When Cash Is Outlawed... Only Outlaws Will Have Cash

Tyler Durden's picture

Submitted by Bill Bonner of Bonner & Partners (annotated by Acting-Man.com's Pater Tenebrarum),

Control, Tax, Confiscate

Harvard economist Larry Summers is a reliable source of claptrap. And a frequent spokesman for the Deep State.

To bring new readers up to speed, voters don’t get a say in who runs the country. Instead, a “shadow government” of elites, cronies, lobbyists, bureaucrats, politicians, and zombies – aka the Deep State – is permanently in power.

 

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Larry Summers – the man with a plan for everyone. An economist whose economic theorizing is truly abominable crap (more on this in an upcoming post), a reliable, crypto-fascist, bought and paid for evil intellectual in the service of the Deep State. His “policy proposals” all have one thing in common: they are apodictically certain to restrict economic progress and individual liberty.

Put simply, it doesn’t matter which party is in power; the Deep State rules. Want to know what the Deep State is up to now? Read Larry Summers.

It’s time to kill the $100 bill,” he wrote in the Washington Post (another reliable source of claptrap).

The Deep State wants you to use money it can easily control, tax, and confiscate. And paper currency is getting in its way.

France has already banned residents from making cash transactions of €1,000 ($1,114) or more. Norway and Sweden’s biggest banks urge the outright abolition of cash. And there are plans at the highest levels of government in Israel, India, and China to remove cash from circulation.

Deutsche Bank CEO John Cryan predicts that cash “probably won’t exist” 10 years from now. And here is Mr. Summers in the Washington Post:

“Illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds, as would be the case if the $20 bill was the high denomination note.”

He proposes “a global agreement to stop issuing notes worth more than say $50 or $100. Such an agreement would be as significant as anything else the G7 or G20 has done in years.”

What makes Mr. Summers so confident that a ban on Ben Franklins would be a good thing? It turns out that a research paper – presented by Peter Sands, the former CEO of British bank Standard Chartered, and published for the Harvard Kennedy School of Government – says so.

 

Idiotic Ideas

High denomination notes,” said the report, “play little role in the functioning of the legitimate economy, yet a crucial role in the underground economy.”

Mr. Sands should know about hiding money. While he was CEO, New York’s top financial regulator threatened to strip Standard Chartered of its banking license. It claimed the bank “schemed” with the Iranian government to hide at least 60,000 illegal transactions – involving at least $250 billion.

 

benjamin

If the Benjamin is killed, it will “deter illicit activities” they say, apparently taking us all for complete idiots. Very organized criminals all over the world could be heard rolling on the floor laughing their heads off at this pronouncement. Here’s another idea: if we lock all the peasants up in a small room without doors and windows, they will no longer have to suffer the indignities and dangers inflicted by bad weather! Never again will they be made wet and uncomfortable by rain, and the threat of skin cancer due to excessive exposure to sunlight (as recently highlighted by Hugh Jackman’s withering nose) will soon be but a distant memory. Isn’t such a comprehensive level of security well worth whatever small trade-offs it involves?

 

Here at the Diary, we don’t pretend to know how to improve the world. We just know what we like. And we don’t like other people telling us what to do. Last year, we traveled all around the world. We went where we wanted to go. We did more or less what we wanted to do. Rarely did we feel that someone was bossing us around. But back in the USA…

Take your belt off. Take your shoes off. Anything in your pockets? Take it out…

Turn on lights. Fasten seat belts. Turn on windshield wipers.

This morning, walking through the park, we found this sign:

Curb Your Pets

Not just a courtesy to your neighbors

IT’S THE LAW

 

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The unspoken threat behind the “law”, made explicit.

People who insist you follow their ideas are always the same people whose ideas are idiotic.

Always do the opposite of what they tell you do,” said a friend in France whose father was mayor of a small town during World War II.

 

There had been ‘an incident.’” he explained. “I think the Resistance had killed a German soldier in the area. It was that time, late in the war, when the Nazis were retaliating against civilians.

 

So, they told my father to get everyone in town to assemble in the town square. Instead, my father told everyone to run for the woods. They all did. They were lucky. They survived the war.

Electronic Dollars

And now, Mr. Summers wants us to bring our cash to the town square. Instead of $100 bills, he wants to force us to use electronic notations faithfully recorded in a federally regulated bank. Have you ever seen one of these “electronic dollars,” dear reader?

We have not. We don’t know what they look like. And we’re deeply suspicious of the whole thing. The European Central Bank and the Bank of Japan – along with central banks in Denmark, Sweden, and Switzerland have already imposed a negative interest rate “tax” on the accounts commercial banks hold with them (known as “reserve accounts”).

 

Negative yielding bonds

Negative yielding government bonds in Europe as of December 2015 – a monument to the decline of Western civilization

 

These central banks are hoping banks will pass on this new tax to their customers. This has already happened in Switzerland…

As colleague Chris Lowe told Bonner & Partners Family Office members at our recent annual meeting in Rancho Santana in Nicaragua, Alternative Bank Schweiz (ABS) will begin charging a negative interest rate on customers’ deposits this year.

ABS will levy an annual penalty of 0.125% on deposits of less than 100,000 Swiss francs ($101,173) and an annual penalty of 0.75% on deposits of more than 100,000 Swiss francs. Essentially, ABS is charging its customers to keep their money on deposit.

If you put $1 million in the bank, at 0.75% negative interest, you come back a year later, and you have $992,500 left. The bank has confiscated the other $7,500. At a negative rate of, say, 3%… you pay $30,000 a year just to keep your money on deposit. It sounds like a scam…

Governments abolish cash. You have no choice but to leave your savings on deposit. And you’re forced to pay banks for storing your money.

 

Cash Outlaw

But wait. Banks are not really storing “your” money at all. A bank deposit is an IOU from your bank. There is no vault cash backing it up… just 1s and 0s on a database somewhere. If the bank decides not to give you “your” money, you’re out of luck.

It’s as though someone offers to store your cherry pie. Then he goes and eats the pie, promising to give you one just like it when you want it. He then has the cheek to charge you every month for “storing” the pie. And when you want it, he won’t be able to give it to you.

 

cartoon_stickup-cyprus-bank_robbery_of_the_cypriot_people

The precedent – no-one can say they weren’t warned.

 

I don’t have any baking powder. You’ll have to come back tomorrow,” he says. Or, “I’m sorry. But the federal government has declared cherries an endangered species. I’m not allowed to give you your pie back. It was very tasty, though.

How much could this electronic pie be worth anyway… if you have to pay someone to eat it for you? Imagine the automobile you have to pay someone to drive away. Or the rental unit you have to pay someone to live in.

When you have to pay someone to take it off your hands, you can imagine how much your money is really worth. And when your bank – or the Deep State – wants to confiscate your money, who will stop it?

At least if you have your money in cold, hard cash, they will have to come and physically get it from you. When it is “in the bank” – existing as nothing but electronic account balances – all they have to do is push a button.

 

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Once it’s all numbers in a computer, they won’t even have to point their guns at you anymore. Then it will be possible to rub out your money savings by simply pushing a button on a computer keyboard. At that juncture you’d better not be too uppity, citizen.

 

That’s what happened in Cyprus. The banks were going to the wall. So, they confiscated deposits to help make themselves whole again. Who will stop the same thing from happening in America?

The judge the Deep State appointed? The police on the Deep State’s payroll? The politicians the Deep State bought and paid for?

When cash is outlawed… only outlaws will have cash. And we intend to be among them.

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Seasmoke's picture

Bring it. I always wanted to be an outlaw  

Durrmockracy's picture

Most of these guys didn't want their heads mounted on private bank's confetti anyway... get rid of the crap...

Looney's picture

I betcha, Zimbabwe wanted to outlaw large (huge) denomination banknotes too.  ;-)

Looney

Durrmockracy's picture

You're either into gold & silver and want gold & silver as money or else you are into paper garbage.  Which is it?  Why not grow a pair, be a man and stand for something for once in your pathetic lives?

MagicHandPuppet's picture

I hope they are actually stupid enough to try it.  And, here's why:  It will be a big enough slap in the face to wake up many of those still plugged into the matrix and believing the fairy tales.  At some point, the sheep will hit their breaking point.  Enough of them will snap out of the feeling of despair you first get when you realize: it's all an illusion.  I'm done trying to wake people up and have been for years.  But, something like this, will alert the herd that "sum ting wong"... who knows what shit show comes next.  But, it will be extraordinarily unstable and quite entertaining.

Durrmockracy's picture

I feel pretty good about making the tautology that, "If you like Federal Reserve Notes, you like the Federal Reserve and if you accept a bank draft you probably trust the bank that it is drawn from."

MillionDollarBonus_'s picture

Yet more benefits of a cashless society: 

  1. Mitigates the risk of bank runs 
  2. Forces businesses to adopt modern payment technologies
  3. Less resource-intensive than a cash-based society
  4. Makes micro-payments more convenient
  5. Encourages standardization of payment technologies across industries

Let's be honest, a cashless society is the future whether we like it or not. So it makes sense for us to take proactive steps to adapt our economy to electronic payments, so that when it finally arrives we will be prepared and ready to take advantage of the many benefits it has to offer. Fighting it is futile, so let's embrace a cashless society and focus on evolving our economy for the future of payments, for the benefit of all.

Ignatius's picture

Doesn't work unless it's funny.  This isn't funny.

Durrmockracy's picture

It's not funny.. it's hilarious! 

Now you "stackers" either gonna put up or shut up.  Tell me what's it gonna be tough talkers?  You gonna argue with the gas station attendant to accept your Mercury Dime or you gonna get chipped?

Baa baa's picture

There will be no argument.

Durrmockracy's picture

No... after you give the attendant a half hour sermon on Austrian Economics and sound money, they will be taking your dime and begging you to go!

Save_America1st's picture

Where does Larry park his car???

 

DO YOU SEE WHAT HAPPENS, LARRY????  DO YOU SEE WHAT HAPPENS???  THIS IS WHAT HAPPENS WHEN YOU FUCK A STRANGER IN THE ASS!

 

https://www.youtube.com/watch?v=DZV_vpkVTNA

THIS IS WHAT HAPPENS LARRY!!!

McCormick No. 9's picture

Bullets.

Cigarettes.

Alcohol.

Firearms.

Drugs.

Gold.

Silver.

Car titles.

Animal parts.

Bearer bonds(?)

Candy bars.

Counterfiet bills.

If it's relatively small, easy to carry, and has the ability to increase in value as a result of relative scarcity, it can be used as money. The "worth" of the money extends along a continuum, based on the relative perception of scarcity, and thus, demand (supply and demand). Scarcity and hence, value, of a monetary instrument will increase as a function of the item's convenience and acceptance as a medium of exchange. The relative scarcity of small-denominated bills will increase the demand for such bills, and since small bills are harder to detect by conterfiet police than large bills, they will be readily counterfieted.

Another side effect of eliminating large bills will be that this will increase the relative value of the above mentioned items as a medium of exchange, ie, they become a carrier of wealth, rather than a mere commodity. This added utility of an item, say, cigarettes, makes them more valuable as a economic transfer mechanism than as a nicotine delivery tool. Hence, their added utility will increase their value.

Anyone willing to absorb substantial risk will be well rewarded in the cigartte smuggling industry, the moonshine industry, the cottage re-loading industry (spent brass will become money!), the clandestine zip-gun manufacturing industry, and the counterfieting and related supply (high quality printers) industry, or any other monetary instrument supply industry, such as powder manufacturers, lead mines, saltpeter manufacturers, etc.

Those who are already pre-positioned at the vanguard of such industries (Zetas, Mafia, Russian Mob, Templarios, etc) will be well-rewarded by timely investments ahead of the demand curve.

Hedge accordingly. 

clymer's picture

The New World Order needs to use all of the available cash to be palleted up and sent to despotic war lords around the globe so that modern civilization can be wiped out, taking what might have been left of America's good name with it

http://www.theguardian.com/world/2007/feb/08/usa.iraq1

The Juggernaut's picture

What’s going to happen is that there is going to be a PREMIUM on the $100 if its outlawed.  Banning the $100 will have the opposite effect, funny enough.    The value may be worth more than its mark! LOL  There will be a black market for it.

 

Just like with most things the USA government bans... including Liberty.

Save_America1st's picture
PM Fund Manager: A Modest Response To Zerohedge On When Cash is Outlawed. The War On Cash Is Irrelevant If You Own Gold And Silver

http://investmentresearchdynamics.com/the-war-on-cash-is-irrelevant-if-y...

 

for the record...I agree w/ Dave Kranzler on this.  People have had many years now of subsidised, cheaper than dirt phyzz silver and we've been proving to people the whole time what's going to happen when the shit hits the fan, just as Zero Hedge has been as well so very convincingly, vociferously, and ad nauseam.

those who chose not to listen or to wake up and haven't prepared accordingly are just going to have to suffer through the shit to come.  We can't save everyone even if we've given it a heroic try to whoever we thought might listen. 

That's just how it goes. 

Durrmockracy's picture

Why are you guys such pussies?  What did you think you were signing up for when you bought gold & silver?  Now you are starting to get nervous that the curtains are closing on this final act?  You don't want to carry this thing out to its logical conclusion and finish the game?

It's their cash... they can do whatever the f00k they want with it for all I care!  Their system, their rules and your choosing to play in it!

Durrmockracy's picture

My point is that I was expecting this from them.  So why should I be acting disappointed now that I am getting positive confirmation?  Why do people here act like they are sad that Fed Cash is going away?

Gold dealers I know (and I know miners too) aren't going to sell their product for digi-bux.  So end-zone, wooh-hoo!

eforce's picture

Wasn't it Franklin or w/e said something about central banks will leave you with nothing or something?

Squid-puppets a-go-go's picture

I'd love to see a cashless society survive a prolonged electricity blackout. Even funnier if the electricians only needed a $10 widget to fix it and get the whole city back on line, but they cant buy one coz the power's out

Citxmech's picture

One of the reasons why another Carrington Event//EMP is such a scary prospect.  Prep accordingly.

Stuck on Zero's picture

I say that we ban alll non-cash transactions. That will put all the really big criminals out of business.

Which way to the beach's picture

Ben also  said "Those who beat their swords into ploughshares end up ploughing for those who kept their swords. Time to lock and load is nearly upon us.

 

Bubbles

 

nope-1004's picture

and your choosing to play in it!

Wrong.  Nor did anyone here or anywhere in the world vote for Yellen, Draghi, or for the ESF, FED, and Treasury.  The system is designed by few for the advantage of a few.  Grow a pair and start that revolt you say you want to do.

And btw, why are you so angry?  Stackers know what they have and know the yardstick currently used to measure 'value' of the stack is sheer fraud.  Yet, stackers aren't angry like you.  Did you go all in on bigcoin or something?  Wife  now on your case?

 

 

Durrmockracy's picture

No, it's right.  We choose to give our consent as freely and easily as we choose to rebel.  There's nothing stopping you from setting up an underground barter economy in your area.  Hyperinflation really kicks off when the domestic population  starts to reject the currency.

And yes, Durrmockracy always goes 'all in' on BigCoin!

KJWqonfo7's picture

Doubt it, if The Man tells you he is not going to honor your Benjamin after next Tuesday everyone will turn in their Benjamins for the denomination of the gubments choice.

People aren't that smart.

The ad will be "we are tired of working people getting slighted by the rich and criminals who use their stacks of benjamins to avoid paying the taxes we need to refill your EBT Cards".

And as for gold.... outlawed once already... its just a matter of time..... 

The Juggernaut's picture

Deep Gov wants to ban cash so they can see who will own gold.  What you're mentioning is "in the meanwhile" time period.  What I'm saying is that cash will be the ultimate conduit to get gold.  Deep Gov will monitor electronic cash positions and monitor gold purchasing,  $100 bill (cash) will be the gate (quickest/private) to gold ownership.

fockewulf190's picture

And then comes a solar storm ala 1859...which is 100% guarenteed to happen again (it did actually during  July of 2012, but we lucked out big time as it missed the Earth) and the world is thrown back into the 19th Century.   All the zig trillions of digital "currency" evaporates (along with a couple billion people) and Phyzz is again king.

PTR's picture

You forgot "personal skills."

gladih8r's picture

.... and other countries' currencies. 

People living in banana republics have been practicing that for decades.

Kirk2NCC1701's picture

LOL.  You DO realize that he trashed the WRONG car?  LMAO.

Blythes Master's picture

Douchemonkey;

You are such an insufferable cunt that you fail to see the forest through the trees because you so focus on splitting hairs.

You and MillionDollarDouchebag are advocating the demise of currency, which by extension will erode freedom and liberty rapidly.

Agin, you two are perfect examples of my earlier statement; Most people under the age of 35 are retarded fucking morons.

Durrmockracy's picture

Erode personal liberty?  Hahahahahaha! Thanks!

Now for who?  People that want to obey "laws"?  Have fun with your "laws" because I am a rebel and one who stands behind Gold, Silver and Bitcoin in the real world!

Enceladus's picture

Ill skip the gas and go home and pray

Croesus's picture

@ Durrmockracy: 

"You gonna argue with the gas station attendant to accept your Mercury Dime or you gonna get chipped?"

Gotta tell you man...if cash gets outlawed, a lot of people will probably be "getting chipped" with small pieces of lead. 

A "Ban on Cash" could be a straw that breaks the camel's back. 

 

 

 

peddling-fiction's picture

Now that is a "chip" IN your shoulder. /lol

WOAR's picture

You guys obviously don't know MDB.

By agreeing with the system, he has completely stated the goals of the program in the simplest, least round-about way possible.

As it was stated in 1984, the greatest crime against the state is to...describe the state truthfully. "The Theory and Practice of Oligarchical Collectivism" is the book that got Winston into trouble.

zeronetwork's picture

In some African and Asian countries people are using cell phone for exchanging money. How they do it. I tell you. cell phone service is prepaid and they allow you to transfer balance to other cell phones. so people are buying stuff and transferring cell phone balance of the same amount to others. This is instant and fast.

MillionDollarBonus_'s picture

Yes, I'm aware of this and it's a big problem. A cashless society still needs to maintain control over the issuance of currency, and rogue currencies that seek to undermine official national currencies, whether in the form of bitcoin or cell phone credit, simply need to be outlawed. Non-official currencies are a haven for money laundering and criminal activity, with little or no oversight by Federal officials. In order for an economy to work, we need structure and oversight, and allowing unofficial currencies is simply unfair on the majority of hardworking citizens who abide by the law.

Durrmockracy's picture

The thing is that the "old world order" seems to believe that it will remain their society, their digital currency.

Those are some pretty big assumptions.

Durrmockracy's picture

Very rarely.  I was diagnosed with CTD (Compulsive Trolling Disorder).

When I do nap I enter REM very quickly but snore quite bad and it sounds like akkk... durrr.. akkk... durrrr. durrrr. durrr.....

Tall Tom's picture

So instead of trolling how much Gold have you recovered from your Electronics Refining?

 

You did not allow them to ship that scrap off to China did you?

Durrmockracy's picture

Not much... maybe an ounce or two when everything is said and done.  I tried using methyl-hydrate to seperate the gold myself and it didn't work out quite the way I expected.  Now I have a blob of black plastic with some grams of e-gold in it.  It kind of looks cool, maybe some day I will seperate it down further.

sleigher's picture

When they do this I am going to start cooking the new currency.  Just takes a precursor, some red phosphorus, toulene, acetone, a few acids, and sodium hydroxide.

Welcome to the New Millinium Cyanide Christ.

MadVladtheconquerer's picture

And in Japan, you can load your subway card (PASMO) and buy not only

your subway fare but also stuff at the convenience stores around town.

All this does is make it EASIER tro separate you from your money, in whatever form

that is, cash, bytes, turdollars, whatever.  And, of course, the peanutbrittle brains

are falling for it cock, balls and French tickler.  You aren't fooling anybody and you

aren't cutting edge.  You are simply pissing away your money.  The rich get richer

and the shit gets shitter.