Norway's Biggest Bank Demands Cash Ban

Tyler Durden's picture




 

The war on cash is escalating faster than many had imagined. Having documented the growing calls from the elites and propagandist explanations of the "benefits" to their serfs over the last few years, with China, and The IMF entering the "cashless society" call most recently, International Business Times reports that Norway - suffering from its own economic collapse as oil revenues crash - has joined its Scandi peers Denmark and Sweden in a call to "ban cash."

By way of background, as we explained previously, 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 Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.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.”

Why Now? 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 mechanism 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

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.

And the benefits of a cashless society to banks and governments are self-evident:

1. Every financial transaction can be taxed.

 

2. Every financial transaction can be charged a fee.

 

3. 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 percent 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.

So, when the dust has settled who ultimately benefits by this war on cash - government and the central banks, pure and simple.

Which explains why Norway's biggest bank, DNB, has called for the country to stop using cash which is just the latest move in a country that has been leading the global charge toward electronic money in recent years, with several banks already not offering cash in their branch offices and some industries seeking to cut back on paper currency.

DNB's proposal suggests eliminating the use of cash would cut down on black market sales and crimes such as money laundering.

 

“Today, there is approximately 50 billion kroner in circulation and [the country’s central bank] Norges Bank can only account for 40 percent of its use. That means that 60 percent of money usage is outside of any control. We believe that is due to under-the-table money and laundering,” Trond Bentestuen, a DNB executive, told Norwegian website VG, the Local reported.

 

“There are so many dangers and disadvantages associated with cash, we have concluded that it should be phased out,” he added.

 

The country has already moved in this direction. Bentestuen estimated that only about 6 percent of Norwegians use cash on a daily basis, with the numbers higher among elderly people.

Norway’s Ministry of Finance is opposed to the proposal, however, and other critics have raised concerns about privacy issues as well as how the change would affect tourists. Privacy advocates in Norway have expressed worries for years that, without cash, there would be no way for an individual to purchase something without being tracked.

In 2014, Finans Norge, a financial industry organization in Norway, said the country was on pace to be a cashless society by 2020, Ice News reported. While DNB said its proposal will take time to complete, executives suggested the country start phasing out cash by discontinuing the 1,000 kroner note so it could focus on updating its banking system.

“Eighty-five percent of our customers say that they never or only very rarely go to the bank. Therefore we think it is a mistake to maintain a very old structure with local branch offices. It is better to follow the customers and improve the offers where the customers are: digital,” Bentestuen said.

 

In the meantime, DNB and Norway’s second largest bank, Nordea, have already stopped using cash in their branch offices. And the movement toward a goal of no cash has been going on for a while. The Norwegian Hospitality Association pushed to eliminate consumers’ right to pay cash at all stores and restaurants in 2013, The Local reported.

 

Other countries including Denmark and Sweden have made similar pushes as their populations also rely largely on electronic money.

If allowed to continue, state wealth control will exist.

And thus, as we concluded previously, if you can’t withdraw your money as cash, you have two choices: You can deal with negative interest rates...or you can spend your money. Ultimately, that’s what our Keynesian central planners want. They are using negative interest rates and the War on Cash to force you to spend and “stimulate” the economy.

If you ask us, these radical and insane measures are a sign of desperation.

The War on Cash and negative interest rates are huge threats to your financial security. Central planners are playing with fire and inviting a currency catastrophe.

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Sat, 01/23/2016 - 18:15 | 7087132 Nutsack
Nutsack's picture

The world has a chance, if someone starts shooting these theiving fux in their heads right now.Send a message Norway.

Sat, 01/23/2016 - 18:27 | 7087197 cossack55
cossack55's picture

How about a gubmint ban?

 

Governmentless society?

 

FREEDOM

 

LIBERTY

Sat, 01/23/2016 - 18:46 | 7087260 mvsjcl
mvsjcl's picture

Here's that fuckwad's (Trond Bentestuen) background from his bank's (DNB) website:

 

"Bentestuen har en Bachelor of Arts in Journalism and Political Science fra Temple University, USA, og utdanning fra Forsvaret."

 

I'm not too surprised.

Sat, 01/23/2016 - 19:04 | 7087352 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

TPTB crave going all digital because it lessens accountability, makes it easy to steal.  Easy to steal elections.  Easy to steal assets.  Easy to build and maintain an illusion.

Sat, 01/23/2016 - 19:06 | 7087371 Stuck on Zero
Stuck on Zero's picture

I see great demand for Bitcoin cash registers for point of sale locations.

Sat, 01/23/2016 - 19:08 | 7087377 Pinto Currency
Pinto Currency's picture

 

 

The banks openly express the belief that others are entitled to control your money.

Sat, 01/23/2016 - 19:14 | 7087405 Four chan
Four chan's picture

death of the private transaction is security for the state.

Sat, 01/23/2016 - 19:17 | 7087415 LawsofPhysics
LawsofPhysics's picture

Conversely, the death of the state means the freedom to transact as you want.

The return of real risk and real work motherfuckers. As in, you don't work, you don't eat.

Fucking bring it!!!!

Sat, 01/23/2016 - 20:07 | 7087614 COSMOS
COSMOS's picture

Obviously the banks dont like cash. The moment the money is electronic its all in the bank computers, you wont be able to hold it anywhere else. Its a way for them to vacuum up all the cash in society and put it on their ledgers.

Sat, 01/23/2016 - 20:21 | 7087656 Tejano
Tejano's picture

"Gamble" your cash on gold and get as far away from these sociopaths as you possibly can while you can. If you can't, well too bad for you and yours.

Sat, 01/23/2016 - 20:38 | 7087705 Bumpo
Bumpo's picture

I guess you won't mind then if I remove all my cash from your bank. What? You said you don't like cash.

Sat, 01/23/2016 - 20:45 | 7087726 Oracle of Kypseli
Oracle of Kypseli's picture

Banning cash will drive casinos (real ones) out of business.

Sat, 01/23/2016 - 20:56 | 7087762 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

I think it would hurt but not kill most casinos.  The money intended for laundering would disapper.  But my elderly parents will continue to drop $10-$15k per year (it is their primary source of entertainment, sadly), and so will millions like them.

Sat, 01/23/2016 - 21:11 | 7087809 McCormick No. 9
McCormick No. 9's picture

Cashless society...

The Berndog loves it!

...but so does dt......

Sat, 01/23/2016 - 21:23 | 7087852 espirit
espirit's picture

Fail.

I'll accept Lb, Cu, Ag, Au, Chickens, Ghoats, Pigs, Beef, Grains, Fresh Veggies, Hardwood Lumber, Fuels, etc, etc...

For the exchange of my services, but not necessarily in that order - only as required.

Keep your 0's and 1's, you can't spend them in my store.

Sat, 01/23/2016 - 21:32 | 7087871 zhandax
zhandax's picture

One of the local car dealer's slogan is "We'll trade for anything that doesn't eat".

Sat, 01/23/2016 - 21:33 | 7087877 MagicHandPuppet
MagicHandPuppet's picture

Once this bankster operation is a success, the socialist retards around the world can tout how Norwegians are amoung the happiest slaves in the world.

Sat, 01/23/2016 - 22:33 | 7088069 Dave Thomas
Dave Thomas's picture

How's the CIA supposed to pay their people lol?

Sat, 01/23/2016 - 23:11 | 7088171 Clashfan
Clashfan's picture

In heroin? Child sex slaves?

Sun, 01/24/2016 - 00:36 | 7088354 Stainless Steel Rat
Stainless Steel Rat's picture

Deflation is only a win for the banks if everyone is in debt.  So the casino calls the Waaambulance and demands the rules be changed.  Man they get pissed when they can't fuck us.

Sun, 01/24/2016 - 07:02 | 7088675 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Going forward, blockchain technology is something to watch closely.

It is being pioneered by Blythe Masters, the same woman who was responsible for the financial products that caused the 2008 market event.

Sun, 01/24/2016 - 10:31 | 7088924 two hoots
two hoots's picture

"Congress shall have the power 'to coin money (or not, my add).....,"  not the Federal Reserve.

Should take a constitutional admendment. 

Sun, 01/24/2016 - 18:08 | 7090250 Dizzy Malscience
Dizzy Malscience's picture

The state and the bank have been essentially the same entity ever since the first Rot Schild figured out the state sponsored banking scam and took over the BoE

Sun, 01/24/2016 - 18:24 | 7090293 NidStyles
NidStyles's picture

Since there is no name listed I have to assume that the recommendation came from a beanie wearing guy with a funny looking nose...

Sun, 01/24/2016 - 10:32 | 7088925 savagegoose
savagegoose's picture

Here in Austrlaia, welfare has been paid as a cash desposit into a bank account for years. now they want to make it a welfare card. where only %20 of the deposit can be taken out as cash. the rest must be used as a debit card, and alcohol, smokes and anyother thing the gov deems " un sound " is banned form purchase!  now i see it as an effort to restict the use of cash, well played aussie gov. well played.There is a lot of welfare going thru the  banks at this point

Sun, 01/24/2016 - 01:39 | 7088429 dussasr
dussasr's picture

Don't forget oil and arms...

Sun, 01/24/2016 - 01:18 | 7088232 Lore
Lore's picture

I have some experience with point of sale systems and interact with salespeople frequently.  There was a fairly steady trend in favour of cashless society up until about 5-6 years ago, but it seemed to reach a bottom around that time, and more recently I find a growing percentage of customers want to pay cash.  And it's not true that the majority of those are elderly.  In fact, I find more millennials are opting for cash.  Recent estimates have about 20% paying cash versus some form of plastic. 

It's interesting too how many of these people are alert to current affairs, using terms like 'bankster' and 'fiat' and 'reserve currency.'  I had a good conversation this winter with a young man and his brother about fractional reserve banking. 

I wonder if the rhetoric is being ramped up because the trend has reversed, and as we witness more and more social and political ills that can be attributed to the debt-based consumerist paradigm, more people are going to revert back to the old ways.  In other words, this may be a last ditch effort by corrupt legislators to carry out a plan already destined to fail. 

I was planning a trip to that part of the world this spring.  If they want my money, they had better accept cash. 

Sun, 01/24/2016 - 09:26 | 7088809 newdoobie
newdoobie's picture

I wish, I've not witnessed this, but I will follow up with the retail outlets I service.

Thu, 01/28/2016 - 05:12 | 7107410 Lore
Lore's picture

Addendum:  Volatile markets have Canadians hoarding a record $75B in extra cash; CIBC study (Montreal Gazette, 25-Jan)

"Canadians, young and old alike, are making cash a bigger part of their portfolios. But , strikingly, those under 35 - the farthest away from retirement - are holding twice as much cash as those over the age of 65, about 33 per cent versus 15 per cent."

Sat, 01/23/2016 - 21:16 | 7087822 Theosebes Goodfellow
Theosebes Goodfellow's picture

~“Today, there is approximately 50 billion kroner in circulation and [the country’s central bank] Norges Bank can only account for 40 percent of its use. That means that 60 percent of money usage is outside of any control. We believe that is due to under-the-table money and laundering,” Trond Bentestuen, a DNB executive, told Norwegian website VG, the Local reported.~

I can think of few things more loathsome, foul and repugnant than a bank employee who even thinks like this. It isn't your fucking money, teller boy. You do not get to know what I do with my property, and that includes my money, cash, PMs or any other asset, asshat. In a free country, that man would never work in finance ever again. He'd be a pariah, shunned by all. What an obscenity.

Sun, 01/24/2016 - 00:15 | 7088319 scaleindependent
scaleindependent's picture

Exactly!

Sun, 01/24/2016 - 04:45 | 7088571 East Indian
East Indian's picture

They rate Norway as corruption-free, and this bankster says 60% of their transactions are unuder-the-table money?

Sun, 01/24/2016 - 07:29 | 7088697 Falcon49
Falcon49's picture

A natural response to high transaction taxes....an underground economy based on cash and barter springs up and thrives.  Not sure what Norway's transaction taxes are, but most of the EU has very high transaction taxes (VAT).  I am also wondering if this proposal has anything to do with the loss of oil revenue.  

Doing away with cash will destroy one form of underground economy...but, I think barter will continue to thrive and grow.  They will crack down on that also...as it will be very difficult to do business that way.  All forms of barter advertising will be inhibited, resulting in word of mouth only.

Sun, 01/24/2016 - 10:00 | 7088860 Burticus
Burticus's picture

"Black" market = FREE (of gubbermint) market

Sun, 01/24/2016 - 13:52 | 7089515 ConfederateH
ConfederateH's picture

Barter in Norway when so much must be imported?  Norway, long an oil exporter, not only has the highest priced gasoline due to taxes, but also they have license plate readers all over the country so they can tax you again on the kilometers you drive.  It is a PC-fascist-police-nanny state, and it is not surprising that Breivic did what he did to the socialist cucks that have destroyed that once fine nation. 

Sun, 01/24/2016 - 22:06 | 7091114 Mr. Ed
Mr. Ed's picture

Yeah, and I just checked up on Breivic:  did you know that he was found sane and now has to serve 21 years in prison for killing 77 people??!  Wow, they are REALLY tough on crime there in No-Way!

Of course he has 3 cells to serve it in... one for exercise, another for writing, and a third for eating and sleeping.  Talk about hard time!  And his sentence states that he will have to serve an absolute minimum of TEN YEARS before he is released.  There's no way he's gettin out any earlier!

 

PS: I am not joking.

Sun, 01/24/2016 - 11:24 | 7089050 HenryHall
HenryHall's picture

>> It isn't your fucking money, teller boy.

Wrong.

When you deposit your money with a bank it becomes their money not your money. To do with as they wish, on a whim. You are only an unsecured creditor until you withdraw your money.

As amost ZHers know - you don't trust banks, banks are inherently dishonest. You may be forced to do business with banks but you are not forced to trust them.

Sun, 01/24/2016 - 11:57 | 7089154 Gargoyle
Gargoyle's picture

You're right about demand deposits being a "loan" to the bank, Henry, but I think you miss the point.  Teller Boy seems to be concerned with the use of cash outside the bank, as I read the quote, which makes him a nosy fuck, way out of line. 

If I don't have my money in your bank, then you have no right to know how it's used. 

Sun, 01/24/2016 - 17:00 | 7090062 omniversling
omniversling's picture

In Australia if one tries to withdraw more than $999 in cash, the teller is required to refer the transaction to the ATO (tax office). This is disguised as a 'money laundering' safeguard. When I have withdrwan other sums larger than my ATM limit, I've been asked by the teller what was the purpose for the withdrawl, so as well as telling them it's not their business, I asked for the manager whom I questioned. Answer I got back was that the tellers are primed to 'cross sell' me another bank product...eg, if I answered, 'I'm buying a vehicle', they want to sell me insurance.

Sun, 01/24/2016 - 19:46 | 7090548 Mentaliusanything
Mentaliusanything's picture

Changes to ANZ Credit Cards effective 27th February 2016.

A cash advance means a debit to the credit card

A) which results in you recieving cash (ok this is OK)

B) Where the funds are used to purchase cash equivalents such as Foreign exchange ie travelers checks, wire transfers, or transfers for gambling (OK - sort of)

C) Where funds are used to purchase or load value on a prepaid or store value card (WHF - Toll road top ups are now charged)

D) where the funds are used by you to pay a bill at a branch or through an agent of the biller (for example to pay school fees or utility bills (WTF- that's what credit is you fuckers.. Now your going to pay 20% + for paying an every day bill)

E) Where funds are used for a transaction that to a person who does not accept Credit card payments. This includes payments through BPAY, internet banking, Phone banking and mobile banking. (OK - I guess that's a cash transaction)

F) Where the funds are used for a transaction which is identified to ANZ by the merchant or any intermediary as constituting a cash advance ( This is open to interpretation but it means Newspapers, Lotto tickets and even perhaps your fucking shopping)

G) Where the funds are credited to another account or another financial institution or third party ( Well there goes paying one Credit card bill with another)

(Further down) "you should note that a relevant Debit even though your account may be in credit is treated as a cash advance and interest will be charged on the full debit (ON my Credit deposit- Fuckers are now stealing your money)

The Theft is now upon us, you can"t pay a simple bill without being charged.

The Banking Ombudsman is going to have a field day trying to explain this theft.

As Kaiser Sousa would say 'Death to the money changers'

 

Mon, 01/25/2016 - 09:55 | 7092323 Rock and Hard Space
Rock and Hard Space's picture

"As Kaiser Sousa would say 'Death to the money changers:

Plagiarist in addition to his other crimes, JC said it 2000 years ago.

Just saying!  Thanks for the comments, dead on.

We are being FORCED to fund the  elite at the top of the banksters, government, unions, insurance, pharmaceuticals, electric freaking cars.

EVERYONE of those industries has a few, richer than God, people and the top, and layers of minions that lie and steal and kill us.

The banksters will get an automatic profit on EVERY dime I spend.  EVERY dime.  Complete control of EVERYthing we do.

If the people allow this to continue they deserve the need and want that eventually be rained down on them. 

Of course, the complete collapse of the Western Oligarch, thieving, economies would send these rules into the crapper.

Silver lining, I wonder if I should be buying yuan and rubles.

Sun, 01/24/2016 - 16:53 | 7090041 omniversling
omniversling's picture

(Do you not mean 'currency'?)

Not only that, the actual note remains the property of the issuing 'bank' whether or not you have spilled your sweat to have it in your hand honestly. I have this verbatim from the Reserve Bank of Australia in response to a direct question: ' If I'm paid for an hour's work in banknotes, is the polymer note in my hand mine or the RBoA's?'. Answer: RBoA's. It's a prosecutable offense to damage RBoA's property. What does that tell you? Broader question is: if you purchase something with someone elses money, is the item yours? See this excellent analysis by a Canadian reseasercher: www.servantking.info (My Name is Marcus)

Caveat Emptor bishes...

Sat, 01/23/2016 - 22:20 | 7088023 TeraByte
TeraByte's picture

Many launders are not the worst crooks on the planet. Mafia at least supplies goods and services, what clients of their free will pay for, but what have gained from trillions to banks in return. Disappearance of paper money would lead into in-vestments or a thousands years practice of carrying and swapping gold and silver as a trade currency. There is no fail safe system ever invented to prevent alternative means of trading taking place.

Sat, 01/23/2016 - 22:28 | 7088055 TheReplacement
TheReplacement's picture

WTF?  Government and mafia and bankers are all the same people, just varying in levels of success.

Sun, 01/24/2016 - 00:59 | 7088382 PrometeyBezkrilov
PrometeyBezkrilov's picture

This is done not to stop money laundering but to steal your cash. Money laundering business will continue as usual.
http://youtu.be/9lh0cMtOHmo

Sun, 01/24/2016 - 12:26 | 7089244 Rusty Shorts
Rusty Shorts's picture

 - ATLANTA - Man arrested for withdrawing $200,000, Bank manager (who called police) says people are not supposed to have $200,000 cash.

https://www.youtube.com/watch?v=9G4_2NEXW0M

 

 

 

Sun, 01/24/2016 - 01:26 | 7088415 Al Gophilia
Al Gophilia's picture

This is an announcement from Norway's largest bank: STAMPEDE! RUN TO YOUR NEAREST BRANCH AND PANIC FIRST.!!!!

Sat, 01/23/2016 - 20:38 | 7087709 Beam Me Up Scotty
Beam Me Up Scotty's picture

"DNB's proposal suggests eliminating the use of cash would cut down on black market sales and crimes such as money laundering"

Yes, and so would eliminating cell phones and cars.  Those items are used in most "crimes" too.  The cash I have EARNED is nothing more than a representation of MY LABOR.  I am saving labor for use at a future time---like when I retire and cannot labor anymore.  This is just another stealth SLAVE program.


Sat, 01/23/2016 - 21:18 | 7087828 Wait What
Wait What's picture

funny thing: who is most likely to lose when interest rates go negative? those with the most accumulated, fungible assets, i.e. the oligarchs, investors, etc. who really thinks they are going to sit back and allow their cash to be taken?

no, they will start a propaganda war against the culprits to protect their cash hoards, which will trickle down to the sheeple, who will rebel against negative rates. capital controls? more like pre-emptive cash runs out of the country. the rich are not going to suddenly start spending cuz .gov says so. it will be much like tax inversion going on in the corporate world; they'll find a loophole to get the money out.

the avg joe on the street does not have enough disosable cash to be much affected, beyond the daddy-state tracking of each and every transaction they conduct.

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