Demand For Big Bills Soars As Japan Stuffs Safes With 10,000-Yen Notes

Tyler Durden's picture


Earlier this week, we were amused but not at all surprised to learn that Japanese citizens are buying safes like they’re going out of style.

The reason: negative rates and the incipient fear of a cash ban. “Look no further than Japan’s hardware stores for a worrying new sign that consumers are hoarding cash--the opposite of what the Bank of Japan had hoped when it recently introduced negative interest rates,” WSJ wrote. “Signs are emerging of higher demand for safes—a place where the interest rate on cash is always zero, no matter what the central bank does.”

Put simply, the public has suddenly become aware of what it means when central banks adopt negative rates. The NIRP discussion escaped polite circles of Keynesian PhD economists long ago, and now it’s migrated from financial news networks to Main Street.

Although banks have thus far been able to largely avoid passing on negative rates to savers, there’s only so long their resilience can last. At some point, NIM will simply flatline and if that happens just as a global recession and the attendant writedowns a downturn would entail occurs, then banks are going to need to offset some of the pain. That could mean taxing deposits.

As we noted on Monday, circulation of the 1,000 franc note soared 17% last year in Switzerland in the wake of the SNB’s plunge into the NIRP Twilight Zone.  As it turns out, demand for big bills is soaring in Japan as well.

Demand for 10,000-yen bills is steadily rising in Japan, even as the nation’s population falls and the use of credit cards and other forms of electronic payment increases,” Bloomberg writes. “While more cash might sound like a good thing, some economists are concerned that it shows Japanese households are squirreling away money at home instead of investing it or putting it into bank accounts -- where it can make its way back into the financial system and be put to productive use.”

One safe maker who spoke to Bloomberg said safe shipments have doubled over the last six months. While part of the demand for safes is likely attributable to the country's new "My Number" initiative, "the negative-rate policy is likely to intensify the preference of Japanese households to keep cash at home,” Hideo Kumano, an economist at Dai-ichi Life Research Institute said. “Overall, the trend of more cash at home reflects concern about the outlook for economy among households. This isn’t a good thing.”

No, it's not. And just wait until the Japanese (and European) public makes the connection between NIRP and the cash ban calls. That is, once average people grasp the concept of the effective lower bound and then figure out that a cashless society will allow policymakers to dictate economic outcomes by robbing the public of its economic autonomy, it will be time to break out the torches and the pitchforks. 

We suppose it's time for Kuroda to propose banning the 10,000-yen note. You know, to deter the Yakuza...

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Thu, 02/25/2016 - 20:52 | 7237437 stant
stant's picture

Silver and gold keeps your guns save at night

Thu, 02/25/2016 - 20:58 | 7237451 Beam Me Up Scotty
Beam Me Up Scotty's picture

Is this all a prelude to hyperinflation??  Hoard all those big notes and then in short order they become worthless?? Not because they are illegal, but because we devalued them.  Trick the sheep into taking them off the banksters hands right before devaluation.  Sinister!!  A 10,000 yen note wont buy a cup of coffee when the 1 Trillion yen note is in existence!!

Thu, 02/25/2016 - 21:05 | 7237477 Kissy Ass
Kissy Ass's picture

No, this is hyperactivity.

Thu, 02/25/2016 - 21:06 | 7237482 knukles
knukles's picture

Dudes and dudettes.
If large bills are banned then large bills will trade at a premium to face value

Thu, 02/25/2016 - 21:12 | 7237504 BurningFuld
BurningFuld's picture

Hello Japanese friends. A 10 oz Gold bar is small and quite stack-able.

In case you were wondering.

Also much less likely to lose its value.

Sat, 02/27/2016 - 03:01 | 7243026 The Navigator
The Navigator's picture

I heard (I think in an interview of Jim Willie) that unlike China, it's hard to get gold in Japan and that silver is nowhere to be seen/found.

So the Japanese truly are trapped with their paper with no escape alternatives.

But here, in the good 'ol USSA, we can get it all day long - but with JPM mucking around with rumors/paper gold/market manipulation, Joe 6-pack is afeared of buying any.

There was a YouTube of a guy offering sheeple either a 10oz bar of silver OR a Hersheys choc bar - all that were in the video opted for the chocolate bar. Baaah, Baaah.

Thu, 02/25/2016 - 21:28 | 7237564 Casey Jones
Casey Jones's picture

So banning is one thing, getting them out of circulation is another.

Maybe the flood of expert counterfeit $100s is prompting this acceleration of this war on the Hundy. I know it was already bad 10 years ago; with tech advances who knows how much "fake" USDs (oxymoron, I know) are out there.

I do know that my favorite breakfast joint pins up another fake $20 about once a week.

Thu, 02/25/2016 - 23:40 | 7238081 StychoKiller
StychoKiller's picture

Hmm, I'll bet that your favorite breakfast joint should get a visit from the Secret Service, 'cause they were probably supposed to turn those Jacksons in...

Thu, 02/25/2016 - 21:34 | 7237591 American Psycho
American Psycho's picture

But if big bills are outlawed, only outlaws will have big bills.... or something like that.

Thu, 02/25/2016 - 22:16 | 7237746 MANvsMACHINE
MANvsMACHINE's picture

Not true.  If they are no longer deemed legal tender, they will become worthless.  What you would want to own are $50's and $20's which will be harder to come by.

The only value the $100 bill will retain will be as a collector's item.

Thu, 02/25/2016 - 22:23 | 7237784 Wahooo
Wahooo's picture

They'll become black market tender and have a lot of value to people who don't want their transactions traced.

Thu, 02/25/2016 - 23:02 | 7237920 benb
benb's picture

What's 10,000 Yen? Isn't that like four bucks and change in American?

Yeah, with a 10,000 yen note a trans-gender-metro-sexual-yuppie can get a decaf latte and maybe a 1/2 a scone at Starbucks.


Sat, 02/27/2016 - 03:09 | 7243036 The Navigator
The Navigator's picture

When the USD and JPY are at par, a 10,000 note is worth USD100.

Right now the exchange rate is 1USD = 113.9JPY

Thus JPY10,000 = USD83.74

Thu, 02/25/2016 - 21:05 | 7237478 knukles
knukles's picture


Maybe he can take Barbara Streisand and the whole fucking lot of Cadillac Commies of Hollywierd California with him.
Yeah, the very same ones who promised to leave if Bush2 was elected and were So Disappointing When They Stayed Home

Thu, 02/25/2016 - 21:11 | 7237497 nmewn
nmewn's picture

That locks it, I'm voting Trump!

But I need it writing & notarized by the Lying Reverend ;-)

Thu, 02/25/2016 - 21:13 | 7237508 SunRise
SunRise's picture


Thu, 02/25/2016 - 21:18 | 7237524 Donald J. Trump
Donald J. Trump's picture

Oh boy is this great!  I can't wait for this to happen.  Gives a new meaning to "Making America Great Again".

Thu, 02/25/2016 - 21:21 | 7237540 Yen Cross
Yen Cross's picture

 I needed some good news today... Thanks knuks

Thu, 02/25/2016 - 21:30 | 7237575 sixsigma cygnus...
sixsigma cygnusatratus's picture

Looks like Christmas will be in November this year.

Thu, 02/25/2016 - 21:50 | 7237644 nuubee
nuubee's picture

LOL, where is he gonna go? Where? Where on this planet exists another group of people who will:


1) Listen to his bullshit

2) Be less racist than America



Fri, 02/26/2016 - 02:29 | 7238453 oncemore
oncemore's picture

Afrika is good destination.

Thu, 02/25/2016 - 21:06 | 7237480 zeronetwork
zeronetwork's picture

US$100 bill is not a big denomination any more. A week of grocery for two is around $80 bucks.

Thu, 02/25/2016 - 23:12 | 7237989 Big Brother
Big Brother's picture

It's about time to bring back the $1000 bill (we can call them "Clevelands" as Grover Cleveland is/was on it).

Sat, 02/27/2016 - 03:17 | 7243040 The Navigator
The Navigator's picture

I've been flying out of LAX for almost 40 years and 40 years ago the signs read "You must delcare any currency greater than $10,000" coming and going.

40 years ago, $10k is like $40-50k today.

How come those MoFo's NEVER adjust inflation in OUR favor. The signs should read "You must declare anything greater than $50k" due to Greenspanks & Bernaniekes.

But fuck them, I carry as much as I want and NEVER declare shit.

Currency, booze, Cuban cigars.... You think THEY obey these laws?????

Fuck them.

Thu, 02/25/2016 - 21:10 | 7237495 adanata
adanata's picture

I've been mulling this myself. People actually started to take their cash out of the banks when those who were alert realized, a) the banks were insolvent, and b) "their" deposits were actually a "loan" to the bank they might never see again a la Cyprus. The broad sweep of publicity regarding the elimination of cash can only escalate this process, no? Maybe I'm giving TPTB too much credit but I assume they are ahead of the curve since they are creating the curve; "reality is what we say it is"....  why would they want the Sheeple to take cash "off their hands" when one of the Boyz' biggest problems is they don't have enough paper to cover what's being cashed in right now?

I am thinking it may be a mad, mad idea to get themselves out from under the coming quadrillion "dollar" crash in cds.... any ideas?



Sat, 02/27/2016 - 21:30 | 7245457 eltxamo
eltxamo's picture

Yep, just like in Vietnam, this is the Yen soon: image

Thu, 02/25/2016 - 21:33 | 7237520 Kaiser Sousa
Kaiser Sousa's picture

"tell me Mr. Anderson. What good is a phone call if you're unable to speak...?

- Agent Smith -

"tell me. what good is taking your currency out of the bank and placing it at home in a safe if the MoneyChangers are rendering it worthless....?

- Kaiser Sousa -

so many refuse to see. There will only be physical Gold & Silver to protect you from what is happening and what is coming....

"there are none so blind as those who will not see...."

Thu, 02/25/2016 - 21:48 | 7237593 Kirk2NCC1701
Kirk2NCC1701's picture

Don't flash your Stash*, whatever it's made of: Currencies, PM, Gems, FlashDrive with Secrets & BTC

Have it as Insurance, to help you feel better by day and sleep better at night.

* As someone once told me: If you live long enough, odds are that eventually you'll become the Target/Victim of Persecution or Prosecution by an Ex (Lover or Biz Partner) or the Gov -- all of whom are seeking to bleed you dry, slow or fast.  That's why, on sheer Principle (100% independent of Trust) you must have this.  And then you STFU as though it doesn't even exist in your mind.  Good advice to live by -- as Life is unpredictable, alliances and friendships always change, and "eternal love" can and all too often does change. 

Call it Defensive Wealth & Defensive Secrets.

Sat, 02/27/2016 - 03:22 | 7243050 The Navigator
The Navigator's picture

true, True, TRUE. Don't say shit to anyone.

Don't let anyone know about your food, your armory, or your metals.

Especially your wife ;->

Seriously, especially your neighbors. As soon as it goes south, they'll be there and you'll have to tell them NO.

If neighbors know, they could soon turn out to be your worst nightmare and then bugging in is out of the question.

Thu, 02/25/2016 - 20:53 | 7237438 Takeaction2
Takeaction2's picture

I am trading my metals as fast as I can for paper...this stuff is going to be rare......oh wait...

Thu, 02/25/2016 - 21:11 | 7237442 Yen Cross
Yen Cross's picture

  10k yen notes, and usd/jpy is trading the 112.000 handle. Nope> no  prefabricated inflation there.


88.4135 US Dollar                            Was that Krudola, Puffer Head, that dinged me?
Thu, 02/25/2016 - 22:07 | 7237718 Urban Redneck
Urban Redneck's picture

The picture of Kuroda's toilet paper is closer to real money than the toys in the top picture are to real safes.

Sat, 02/27/2016 - 21:35 | 7245476 eltxamo
eltxamo's picture

8 is lucky number for asians, didn't you know...?

Thu, 02/25/2016 - 20:56 | 7237449 Insurrexion
Insurrexion's picture



I want to see the YouTube videos where every Central Banker is skinned alive.

Any links?

Thu, 02/25/2016 - 21:07 | 7237487 knukles
knukles's picture

Put that on PPV and all the deficits in the world will be instantly funded.

Thu, 02/25/2016 - 21:08 | 7237491 Kissy Ass
Kissy Ass's picture

I luv making videos. Can I help?

Thu, 02/25/2016 - 21:23 | 7237548 truthalwayswinsout
truthalwayswinsout's picture

Better yet, the Russian Mob is out killing bankers who screwed them in Cyprus. Would like to see how each of them learns to fly when pushed off their buildings.

Thu, 02/25/2016 - 21:45 | 7237628 stant
stant's picture

How about laggards ouiji board nail gunned to her head?

Thu, 02/25/2016 - 21:49 | 7237642 Kirk2NCC1701
Kirk2NCC1701's picture

And I'd like to see the YT or web-link to your avatar.

Thu, 02/25/2016 - 20:58 | 7237455 GOSPLAN HERO
GOSPLAN HERO's picture

Sooner or later ... banks will give you 10 cents per paper dollar. 

The 10 cents will be deposited on your mandatory electronic account monitored by the 666-IRS.

Thu, 02/25/2016 - 20:59 | 7237460 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'll take the silver dime then....

Thu, 02/25/2016 - 21:24 | 7237549 Donald J. Trump
Donald J. Trump's picture

Yep. Silver dime worth about $1.10.

Sat, 02/27/2016 - 03:28 | 7243056 The Navigator
The Navigator's picture

Paid $65/roll today at the LCS, $1.30 each

Could sell the roll on ebay for $80 but I don't sell, I only buy.

Today APMEX had a 4 hour sale for 10oz bars, $0.79 above spot - I thought I was Mr. Big Spender when I bought 2.

Until I told a friend and he bought 20 bars. Kinda deflated my whatchamacallit but fuck it, 2 in the hand is worth............ something better than paper.

Thu, 02/25/2016 - 21:03 | 7237469 Ignorance is bliss
Ignorance is bliss's picture

I read somewhere that the Japanese are having a hard time finding Gold or Silver. Can anyone from the isle of Japan confirm Gold / silver scarcity?

Thu, 02/25/2016 - 21:12 | 7237509 Casey Jones
Casey Jones's picture

Doesn't Apmex deliver there?

Thu, 02/25/2016 - 22:59 | 7237934 Vlad Tepid
Vlad Tepid's picture

APMEX does deliver here, but there's no problem finding gold.  Every seller has 1 kg bars to sell, from old ladies whose husband bought them during the bubble years (gold were cheaper then).  Smaller amounts are harder to come by who can't fork out a kg worth of fiat (Chinese buyers come over and get those I'm very reliably told, so they don't sit on the shelf for long.

Silver is a non-entity here.  Even PM dealers are like "surely you mean platinum" and when you insist on silver they just pass you off to coin dealers with collector premiums.  They also don't buy silver, from little old ladies or otherwise.

Sat, 02/27/2016 - 03:34 | 7243064 The Navigator
The Navigator's picture

Strange, because a generation or 2 ago, silver was part of the Japanese currency if memory serves.

Shows how a generation or 2 you can wipe out KNOWLEDGE.

Thu, 02/25/2016 - 21:04 | 7237474 DogeCoin
DogeCoin's picture

"We're adopting NIRP to support the economy by inducing a bank run."


Thu, 02/25/2016 - 21:09 | 7237492 Yen Cross
Yen Cross's picture

  The tarded basement babies are emerging. It's like those old Warlock flix.

Thu, 02/25/2016 - 21:12 | 7237500 Casey Jones
Casey Jones's picture

If hyperinflation is going to hit, you'd think they'd be going the other way with denominations.

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