How many people still use cash? With contactless payments accepted almost everywhere using credit/debit cards and even smart phones the need for carrying cash around is becoming less and less.
In the past week or two I have noticed several reports calling to scrap 500 euro notes and 100 USD notes. The official line being used is to fight crime, money laundering and the financing of terrorism. In terms of the total physical EUR currency, the 500 notes make up around 30% and for USD the 100 notes account for 78%.
The thought of being forced to use electronic payments probably wont concern many people. What should be concerning however is the real reason behind the removal of physical money from the system.
Japan, Europe and Sweden have all already moved into negative interest rates. There are plenty of reasons to believe this will become even more widespread with Janet Yellen of the US Fed having already admitted they also see it as a possible tool to be used in future. The Bank of England already have a 0.5% base rate, with little room left to cut before going into negative territory.
The current restriction to interest rates going deeply negative is that people would quickly withdraw their funds from the bank as cash and store it at home to avoid paying their bank for the luxury of them holding on to your deposits.
Call me cynical by all means but is it not blindingly obvious what is going on here? It is no coincidence these news stories have all started coming out, and they have not all of a sudden realised that cash can be used to fund illegal activity. This is a coordinated effort from central bankers around the world to scrap cash to enable them to deploy their next policy of taking wealth from everybody to keep the wheels of the failing financial system greased - Negative Interest Rates.
Time to Kill the $100 bill
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Draghi could scrap the biggest note to fight crime and deflation
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In the past week or two I have noticed several reports calling to scrap 500 euro notes and 100 USD notes. The official line being used is to fight crime, money laundering and the financing of terrorism. In terms of the total physical EUR currency, the 500 notes make up around 30% and for USD the 100 notes account for 78%.
The thought of being forced to use electronic payments probably wont concern many people. What should be concerning however is the real reason behind the removal of physical money from the system.
Japan, Europe and Sweden have all already moved into negative interest rates. There are plenty of reasons to believe this will become even more widespread with Janet Yellen of the US Fed having already admitted they also see it as a possible tool to be used in future. The Bank of England already have a 0.5% base rate, with little room left to cut before going into negative territory.
The current restriction to interest rates going deeply negative is that people would quickly withdraw their funds from the bank as cash and store it at home to avoid paying their bank for the luxury of them holding on to your deposits.
Call me cynical by all means but is it not blindingly obvious what is going on here? It is no coincidence these news stories have all started coming out, and they have not all of a sudden realised that cash can be used to fund illegal activity. This is a coordinated effort from central bankers around the world to scrap cash to enable them to deploy their next policy of taking wealth from everybody to keep the wheels of the failing financial system greased - Negative Interest Rates.
Time to Kill the $100 bill
To view the link you have to Register or Login
Draghi could scrap the biggest note to fight crime and deflation
To view the link you have to Register or Login
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