Dear Investor,

It's not on the front page...yet.

But it will be.

Some governments, central banks and mega-banks are waging a secret war on cash. They are even talking about outlawing the use of physical currency. This new reality might be closer than you think.

Consider these recent headlines (all from April 2015):

Large U.S. Bank Bans Wire Transfers, Limits Cash Withdrawals (TheCrux)
JPMorgan Chase Bans Storage of Cash in its Safety Deposit Boxes (InfoWars)
Citi Economist Says It Might Be Time to Abolish Cash (Bloomberg)
Sweden Moving Towards Cashless Economy (CBSNews)

We can all imagine a world without cash. But do we want to live in it?

Are you ready to have your bank take money from you for the privilege of having it on deposit? It's called a "negative interest rate." If cash is banned, you will be stuck with it.

Cash is King -- and Authoritarians Want Him Dead

Excerpted from April 2015 Elliott Wave Theorist

The example offered above demonstrates part of the reason why some lenders are willing to accept a negative yield on their money: They expect to get back more valuable money. But ultimately it's a fool's game, since deflation will usher in depression, and the debtors of the world won't be able to return the money they borrowed.

This outlook leads us to a related reason why some lenders accept negative interest rates: They fear default from so many lenders that they are willing to pay for the privilege of lending to a perceived safe borrower.

But such logic goes only so far. There is a limit to the extent of negative rates, which is the value of the convenience of holding an electronic balance as compared to the cost and bother of holding cash notes. If it is just as convenient for an entity to hold cash as to make a negative-interest-rate loan, there is no reason at all to lend money at a negative rate.

People and institutions holding billions of dollars have been trapped into accepting a negative interest rate--meaning a guaranteed loss on their money--because gathering, storing and employing an equivalent value of cash notes would cost more than the amount lost to negative interest.

But there is a limit to this reverse usury. A large enough disparity would make it attractive even for billionaires to store cash instead of lend it. What is that interest-rate limit? Minus 2%? Minus 5%? If the limit is reached, even wealthy entities will opt for cash. That is, if the men with the guns let them do it.

Apologists for governments, central banks and the bankers of the world are not content with the current situation, in which people have a refuge. They want to make sure their confiscatory policies ensnare everyone. They do not want anyone to escape the trap, especially the most financially prudent and responsible people, i.e. savers.

Setting up a system in which bankers can keep all the profits on their good trades while tapping taxpayers to bail them out of all their bad trades is not enough for them. They want more. They want you locked in to their system so they can steal value from your bank account without going through the tiring and politically sensitive medium of government bail-outs. They want to ensure that you have no possible route of escape.

How will they do it? By outlawing cash.
Read the following article and note the featured economist's casual arrogance in proposing what is in essence a totalitarian plan for trapping your money. It is a tacit admission that the fake-money system won't work unless rulers can enslave you. This means the system is built for the benefit of a few elites, not for everyone.

April 13, 2015

Why central banks should embrace negative interest rates -- and get rid of currency

During the heart of the Great Recession in 2009, a traditional policy rule used as an informal guide by the Federal Reserve suggested that interest rates should be set below negative 5%.

But economists had long said that interest rates couldn't go below zero.

To get around this "zero-lower-bound," then Fed Chairman Ben Bernanke bought billions of dollars of securities and expanded the Fed's balance sheet to spur low rates and risk-taking, in a policy known as quantitative easing. The move set off a fierce political firestorm that hasn't subsided even though Bernanke's steps have been followed by other major central banks, including the European Central Bank.

With this background, economists have pondered what should be done to get ready for the next, inevitable, recession, and the chances that economic conditions may call for rates to go below zero in the future.

Willem Buiter, global chief economist at Citi, is arguing in a new research note that central banks should be prepared to set negative rates.

What is the obstacle? A key reason that central banks can't set rates as low as they would like is cash. The theory is that savers would take all of their money out of banks rather than be charged a negative rate.

What to do? Well, one idea is to get rid of cash and move to digital payments.

Sound absurd?

Not to Buiter, who is deadly earnest. He said that there are only three constituencies left for cash. The elderly and the poor depend on cash and can be helped, he said. Criminals also depend on cash because it is anonymous. The third complaints will come from libertarians who "should take one for the team," he said.

Buiter said that Finland, Singapore and the U.S. are three countries ready to rely mostly on digital payments.

He noted that, for the first time in history, four central banks -- the ECB, the Swiss National Bank, the Swedish Riksbank, and the Danish Nationalbank -- all currently have negative policy rates.

What about savers?

Buiter said there will be "howls of horror" from savers, but said discouraging savings is exactly what significantly negative interest rates are designed to achieve as it would increase investment and eliminate demand deficiency.

"It is important to highlight that discouraging saving (and encouraging spending) is not a bug of significantly negative interest rates, but a feature," he wrote. (MarketWatch)

I won't even address the Keynesian absurdity of discouraging saving in favor of consumption, as if eating one's capital will magically lead to paradise instead of ruin. Such nonsense has become institutionalized among economists to the extent that it is offered up every day in the media. This philosophy both requires authoritarianism and leads to more of it.

The government intrusion into medical care in 1965 was of the same mold, and has led down the same path, to a trap you cannot escape, where you are systematically robbed of money and deprived of service. That's where our banking system is headed, too, and this is just more evidence of it.

To the point: Notice how this economist--who in this role is not an economist but a political central planner--disparages cash by associating it with criminals, the meek poor and the addled elderly. He says the answer to the distress that his plan will produce for the latter two groups is--surprise--more collectivism.

As for hard-working people who might want to protect their savings, he says, screw them. His blithe cleverness on how to do it is like that of East German bureaucrats who figured out that the best way to trap people into submission was just to outlaw employment without a permit. Simple! People will cooperate or die. Problem solved.

He says libertarians--people who champion the far-out-of-fashion value of liberty--should "take one for the team." But central bankers and governments are not some team. They are grasping, corrupt, dissolute, self-interested rulers. This is like slave-owners telling their newest acquisitions to turn in all their production to the slave-master for the good of the team. Go, Slaves! America's Team!

Quoted:

"We Are Entering The Terminal Phase Of The Global Financial System"

..."The result is that all of the massive stimulus from the central banks has gone into the financial inflation, not goods and services. The financial inflation is obviously the great bubble that afflicts the entire financial system of the world.  It’s becoming increasingly unstable and it will eventually collapse.  And when it does I think it will mark the complete failure of a monetary system that has basically been metastasizing since 1971."


Not a very positive outlook


He's probably just about to release a new book







   

As of March, Chase began restricting the use of cash in selected markets, including Greater Cleveland. The new policy restricts borrowers from using cash to make payments on credit cards, mortgages, equity lines, and auto loans. Chase even goes as far as to prohibit the storage of cash in its safe deposit boxes . In a letter to its customers dated April 1, 2015 pertaining to its “Updated Safe Deposit Box Lease Agreement,” one of the highlighted items reads: “You agree not to store any cash or coins other than those found to have a collectible value.”

Quoted:

"We Are Entering The Terminal Phase Of The Global Financial System"

..."The result is that all of the massive stimulus from the central banks has gone into the financial inflation, not goods and services. The financial inflation is obviously the great bubble that afflicts the entire financial system of the world.  It’s becoming increasingly unstable and it will eventually collapse.  And when it does I think it will mark the complete failure of a monetary system that has basically been metastasizing since 1971."


Not a very positive outlook


He's probably just about to release a new book





   

Quoted:

"We Are Entering The Terminal Phase Of The Global Financial System"

..."The result is that all of the massive stimulus from the central banks has gone into the financial inflation, not goods and services. The financial inflation is obviously the great bubble that afflicts the entire financial system of the world.  It’s becoming increasingly unstable and it will eventually collapse.  And when it does I think it will mark the complete failure of a monetary system that has basically been metastasizing since 1971."


Not a very positive outlook


He's probably just about to release a new book







   

Quoted:
Stand down boys, they are Cleaning House

Quoted:
He's back: Stockman: Stocks and bonds will 'crash  soon'

"Soon"
 

Quoted:
I have watched the seniors here in Florida who thought a million in the bank and a paid for house would see them through retirement very nicely get plastered due to low interest rates.

They either are forced to make riskier bets with their money, withdrawal more than they should and/or take part time jobs to help supplement their retirements.  Not much travel, etc. it also causes huge problems in the local economy, they don't eat out as much, they don't spend as much and it's a wonder Florida is able to still keep moving forward.  It has been 15 years since CD rates were remotely decent.

Quoted:
SENATE REPUBLICANS GIVE OBAMA NEW POWERS

DETAILS REMAIN 'CLASSIFIED'

Drudge linking to a news article this AM.


 

Quoted:


Nothing is more dangerous than a man with nothing to lose.

Quoted:
"Yellen: Raise rates in 2015 if econ improves"


I always say in response:

They can't.



They never do. It's all dis-information for the Sheeple.

Quoted:
Coup?

Quoted:
I have watched the seniors here in Florida who thought a million in the bank and a paid for house would see them through retirement very nicely get plastered due to low interest rates.

They either are forced to make riskier bets with their money, withdrawal more than they should and/or take part time jobs to help supplement their retirements.  Not much travel, etc. it also causes huge problems in the local economy, they don't eat out as much, they don't spend as much and it's a wonder Florida is able to still keep moving forward.  It has been 15 years since CD rates were remotely decent.

Quoted:
HSBC fears world recession with no lifeboats left...

Common Theme developing from the main stream...Telling the Truth
 

Quoted:

So who engineered this mess?

And what do you tinfoilers think about the dozen or so banksters that died within the last year of unnatural causes?