The War On Cash - The Central Banks' Survival Campaign

Tyler Durden's picture

Submitted by Paul Rosenberg via Free-Man's Perspective blog,

Over the last few months a stream of articles have crossed my screen, all proclaiming the need of governments and banks to eliminate cash. I’m sure you’ve noticed them too.

It is terrorists and other assorted madmen, we are told, who use cash. And so, to protect us from being blown up and dismembered on our very own street corners, governments will have to ban it.

It would actually take some effort to imagine a more obvious, naked attempt at fearmongering. Cash – in daily use for centuries if not millennia – is now, suddenly, the agent of spring-loaded, instant death? And we’re supposed to just accept that line?

But there are good reasons why the insiders are promoting these stories now. The first of them, perhaps, is simply that they can: After 9/11, a massive wave of compliance surged through the West. It may not last forever, but it’s still rolling, and if the entertainment corporations can pump enough fear into minds that want to believe, they may just get them to buy it.

The second reason, however, is the real driver:

Negative Interest Rates

The urgency of their move to ban one of the longest-lasting pillars of daily life means that the backroom elites think it will be necessary soon. It would appear that the central banks, the IMF, the World Bank, the BIS, and all their backers, see the elimination of cash as a central survival strategy.

The reason is simple: cash would allow people to escape from the one thing that could save their larcenous currency system: negative interest rates.

To make this clear, I like to paraphrase a famous (and good) quote from Alan Greenspan, back from 1966, during his Ayn Randian days: The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

That was a true statement, and with a slight modification, it succinctly explains the new war on cash:

The preservation of an insolvent currency system requires that the owners of currency have no way to protect it.

Cash is currency that you hold in your own hands, that stands more or less alone. It is primarily external to bank control. Electronic money – bank balances, credit, etc. – remains inside the banking system and fully subject to bank control.

A combination of no cash and negative interest rates would be a quiet, permanent version of what was done in Cyprus, where the government simply shut down everything, allowed only the smallest deductions via ATMs, and then stole money from thousands of bank accounts at once.

The Cypriot spectacle was fairly large, however, and that tends to undermine the legitimacy of rulership. So, it is much better to have no ATMs and no cash at all. There would be no lines of angry people talking to each other, only isolated losers with no recourse, licking their wounds while the talking heads on television tell them to stay calm and watch the flashing images.

Negative interest rates would give the banks 100% control over your purchases. They could, even in the worst pinch, allow you to purchase food while freezing the rest of your money. The average person would have no recourse and would simply be robbed… but very smoothly and with no human face to blame on.

Negative interest rates mean that your bank account shrinks day by day, automatically. Your $1000 in January becomes $950 by December. And where does that money go? To the banks, of course, and to the government. They syphon your money away, drip by drip, and there’s nothing you can do about it. This accomplishes several things for them at once:

  • It finances government, limitlessly and automatically. Forget tax filings; they can just take as they please.

  • It pays off the bad debt of the big banks. (And there are oceans of debt.)

  • It forces you to spend everything you’ve got, as soon as you get it. (Otherwise it will shrink.)

  • It gives the system full control over your financial life. Everything is monitored, everything is tracked, and every single transaction must be approved by them (or not). If they decide they don’t like you, you’re instantly reduced to begging.

In short, this is a direct return to serfdom.

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InjectTheVenom's picture

>>>>  eliminate cash  OR

>>>>   end the Fed

Prisoners_dilemna's picture

It doesn't matter if they go digital, Bitcoin is still superior to the dollar.



And for the 537th time;

Prisoners_dilemna's picture

Feel free to leave a downvote on the above comment if you think phyzz can be sent across fiber optic cable.

Going Loco's picture

Feel free to leave an upvote if you think fibre optic cable will survive the kind of disaster which my gold (if I had any) would be designed to deal with.

TheReplacement's picture

Some people believe that even if an entity can control the media, government, "money" itself, and just about every facet of life that the same entity cannot control the internet.

Question for Bitcoiners, does Comcast and/or Verizon/other ISP cooperate with the NSA?  Hell yes they do.  Are those companies debt free?  Hell no they are not. 

Leverage.  .gov has it.  .gov will use it.  If you think any packet that has any semblance of an unapproved crypto-currency will be allowed to pass through their routers then you are quite obviously one of those people who will buy a bridge from a hobo standing on the side of the road.  When the cash lockdown comes they will lock down anything necessary to preserve their monopoly.  If they can't control it they will kill it.  If they can't kill it they will find you and do whatever necessary.

<Heads on pikes>

"These terrorists used Bitcoin"

Government needs you to pay taxes's picture

Assets are like that bodacious tits on the hot chick @ work.  If you can touch them, they are real.  If you cant touch 'em, you're just jerking in the dark.

savedeposit's picture

But but but... you can also print your bitcoin on a piece of paper, of put it on an usb stick ?

Good luck selling your %#E#GSGSDFSR#RadfdsFw3rfCsdfs4f for goods and services

commander gruze?'s picture

Like I said many times on this forum: for Bitcoin the Internet is a convenience, not necessity. It's built for resilience, it can survive aggressive throttling by an ISP. Minor difficulties may occur in isolated cases, but the system as a whole is robust. Worst case for bitcoin: broadcasting transactions over smoke signals - try throttling that.

loosh's picture

Feel free to rely on electronics and electricity from the grid with infrastructure that relies on parts that haven't been manufactured yet.

I'm pretty sure my low tech gold coin trumps digital currency on transactions initiated underground, on the street or the quintessential flea market. The last time I attended a farmer's market for fresh produce, the vendors were all about CASH.

Nutsack's picture
Nutsack (not verified) InjectTheVenom Feb 11, 2016 9:17 PM

As my post yesterday clearly stated, today I withdrew 112 FIFTY dollar bills from each of my three banks...I needed to buy a boat, I said. A bigger boat, for  larger, and even more tragic marine mishaps.


Once again, Nutsack is ahead of the curve. What's most fulfilling is even being ahead of the ZH curve, if only by a day!

August's picture

Behavioral studies have revealed that those who deal chiefly in FIFTY dollar bills are the most likely to, in fact, be terrorists and drug dealers.  They seem to think they're "flying under the radar" by avoiding 100's, but they're actually assuming the highest profile of all currency hoarders.

Sirius Wonderblast's picture

Here in dear old Blighty, the line being peddled is that 50 pound notes could be scrapped to stop plumbers and other tradesmen evading tax, and all the terrible harm and threat that this poses to the economy. For fucks sake!


East Indian's picture

What? Terrorists and drug dealers are using Fifty Dollar bills? Ban Fifty Dollar bills immediately! 

Reminds me of an old joke: The Indian Railways appointed a commission to recommend the steps to reduce train accidents. The commission found that 80% of the accidents are related to the last wagon, and strongly recommended to remove the last compartments from all trains...

NoDebt's picture

I just want to know how the CIA is going to get some warlord in a 3rd world shithole to accept his $40MM payoff on a debit card instead of cash.



BullyBearish's picture

They'll use the barborous relic...

yellensNIRPles's picture

Black Swan possibility: The cartels in Mexicali decide they are going to buy gold with their pallets of $100 bills since their economic advisors are in fact quite aware of what's going on in the world right now. They demand physical to replace the pallets of hundos about to be made illegal. The bullion market implodes and the banning of cash becomes the undoing of the entire fiat system as the paper PM markets show the true nature of things.

Jacksons Ghost's picture

If you don't have your gold and silver already, it maybe to late. Gold purchases will be banned with cash, probably seize all the gold too.  All the exits will be closed. They can't ban cash and not go after PM's too.  Things are moving fast in Syria too, I think I hear the footsteps of doom.

thinkmoretalkless's picture

Fool me once shame on you. Fool me twice shame on me.
While a generation may have passed since .gov made gold illegal to own the current generation has a greater distrust of their government. As this site can testify there are a lot of terrible sailors who always insist on having their PMs with them at all times. Pry my gun from my cold dead fingers....take my gold if you can find it.

Anyone accumulating PMs should know it is a long term game and silence is golden. Survival is the goal whether it might be you or certainly your grandchildren really is immaterial.

For me it is enough that TPTB don't win.

JuliaS's picture

"To understand the economic reasons for the war you’ve got to go back to the 1971 OPEC meeting, when the Organisation of Petroleum Exporting Countries agreed that from this day forth, whenever a barrel of oil is bought or sold anywhere in the world, it can only be bought or sold in US dollars. Mexico selling oil to China - US dollars; Holland selling oil-futures to Morocco - US dollars, even though the more natural currency for that particular transaction, of course, would be hashish."

- Robert Newman (History of Oil)

So to answer your question - when cash is banned, CIA will go to the next best thing, which they already transact in - drugs!

CIA is the Monsanto of drug production and The Federal Reserve of drug trade.

East Indian's picture

Banksters will issue a set of anonymous debit cards for CIA and its clientele! There will be two sets of debit cards - one for the serfs, with negative interest rates, where every transaction is tracked, and periodic heircuts are adminstered, another set for the feudal lords, which are not tracked, no negative interest rates (or even a mild positive one), no hair cuts, global, no tax, etc... Banksters will rule the world... their dreams. Now let us be realistic. The whole world will revolt. Any and every commodity will become the currency. Foreign notes will become acceptable. Even confederate notes could come back! Wherever and whenever societies find themselves in short supply of cash, they create cash out of everything. As the most basic element of a currency is acceptablitity, as long as people accept, anything can become the currency (heck, paper is the prevalent currency, remember?). Sooner or later, a currency will emerge out of the commodities. And when the whole society is willing to use it, beyond a point, war on cash will be a failure - remember the war on drugs? - and banksters have to give up at some point.

In short, there is no sure way of getting rid of the banksters than banning the physical cash. Real capitalism, even Ayn Rand style, will kill banksters' fascism and crony capitalism.

Going Loco's picture

Circulating letters of credit.

Bills drawn on future supplies of foodstuffs or energy.

Promissory notes discounted by bill brokers and the like who will eveolve into quasi banks.

All the old stuff will come back.

Local currencies intermediated by money changers. All of it.

The current system is not old. It is very young and it worked well for a while but it won't work any longer unless there is a debt jubilee and we all know why that won't happen.

This is the reset. It's not the end of everything but it is the end of what we have known for over 100 years.

Soon be time to stop faffing around at this terminal and go and get started on the job of rebuilding.

Ghordius's picture

+1 East Indian, particularly for "...whenever societies find themselves in short supply of cash, they create cash out of everything..."

careful, though, with "There will be two sets of ... cards"

de facto, there are already three sets of cards for electronic payments

in most of the world the bank-account-linked debit card is quite common. (that is what currently the EU is even pushing more for, here. a stance that might be seen as moderate in the "war against cash" because it is for retail banking, branches and not automatically against ATMs and cash)

in many countries, the credit card is "king". with the whole thing about credit ratings, etc.

and in two countries, the US and the UK, you find the EBT card. note the discussions that were common in the US about the poor buying things like seafood with it

meanwhile, the use of cards or cash or bank transfers differs dramatically, from country to country (Germany, for example: 20% of transactions per cards)


lakecity55's picture

Yeah, mailing a debit card thru the mail just doesn't have the same juice as a suitcase of Bens.

Crash Overide's picture

You can still hide cash under you mattress.

You can't hide a bank server under your mattress.


Something about ultimate control.

Sledge750's picture

Servers are supposed to be hidden in bathrooms!

AgainstYourThought's picture

reminds me I need to go get more cash out of the bank

August's picture

I still have a chunk of cash at a US brokerage, but am planning to clean it out in April, while I'm visiting The Homeland.

We'll all still be OK until April, won't we?

Lorca&#039;s Novena's picture

OK, so when the cash dissapears into 'digital curreny', what happens to Pawn Shops? I have an idea but need to do some research. Anyone want to join me in setting up a place called "shit for coins" as in bitcoins...? I will gladly loan you 10 digital fiats for your diamond ring (which I will sell for 100 digital fiats). Simple.

East Indian's picture

you have seen the POS (Point - of - Sale) machines in the shops, in which they swipe your ATM / debit / credit card to debit the payment? They could be programmed to recharge your cards in addition to debitting (one has to simply allow for negative numbers). Then you go to a pawn shop, dump your gold, present him your ATM card, pawn shop fellow will swipe it in his POS machine, his account is debited, your account is credited, all is well. It is technically possible. India is actively considering such a proposal.

Whether this idea will survive the real world is another matter. It wont. When gold and silver were money, people had the right to create money. Governments forcibly took over that power, and in time, gave that power to the banksters. Banksters exercised it irresponsibly. Therefore, people will exercise that power once again, by accepting barter and commodity money...

The greatest question of Economics in the 20th Century was whether medium of exchange and storage of value should be one and the same. The answer was no.

The greatest question of Economics of our time is, in a society, who shall have the power to create money, and how much money should be created.

I have an answer, but I expect the world to find it out in about ten years.

Id fight Gandhi's picture

People already go into shops pay cash for prepaid cards to spend online or such. Lots of fees to load. Plus banks get a 3% rip on any purchases from merchants.



DontFollowMyAdviceImaDummy's picture

NIRP in the USA = All out civil war

Nutsack's picture

um sure ok, after the Kartrashians is over, Brucie is lopping of his weiner and hollowing out a fake vagina with the spot that's left...

TheReplacement's picture

The self mutilation made me think of this:

Yeah, it helps if you are familiar with Boston but should still be funny.

gmak's picture

Wow.  This is really the meme of the moment, isn't it?

NoDebt's picture

Davos was last week.  What do you think they talked about there?

booboo's picture

Trust me, the people that infest the halls of government may be pure evil but they are the most unoriginal thinkers that ever walked on shoe leather, I deal with these people every day and they are dumber than a box of army rubbers. If they ever have to leave their desk to enforce any of their serfdom rules they are fucked so bad it will take years for them to get backed to being just fucked.

Pa Kettle's picture

It is the ultimate slavery.

Bryan's picture

Gosh, this couldn't be the 'mark of the beast' coming to a country near you.  Could it?

lukasbasic's picture

no. mark is a conspiracy. rockeffeler and soros want your best. prosper and multiply!

lakecity55's picture

All we lack is the name.

Soul Glow's picture

The cash ban news is heating up.  Onder what the actual timeline is before we start hearing about it from the Treasury and Fed?

Going Loco's picture

Already been proposed officially by the Bank of England. Search for Haldane (aka the Beast).

mademesmile's picture


Americans will take a LOT of S^%$, but I think, this would be the start of the year of the sniper.


Isn't the lockdown of money literally defeating the purpose of money?



nightshiftsucks's picture

Yeah I think the sheep would wake up if they did that.

gatorengineer's picture

The fsa is already largely cashless.