This page has been archived and commenting is disabled.
Risk Of “Economic Totalitarianism” From “Cashless Society”
Cash Withdrawal Limits and "Bank Holidays" Coming
- Concerns that next crisis may be imminent
- Bail-ins, withdrawal limits and negative interest rates may be imposed
- FT proposes a ban on “barbarous relic” cash
- Central banks and banks would have people “completely under their control”
Collapsing commodities prices, erratic market turmoil and the bursting of Chinese bubbles are leading to a crisis in confidence in the economic system across the globe. The long-expected crisis to which the global financial and systemic crisis in 2008 may have been a mere prelude may be upon us.
Governments have no appetite for further bailouts. The EU states have passed legislation which will make the banks or rather unfortunate and unsuspecting depositors liable for the bank's lending and speculative profligacy.
It is claimed that this is to “protect” the taxpayer. In reality it will likely lead to bail-ins - the confiscation of deposits. It is likely that that in a crisis within the banking system this bail-in mechanism would be imposed on an impromptu “bank holiday” followed by limits on cash withdrawals as were applied in Cyprus and more recently to depositors in Greece.
As has been pointed out by many other analysts, the unelected powers-that-be have used all their conventional weaponry to stave off the consequences of their irresponsible ultra loose monetary policies and massive buildup of debt globally - the largest ever seen in the history of the world.
The typical response to a crisis has been to slash rates from somewhere around 6% - the historic post war norm in the west - to between 0% and 1%. This has stored up an even crisis in the future - the question is not if we have another crisis but when.
With interest rates now near zero, rates cannot be slashed any further. Unless of course, further “unconventional” weaponry are deployed upon the citizens to encourage them to spend. Further QE and QE$ is likely. Another option is negative rates - where depositors are charged by banks to hold their money. Both constitute weapons of financial and monetary repression in the deepening “war on cash.”
Bail-ins, withdrawal limits and negative interest rates would provoke a wave of withdrawals, further undermining the banking system - as was seen in Greece.
Hence, the deep concern when the Financial Times recently proposed abolishing cash altogether.
In a piece entitled “The Case for Retiring Another ‘Barbarous Relic” the FT laments the existence of cash. In the view of the editorial, cash limits the capacity of omniscient central banks to bully savers into parting with the fruits of their own labour to “stimulate” debt laden economies.
“The worry is that people will change their deposits for cash if a central bank moves rates into negative territory.”
Armstrong Economics
Bill Bonner from Bonner and Partners has written an excellent piece on what the proposed ban on cash fully implies. He explains how such a move could have Orwellian consequences. The central bank, not to mention individual accounts, he writes, “will have you completely under their control”.
“You will buy when and what they want you to buy. You will be forced to keep your money in a bank – a bank controlled, of course, by the feds. You will say that you have ‘cash in the bank,’ but it won’t be true. All you will have is a credit against the bank. (Bank deposits are nothing more than IOUs from your bank to you.)”
He continues
“You will be completely surrounded. If the feds want to force you to spend… or invest… your money, they will simply impose a ‘negative interest rate.’ They will do this by simply imposing a fee, or tax, on deposits greater than the interest rate you receive on your savings.”
During a financial crisis following a ban on cash Bonner writes
“You will be locked into a bank account with a bankrupt institution. And the feds and their bank cronies will tell you when and how you can have access to your own money.”
Bonner also suggests that there may then be an attempt to prevent the sale of gold bullion coins and bars to the public in a desperate attempt at neutralising its qualities as a store of wealth and safe haven money.
One cannot have a free market or a free society if citizens are banned from choosing which form of money and which form of payment they choose to use. Such economic totalitarianism is liable to further erode trust in the financial system and actually contribute to runs on banks. Exactly the opposite effect that the proponents of the cashless society claim to be trying to avoid.
Fostering dependence on irresponsible banks and a still very vulnerable banking sector will make the entire western financial and economic system even more vulnerable.
Forcing entire nations to use electronic currency also seems imprudent at a time when electronic magnetic pulse warfare may be a key weapon of choice of terrorists and powerful state actors. Electric grids could be disabled for periods of time - rendering all commerce impossible in a cashless society.
Without electricity and computer or internet access, one could not access your current and savings account or make electronic payments.
Fostering absolute dependence and giving banks an even more entrenched and powerful monopoly over the issuance of credit and control of citizens savings and spending is a recipe for economic disaster. This is especially the case in an age of cyber warfare when banks have already been shown to be vulnerable to hacking.
The current drive towards a cashless society shows the importance of being diversified and not having all your savings and assets within the vulnerable financial and banking system.
It underlines the importance of having direct ownership of some of your wealth - be that cash or gold bullion in a safe deposit box or bullion coins and bars in the safest vaults, in the safest jurisdictions in the world.
Protect And Grow Your Wealth With Gold Sovereigns
- Extremely low premiums at just 7.5%
- One of the most sought after bullion coins in the world
- Mixed years including Edwards and mint condition 2015's
- Sovereigns are CGT (capital gains tax) free in the UK
- Minimum order sizes of 20 coins
- Free allocated, segregated storage in London for 6 months
- Free delivery in the UK, Ireland and the U.S.
Sovereigns are favoured by gold buyers internationally - both retail and high net worth. Investors can take delivery or store in secure vaults in London, Zurich, Singapore or Hong Kong.
Sovereigns are CGT (capital gains tax) free in the UK making them the most attractive gold investment. Especially when compared to all other gold investment vehicles - such as ETFs, mining shares and digitial bullion vault platforms.
They are also the coin of choice of many store of wealth buyers in the U.S and internationally. Their portability, small size and divisibility means they remain the ultimate financial insurance against economic collapse, a currency reset, stagflation and the worst case scenario of hyperinflation.
Call us today to buy gold sovereigns at extremely low 7.5% premiums. If you are an existing client we will lock in your order over the phone, if not, we will assist you in setting up your account.
IRL Phone +353 1 632 5010
UK Phone +44 (0) 203 086 9200
USA Phone +1 302 635 1160
»
- GoldCore's blog
- 12379 reads
- Printer-friendly version
- Send to friend
- advertisements -
BTFG Buy the fuckin guns.
Test
Smart money is buying the dip in gold blablabla....
Truth is, smart money has been getting poorer and poorer everyday
It will be a good time for the attitude; "Render unto Caesar the things that are Caesar's,"
7.5% low premium? when you can get bars for 2.5%...?
And so the term Price Discovery shall henceforth be referred to as Price Surveillance
Great freelance work opportunity for anyone... Work for three to eight h a day and profit in the range of $5000-$12000 each month... Weekly payments... Here is what i do... www.wallstreet34.com
My bad, I meant Price Spam
That's exactly what their plan is.
To be fair, even the socialist jew media sites are starting to push the cash no more meme
Dear Douchebag,
Although I agree PMs are a hedge against central bank instabilities, I find your idiotic douchbaggery tiresome. "cash" will always exist, as people will find something tangible as a medium of exchange between themselves.
TongueStun....
Economic Darwinism who lives who dies financially must be ripped off the Zionist bankers new forms of currency and ways to raise venture capital(not necessary crypto) must be developed lest we become a global serfdom.
Doom porn gets tiresome, especially when there is a sales pitch at the end.
What would you like to talk about? The stolen lives of the rich and infamous? Let's see! 44 Castles owned by one family with empty spare bedrooms numbering in the thousands, stately homes/palaces, chateaus on hundreds of acres of prime real estate, yachts, fine dining, diamonds as large as bunions, dresses which cost thousands?
Talk about which kneegrow the Khardtrashian girls are fucking.....Did you know the socialist jew media told them to all fuck kneegrows, or the show would be cancelled? It's part of the socialist jew media's war on whites.....which male kneegrow will BRUCE now be sucking? WATCH AN SEE!!!!!
The power to control is the power to destroy.......
EMP is over rated. It is in effect a lightning strike. Grids are designed to take lightning strikes.
Mil eqpt. is well protected against lightning strikes. How about consumer electronics? Rub your feet on a carpet in winter and get a real fat spark to jump to your various pieces of consumer eqpt. What? Nothing happened? Well EMP is not much more dangerous than that spark.
Any eqpt designed with large PCB ground planes will probably survive. Some will not. But the catastrope everyone predicts? In the 60s with chips not designed to take spark hits - a big problem. 1990s with all chips designed to handle some level of sparks - not so much.
Of course no one wants a nuke going off over them. But EMP these days? Greatly over rated.
Could it bring down the grid? It is possible. It would take a few days to a week to restart. Inconvenient. Not the end of the world.
666 BITCHEZ !!!
You have no background in electricity or electronics to make such a statement. More dumbphuckery and Douchebaggery.....
He / she is correct.
Computers may crash but can be rebooted. Most computer and communications hardware these days is double Faraday screened. In the past problems occurred during Carrington Event because of very long telegraph comunications cables inducing extremely high voltages. These are now fibre optic which is immune to EMP.
What would be affected by EMP is AC Grid Transforners. If these are not switched off during and suffer an EMP their windings will overheat due to very large low frequency / DC offset currents induced in long transmission lines. Transformers will turn low frequency and DC current straight into heat , destroying the equipment very quickly if not isolated in advance or very early on in the event.
Aerospace Engineer. Designed mil coms eqpt to withstand EMP. Designed aircraft eqpt. to withstand lightinig strikes. I have also designed commercial eqpt to withstand spark transients. There are some minor technical differences. The general principles are the same.
What are your qualifications?