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Negative Interest rates and the ban on cash


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Gold and silver backed accounts are interesting but are they not a bet on the metals? If so why not just keep the minimum amount needed to function in a current account and just buy the gold? Or am i missing something. 

Bit coin is something I have looked into and although I 'get' the principles behind it I can't go looking into the code to confirm what they tell me it does is true. I don't understand it so I will not invest in it. In addition the founder owns a great deal of them which provides a nice pyramid structure to the way it has grown so far, it unfortunate but does not mean that it is a ponzi scheme, but the point is no one really knows if it is or not, not even the ECB can tell. :lol: If it looks like one, but no one can confirm it is not, I am taking no chances. Other people think differently and tell me I don't know what I am talking about - which is true, but they have never yet been able to demonstrate why they think I am wrong and change my mind.

As far as currency goes, as I see it, you can't derisk the inherent problem that it is devalued at will and all the rest. You can spread it around to reduce the practical risks of holding it one place, use different banks, keep a stash around in case the banks wont give you access to the rest for whatever reason, but in the end it has its risks as any asset. Arguably the risks are growing with the move towards cashless and negative interest rates. Which risks are acceptable to you and which ones do you want to avoid? In reality how liquid do you need to be beyond currency for living? Are you holding cash to buy assets as they fall? If so it looks like you are asking how can I have it both ways. ;)

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Just a week left to reach 10k signatures on this petition, a few dozen still needed (done pretty well in the last few days actually).

It would be a real shame not to get there. It will be interesting to hear the Government's response.:D

https://petition.parliament.uk/petitions/109727

 

 

Profile picture with thanks to Carl Vernon

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I enjoyed watching this, though I worry that it seems to give the impression that capitalism failed in Japan. I would like to see a response from an Austrian economist in the Hayek tradition. I'm quite sure that Hayek would have it that it was government interference in the form of money creation and credit expansion that caused the unsustainable boom, which in turn caused the following bust.

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On 06/04/2016 at 21:20, sovereignsteve said:

Just a week left to reach 10k signatures on this petition, a few dozen still needed (done pretty well in the last few days actually).

It would be a real shame not to get there. It will be interesting to hear the Government's response.:D

https://petition.parliament.uk/petitions/109727

 

 

I've just signed to. I agree that it'll be interesting to see what response we get

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  • 4 weeks later...

And ironically The US and Japan recently increased the number of circulating notes in order to keep up with demand for them..............yikes, this is what negative or no interest rates do.........

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A report earlier this year for the Harvard Kennedy School, urged the world's 20 largest economies to stop issuing the largest notes in circulation - £50, $100 and €500 notes - to tackle crime.

I don't know why a £50 note would cause the same money laundering and smuggling issues as a €500 note.  

£50 isn't that much money these days but if you try to use them in a shop the cashier reacts as if you've handed them a grenade.   I might start carrying the Scottish £100s.

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3 hours ago, HelpingHands said:

£50 isn't that much money these days but if you try to use them in a shop the cashier reacts as if you've handed them a grenade.   I might start carrying the Scottish £100s.

If most shops will not accept the £50 note, surely that alone is enough reason to drop the note? no point in having it, if it cant be used in an "everyday" transaction.

I do agree though, its nothing in the league of 500 Euro notes or 1000 Swiss franc notes. Even $100 bills are only around £70. I would believe it depends on how much do $100 bills get used in the states. If its as much as a £50 here, I wouldn't think there is any harm dropping the top notes

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4 hours ago, HelpingHands said:

 

£50 isn't that much money these days but if you try to use them in a shop the cashier reacts as if you've handed them a grenade.  

So few people use cash to shop these days, many of them will never have seen one before. Consequently, they will be worried about fakes.

The only reason I can think of for using £50 notes in transactions is to buy a used car.

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53 minutes ago, SoulUK said:

If most shops will not accept the £50 note, surely that alone is enough reason to drop the note? no point in having it, if it cant be used in an "everyday" transaction.

I do agree though, its nothing in the league of 500 Euro notes or 1000 Swiss franc notes. Even $100 bills are only around £70. I would believe it depends on how much do $100 bills get used in the states. If its as much as a £50 here, I wouldn't think there is any harm dropping the top notes

I disagree. If I had £50,000 in a bank account, I should be able to arrange to collect my money in notes so that I can store it in a safe or spend it, as I wish.

Such an amount would be impractical in £10 notes.

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Isn't that the problem with high value notes? They are rarely used to spend money, but to store.

And I know its a band wagon running along saying the high notes are funding terrorism, the euro/franc might, the £50 note I highly doubt (as its one of the lowest "high value" notes) . But if we are unable to spend it, why would the Bank of England what to produce it. They want you to spend it, not store it.

Personally only had £50 notes when I bought a car like Steve said, but even then, they gave me less then a third in 50's, a small amount of 10's and mainly 20's

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59 minutes ago, HelpingHands said:

If anybody has a large pile of fivers then it might be best to start slowly spending them.  The new polymer note enters circulation in September.

Have to disagree there, keep hold of a load of them, and them chuck them on Ebay to make a little extra. I regularly see notes that I had in my hand 10-20 years ago making good money even after allowing for inflation. 

People will collect any old tat.

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I'm pretty sure most illegal transactions are made with small notes.  Many drug dealers arise suspicion when they try to change up all the tens and fivers from their deals to large notes through laundering.

The tenner in your wallet probably has a more dubious past than the average £50 note. 

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We all know this is noting to do with money laundering and tackling crime rather the first step in testing the water for cashless which just needs a valid enough reason to fool the public," look you never missed the 500 Euro note so now the 100 Euro note is going" .  Personally I would prefer the system goes bust before they get to cashless and have everyones money in the bank for their bail ins.  If they are allowed to get away with this they could be inflating negative interest rates for years yet growing their debt ponzi scheme.

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A cashless society would be a dystopian nightmare for everyone except the 0.01%

In a cashless society, the government can find out where you spend every single penny of your money, and from where you receive it.
I don't want to live in that kind of society, even if others find it 'convenient'.

  • Up to date with your income taxes/council tax/ NI contribution ? automatically deducted from your account
  • Behind on your child support payments? automatically fined & deducted from your account
  • Parked x1 inch over a white line in a car park ? automatically fined & deducted from your account
  • A tissue flies out of your pocket and a CCTV Gestapo goon spots it from his surveillance bunker?  automatically fined for littering & deducted from your account
  • Are you one of those free thinking loons who objects and opposes big government, protests or causes society issues?  switch his card off

Getting rid of cash is all about controlling ordinary peoples lives & curtailing their few remaining freedoms we have.

It is a core goal of the long standing dream of the Marxist internationalists to control the destiny of mankind by creating a one world government of rule by the Marxist elites.

It goes without saying that getting rid of cash will not eliminate crime & in fact may increase it as savvy criminals turn to the web to rob their victims electronically and other criminals turn to violence to rob victims of tradable possessions & goods .

Fiat currency manipulation now moves into the digital arena, with an easy 'press of a button' opportunity to bail-in institutions, banks and government.

This is not to aid trade, liberty, free markets or anything close. A system for the benefit of the elites.

Ultimately, in a cashless society all your money - every last penny - is under the control of the holding authority - the bank - which in turn is controlled by the "government".

Should you displease the government they will cut off your funds at the flick of a switch & incur their wrath

The mere threat of this will make you what Big Brother would call a good, compliant citizen.

Starting to get the picture?....... Indeed, 1984 has indeed arrived & is real.  The velvet glove is slowly getting removed from the iron fist ladies & gentlemen

 

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cash2.jpg

A picture is worth a thousand words

In a cashless world, your ATM screen or bank statement would simply show $205,000,000 instead of taking up all this room

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Banning the 500 Euro note the second highest note in the Eurozone brings back 306 Billion Euros.  Yet another kick in the teeth for the Greek people who stashed these in their frozen chickens as they now just have to hand them over.

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A report earlier this year for the Harvard Kennedy School, urged the world's 20 largest economies to stop issuing the largest notes in circulation - £50, $100 and €500 notes - to tackle crime.

 

 

for Crime  reasons? i doubt it !  the £50 note  has less value than the  € 100 and  € 200 which would still be in circulation 

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4 hours ago, Paul said:

.

It is a core goal of the long standing dream of the Marxist internationalists to control the destiny of mankind by creating a one world government of rule by the Marxist elites.

 

This is not to aid trade, liberty, free markets or anything close. A system for the benefit of the elites.

Ultimately, in a cashless society all your money - every last penny - is under the control of the holding authority - the bank - which in turn is controlled by the "government".

Should you displease the government they will cut off your funds at the flick of a switch & incur their wrath

The mere threat of this will make you what Big Brother would call a good, compliant citizen.

Starting to get the picture?....... Indeed, 1984 has indeed arrived & is real.  The velvet glove is slowly getting removed from the iron fist ladies & gentlemen

 

I don't think this is Marxist, more like Fascist, a new type of corporate/One Government Fascism under the Umbrella of Neo-Liberalism.  

I my opinion the way the main stream media have attacked Corbyn and Trump both outsiders, not part of the establishment and not on board with what 'will' happen is a big clue that policies pre-decided and we the electorate just decide whether its the red corner or the blue corner.

Its amazing what foresight George Orwell had with 1984 and Animal Farm.        

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7 minutes ago, sovereignsteve said:

Isn't Maxism a form of fascism?

No, Communist or very Socialist 

https://en.wikipedia.org/wiki/Marxism

Fascism is far right and often mistaken because in the past they use the word socialist, they often recruit from poor backgrounds the link below gives a starter on Mussolini and how he went from being left wing to far right a Fascist.  

https://en.wikipedia.org/wiki/Benito_Mussolini

History gives us warnings!!! 

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