Thursday, August 04, 2016

How Governments Can Kill Cash
"The global elites are using negative interest rates to do the same thing as inflation — make your money disappear. One way to avoid negative interest rates is to go to physical cash. In order to prevent that option, the elites have launched a war on cash. The war on cash has two main thrusts. The first is to make it difficult to obtain cash in the first place. U.S. banks will report anyone taking more than $3,000 in cash as engaging in a 'suspicious activity' using Treasury Form SAR (Suspicious Activity Report). The second thrust is to eliminate large-denomination banknotes. The U.S. got rid of its $500 note in 1969, and the $100 note has lost 85% of its purchasing power since then. With a little more inflation, the $100 bill will be reduced to chump change. The whole idea of the war on cash is to force savers into digital bank accounts so their money can be taken from them in the form of negative interest rates. An easy solution to this is to go to physical cash."
- Jim Rickards*
link here to the essay


Anonymous said...

A Licence to Print Money

John Law firmly believed that (as Mark Twain said), “The lack of money is the root of all evil.” I’m not being facetious. Law believed that trade and commerce were inhibited by a lack of liquidity, which in turn stymied lending. In a strictly precious metals economy it was difficult to encourage commerce because of the restricted supply of metal circulating. However, as the Medici’s and later the Amsterdam bankers had figured out, if you issued paper claims on the gold and silver plate and specie in the vaults, you could…..issue more claims than what was IN the vaults, provided that the claimants didn’t come to you all at the same time, i.e. a run on the bank. This became the basis for the Fractional Reserve System, whereby countries could issue paper money backed to greater or lesser extent by assets held by the Government. At first this took the form of bearer notes, but later it was perverted into inconvertible fiat currencies backed by “the Full Faith and Credit of the United States” (or Canada, or UK, or Mickey Mouse or Whomever, take your pick)…..but I am getting ahead of myself.

Louis XIV, also known as The Sun King is famous for having constructed the Palace of Versailles, and for fighting three major wars and two minor ones. According to Alasdair Macleod, when he died in 1715 after 72 years on the throne he left the state three billion livres in debt, which was the equivalent of 1,840 tonnes of gold. This was about 85% of the world’s estimated gold stock at that time, at the livre’s conversion rate into Louis d’Or. The TV show “Versailles” started airing on the BBC in June ( It’s pretty fair, but even computer generated graphics can’t accurately convey the opulence of the French Court. Think Michael Jackson’s Neverland Ranch X 1000. When the Sun King died France was utterly stony broke.

Helicopter Money is coming soon! A huge percentage of the developed world’s bond issues are now “earning” negative interest. This is not sustainable. All the pension funds invested in bonds are gonna collapse unless something drastic is done, and done soon. You will see things in the coming months and years that will defy all logic and will go against all the rules of Economics and Commerce.
Since the US Republican and Democratic Conventions are hogging the headlines recently, I will close with a line from Ronald Reagan’s 1992 National Republican Convention address. He said, (referring to the freedom and prosperity of America) “You ain’t seen nothing, yet!”

rbblum said...

Not even a babe comfortably secured in one's arms would be content with digital candy.