Bank Of England Economist Calls For Cash Ban, Urges Negative Rates

Tyler Durden's picture




 

Just three short years ago, Bank of England chief economist Andy Haldane appeared a lone voice of sanity in a world fanatically-religious Keynesian-esque worshippers. Admissions in 2013 (on blowing bubbles) and 2014 (on Too Big To Fail "problems from hell") also gave us pause that maybe someone in charge of central planning might actually do something to return the world to some semblance of rational 'free' markets. We were wrong! Haldane appears to have fully transitioned to the dark side, as The Telegraph reports, he made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.

Speaking at the Portadown Chamber of Commerce in Northern Ireland, as The Telegraph reports, Mr Haldane's support for a possible cut in rates came as the Bank as a whole has signalled that the next move in rates would be up.

Andy Haldane, one of the Bank’s nine interest rate setters, made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.

 

He said that the "the balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside".

 

As a result, "there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target".

But recent volatility in financial markets, prompted by China, and a decision by the US Federal Reserve to delay rate hikes, have pushed back expectations of the Bank's first rate rise to November 2016.

Traditionally policymakers have resisted cutting rates below zero because when the returns on savings fall into negative territory, it encourages people to take their savings out of the bank and hoard them in cash.

 

 

This could slow, rather than boost, the economy. It would be possible to get around the problem of hoarding by abolishing cash, Mr Haldane said

Interestingly, one idea, Haldane told an audience of business owners in Northern Ireland, could be to scrap cash and adopt a state-issued digital currency like Bitcoin. Although widely reviled as the currency for drug dealers and criminals, Haldane said Bitcoin’s distributed payment technology had ‘real potential’. Which may explain the Fed's sudden fascination in the virtual currency.

NIRP - it would appear - is about to global.

So Haldane has gone from worrying that "financial markets were detaching themselves too materially from fundamentals" and fearing the "biggest risk to global financial stability right now it would be a disorderly reversion in the yields of government bonds globally," the BoE's chief economist has not only called for policies which will enable an even bigger bond bubble but will also remove freedom from the people to do what 'they' think is best with their capital. Indoctrination is complete (or more ominously, is there something Haldane sees that has driven him to this extremist perspective?)

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Fri, 09/18/2015 - 11:59 | 6565491 SWRichmond
SWRichmond's picture

They've gone beyond the "trial balloon" phase, he really means it.

Fri, 09/18/2015 - 12:01 | 6565509 coinhead
coinhead's picture

DO IT!  And ban gold, silver and Bitcoin too!  No really, we want you to!

Fri, 09/18/2015 - 12:12 | 6565563 pods
pods's picture

Another banker with a lead deficiency.

pods

Fri, 09/18/2015 - 12:22 | 6565618 DaveyJones
DaveyJones's picture

"option of supporting the economy with negative interest rates"

I never knew stealing supported the economy.

Fri, 09/18/2015 - 12:24 | 6565627 New England Patriot
New England Patriot's picture

Can't have cash around with NIRP, because then you're making money stuffing it under your mattress.

Fri, 09/18/2015 - 12:34 | 6565646 Element
Element's picture

This is easy to prevent, you just have an nation wide unlimited strike action of all industries, and tell these arseholes to go to hell.

And I guarantee you the anti-cash idiocy will almost immediately collapse and run for cover.

They do not want such a strike because they do not want human beings having a mechanism of power that will defeat them every time.

Hence they try to pretend it is somehow illegal to withdraw your labor and not participate at all until things change.

Fri, 09/18/2015 - 12:40 | 6565724 BurningFuld
BurningFuld's picture

Call a national strike over banning cash? Fuck that. Call a National strike over the fact that all the fucking bankers should be in prison.

 

Fri, 09/18/2015 - 12:49 | 6565760 coinhead
coinhead's picture

What could be a bigger blessing to someone holding cash, gold, silver and Bitcoin than a cash ban?  This is the ultimate failure signal for the entire world....  (And did any of us really think when we were entering this "trade" that it was not teh ultimate rebellion and sedition against a morally bankrupt state?)

Fri, 09/18/2015 - 14:04 | 6566118 Captain Debtcrash
Captain Debtcrash's picture

By the way what this "economist" is now advocating is exactly what I predicted that they would attempt with the E Dollar.

Fri, 09/18/2015 - 14:55 | 6566396 Stuck on Zero
Stuck on Zero's picture

End the bankers before they end civilization.

Fri, 09/18/2015 - 12:48 | 6565764 Money Counterfeiter
Money Counterfeiter's picture

The British are brainwashed Zionist Zombies.  No way.

Fri, 09/18/2015 - 12:56 | 6565805 coinhead
coinhead's picture

A bunch of creepy zombies repeating platitudes about equality, social justice and whatnot.... oh yes... and "knife culture" they really don't like that either!

Fri, 09/18/2015 - 13:11 | 6565884 Calmyourself
Calmyourself's picture

OT but essential to the frauds being committed.

https://stevengoddard.wordpress.com/2015/09/17/noaa-massively-ramps-up-t...

Government changing data to fit their agenda..

Fri, 09/18/2015 - 13:34 | 6565976 messymerry
messymerry's picture

I want them to try banning cash.  When they do, the Christians will go apeshit and THAT will make for some great viewing.  Gimme some popcorn and a 69 oz. Dr. Pepper...

I can see the news headlines now: "Dallas police gassing Christians"

Bring it on Bwankers,,,

;-D

Fri, 09/18/2015 - 13:43 | 6566037 Element
Element's picture

haha good point, I forgot about that angle.

Fri, 09/18/2015 - 13:52 | 6566086 messymerry
messymerry's picture

Thankee,,,   OK, I know I'm going to get in trouble for this, butt, YA-TA-HEY: 

The only difference between Christianity and Islam is about 500 years.  The Muslims are stuck in the 14th century, and the Christians are stuck in the 19th century.  Other than that, they are pretty much indistinguishable.  Trust me, the Christians have plenty of fight in them...

;-D 

Fri, 09/18/2015 - 14:14 | 6566197 Liberty2012
Liberty2012's picture

Consider the relationship between Truth Respect and Love

 

 

Fri, 09/18/2015 - 14:17 | 6566213 daveO
daveO's picture

Fight? Except for Davis in Kentucky I haven't seen any.

A cash ban will lead everyone back to the flea markets, swap meets of the hyper-inflationary 1970's. It will kill the dollar stores, throw people out of work and kill state sales tax revenue. This might lead to more state legal tender laws, undermining the CB's wealth theft device (cash). A cash ban will be the shot heard round the world. A shot by tyrants against their debt/tax slaves. 

Fri, 09/18/2015 - 15:17 | 6566479 ersatz007
ersatz007's picture

Thank god for Kim Davis.

Fri, 09/18/2015 - 14:27 | 6566258 BarkingCat
BarkingCat's picture

Let's not forget that Islam is basically Judaism 3.0.
Both Judaism and Islam share a lot more with each other than with Christianity.
..
... but as an atheist I think all 3 are horse shit dreamed up by ancient sand dwelling goat fuckers.

Fri, 09/18/2015 - 14:49 | 6566369 Farqued Up
Farqued Up's picture

Goats? Hmmmmm

Fri, 09/18/2015 - 15:35 | 6566566 Moe Howard
Moe Howard's picture

I like sheeple better.

Fri, 09/18/2015 - 15:50 | 6566632 jcdenton
jcdenton's picture

You speak of a 500 years ..

The problem here is usury along with the banksters ..

Ban them both ..

http://www.truecovenanter.com/truelutheran/luther_trade_and_usury.phtml

We cannot at this point in time separate the banksters from the Vatican/Papacy ..

http://tuppersaussy.com/museum/html/writings/articles/15brienner.html

http://tuppersaussy.com/museum/html/writings/articles/dialvol1no1.html

http://tuppersaussy.com/museum/html/writings/articles/articles.html

Given the choice, better to trust the Turk ..

The Jews? It's a mirage ..

Fri, 09/18/2015 - 13:36 | 6566005 Fun Facts
Fun Facts's picture

The Bank of England is a zio pedophile nest.

The worst beings humanity has to offer.

Fri, 09/18/2015 - 16:19 | 6566767 jcdenton
jcdenton's picture

I say we nuke the City of London ..

Problem solved ..

Give 48 hour evacuation notice. A one (1) kt. W54 modified Davy Crockett should do the trick. Ground zero would the the Bank of England. Deliverable via cruise missile ..

We just need a POTUS and JCS with the stones to do it .. (call it final payback for the War of 1812)

The Vatican would get the message, and fall back in line with their mandate. You cannot nuke Rome. That is crossing the line. Incalculable consequences from that act.

The UK govt. and citizenry can sue the banksters for any collateral damage. Believe me, they can afford it. I'm sure sections of MI6 share in the some 5000+ Title 18, Section 6 entities that net about a billion each (minimum) ..

https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp

If we wanted to get a bit more inventive, lets put our "Star Wars" to work. (See Real Genius) Just widen the beam a bit to cover about 1.12 sq. miles and adjust power output in proportion. (Also see Keshe) In the aftermath, turn the place into a park/museum ..

This would make a great script for a sci-fi novel/film ..

Fri, 09/18/2015 - 14:18 | 6566221 Element
Element's picture

 

 

Call a national strike over banning cash? Fuck that. Call a National strike over the fact that all the fucking bankers should be in prison.

I'm flexible.  ;-)

Fri, 09/18/2015 - 12:40 | 6565725 realmoney2015
realmoney2015's picture

Yup. The cash abn along with negative interest rates will be their end. Your everyday, regular sheep will realize that the banks are frauds and just around to steal wealth from the producers.

The sooner they ban cash and start negative interest rates, the faster the people will flea from the banks.

Fri, 09/18/2015 - 12:58 | 6565819 CuttingEdge
CuttingEdge's picture

I disagree.

When the sheeple are told they can pay for everything via scanning their iPhone they will be happy as pigs (or sheep) in shit.

Because the masses are brainfuckingdead.

Fri, 09/18/2015 - 13:11 | 6565889 Bananamerican
Bananamerican's picture

then get out there and evangelize CuttingEdge

Fri, 09/18/2015 - 14:29 | 6566270 BarkingCat
BarkingCat's picture

Fuck, I hate those stupid new terms: Evangelize, Socialize.

Now our project lead is using Ask as a noun.... I want to scream at her - "Ask is a fucking verb !!!!".

Fri, 09/18/2015 - 18:14 | 6567204 ersatz007
ersatz007's picture

Don't forget to leverage your resources and take this discussion offline. We'll need to level set later and care for all the opportunities so that we achieve synergies and go all in.

Fri, 09/18/2015 - 13:18 | 6565918 realmoney2015
realmoney2015's picture

Cutting edge,

That may true young city-folk who are all about getting the nxt new gadget. Those people are screwed anyway. I'm talking about the country and small town people. You know, the places where the corner store only accepts cash? And no cash at auctions or yard sales? Yeah, that'll piss off 2 generations of middle america.

There is more to America than the yuppies on the coasts.

 

Fri, 09/18/2015 - 13:36 | 6566000 cnmcdee
cnmcdee's picture

They can do that already. People will realize the world they live in when Brother Love Government comes dipping into your savings account 'because things are just not balanced just right..' All I can say is bring an army big enough to match the level of tyranny their trying to peddle.

Fri, 09/18/2015 - 12:47 | 6565759 TBT or not TBT
TBT or not TBT's picture

Some forward thinking progressive community activists take this thinking a step further and destroy businesses in their own neighborhoods. As they already don't work.

Fri, 09/18/2015 - 18:34 | 6567263 ersatz007
ersatz007's picture

Do you honestly believe these problems are a result of progressives? The shit sandwich we currently have is a direct result of having our technology and economic backbone sold out to EMs by the corporate/bankster/political oligarchy so that they could further concentrate their control and power and thereby steal the wealth the middle class created. By the time everyone figures out what has happened it will be too late (it probably already is).

Progressives, socialists, communists, capitalists, etc...aren't the enemy. Giant banks and corporations who will eventually control the entire global Economy are the enemies. There will be one gov't controlled by a small group of people. These people are regressive. They are wanna be emporers and empresses who figured out that if they work together they can have ALL the wealth. Everything else is just theatre.

Fri, 09/18/2015 - 13:27 | 6565956 Ass Burger
Ass Burger's picture

First rule of Project Mayhem...

Fri, 09/18/2015 - 12:37 | 6565683 DaveyJones
DaveyJones's picture

so if you make money on top of your mattress, it's a quick drive to the bank 

Fri, 09/18/2015 - 14:14 | 6566201 Evan Wilson
Evan Wilson's picture

NIRP would have to have cash confiscated

From your comment, I just realized that in a NIRP world, cash would have to be confiscated; otherwise everyone would take their cash out of the banks.

 

This would have two effects:

1: People/companies with cash under their matress or in a safe, would in effect earn a positive rate of return as oppose to negative rates in a bank account.

2: Bank reserves would implode, as cash was taken out of banks and liqudity from the entire banking system.

 

 

Fri, 09/18/2015 - 15:05 | 6566426 emersonreturn
emersonreturn's picture

absolutely right, evan.  thanks

Fri, 09/18/2015 - 14:10 | 6566179 KnightTakesKing
KnightTakesKing's picture

 I never knew stealing supported the economy.

It supports the economy of TPTB and the Luciferians. They might need a bigger yacht or something.

Fri, 09/18/2015 - 12:25 | 6565622 Beam Me Up Scotty
Beam Me Up Scotty's picture

Two words:  Fuck you

 

If you make my employer pay me in your worthless scrip, for my labor, you are taking not your worthless scrip, but my TIME.   Confiscating, or limiting access to the money I EARNED is STEALING!!  ITS MY EARNINGS---a representation of my LABOR that you are taking from me.  In other words, SLAVERY!

Fri, 09/18/2015 - 12:42 | 6565735 Pine Trees
Pine Trees's picture

Uh....hate to break to you Scotty, but they are already paying you in worthless scrib. Pretty sure they are confiscating at least half of the  "scrib" you've earned too.  Shit in one hand, wish in the other....But I'm with you, Fuck Them!

 

Fri, 09/18/2015 - 13:41 | 6566027 Beam Me Up Scotty
Beam Me Up Scotty's picture

I get that.  But at least right now, I can change that worthless scrip into something.  But a NIRP environment is nothing more than a tax paid to the banks.  They are taking my labor, not my money.  Thats what I am trying to point out to people.  Its the confiscation of your labor---your TIME.  My life is short enough as it is, I don't feel like giving more of my TIME to them so they can sit on the beach in the Caribbean while I fucking work till I die.

Fri, 09/18/2015 - 15:04 | 6566421 Farqued Up
Farqued Up's picture

Jesus will save us if we repent. Wasn't it he that said, "Render unto Caesar that which is Caesar's"?

Well, seems to me that it is downright anti-Christian not to allow NIRP and cash destruction. After all, we didn't print it, Caesar did. It's his.

Also, redistribution is the Christian way!

Uh, along with wars, murder, drowning, incest, poisoning, you name it, and slavery is good. Jehovah is a ruthless motherfucker, I choose to blame it on God and Jesus's alter-ego, the Holy Spook!

Fuck a bunch of spirits, especially evil ones.

Fri, 09/18/2015 - 15:40 | 6566592 Calmyourself
Calmyourself's picture

Yeah, you might want to find some context there friend.. 2nd Thess. "The one who is unwilling to work shall not eat"

Fri, 09/18/2015 - 12:27 | 6565641 de3de8
de3de8's picture

Could have to be?

Fri, 09/18/2015 - 13:07 | 6565867 divingengineer
divingengineer's picture

Consider the possibility that things really are this bad to warrant a move like this.  I would not rule out that they are secretly fighting to keep the system from blowing apart into total chaos and panic. 

They are floating out trial balloons of drastic measures, this smells of desperation on their part and I think we should all be a lot more concerned that the situation is that grave. 

I think they are starting to figure out that there is no way out, mathematically no fix can work. They are in the process of grabbing what they can before the lights go off. 

I am alarmist and suspicious by nature, it has served me well in the past, and have been preparing for the last few years.

I am out of equities, save some ETF and FAZ to make a little last minute money as they go down the toilet. The hairs on the back of my neck are telling me there are great events at our doorstep. 

I hope to see this mess resolved by the time I pass. I should hate to send my now 2 year old son out into this shark tank as it exists now. 

Fri, 09/18/2015 - 15:11 | 6566450 Farqued Up
Farqued Up's picture

Your 2yo son will be far better educated to the ways of the wicked than we were. My parents were simple worker bees that had a lot of faith in doing what people thought was right. Your son will go into this shit having been schooled by you, big difference than us.

Fri, 09/18/2015 - 12:27 | 6565644 TBT or not TBT
TBT or not TBT's picture

The BOE guy should just come right out and say, hey if everyone who is legit can buy and sell, we will be able to control things, so is it such a sacrifice for all right thinking people to be registered and "marked" as valid  in a standard place on their body.    What could go wrong.  

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