War On Cash Escalates: Australia Proposes Ban On $100 Bill; No Cash Within 10 Years?

Tyler Durden's picture

Submitted by Michael Shedlock via MishTalk.com,

Global financial repression has picked up steam. Australian citizens are likely the next victim.

au-100-note

AU News reports Government Floats $100 Note Removal.

SAY goodbye to the $100 note.

 

Australia looks set to follow in the footsteps of Venezuela and India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”.

 

Speaking to ABC radio on Wednesday, Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note and cash payments over certain limits as the government looks to recoup billions in unpaid tax.

 

“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” she said. Despite the broad use of electronic forms of payment, Ms O’Dwyer warned there are three times as many $100 notes in circulation than $5 notes.

 

“It does beg the question, ‘Why?’” she said.

 

There are currently 300 million $100 notes in circulation, and 92 per cent of all currency by value is in $50 and $100 notes.

 

A report by UBS recommended Australia scrap the $100 note. According to UBS, benefits may include “reduced crime (difficult to monetise), increased tax revenue (fewer cash transactions) and reduced welfare fraud (claiming welfare while earning or hoarding cash)”.

 

“From the banks’ perspective there would likely be a spike in deposits — if all the $100 notes were deposited into banks (ignoring hoarded $50 notes), household deposits would rise around four per cent,” the report said.

Why?

Financial Services Minister Kelly O’Dwyer notes there are currently 300 million $100 notes in circulation, and 92 per cent of all currency by value is in $50 and $100 notes.

“It does beg the question, ‘Why?’” she asked.

It would behoove O’Dwyer to think. People can have 100 pennies in their pocket (each of which is nearly worthless) or they can hold a dollar.

Similarly, people can hold a stack of ten $10 notes in their wallet or they can hold a $100 note.

Mathematically it makes perfect sense that 92 per cent of all currency by value is in $50 and $100 notes.

What the hell does $1 buy these days? Is someone going to carry a wad of fifty $1 notes to go to a movie and buy popcorn?

No Cash Within 10 Years?

Rest assured this will not stop with $100 notes. There will no cash within ten years.

*  *  *

 

But as Bloomberg reports, try as everyone may, cash registers are still bursting with paper bills and metal coins. Cash is alive and well, according to a new study of the spending habits of more than 18,000 people in seven countries.

“Many have predicted and espoused the view that cash is increasingly disappearing as a payment instrument,” the authors write. “However, to paraphrase Mark Twain, we would say that the reports of the death of cash have been greatly exaggerated.”

 

The value of dollars and euros in circulation has doubled since 2005, to $1.48 trillion and €1.1 trillion, respectively. Some of that growth can be explained by demand for these currencies in foreign countries, but there’s also plenty of evidence that Europeans and Americans are still carrying around wads of cash.

 

The new research crunches and compares data on payment choices in Australia, Austria, Canada, France, Germany, the Netherlands, and the U.S. The study shows notable differences among these countries: Germans and Austrians carry around and use the most cash; the Dutch love debit cards; paper checks are still relatively common in France and the U.S.

 

The bottom line, however, is that consumers in all seven countries use cash more often than they use any other payment method. Cash is least popular in the U.S., where it’s used for 46 percent of all transactions, vs. 26 percent for debit cards and 19 percent for credit cards.
 

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Holy hand grenade of Antioch's picture

& the band played Waltzing Matilda

Hitlery_4_Dictator's picture

They took thier guns first as well, only a few years until they try to take ours too.  

SilverRhino's picture

Ban all the paper you want ... METALS ENDURE

Kotzbomber747's picture

"No cash in 10 years?"

That long? I'm afraid that a cashless society might be just around the corner. 

Billy the Poet's picture

Ms O’Dwyer warned there are three times as many $100 notes in circulation than $5 notes. “It does beg the question, ‘Why?’” she said.

 

Ms O’Dwyer's desire to exert control over every voluntary monetary interaction between individuals begs the question, "Where's my pitchfork?"

Stuck on Zero's picture

It's clear to me that a really smart group will start a fully backed, block chain based, anonymous currency and take over the world.

Boris Alatovkrap's picture

"Bid to crack down on Black Economy"… is sound racist to Boris, to make specific reference to "crack".

Implied Violins's picture

It was just used out of context; is usually followed by the descriptor, "ho".

Motasaurus's picture

The ban on cash is to hide inflation. If you are steadily devaluing the currency, people start to twig (our Reserve Bank recently suggested retiring the 5c coin). But if there are no bills of any denomination, then you can inflate to the moon and the psychological trust in your currency system will still remain because no one will be carting around wheelbarrows full of it. If everyone's currency comes in the shape of an RFID chip embedded in a piece of plastic, their phone or their body, then it doesn't matter that the currency has been inflated to zero.

GreatUncle's picture

Won't work, the poorest people rely on the cash and black economy to survive ... that whole area will go full retard.

Think venezuela the people can't get enough worth to afford food no matter how many zero's you got.

thecondor's picture

You may be right, but barter will happen as well.  You know, I'll let you fuck my wife if you fix the leak in my roof.  Shit like that. 

asteroids's picture

Boris, Amerika has had a Black economy for 8 years. I don't think it has worked very well.

mtl4's picture

These gov'ts thinking they can ban cash all for just sucking out more tax dollars are in for a rude awakening.  Not only will people revert back to barter, but also this will have serious market consequences and will likely lead to at least one more major run up in PMs as confidence tanks.

duo's picture

Australia doesn't have 20% of their country living in the shadows as illegal immigrants and criminals. If they tried that in the US the reaction would be more like India's

UselessEater's picture

deleted original comment... just can't speak politely about arsetralia idiocy, just happy I left....now if I could get my few pennies out without the drama and hassle the divorce would be sweet. F'tards.

Draybin Deffercon III's picture

Their plan is to force everyone and their family into a situation where you need to sell your metal for digital fiat, to buy food and pay bills.

Fiat self-torture as long as you want it to go on.

Davy Crockett's picture

Go ahead fuckers, and go all electronic.  I'll be there waiting to crash your fucking grid continually.  I'll train others how to crash it.  We'll take it out in sections large and small.  We'll down your high voltage lines today, shoot up your substations tomorrow, and sabotage your power plants the next day.

Fuck you for attempting to turn us into cattle that are completely at your mercy.  I'll burn it all down as soon as such burning will maximally fuck things, which is exactly when you go 100% electronic transactions.

Billy the Poet's picture

The lights will go out if enough productive people just shrug.

"When you see those lights go out," said Galt, "then you will know that our job is done."

Motasaurus's picture

If someone wanted to cripple the grid they could do it with 12 people in high vis and hardhats. No need to destroy anything illegally at all. It is entirely possible to stop all caseload generation legally and irreplaceably.

The ease with which it could be done is one of the things that convinced me that terrorism isn't real.

Ghost who Walks's picture

Baseload or Caseload?

I've always been careful when I get a caseload of powder.

BabaLooey's picture

I like the cut of your jib Davy.

Afraid it's going to come to all that.

I say bring it on.

Mustafa Kemal's picture

Davey, with you on that one.

BTW, weve missed you since the Alamo. Glad to have you back brother. 

Bwana's picture

I think governments should learn from India. India was doomed from the start because only about 20% of the people use banks. The economy has collapsed which has collapsed the revenue stream to the government. The government wanted to tax the black market and get another 10 to 20% but in all actuallity the government's income has been cut more than in half.

You're right as soon as they banksters get this in place we will have a Carrington Event or someone will pop of an EMP and the world economy will stop.

Paul Kersey's picture

"Despite the broad use of electronic forms of payment, Ms O’Dwyer warned there are three times as many $100 notes in circulation than $5 notes."

 

“It does beg the question, ‘Why?’” she said.

 

Because Australia's inflation is so crazy high (house prices have gone up 436.6% in the last 20 years alone), that $100 is becoming the new $5.

 

sinbad2's picture

Exactly, 5 and 10 dollars should be coins.

FreeShitter's picture

I remember what you said once....."Just take our guns, crash the shitshow, chip us already.......Im' tired of waiting"

sinbad2's picture

They bought our automatic weapons, no way could the US Government afford to buy all the guns in America.

Lyman54's picture

The libtards even banned cross-bows.

Truther's picture

Anyone who didn't see the writing on the wall with India and Venezuela, is a moron.

gatorengineer's picture

its more the speed of the move, than it happening......

Implied Violins's picture

These fuckers know its now or never, so it's pedal to the metal time. Too many of us are waking up all around the world.

If people have been paying attention, BTW, 'Pizzagate" has picked up steam overseas - check out what just happened to the president of South Korea (cult ties with Clinton), and the Netherlands just netted a MASSIVE pedophile bust.

Just hold on, folks, and pick up what you need to get through the storm, pronto...when we make it to the other side, it will be glorious.

ACES FULL's picture

Spend or convert your 50's and 100's.

Frito's picture

...

But nobody cheered.

They just stood there and stared.

And then turned their faces away.

SILVERGEDDON's picture

Fhonestar and " Buh teh fukin Bitcoin, Hedgies. " in 5.....4.......3........2...........1..........

sinbad2's picture

I prefer the Angels

Am I ever gonna see your face again

No way get fucked fuck off.

skirmish's picture

We need another Eureka Stockade. I live in Australia and it is so damn expensive. I can spend $100 so quickly that it is sickening. Honestly, you can fill your car up with petrol ($80AUD) and get some snacksbag of chips $5 x 2and drinks $5 x2 and you are done with your black money.

Stupid!!

Seriously considering putting some of my super (SMSF) into 10gram gold bullion.

cool_guy's picture

India has not eliminated cash. It has replaced old 500/1000 notes with new 500/2000 notes. That is not same as Australia baning $100 bill.

Darktarra's picture

OK so we go back to using salt and/or sea shells...

I woke up's picture

Dumb, wrong direction

centerline's picture

They are trying to kill all direct transactions between parties so that they can tax everything changing hands.

gatorengineer's picture

Not even close.  they understand FIAT will be recognized as worthless very soon and they want to control the distribution of food and housing.  this will be after the various rounds of one off Wealth taxes......  They also want to be able to know everything that is bought, like diesel and fertilizer....  and in our case ammunition and firearms.

centerline's picture

I dont disagree at all gator.  The rabbit hole is pretty deep there.  For example, consider healthcare.  One could easily work back through the data to find out what is being bought.  Shit, half the medical stuff relative to food and drink in my lifetime has turned out to be either dead wrong or just plain stupid.

gatorengineer's picture

Well I stopped believing what was on the food labels a long time ago, as far as what was ""in the food".

I think there is one giant database that says I ordered a whopper with extra pickle on August 3rd 2003, in clearwater florida, and I typed this comment tonight.  I think that data base is being constantly combed for thought crime and causality.  

If you think about it, Artificial Intelligence Ceased development in the mid 1990s, at least what the public is allowed to see.  Voice recognition for phone systems is only slightly better than dealing with a retarded Paki, there is no reason for it.  Both areas are controlled tech.  You could keep going and going.  I believe every email is read, and all calls are listened into.... Yeah my tinfoil hat is pretty thick.... But I bet I would freak if I knew what they really had.  I am sure they dont apply the same rules of "engagement" to an 80 yr old grandma, as they do a Hedge reader.  But I most certainly believe they can build a monster Dosier on anyone.