War On Cash Just Got Real – India And Citibank In Australia

http://www.talkmarkets.com/content/global-markets/war-on-cash-just-got-real--india-and-citibank-in-australia?post=113593&uid=4798

Note that slope of the graph toward negative rates in the world can cause them to go negative. The result could mean that you will have no cash available at all and your money will be either in the bank or spent on something. If you want to save you will have to put your money into something other than the bank. The bank will have control over your money if you do not spend it.

The full article is on Talkmarkets. This article explores the study of India's elimination of large bills. Smaller bills were eliminated but are expected to be replaced with the same denomination in larger sized bills. Here are just some of the troubling issues from the article above.

Since the Citi announcement UBS has proposed that eliminating $100 and $50 bills would be “good for the [Australian] economy and good for the banks.” The notes account for 92% of the circulating cash value.
UBS analyst Jonathan Mott said last week that there are three times as many Australian $100 notes in circulation as there are $5 notes. Echoing the moves of the Indian government he argued that the elimination of large denomination notes would be “good for the economy and good for the banks.”

And:

Whatever the reason to go without cash, the end-result is still the same, if you, your bank or your government decides to go cashless then will you join the list of unsecured creditors should the bank fail.

The government wants to track your every move. It can control what you buy and what you aren't allowed to buy. People need to use cash or lack of demand will cause banks to go cashless and you will find yourselves without the outlets to get cash!

Wake up, Americans. It is your freedom at stake.

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India' Attack on Old Cash Causes Trouble

http://www.talkmarkets.com/content/global-markets/india-etfs-tangled-between-note-demonetization--trump-win?post=112296&uid=4798

Fellow Talkmarkets contributor Zacks Investment Research gives this take on the banning of most of the cash in India although from India Times below we see that denominations will be replaced:

India’s prime minister Narendra Modi announced note demonetization. As much as “86% of Indian currency and 12% GDP got stalled overnight."
As per the announcement, the Indian government withdrew high-denomination banknotes – 500 rupee and 1000 rupee notes – in circulation, as part of a clampdown against illegal money and corruption. Analysts expect this move to deal a direct blow to the finances of militants targeting India.  These militants allegedly used fake 500 rupee notes to fund their operations...

 The immediate impact will be on inflation as eradication of unaccounted and untaxed money will have a deflationary effect. As per the source, real estate prices should come down. Some even view the step as an unplanned form of policy tightening, though India has been resorting to rate cuts in recent times to boost growth (read: 4 India ETFs to Buy as RBI Cuts Rate).

 Though things  should be benefited over the long term, it is widely apprehended that the consumption-driven sectors will be hurt in the near term due to scarcity of cash. EGShares India Consumer ETF (INCO - Free Report)may be hit hard. The fund was down about 0.4% on November 9.

 http://economictimes.indiatimes.com/markets/stocks/news/side-effects-of-demonetisation-dear-pm-modi-it-seems-you-missed-these-6-consequences/articleshow/55471601.cms

The India Times has quite another take on this cashlessness. The shortage of money caused truck drivers to abandon trucks and the new larger 500 and 2000 rupees won't fit into cash machines, which will all be reconfigured. Rural areas have had to have the new notes airlifted. And there was a mini gold rush.

We can see the upheaval caused by this process when new notes are on the way. You can imagine how things would be if cash were banned altogether like some economists in the west want.

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John Mauldin Warns of the Efforts Pushing Cashless Society

John Mauldin posted an astounding column opposing the coming cashless society and negative and low interest rates:  http://www.talkmarkets.com/content/economics--politics/monetary-mountain-madness?post=105833&uid=4798

He posted Fed vice Chairman Stanley Fischer's flippant comments:

DR. FISCHER: Well, clearly there are different responses to negative rates. If you’re a saver, they’re very difficult to deal with and to accept, although typically they go along with quite decent equity prices. But we consider all that, and we have to make trade-offs in economics all the time, and the idea is, the lower the interest rate the better it is for investors.

 And Mauldin's response was as follows:

I have to say, reading that last part made my blood boil. For the vast majority of people with savings all over the world, zero or negative rates are not just “very difficult to deal with.” They are in many cases the difference between living with a modicum of dignity and living in abject poverty. Or, if you’re slightly better off, you may feel forced to take too much risk in your portfolio at the very time of your life when you should be taking few risks. But that’s okay with Dr. Fischer, because negative rates also bring “quite decent equity prices.” [Emphasis mine]

After showing that the Fed is sacrificing mom and pop America, the retirement system and the insurance system, he goes on to warn that the Fed was seriously talking about negative rates at its Jackson Hole annual meeting:

Having established that it has legal authority to use NIRP, the Fed can now develop specific plans for doing so.
What better way to learn the NIRP ropes than by huddling with fellow central bankers who have actually taken the plunge? Jackson Hole gave them the chance. And sure enough, high on the agenda was that session on “Negative Nominal Interest Rates.”
The lead presenter in that session, Marvin Goodfriend of Carnegie Mellon University, is an unabashed cheerleader for NIRP. In the first paragraph of the first section of his paper, he says that he “… makes the case for unencumbering interest rate policy so that negative nominal interest rates can be made freely available and fully effective as a realistic policy option in a future crisis.”

 Then Mr Mauldin made this astonishing statement:

Again, remember that Jackson Hole is not a summer-long retreat. Whatever makes it onto the agenda is there for good reason. The attendees didn’t discuss NIRP for its entertainment value. They were carefully considering its effects and mulling over the practical aspects of implementing it. They also had the Group of Thirty leader in the room, ready to inform the big banks what was brewing.
Obviously this is all conjecture on my part, but I think it fits. I believe the Fed wants to have NIRP in its toolbox when the next recession hits. Having NIRP at the ready doesn’t mean they will actually use it, but it does mean they could. The previously unthinkable is now fully thinkable.

Wake up America, the previously unthinkable is now thinkable. 

Negative Interest Rates And The War On Cash (Part 2)

http://www.talkmarkets.com/content/global-markets/negative-interest-rates-and-the-war-on-cash-part-2?post=105362&uid=4798


From Talkmarkets is an article that will anger you and make you aware of the dangers of totalitarian banking. If this doesn't get under your skin, nothing will about this globalist cabal and what they want.

From the site:


Even in relatively untroubled countries, like the UK, it is becoming more difficult to access physical cash in a bank account or to use it for larger purchases. Notice of intent to withdraw may be required, and withdrawal limits may be imposed ‘for your own protection’. Reasonsfor the withdrawal may be required, ostensibly to combat money laundering and the black economy:

It’s one thing to be required by law to ask bank customers or parties in a cash transaction to explain where their money came from; it’s quite another to ask them how they intend to use the money they wish to withdraw from their own bank accounts. As one Mr Cotton, a HSBC customer, complained to the BBC’s Money Box programme: “I’ve been banking in that bank for 28 years. They all know me in there. You shouldn’t have to explain to your bank why you want that money. It’s not theirs, it’s yours.”

In France, in the aftermath of terrorist attacks there, several anti-cash measures were passed, restricting the use of cash once obtained:

French Finance Minister Michel Sapin brazenly stated that it was necessary to “fight against the use of cash and anonymity in the French economy.” He then announced extreme and despotic measures to further restrict the use of cash by French residents and to spy on and pry into their financial affairs.
These measures…..include prohibiting French residents from making cash payments of more than 1,000 euros, down from the current limit of 3,000 euros….The threshold below which a French resident is free to convert euros into other currencies without having to show an identity card will be slashed from the current level of 8,000 euros to 1,000 euros. In addition any cash deposit or withdrawal of more than 10,000 euros during a single month will be reported to the French anti-fraud and money laundering agency Tracfin.

Tourists in France may also be caught in the net:

France passed another new Draconian law; from the summer of 2015, it will now impose cash requirements dramatically trying to eliminate cash by force. French citizens and tourists will only be allowed a limited amount of physical money. They have financial police searching people on trains just passing through France to see if they are transporting cash, which they will now seize.

I would suggest that anyone who cares about privacy and freedom seek to understand the issues behind the article and read the entire 4 pages. 

Riksbank: Cash Must Be A Protected Legal Right For Good Reason

http://www.talkmarkets.com/content/currenciesforex/riksbank-cash-must-be-a-protected-legal-right-for-good-reason?post=94939&uid=4798

From the article:

Sweden's Riksbank says that cash must be a protected legal right. The central bank of Sweden fears that people will be locked out of the banking system, something I have warned could happen. It is nice to hear it from a central bank, though. A discussion of the shadow economy follows at the end of this article. I am sure that the contribution to GDP by the shadow economy, both legal and illegal, is massive. I am sure that this fact is not lost on central bankers.
Now I can point to the Riksbank as my friends and relatives scoff, and say, see, I told you so. I have been telling them that the existence of cash is important and the talk of banishing it is dangerous and cannot be ignored!
And I have been speaking to the subject of privacy, as all transactions will be tracked in a cashless society. Apparently that is a concern of the Riksbank as well.
Considering that the central bank of Sweden is at the forefront of negative interest on bank reserves, pushing inflation higher for the last three months in a row, it is astounding to me that it wants to protect cash. Most bankers who advocate negative interest on reserves also advocate a cashless society, fearing bank runs. And that could happen if the plunge into negativity is deep enough to be passed on to consumers, and if those consumers believe that those costs are harder to bear than the loss of convenience in maintaining the account.
So, this is a significant political statement on the part of the Riksbank, to seek protection for cash.

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The War On Paper Currency Officially Begins: ECB Ends Production Of €500 Bill

http://www.talkmarkets.com/content/news/the-war-on-paper-currency-officially-begins-ecb-ends-production-of-500-bill?post=93498&uid=4798


From the link:

In other words, if overnight the €307 billion worth of €500 bills were eliminated, the notional value of the entire amount of European physical currency in circulation would decline by 30% to €700 billion!

And there you have it: while it may not be banning all European cash outright, we are confident the ECB would be delighted if one third of it was to start, while pretending to be fighting financial crime, terrorism, corruption and drug dealers. 

Of course, what Europe would be truly doing is setting the scene for ever more aggressive NIRP, and by removing the highest denomination bank notes, it would make evading negative that much more difficult and costly (albeit would certainly favor gold).

The ECB is failing. Fight Cashlessness in Europe so it won't come here!


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Real Helicopter Money, Defined Precisely, Can Overcome a Cashless Society

http://www.talkmarkets.com/content/bonds/eric-lonergan-precisely-defines-helicopter-money?post=92811&uid=4798

This is my article. From the site:

...Helicopter money has been called QE for the people but that is not quite right. I will list some important points I have found from reading Lonergan regarding this subject. Turns out, HM is the opposite of QE. It has been called QE for the people, but is quite superior to QE...
...I hope this love affair with negative is not a sinister plan on the part of some in central banking. If it is sinister, we will have to all shout louder in our commitment to helicopter money, but understand clearly what it is and what it does...

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Against Currency Prohibitionism - Alt-M

Against Currency Prohibitionism - Alt-M



Even this CATO author, Larry White, though pretty much against getting rid of cash, is mamby pamby about the large denominations. That is disappointing!



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Relentless Slide Toward Deflation And Negative Nominal Rates

http://www.talkmarkets.com/content/us-markets/preserve-capital-relentless-slide-toward-deflation-and-negative-nominal-rates?post=84564&uid=4798


From my article:

America is potentially vulnerable to negative nominal rates just like the rest of the world, because the US is reliant on foreign holdings of the dollar to keep it strong and in reserve status. If the dollar is to remain the reserve currency, people will need to want to hold dollars and US bonds will continue to exist in high demand.
And one of the main reasons they would want to hold dollars is because they know America has never defaulted on its bonds. They need that safety. The bonds are not only gold as collateral in derivatives markets, but they are like gold in the backing of the base currency which was once known as the high powered money, not the same as the larger money supply. The discussion below should clarify how little power high powered money, base money, has become these days.
Gold bugs believe that gold is better than treasuries at backing the US dollar, but that treasuries do indeed at least back base money. But they could live and die before their view of gold versus treasuries is verified! And there isn't enough gold to back the currency anyway. Going to a gold standard for base money or especially for all money, would limit dollars and make trade with other nations impossible.

and:

The march toward negative is proving to be the main flaw in the otherwise almost foolproof system designed to protect the banks and treasury bond demand (engineered at least in part by Alan Greenspan). The propensity toward a deflationary scenario seems relentless, in Europe, in Japan and even spoken of by the Fed.
Dr Werners' plan to end the long bond may not work, but a return to a normal economy would be welcome news. Wouldn't it be nice if we had government banks that bypassed the issuance of bonds by the treasury. These banks would offer loans to our government, at positive interest rates. Bonds could be issued for special programs, like for infrastructure as was done with war bonds in World War 2.
And regular treasuries would still back the base money. They would carry higher interest rates, reflecting diminished demand, and return the economy to more normal times. The 1 percent would be forced to pay taxes, so that the deficits would not be so large. But the bonds would not be in demand as collateral, so that would take some of the pressure off demand for them.
That way, when the Fed raises interest rates on the short end, there would be half a chance for long bond rates to go up so banks would lend into the real economy and profit. They certainly are not doing much of that now. We have a little inflation in the US, but in Europe, inflation is negative, meaning real interest rates are going up. Economists want to stimulate with negative nominal rates (real rates + inflation) to offset the rise in real rates.

and:

We are clearly entering a worldwide deflationary cycle, with the slowing of China and US slow growth and the drop for the Baltic Dry Index. If the experiments of the Japanese and Scandinavian nations fail to stimulate, through their negative rates, it will certainly be back to the drawing board. And eliminating cash is not the answer, with too many unknowns being the result.
For me, there are more questions than answers regarding this march toward negativity. In a deflationary scenario, the banking system wants to reward recklessness and punish frugality. But they brought on the frugality along with globalization and lower wages that resulted.
There is nothing wrong with frugality. Only, if everyone is frugal at the same time there are deflationary pressures and slow growth. The Japanese, and US millennials and boomers, and Europeans are frugal. Banker abuse and globalization caused this frugality in most cases. Easy money followed by credit tightening (which is different than money tightening by the Fed) is not good banker PR!

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Negative interest rates threat to Europe's financial stability

Negative interest rates threat to Europe's financial stability - Business Insider



From the article, and, by the way, this could happen throughout the world if we don't get more economic activity:

Negative interest rates erode the profitability of the banking
sector and pose a threat to financial stability. In exchange, they offer
an economic stimulus that is mild at best and that has actually been
seen to backfire in some regions. The world economy is once again
navigating in uncharted waters.

The article goes on to show that holding cash gives a nominal rate of zero even though inflation may push the real rate to negative. But once the nominal rate goes below zero, there could come a time when people no longer want to use banks and when banks no longer want to use central banks!



The result of this happening over time in the Eurozone is that the Eurozone banks are underperforming, hurting the economies there. And some banks in Switzerland have tried to offset loss of interest rate income by imposing higher mortgage rates!



So, the solution for many is to get rid of cash altogether, so that the negative rates can be forced upon the depositor.  That would not be implemented easily, so banks will be slowly bled to death. Therefore, a return to positive rates in Europe and Japan is very important to the health of banks and of the economies affected.





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Negative rates are here to stay - Business Insider

Negative rates are here to stay - Business Insider



A Citibank analyst warns that negative rates in Europe could stay for years. Wake up Americans because the longer they hang around the greater chance of a cashless society happening:

In our view, ongoing inflation
undershoots and a continuing readiness of central banks to pursue
currency weakening (or at least the avoidance of an appreciation) as an
integral part of their pursuit of their inflation targets or dual
mandates suggest that the recent trend towards (more) negative policy rates is likely to continue.

Indeed, negative policy rates are likely to become a regular feature across many countries in coming years and we suspect that policy rates could fall further, perhaps significantly further, than our current forecasts suggest.
Recent developments in financial markets and the greater risks to the
global growth outlook raise the likelihood of more and deeper policy
rate cuts across a range of countries.

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Negative interest rates destroying Japan's money markets - Business Insider

Negative interest rates destroying Japan's money markets - Business Insider



Money markets are going to be disbanded in Japan as you break the safety with NIPR, Negative Interest Rate Policy.  This is a disturbing destruction of paper assets that investors have relied on for years.





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JP Morgan How Low Can You Go Negative. - Pay Cash Only Movement

In case anyone believes that negative interest... - Pay Cash Only Movement





This article is very troubling. JJP Morgan is on board not just for low interest rates, but for very low negative interest rates on bonds. Beware of totalitarianism creaping toward America. Once negative rates spiral downward deeply, cash will have to be eliminated. This is madness, folks.





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Larry Summers 100 Dollar Bill Ban And Westfalia Lost | Talkmarkets

Larry Summers 100 Dollar Bill Ban And Westfalia Lost | Talkmarkets



This is the article introduction on Talkmarkets: Westphalia as a concept is superior to empire. Our freedoms are more likely to be honored in a system of national sovereignty. Larry Summers
is attacking that sovereignty as a representative of a global financial
system.



From the article:

 

Empires colonize. Empires oppress the subjects. Empires force banking
solutions on the people. Can anyone deny that a Westfalia-like
sovereignty is at grave risk of destruction in Summers' and Kissinger's
New World Order?

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Authorities Want To Ban High Denomination Bank Notes | Talkmarkets

http://www.talkmarkets.com/content/global-markets/here-is-the-real-reason-why-authorities-want-to-ban-high-denomination-bank-notes?post=85777&uid=4798



Getting rid of a major portion (30percent) of the money supply appears to be the real goal of the Eurozone! It has nothing to do with fighting crime, although that is the stated reason. This is just another battle in the war on cash. Tyler Durden says this on Talkmarkets:

...if overnight the €307 billion worth of €500 bills were
eliminated, the notional value of the entire amount of European physical
currency in circulation would decline by 30% to €700 billion!

This, of course, can help set the stage for more aggressive NIRP, negative interest rate policy, and the war on cash continues. 





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Gary Anderson Blog | Swedes Are Saving More Than Ever As Negative Interest Rates Fail | Talkmarkets

Gary Anderson Blog | Swedes Are Saving More Than Ever As Negative Interest Rates Fail | Talkmarkets





From the site I wrote:

Swedes are saving more than ever in their newly created (voluntary)
cashless environment. That was not supposed to be how it works. They
should be saving less and spending more because the banks are charging
them interest. That is the goal of negative interest rates, to force
people to spend more so that inflation will bump off zero.

But here is the flaw in that reasoning. The fees the banks charge
retail customers are like a tax. They make the Swedes feel poorer in
their accounts, not richer. So the Swedes do what I predicted. They save
more to make up for the shortfall. They still don't want to hide money
under the mattress, risking the loss of all of it to theft!



The illogical reasoning that people will spend more when you take
their money away from them must have been created by people who have
plenty of spare money. No one else would entertain this absurd reasoning
except for economists and bankers!

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Norway's Biggest Bank Demands Cash Ban | Zero Hedge

Norway's Biggest Bank Demands Cash Ban | Zero Hedge



Needless to say that if we are unable to escape the liquidity trap of zero interest rates, our banks will demand a cash ban as well. This is a serious threat to freedom, and is simply robbery by the banks, as cash gives choice as to whether you will use a bank or put your money under the mattress. From the site:

1. Every financial transaction can be taxed.


2. Every financial transaction can be charged a fee.


3. Bank runs are eliminated.

This is something every citizen of every country should think of long and hard. 

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The Global War on Cash by Kevin Dowd

There is a global war on cash. Kevin Dowd has clearly set out the moral and economic dangers to our economy, households and even privacy if cash is abolished.

This is a must read article by Kevin. Support the Pay Cash Only movement by liking the page and by using cash once in awhile for payments for items in the store.

Do not be deceived, readers, a cashless society is totalitarian in nature, perhaps the first step towards massive totalitarian impositions on the public.

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