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Why the Fed HATES Physical Cash and Could Move to Tax It
The big banks want to do away with physical cash.
Why?
Because it represents a means of getting your money out of the system.
In its efforts to prop up the Too Big To Fail banks, the Fed has made keeping your money in a bank a low value proposition.
To whit, for decades individuals kept their money in bank savings accounts for two reasons:
1) Safety.
2) Returns.
By not implementing any real reforms to the banking industry, nor jailing anyone who committed the fraud that caused the 2008 Crisis, the Fed has irreparably damaged #1.
The derivatives market remains gargantuan and unregulated. And no one knows that the banks really own (what their balance sheet risk is).
Since 2008, 465 banks have failed in the US. Heck, even 51 have failed this year… despite the fact that supposedly we’re in a recovery and banks have been “reformed.”
Many banks aren’t as safe as most would think.
Regarding #2, (getting a return on capital by putting it in a bank account) with interest rates at zero, you’re not really getting paid to keep your money in a savings account. After all, you could have $1 million in a bank and only be making $2,500 per year.
What’s the point? What exactly are you getting for leaving your money in the account?
The Fed had hoped that by enacting its policies, it would force investors to move their money out of cash and into stocks and other risk assets. But investors aren’t playing ball. And it’s possible the Fed’s worst nightmare might hit.
What’s the Fed’s worst nightmare?
A significant percentage of investors move their money into physical cash.
Consider the structure of the financial system.
1) The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.
2) When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.
3) In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.
4) The US bond market (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.
5) Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.
6) Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.
Actual physical cash represents a very small “sliver” of the wealth in the US. If a significant percentage of investors went into physical cash, many banks would very quickly be in trouble.
Because of this, connected insiders at the big banks have begun suggesting that the Fed introduce NIRP (taxing cash) or do away with physical cash entirely.
Among those calling for one of these policies are mainstream economists at CitiGroup, the German Council of Economic Experts, the Bank of England and even current Fed Presidents themselves.
This is just the beginning.
Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings.
We detail this paper and outline three investment strategies you can implement
right now to protect your capital from the Fed's sinister plan in our Special Report
Survive the Fed's War on Cash.
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Best Regards
Phoenix Capital Research
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Thank you for using the word "force" in bold. Force = exertion of power and control. That is what the Fed policies and our friends in DC are all about....forcing you and me to act in a way detrimental to our self interest and serve an evil agenda. Wonder why armed citizens make DC and bankers nervous?
Because despite the grandiose persona they try to project, of an everlasting state that is like unto godhead, these little fucks are still made out of meat?
Since when is it legal or even acceptable for the FED or Bankers to decide on implementing any TAX? Things are getting really strange when you have a private group of bankers suddenly suggesting taxes? The ideas lately are just off the wall. Dont we have some type of process to create taxes already? Not letting the private bankers decide our taxes or our tax rates would be preferable and the last thing we need is another unattached "arm" of our government implementing more taxes? Someone please help us we are drowning in B.S.?
One way to fight back is pull as much cash out of the banks as you can!
I got tired of the .05% return on my savings when the bank was lending it out to some poor shmuck @ 18% 19% 26% 29%.
So last year I took every penny out of the bank and paid cash for large parcel of land with a clean stream running through it and built an off the grid cabin on it.
Screw you Lazy A$$ Banksters! Now I keep just enough in the bank to pay my monthly bills and thats it.
Off the grid living is wonderful too... Talk about a good night sleep.
Cant wait to do it full time.
http://cabinporn.com/
Gold and silver coins . And some rolls of us coins wouldn't hurt either
The ultimate goal is to make it difficult to hold wealth in any form TPTB can't control and tax. first it will be cash, then it will be PM's, then it will be owning more of anything than you 'need' as defined by TPTB (do you need that extra month supply of food, or those extra hand tools you evil hoarder?). Of course, these restrictions will only apply to the hoi polloi. The Hillary Clinton's, Jeb Bush's, Nancy P's, Harry R's etc. and their masters will not be encumbered by such rules. They are too good, too important, too caring. It is a hate crime to even think they should be bound by the same rules as us.
Just start taking peoples tools and watch how fast the beast grinds to a dead stop. Hahahahahahah! It aint Krugmen holding this thing up buddy. Oh and get this. Them tools wont rattle themselves.
Who is John Galt?
MMMM yeah well. After very little thought on my part. The banks can go rate NIRP on my deposits...but what about the deposits that I have stashed? I am completely satisfied to hold cash in my home/grounds; in varoius places. I can withdraw 12 months worth of expenses slowly and keep them for me.
I can have negotiable bullion from reputable sources that I have dealt with for years...in very unknown locations. So fuck the banks. I keep nothing there but my good name and credit score. I have an overdraft account in 2 banks. I satisfy all the conditions of the overdraft, feed in money to pay bills etc.....the rest is mine and nowhere near a bank.
This is what has been wrought by these fools. Keep your own money close and within your control. Put food away. Put fuel away. These powers depend on ignorance and fear and training, I DO NOT NEED A BANK TO GUIDE ME into ruin. I trust absolutely nobody financial nor do I trust any financial advice from any banking institution. They will be the first to comandeer the life boats. And rape and pillage you on the way down.
After all this crap? How can anyone with an IQ be arguing about this war on "nobody gets anything but ME ME ME". Welcome to long term planning slavery. We can argue about who controls and who is the puppet and who is the dupe BUT come down to fact. Very few people are taking over the wealth and power of everything; Period.
Only way you can protect is to think. Keep cash out of financial control...out of gov. control. The gates are closing.
And yeah yeah yeah lots of people who have "something on paper" are very concerned about tax penalties etc. if they decide to take their money out of the system of control. I sympathize. I did it over 3 years. Took tax hits.
But for the average person with little saved, who has been duped into the corral of 401K etc, RSP , accounts, mutual funds...???
Feds hate physical cash as well as savers. The silnet inflation is already a huge tax on the frugal American.
Tilt!
Reset.
Can I disagree with them anymore or do they just make all the rules now?
If you are a producer barter will work very well for you. Its the last place the free shit army wants to find itself.
Please keep the ability to produce in your control.
People will start bartering
Hmmm.
Too many claims on availible assets...
Where have I heard that one before?
Someones gonna find out that funny money isn't funny at all.
"I'm sorry sir, we have no cash. Try again next week."
So?
Print up moar cash you lazy bastids.
Somebody send Jack some ink.
Speaking of "jailing anyone who committed the fraud that caused the 2008 Crisis"
Restricting the way we buy or sell will always give advantage to those controlling the instrument of exchange. It is complete folly to expect this can be done without oppressing the free exchange of wealth, and creating another means of skimming from the labor of others.
This push for a cashless system will end in tears!
Funny thing about banning/taxing cash is imminent relocation of deposits to BRICS banks or bitcoin.
In the end, most of accounts will be transferred either to safer places outside of western influence or to virtual currencies. Domestic banks will serve minimum operational deposits only.
Only Iran is allowed to deposit money with the former BRICS Bank. Now renamed New Development Bank.
the best way to save money is to buy silver and gold. fuck banks.
The best way to save money is to buy things with intrinsic value. Fuck fiat.
Im long tools and the skills to use them. Barter keeps looking better and better to me. All of my tool investments have paid healthy returns and I still have them. The ones I handed down to my kid? Priceless. My dream is to be there when he hands those same tools down to his kids.
Thats intergenerational wealth.
Snap-On: The other precious metal.
The same Snap on wrenches I piad 100 fiats for 30 years ago are now just under 300 fiats. There real value has not changed one tiny bit.
Boris is recommend copper for invesment and safe keep of cash value.
Ya copper is gut ya. In z spoolz ya.
When you open a safe deposit box at a US bank, they "ask" you not to use it to store currency.
Dig next to fence post.
Attach PVC pipe full of cash/Ag/Au below ground level.
20 kilogram sack of quickset.
What problem?
So open a storage locker that is not at a bank.
Simples.
Boris is recommend keep old refrigerator on balcony of apartment, but is not to recommend use same refrigerator for cash AND cesium 137, unless you are owning lead line bill fold.
we don't want you to have cash in the bank or in your buried pickle jar.
we don't want you have shiny, either.
we don't want you to have a house. or land.
or property.
we don't want you to have children.
spouse(s).
friends.
now move along. we have some hookers to play with.
hugs,
DSK and friends