firms for managing your PM stash.
I think they will ban cash for two reason:
Discourages cash "hoarding"
Will make all financial transactions traceable
Banning cash will only sow the seeds of alternative currencies, barter networks, grey, and black markets. We'll get to keep more of our wealth as the transactions/transfers will be "off books". Those little airplane bottles of booze will be a great currency. Cigarettes will be even more valuable, if only you can keep them from going stale over the long term. .22, 9mm and NATO rounds will be priceless.
"What else ya got?"
This squeezes the banks, which make money by borrowing from depositors and lending at higher interest.
This type of "old style" Bankiung is obsolete. Now its, take depositors money pay them peanuts, invest it in land (here in germany) or other material assets and rake in the high risk profits. If, unexpectedly, some investments go sour or south, the gubbmint will backstop us with the depositors tax money. You can't lose!
The bail-in laws are in place over here. Thats not writing on the wall that's in the books and can ONLY encourage the bastards to gamble more. What was the punishment LAST time.
buy a safe, buy gold, guns, grub and a gucci lawn chair. crack a homebrew and wath the fireworks.
yeah depositors are nuisance
Agreed. We should ban depositors.
They can have my cash--gold and silver--after they take my guns.
Liberty is a demand. Tyranny is submission..
if they banned cash today just about everyone reading this tome would put their money in gold or silver, and that is not what the CBs want, however the majority of the people who have their cash retired would accept full electronic banking as the norm. the advantage for the economist, who is also a central banker, is that this money gets pushed into some form of economic activity, and that is what they desperately need. so money velocity goes from .001 to .01 or something, and its likely that many of the people who choose gold will use the paper certificate, so that gold is pretty liquid. while electronic money respects no borders, the currency trade goes off. so money as a means of statistism fails, central banks weaken, and central governments fail. the chinese leadership in bejing has their shorts in a knot about western culture (which is credit) when the worlds largest economy breaks up into provinces what do you think happens to global GDP? every other person you see on the sidewalk in NY will be a rich Chinaman. americas best days are ahead.
You state, "bank runs and interest rate pressure are the reasons why President Roosevelt outlawed gold in 1933.
What you fail to disclose is the real reason for the 30 Depression.
The Fed stole America's gold and shipped it to Germany to fund Hitler.
What no one recognizes to this day is that the Fed stole America's gold and shipped it to Germany causing bank runs and the Depression.
Banking Chairman Louis McFadden called on congress in the below speech from the congressional record to join him in the arrest of the Fed for theft and treason.
Congress was scared sh*tless to join him and left him alone to be assassinated two years later on their third attempt.
To this day we have morons like NYT economist Paul Krugman and Ben Bernanke stating the cause of the 30s Depression was the fact that we just didn't print enough
money even though we were on a gold standard and you can't print gold. Just more deception and disinformation from today's United States of Deception.
Even on alternative sites, this truth has not gotten the recognition it deserves. Most American's believe the Fed is a government agency benefitting them and no one seems to know the cause of the 30s Depression.
The bank runs of 32-33 were caused by this gold theft from American depositors. Amazing that 80 years later this truth is still not out and a great American hero was killed trying to stop this theft and treason and the cowards in congress let it all happen.
For the full speech see
Louis McFadden
http://www.afn.org/~govern/mcfadden.html
His assassination history
Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death" on Oct. 3, 1936, after a "dose" of "intestinal flue," "Pelley's Weekly" of Oct. 14 says:
Now that this sterling American patriot has made the Passing, it can be revealed that no long after his public utterance against the encroaching powers of Judah, it became known among his intimates that he had suffered two attacks against his life.
The first attack came in the form of two revolver shots fired at him from ambush as he was alighting from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the bullets burying themselves in the structure of the cab.
"He became violently ill after partaking of food at a political banquet at Washington. His life was only saved from what was subsequently announce as a poisoning by the presence of a physician friend at the banquet, who at once procured a stomach pump and subject the Congressman to emergency treatment."
/s/ Robert Edward Edmondson (Publicist-Economist)
Here's some quotes from McFadden's speech from the congressional record.
On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON.
The petition for Articles of Impeachmentas thereafter referred to the Judiciary Committee and has
YET TO BE ACTED ON.
So, this ELECTRONIC BOOKLET should be reprinted, reposted,
set up on web pages and circulated far and wide.
Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
Assorted Quotes
"On April 27, 1932, the Fed outfit sent $750,000 belonging to American bank depositors in gold to Germany. A week later another $300,000 in gold was shipped to Germany. About the middle of May $12,000,000 in gold was shipped to Germany by the Fed. Almost every week there is a shipment of gold to Germany. These shipments are not made for profit on the exchange since the German marks are below parity with the dollar.
"Mr. Chairman, I believe that the National Bank depositors of these United States have a right to know what the Fed are doing with their money. There are millions of National Bank depositors in the Country who do not know that a percentage of every dollar they deposit in a Member Bank of the Fed goes automatically to American Agents of the foreign banks and that all their deposits can be paid away to foreigners without their knowledge or consent by the crooked machinery of the Fed and the questionable practices of the Fed.
[Ed. Note- Problem with next paragraph in original] "Mr. Chairman, the American people should be told the truth by their servants in office."
On Roosevelt's anti-hoarding gold law taking the US off the gold standard.
"The Fed lately conducted an anti-hoarding campaign here. They took that extra money which they had persuaded the American people to put into the banks- they sent it to Europe- along with the rest. In the last several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign masters, and every dollar of that gold belonged to the people of these United States and was unlawfully taken from them."
The London Connection
"the officials in charge of the Fed unwisely gave Great Britain immense gold loans running into hundreds of millions of dollars. They did this against the law! Those gold loans were not single transactions. They gave Great Britain a borrowing power in the United States of billions. She squeezed billions out of this Country by means of her control of the Fed."
"She abandoned the gold standard and embarked on a campaign of buying up the claims of foreigners against the Fed in all parts of the world. She has now sent her bailiff, Ramsey MacDonald, here to get her war debt to this country canceled. But she has a club in her hands! She has title to the gambling debts which the corrupt and dishonest Fed incurred abroad."
"Under cover, the predatory International Bankers have been stealthily transferring the burden of the Fed debts to the people's Treasury and to the people themselves. They the farms and the homes of the United States to pay for their thievery! That is the only national emergency that there has been here since the depression began."
"Do not deceive yourself, Mr. Chairman, or permit yourself to be deceived by others into the belief that Roosevelt's dictatorship is in any way intended to benefit the people of the United States: he is preparing to sign on the dotted line! "He is preparing to cancel the war debts by fraud!
"He is preparing to internationalize this Country and to destroy our Constitution itself in order to keep the Fed intact as a money institution for foreigners. "Mr. Chairman, I see no reason why citizens of the United States should be terrorized into surrendering their property to the International Bankers who own and control the Fed. The statement that gold would be taken from its lawful owners if they did not voluntarily surrender it, to private interests, show that there is an anarchist in our Government.
"The statement that it is necessary for the people to give their gold- the only real money- to the banks in order to protect the currency, is a statement of calculated dishonesty!
"By his unlawful usurpation of power on the night of March 5, 1933, and by his proclamation, which in my opinion was in violation of the Constitution of the United States, Roosevelt divorced the currency of the United States from gold, and the United States currency is no longer protected by gold. It is therefore sheer dishonesty to say that the people's gold is needed to protect the currency.
"Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed.
"Roosevelt cast his lot with the usurers. "He agreed to save the corrupt and dishonest at the expense of the people of the United States."
"He took advantage of the people's confusion and weariness and spread the dragnet over the United States to capture everything of value that was left in it. He made a great haul for the International Bankers.
"The Prime Minister of England came here for money! He came here to collect cash!
"He came here with Fed Currency and other claims against the Fed which England had bought up in all parts of the world. And he has presented them for redemption in gold.
"Mr. Chairman, I am in favor of compelling the Fed to pay their own debts. I see no reason why the general public should be forced to pay the gambling debts of the International Bankers.
Roosevelt Seizes the Gold
"By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his action he has rendered them payable to the depositors in paper only, if payable at all, and the paper money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned gold values in itself, and being based on nothing into which the people can convert it the said paper money is of negligible value altogether."
"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.
"The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the currency.
"It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. "The directors of these institutions have committed criminal offense against the United States Government, including the offense of making false entries on their books, and the still more serious offense of unlawfully abstracting funds from the United States Treasury! "Roosevelt's gold raid is intended to help them out of the pit they dug for themselves when they gambled away the wealth and savings of the American people.
Dictatorship
"The International Bankers set up a dictatorship here because they wanted a dictator who would protect them. They wanted a dictator who would protect them. They wanted a dictator who would issue a proclamation giving the Fed an absolute and unconditional release from their special currency in gold, or lawful money of any Fed Bank.
"the people of the U.S. to be left without gold or lawful money and with no currency other that a paper currency irredeemable in gold, and I charge them with having done this for the benefit of private interests, foreign governments, foreign central banks of issue, and the bank of International Settlements"
"having permitted them to exercise control over the gold reserves of the U.S. and with having permitted them to transfer upward of $100,000,000,000 of their debts and losses to the general public and the Government of the U.S., and with having permitted foreign debts of the Fed to be paid with the property, the savings, the wages, and the salaries of the people of the U.S. and with the farms and the homes of the American people, and whereas I
charge them with forcing the bad debts of the Fed upon the general public covertly and dishonestly and and with taking the general wealth and savings of the people of the U.S. under false pretenses, to pay the debts of the Fed to foreigners"
"Whereas I charge them, jointly and severally, with failure to protect and maintain the gold reserves and the gold stock and gold coinage of the U.S. and with having sold the gold reserves of the U.S to foreign Governments, foreign central banks of issue, foreign commercial and private banks, and other foreign institutions and individuals at a profit to themselves, and I charge them with having sold gold reserves of the U.S. so that between 1924 and 1928 the U.S. gained no gold on net account but suffered a decline in its percentage of central gold reserves"
"Whereas I charge them, jointly and severally, with having robbed the U.S Government and the people of the U.S. by their theft and sale of the gold reserves of the U.S. and other unlawful transactiving created a deficit in the U.S. Treasury, which has necessitated to a large extent the destruction of our national defense and the reduction of the U.S. Army and the U.S. Navy and other branches of the national defense; and
"Whereas I charge them, jointly and severally, of having reduced the U.S. from a first class power to one that is dependent, and with having reduced the U.S. from a rich and powerful nation to one that is internationally poor; and
"Whereas I charge them, jointly and severally, with the crime of having treasonable conspired and acted against the peace and security of the U.S. and with having treasonable conspired to destroy constitutional Government in the U.S.
"Resolve, That the Committee on the Judiciary is authorized and directed as a whole or by subcommittee, to investigate the official conduct of the Fed agents to determine whether, in the opinion of the said committee, they have been guilty of any high crime or misdemeanor which in the contemplation the Constitution requires the interposition of the Constitutional powers of the House. Such Committee shall report its finding to the House, together with such resolution or resolutions of impeachment"
The Federal Reserve: An Astounding Exposure 1934
The Federal Reserve: An Astounding Exposure 1934
This text is from a booklet, published before zip codes, entitled "Congressman Louis T. McFadden on the Federal Reserve Corporation: Remarks in Congress, 1934".
View on www.afn.org
Preview by Yahoo
Thanks. And this is on-going.
Ya know oddly, nobody ever mentions what I think the real pressing concern is.
They simply do not have actual cash in excess of 1.6 trillion (US dollars) already issued and changing hands. With trillions upon trillions of fiat digitally issued- and none of which is sitting in banks- I think they know they can't possibly redeem an incredibly over- levered run on fiat when that happens. The same concerns would be present in any country where the central bank had digitally issued far more money than they have actual paper circulating.
Bank runs should be spectacular in terms of losses- with trillions upon trillions circulating everywhere- I can't imagine this ending well...but end it shall.
Stories like these are just that...STORIES! They're fairytales to keep the mass stupidity in their box. People are so easily dooped. ZHer's lead them all!
All of you missed the metaphor. I would suggest you learn what capitalism is and who and what you really are within this system.
All I can say is that what awaits you at the singularity point is beyond your comprehension.
Ok, explain your definition of capitalism as you see it. Otherwise the ambiguity will cloud your message.
You fool no one. Why do you bother to frequent a site of fools?
You're brand new here. Your opinion is either misplaced or paid for.
The invasion of government trolls continues on ZH.
For some odd reason, depositors don’t like paying the bank to deposit their cash.
The banks call this servicing the account. The customer thinks of it like the bull servicing the cow.
This metaphor is a little confusing, since the bull is the depositor.
perhaps better to think of the bank as the prostitute and the customer as the patron.
"Bail-ins are not a consideration in the US yet..."
The G20, which includes the U.S., redefined deposits last November.
Sounds like a plan. What could possibly go wrong?
If this is ever really attempted, it will all instantly go BOOM. There are so many moving parts to all this, nobody could possibly see all the implications and down stream effects.
Chaos is coming.
Looks like an unintended 'jobs' program to me, unless you're on gov. assistance and shop at Welfare Mart with you giv-mint card. Barter will make a screaming comeback. Along with bartering will come locals (serfs) actually making things in small, untraceable batches. When cash is banned, we all become criminals.
I think they have demonstrated they don't think long term nor do they care.
Putting fluoride in your stomach does not prevent cavities; it prevents old age.
plez come and take my digital money, not! don't have any, ha the fcuk ha.
plez come and take my ___________. beware of the dog...
this will put pressure on people to begin seeing and using localized economies and make a black or grey market inevitable. it will become an electronic legal tender enforcement nightmare. never in history has something like this been tried or implemented. the potential unintended consequences are mind boggling - they are playing with fire.
Put pressure on people? When they come to grab people's cash, people will grab their shotguns. It will be a ver real and clear us vs them civil war nightmare, not some law enforcement issue.
Let's hope so ... that they're playing with fire and they get badly burned, that is.
Ban cash, and all debt obligations paid in " $US DOLLARS " will be null and void!...electronic cash or digits are not $US dollars
FRNs are not actually US dollars either.
http://businessetc.thejournal.ie/one-cent-coin-scrapped-2163226-Jun2015/
Link is to a post regarding the removal of lower denomination coins from circulation in Ireland. Not one mention of inflation. Everyone thinks it isa 'no brainer'. No wonder it is fucked.
Ireland has tbe most heavily floridated drinking water in Europe, so yeah, no wonder their fuked.
"Ireland has tbe most heavily floridated drinking water "....Their teeth say otherwise .
In many 3rd world countries, stores are using candy to compensate you for not having pennies for change as the smallest coins have disappeared defacto
I wonder though. How will the CIA be able to sell their heroin and cocaine and then launder the proceeds without cash?
They'll co-brand a credit/debit card with their major money launderers in Jew York City. You'll get frequent 'flyer' miles too! Call it the Drugs for Thugs card.
CIA will pay the laundering fee to foundering corpse like HP - "The spice must flow", even in the guise of re-manufactured laptops.
But how will Joe addict pay for his illegal drugs...?
Cutting off hands.
There is not need cash in Brave New World where government state is provide ample ration of chocolate.
In future, government state is also provide for drug of productivity enhancement and social temperment. Meth and Soma.
How will the CIA sell cocaine?
I believe that HSBC, inter alia, has proven more than willing to expedite such transactions?
Don't know about all this, but Schwab just soaked us for 20% in one IRA account. So Yes, they are.
The rigged game is manipulated by the few. We all know who they are.
Details?
Yes, do you have any details on what happened and why? I've had a great experience with them so far. I love their 'free' investor checking account that PAYS INTEREST (although, not much these days) with no minimums. Also, there are NO ATM FEES WORLDWIDE. Last year we went to Brazil for the World Cup and were able to withdrawl Real with no fee... they even do the currency transaction at the current rates. It's pretty amazing IMHO.
I would love to know what your IRA experience was. I haven't heard anything of this sort.
Thanks much!