Exposing The Hidden Agenda Of Davos 2016

Tyler Durden's picture

Submitted by Nick Giambruno via InternationalMan.com,

“It’s a big club and you ain’t in it!”

I’m often reminded of these words, spoken by the great comedian George Carlin, when I read about the annual World Economic Forum meeting in Davos, Switzerland.

That’s where the global power elite gather to discuss the big issues of the day. The most important world leaders attend. As do the CEOs of the largest companies, leaders in the mainstream media and top academics. Central bankers attend, too, along with a wide assortment of celebrities.

Three types of meetings happen in Davos, according to the BBC:

  1. Public meetings, which anyone can attend.
  1. Closed meetings, which you can only attend by invitation.
  1. Secret meetings, which are unannounced. The public doesn’t know the agenda or who attends.

The biggest and most important deals take shape in these secret meetings. And this year, I think there was one secret meeting with huge historical significance.

I think world leaders decided to dramatically escalate the War on Cash, making it easier for them to impose negative interest rates.

Negative interest rates mean the lender pays the borrower for the privilege of lending him money. It’s a bizarre, upside-down concept.

Negative rates could not exist in a free market. They can only exist in an Alice in Wonderland economy created by central bankers.

*  *  *

[ZH: We confirmed this belief last week when we pointed out the rather disturbing headline spotted in a Davos presentation...

the most disturbing development we have seen yet in the push for a cashless society has come from the following slide in a Morgan Stanley presentation, one in which the bank's head of EMEA equity research Huw van Steenis, pointed out the following...

 

... and added this:

One of the most surprising comments this year came from a closed session on fintech where I sat next to someone in policy circles who argued that we should move quickly to a cashless economy so that we could introduce negative rates well below 1% – as they were concerned that Larry Summers' secular stagnation was indeed playing out and we would be stuck with negative rates for a decade in Europe. They felt below (1.5)% depositors would start to hoard notes, leading to yet further complexities for monetary policy.

Consider this the latest, and loudest, warning on the road to digital fiat serfdom.]

*  *  *

Punishment Interest

Think of it as “punishment interest.”

That’s a common term in Germany for negative interest rates. I think it’s an apt description.

Punishing savers is exactly what central bankers—who are really central economic planners—would like to do. They think stinging savers with negative interest rates will encourage them to spend now. It’s effectively a tax on saving money.

Central planners just want you to spend money. Even if you have to go into debt to do it. Consumption based on fear of negative interest rates is somehow supposed to “stimulate” the economy.

However, their harebrained scheme is not working. Switzerland, Denmark and Sweden all have negative interest rates. But consumer spending is not being “stimulated” in those countries. It’s totally (and predictably) backfiring on the central planners. And it’s easy to see why.

Negative interest rates make it harder to save. Put $1,000 in your bank account at the beginning of the year, and it becomes $950 by the end of the year. And that’s not even accounting for inflation.

This scenario scares people. It doesn't induce them to spend.

Producing more than you consume and saving the difference has always been the basis of prosperity. Prudent saving and thriftiness are supposed to be good things. However, negative interest rates destroy the incentive to save. That’s just one of the reasons it’s such a toxic concept.

But there’s another important reason to fear negative interest rates…

If you don’t like the sting of negative interest, you can withdraw your money from the bank and stash the cash under your mattress. The more it costs to store money at the bank, the less inclined people are to do it.

Of course, this is not the outcome central economic planners want. It puts a natural limit on how far down they can drive interest rates.

Their solution to this “problem” is to push the world closer to a cashless society. That cuts off your main escape route from punishment interest.

Central planners are doing this by phasing out larger denominations of currency notes, which makes large cash transactions impractical. Some are outright prohibiting cash transactions over a certain amount. France recently made cash transactions over €1,000 illegal, down from the previous limit of €3,000.

Statist economists even advocate declaring all dollar bills with a serial number ending in “9” invalid.

These are just some of their methods. They all make it inconvenient or illegal to use cash. This forces people to use electronic payment methods more and more, which, of course, is what the U.S. government wants.

It’s exactly like Ron Paul said: “The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.”

After Davos, the War on Cash Goes into Overdrive

For weeks, Haruhiko Kuroda, the head of Japan’s central bank, repeatedly denied plans to adopt negative interest rates.

Kuroda was at the January 20–23 summit in Davos.

A few days later, on January 29, he decided to impose negative interest rates in Japan for the first time ever. Something must have changed his mind.

I don’t think this was an isolated incident. I’m quite sure global leaders secretly discussed ramping up the War on Cash in Davos.

There was a flurry of related activity during and immediately after Davos. Here are some of the most noteworthy incidents:

  • January 20: Deutsche Bank CEO John Cryan predicted cash won’t exist in 10 years.
  • January 22: Norway’s biggest bank, DNB, called for the country to stop using cash.
  • January 29: The editorial board of Bloomberg published an article titled “Bring On the Cashless Future.” It called for the elimination of physical cash.
  • February 4: The Financial Times ran an op-ed titled “The Benefits of Scrapping Cash.” It advocated the elimination of physical money.
  • February 8: Peter Sands, president emeritus of Harvard, issued a paper titled Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notes. It advocates removing large bills from circulation to help fight the various made-up wars…the war on crime, the war on drugs, the war on terror…
  • February 15: Mario Draghi, head of the European Central Bank (ECB), announced that he has essentially decided to phase out the €500 note. These notes represent around 30% of the physical euro notes in circulation. With the use of physical cash curtailed, J.P. Morgan estimates the ECB could ultimately bring interest rates as low as negative 4.5%.
  • February 16: Larry Summers, a Harvard professor and former Treasury secretary, wrote an article in The Washington Post titled “It’s time to kill the $100 bill.” Summers became the latest high-profile “economist” to call for the abolition of cash. Removing the $100 bill from circulation would eliminate the value of 78% of all U.S. currency in circulation.
  • February 16: Hasbro, maker of the Monopoly board game, announced that, starting in the fall, the famous game will no longer feature cash. The company is replacing in-game cash with special bank cards players scan on handheld “banking units” to make purchases.
  • February 22: The editorial board of The New York Times published an article titled “Getting Rid of Big Currency Notes Could Help Fight Crime.” It called for getting rid of high denomination notes.

The writing is on the wall. The War on Cash is accelerating. And it’s setting the table for negative interest rates in the U.S.

That should not surprise anyone. Janet Yellen, the chair of the Federal Reserve, recently said, “Potentially anything—including negative interest rates—would be on the table.”

It’s time to protect yourself from negative interest rates and the War on Cash…before it’s too late. You don’t want to find yourself unprepared when negative interest rates hit you.

The War on Cash and negative interest rates are obvious signs of desperation. They are huge threats to your financial security.

Central bankers are playing with fire and inviting a currency catastrophe, just like they have done so many times in the past.

The sad truth is most people have no idea what really happens when a currency collapses, let alone how to prepare…

We think everyone should own some physical gold. Gold is the ultimate form of wealth insurance. It’s preserved wealth through every kind of crisis imaginable. It will preserve wealth during the next crisis, too.

But if you want to truly save yourself from the consequences of all this stupidity, there's more to do...

How will you protect your savings from the War on Cash and negative interest rates?

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LawsofPhysics's picture

Well, I for one think that if the bankers/financiers really want to shoot themselves in the head, I say, let them.

nmewn's picture

Faaarrreee! bullets! Get your Faaarrreee! bullets here! ;-)

Au_Ag_CuPbCu's picture

This is an outrage!!!  If we lose the war on cash every panhandler is going to have to get a smart phone and a square just so they can, ya know, panhandle….sayin.

max2205's picture

How bout this donut brains: just make all purchases fully deductible against AGI 

 

WHY DO we waste money on Govt?

 

 

philipat's picture

It confirms what an Orwellian state we are in when George Carlin is regarded as a comedian?

JRobby's picture

It seems like there is only one course os action to be undertaken at this point.

It involves the list of invited attendees at this year's Davos conference.

SixIsNinE's picture

the Davos groupies are aware of thoughts like that JRobby,

listen to them scheme the near future elimination of private thoughts ! https://youtu.be/YhK7opcG6ao Published on Feb 21, 2016

Still think we aren't living in the Matrix? Sadly, this isn't science fiction but science fact and it's coming in the next decade as part of the Internet of Things smart surveillance grid they want everyone swept up into. Technology is about to openly bring us an era where government authorities can read people's minds without their permission and use it against them including in court, pre-crime, thought police/thought crime and labeling people including children as potential criminals based on their brainwaves... and all of this was discussed casually at Davos this year like it'll be a rip roaring roller coaster of rose-colored awesome instead of the Orwellian Nightmare 2.0 we all know is coming under the technocrats in charge. Hey, why watch a horror movie when you can watch a panel at Davos instead? Philip K. Dick and George Orwell are spinning in their graves...

Truthstream Can Be Found Here:
Website: http://TruthstreamMedia.com

then listen to a recent David Icke interview on Richie Allen to get into the meat of it how this brainwave MK programs implantables work :

https://www.youtube.com/watch?v=qkcqBQyCVD8

AllBentOutOfShape's picture

the Davos groupies are aware of thoughts like that JRobby

Hence the 5000 armed troops they had at Davos this year.

AriusArmenian's picture

We'll do more than let them, we'll strongly encourage them.

adanata's picture

Hey AA... I fear you may be correct. Then again, as economically illiterate as 'Mericans are, you would have to be certifiable not to figure this one out. Can you say bankster WATERLOO?

The Sheeple never learn but neither do the 'aristocrats'. Arrogance has always led to game over for these freaks......

Fred Garvin's picture

"The Sheeple never learn but neither do the 'aristocrats'. Arrogance has always led to game over for these freaks"

People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.

John Galbraith

OneOfUs's picture

Unknown Robot: Tell the Robot Devil, I'mma coming!

Fry: Hey, Robot Devil he said...

Robot Devil: I heard him

KesselRunin12Parsecs's picture

DAVOS 2016 'agenda' has already been made quite clear because there's been a 24/7 'cashless society' media blitz since then... I said this about 100x already here on this blog before this article was written...

roadhazard's picture

No there hasn't. There has been a 24/7 ZH blitz.

offwirenews's picture

is anybody watching? No? Anything open? No?...Okay...It's HAMMER TIME BITCHES!

rwe2late's picture

Only organized opposition will stop them.

Individual do-it-alone plans will not succeed.

bluskyes's picture

Just allow inflation to take it's natural course. People will spend when prices start doubling every few years

Diplodicus Rex's picture

In a debt-based, fiat, fractional reserve banking model the default condition or natural course if you will is deflation. Only the principal is printed out of thin air at the inception of a loan. The interest is NEVER printed but it must be paid back. Therefore, as Principal+Interest is paid back the amount of currency in circulation reduces - i.e. deflation. The current currency system is highly deflationary. That's why the banksters have a pre-occupation with creating inflation. Without inflation the fractional reserve model dies. 

souljaboy's picture

Short wheelbarrows.

Infield_Fly's picture

And watch organized crime start to whack banksters.

Escapeclaws's picture

Huh? Organized crime, banksters--am I missing something here?

Budd aka Sidewinder's picture

Negative interest rates and a cash ban in the US will create an underground / black market economy that will make prohibition era liquor sales look like a little kid's lemonade stand

AriusArmenian's picture

Its time to grab the rope and take these MF'ers to the nearest lamp post for a tight neck party.

AE911Truth's picture

Non violent solutions are more effective. Just pick up your marbles and walk away.

agent default's picture

Look at what happened to their push for multicultural societies once the people got a good taste of it in Europe.  I hope that they don't fully abolish cash by the time they introduce negative interest rates, because if the people don't have a way to protect their property, they will grab the shotgun.   Or my personal favorite, the Molotov bomb.  Good luck with your gated communities and your armed thugs when those start flying. 

JohninMK's picture

There are far fewer weapons in tha hands of the public in Europe than in the US.

The Molotov Cocktail will be the peoples' weapon of choice against tyrants.

If they do impose a cashless society it will be dependent on communications technology and cables to work. Both of which are quite exposed to sabotage. The military may have hardened and protected their neworks, but did the banks reduce their profits on that?

 

Dr. Engali's picture

Negative rates for your "savings" and a higher rate on your borrowing. Fuckers get you both ways. I say let them try. Who runs Barter town?

agent default's picture

If you do both of these things the economy will literally freeze overnight.  The collapse will be so sudden and total, there will be nothing left of any form of government to enforce anything within days.  You will not get barter town, you will get the  wild wild West AK massacre edition on steroids. 

Escapeclaws's picture

We've already got Humungous "Just walk away"

The Ayatollah of Rock and Rolla!

Vin's picture

Prepare the guillotines!

Amalgamated Tang's picture

Ironic that the company who launched the Macintosh with the most famous TV ad ever, "1984," is the same company championing cashless e-payments via phone, essentially launching a real "1984."

Grandad Grumps's picture

“It’s a big club and you ain’t in it!”

Yeah, but I opted out on demonic possession. There are some things that truly are not worth it, no matter how seemingly profitable.

lukasbasic's picture

the war on cash is not about enforcing negative interest rates. might be an side effect. it is about controlling all aspects of human life, think mark of the beast as the crown and final stage of this system (which will be destroyed when Jesus returns)

mnevins2's picture

I agree, it's not really about "negative interest rates," but, imo, it's about the debt disaster created by these people - which will destroy governments, etc. IF interest rates ever rise.  This will destroy national/international budgets and either a deflationary OR inflationary disaster follows.  Period.  We were raised to believe that "saving for a rainy day" was prudent and that "inflation" was bad.  We're now told just the opposite.  Yes, it is a Bizarro World that we live in.

falak pema's picture

Davos only makes sense where the mantra of globalisation reigns supreme.

If in the coming reset the nation states are faced with huge debts, the first thing that will happen is that they will maximise GDP which is home grown to avoid chronic balance of trade and budget deficits; aka painfully, they will be forced by reality to live within their own means, as all foreign credit will have dried up in the crisis. This means the first victim of the crisis will be global finance and trade.

Only those countries with exportable value chains will attract foreign investment as those will be usable world wide.

In such a situation WTO and Davos will shrink as those who attend their agendas will be out of work.

We are heading that way. What the individual will do to continue voyaging outside his own nation will be to move to collaborative commons; which is not dependent on capital transfers but current account transfers to better use existing capital investment in each country.

Collaborative commons will allow us to avoid capital invesment in overproduction --which leads to bubble o nomics crises-- by better using disposable income and investment to allow global innovation at low variable cost flux and lower capital cost in books for depreciation and interest payment.

Until we find another energy intensive paradigm which is renewable and cheap for variable cost component, fluxable at high intensity and storable.

Until then tighten your belts and clean out the Augean stables of debt!

logicalman's picture

I hope, one day, to wake up in a world that makes sense.

Until then, there's ethanol.

 

Faeriedust's picture

My dear, if you're going to drug yourself senseless, there are much nicer highs.

logicalman's picture

When humans settled down into villages using agriculture rather than hunter-gatherers they could, with luck, store a surplus for hard times.

It is at this point that someone shows up wielding a big stick and demanding a chunk of your hard-earned.

It is now known as government.

Saves 'em from actually having to put in the effort to produce something for themselves.

I have no issue working for what I want/need.

I take exception to being stolen from an a daily basis.

 

Faeriedust's picture

Civilization is bad for children and other living things.

Civilization has always consisted of a small group of goons gathering the "surplus" production (whether it was surplus or not) of the vast majority of PRODUCING persons, and sequestering it for the use of a few privileged elites.  Said elites extol the virtues of Civilization in that occasionally those elites choose to use some of their stolen produce to invest in infrastructure (roads, bridges, aqueducts) that are useful for the producer class as well, or in research that advances the ability of human society to produce more or better product.  By far the vast majority of stolen resources, however, end up feeding fashion designers, hairdressers, perfume-makers, umbrella-carriers and interior decorators for the privileged class, and nowhere in the guidebook does the investment guarantee talent or good taste. 

Escapeclaws's picture

It's called "democracy". Rule by elites concealed by parliaments and "voting".

Cacete de Ouro's picture

Wait a minute.....this sounds exactly like Simon Black....did this Nick Giambruno chap attend the same Readers Digest writing course as Mr Black?

Kefeer's picture

I'll guess that Central banks and large corporations are hoarding Gold and Silver for the bribes when fiat is no longer the bribe of choice.  Better yet just threaten to remove them from the digital world and you won't need a bribe.  This would be a total power control. 

 

It will come to pass as that old ancient book that is like an old anvil that has broken many hammers forewarned us; just as it was said cashless will come to pass and again, it will come to pass.

gcjohns1971's picture

"Negative rates could not exist in a free market. They can only exist in an Alice in Wonderland economy created by central bankers"

 

Sure.  But the Central Planning Clowns are going to find some way to call it Capitalism, so that they can present more Central Planning as the solution.

 

Look.  The bottom line is these people want for there to be a lot fewer people above ground...and they aren't looking Moorlock volunteers.  Maybe it is time to question their motives when they offer prescriptions???

gcjohns1971's picture

I find the war on cash to be entertaining, though I understand why people are worried.

Calm down.

Paper with numbers and Politician's is cash only because they passed a 'legal tender' law.   To ban it, they have to revoke that law.

MOREOVER,

The nature of cash has never been 'paper with politician's portraits'.

Cash is just the most marketable commodity.

Good cash is divisible (so you can make change), durable (so you don't lose the wealth you put in it), valuable (so you don't need a dump truck full to make a purchase), and it must be portable (so you can give it to the person you are trading with).

 

ERGO

They can't ban REAL cash without banning commerce.

 

FYI...For a while "Tide Laundry Detergent" was cash in the drug trade.

 

MAYBE,

If they want you to spend so badly...you should spend your government fiat credits on REAL CASH???

 

FUN FACT:

If you cut a 1 oz 90% silver coin in 8 pieces, like a pizza, what you are holding are "Pieces of Eight".

Remember that next "Talk like a Pirate Day".

Moe Howard's picture

The Coinage Act of 1792 created the United States Mint, but the first U.S. dollars were not as popular as the Spanish dollars, which were heavier and were made of finer silver. Indeed:

By far the leading specie coin circulating in America was the Spanish silver dollar, defined as consisting of 387 grains of pure silver. The dollar was divided into "pieces of eight," or "bits," each consisting of one-eighth of a dollar. Spanish dollars came into the North American colonies through lucrative trade with the West Indies. The Spanish silver dollar had been the world's outstanding coin since the early 16th century, and was spread partially by dint of the vast silver output of the Spanish colonies in Latin America. More important, however, was that the Spanish dollar, from the 16th to the 19th century, was relatively the most stable and least debased coin in the Western world [10]

An eight-real coin nominally weighed 550.209 Spanish grains, which is 423.900 troy/avoirdupois grains (0.883125 troy ounces or 27.468 grams), 0.93055 fine, so contained 0.821791 troy ounces (25.561 g) or 394.460 grains fine silver. Its weight and purity varied significantly between mints and over the centuries. In contrast, the Coinage Act of 1792 specified that the U.S. dollar would contain 371 4?16 grain (24.1 g) pure or 416 grain (27.0 g) standard silver. This specification was based on the average weight of a random selection of worn Spanish dollars which Hamilton caused to be weighed at the Treasury.

The coins had a nominal value of eight reales ("royals").

Charlie Wooster's picture

Okay, this is really simple, so let's review here. The 1% already own 99% of everything, but they can't live with that-they want it all. Every. Single. Bit. They hate you, and they hate that you have anything. They want you enslaved, and when you resist or are no longer useful as a slave, they want you dead. What are the tools these maggots are using to accomplish total wealth transfer? It's not NIRP or ban the cash, it's George, Barack, Donald, Bill, Hillary, Jeb, Bernie, Marco, Ted. All the same, all tools, all 100% bought and paid for a long time ago. If you really think any of this bunch will save you, just start the engine, run the exhaust inside the car and roll the windows up. They are all filthy lying whores, (not to defame an actual working prostitute, who might actually perform a service of some value).

Ms No's picture

Death by carbon monoxide is a terrible way to go. I think I will head to the hood when TSHTF and post flyers on all of the lamp posts saying... "It's the banks they did this to you."  That might be a risky endeavor as well but more worthwhile.

Ms No's picture

"The biggest and most important deals take shape in these secret meetings. And this year, I think there was one secret meeting with huge historical significance."

That's probably exactly what happened.  How much MSM coverage was there on this event?  What's funny is that they back themselves into corners sometimes.  They want to take away interest but this will cause people to want to hoard cash.  When they go to implement this it will make people aware of arbitrary they are.  They just screwed themselves twice there.  They will respond with something even more arbitrary which will lead to more exposure.

Just like with all of this terrorism and mass shootings.  It provided a justification for the loss of rights but at the same time it makes people afraid and they begin doubling down on those rights.  This system of crap is exposing itself constantly now.