3 replies to this topic

[stocks]

Cash (physical) is the core of the banking system. The electronic money people see in their bank accounts is a derivative of that cash.

The amount of physical cash in the banking system is limited. Cash today is similar to gold in the 1930s.

There’s a difference between physical cash (the kind you can touch and use immediately) and the electronic kind, associated with your bank balance or credit card cash advance limit.

The expanding debate about how much of your cash you get to withdraw at any given moment is something new.

The notion of a bail-in, or recourse to people’s deposits, is related to the idea of restricting the movement, or existence, of physical cash. Bail-ins, like any cash limitations, imply that if a bank needs emergency liquidity, your deposits are the place to find it, which has negative repercussion on your own solvency. This is exactly what the Glass-Steagall Act of 1933, coupled with the creation of the FDIC sought to avoid – banks confiscating your money at the worst possible times.

The ‘war on cash’ is thus really a war on the difference between the money you can hold on to and the money the banks can take away from you. The existence of this cash debate underscores the need for a personal policy of cash extraction from the big banks. Do you have one?


http://davidstockman...y-cash-is-king/

Edited by stocks, 05 July 2015 - 11:42 AM.

[stocks]

Greece Safety Box Controls; Cash in Hand is King

Back in January, I warned Greek citizens to take money out of Greek banks. I also warned not put it in safe deposit boxes. Both comments were dead-on accurate.

Greeks cannot withdraw cash left in safe deposit boxes at Greek banks as long as capital restrictions remain in place, a deputy finance minister told Greek television on Sunday.

Gold Confiscation

I receive questions quite frequently asking if gold or silver will be physically confiscated or outlawed as it was under Roosevelt.

My short answer is no. And I am quite confident of that answer. Confiscation via a high tax rate on gold sales is more likely.


http://globaleconomi...safety-box.html

[stocks]

The Swedish government is moving relentlessly toward a completely cashless economy.

Swedish banks have begun removing ATMs even in remote rural areas, and according to Credit Suisse the rule of thumb in Scandinavia is “If you have to pay in cash, something is wrong.”

Since 2009 the average annual value of notes and coins in circulation in Sweden has fallen more than 20 percent from over 100 billion to 80 billion kronor.

This movement to destroy cash is the desire to drive the interest rates down even further into negative territory. Currently, it stands at -0.35 percent, but the banks have not passed this along to their depositors because depositors would simply withdraw their cash rather than leave it in banks and watch its amount shrink inexorably toward zero.

However, if cash were abolished and bank deposits were the only form of money, then there would be no limit on negative interest rate policy as banks would be able to pass these negative interest rates onto their depositors without adverse consequences.

With everyone’s wages, salaries, dividends etc, paid by direct deposit into his bank account, the only way to escape negative interest rates would be to spend, spend, spend. This, of course, is precisely what the Keynesian economists advising governments and running central banks are aiming at.



https://www.lewrockw...ng-radioactive/

[stocks]

Another victory over Bezos    https://www.dailymai...ess-stores.html

 

Philadelphia becomes the first city in the US to BAN 'discriminatory' cashless stores and restaurants - to be more inclusive to the EIGHT MILLION Americans without bank accounts  

 

In Philadelphia, Councilman Allan Domb said Amazon issued a warning that they would re-consider implementing an Amazon Go store in the city if the bill passed.

 

The Bezos-owned company plans to open up 3,000 cashless stores across the country by 2021. Amazon Go stores have no cashiers and only accept digital forms of payment.