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Thread: The Totalitarian War on Cash

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    The Totalitarian War on Cash

    The Totalitarian War on Cash
    Llewellyn H. Rockwell, Jr.
    3:21 pm on April 20, 2015

    The war against cash has, up to now, been waged almost exclusively by national governments and official international organizations, although there are exceptions. Now the war has acquired a powerful new ally in Chase, the largest bank in the U.S. and a subsidiary of JP Morgan Chase and Co., according to Forbes, the world’s third largest public company.

    Of course , it is hardly surprising that a crony capitalist fractional-reserve bank, which received $25 billion in bailout loans from the U.S. Treasury, should want to curry favor with its regulators and political masters and, in the process, ensure its own stability by helping to stamp out the use of cash.

    For the very existence of cash places the power over fractional-reserve banks squarely in the hands of their depositors who may withdraw their cash in any amount and at any time, bringing even the mightiest bank to its knees literally overnight (e.g., Washington Mutual).

    What is a surprise is how little notice the roll-out of Chase’s new policy has received. 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.” Whether or not this pertains to gold and silver coins with no numismatic value is not explained.

    As one observer commented:
    This policy is unusual but, since Chase is the nation’s largest bank, I wouldn’t be surprised if we start seeing more of this in this era of sensitivity about funding terrorists and other illegal causes.

    Think about it. No cash transactions means the government can snoop on every purchase, payment, or donation you make.
    Fred

    From Butler Shafer; Events have finally caught up with the warning offered by Lord Acton: “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
    Last edited by Fredkc; 04-21-2015 at 02:11 AM.
    "Life IS mystical! Its just that we're used to it." - Wolf, the movie
    "Dad, if God is everywhere then, when he's in a piece of paper, is he squished?" - My daughter, age 7

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    In Memory Fredkc's Avatar
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    Re: The Totalitarian War on Cash

    Citi Economist: Time to Abolish Cash
    Ryan McMaken
    10:25 pm on April 16, 2015

    We often focus on the fact that abolishing cash abolishes the last remnants of financial privacy. But of course, abolishing cash also increases the Fed’s ability to manipulate the economy.

    Bloomberg reports that Citi economist Willem Buiter has called for the end of paper currency based on the benefits such action would bring to central banks. Specifically, the existence of cash limits a central bank’s ability to manipulate the ecomomy with negative interest rates:

    In a new piece, Citi’s Willem Buiter looks at this problem, which is known as the effective lower bound (ELB) on nominal interest rates.

    Fundamentally, the ELB problem comes down to cash. According to Buiter, the ELB only exists at all due to the existence of cash, which is a bearer instrument that pays zero nominal rates. Why have your money on deposit at a negative rate that reduces your wealth when you can have it in cash and suffer no reduction?

    Cash therefore gives people an easy and effective way of avoiding negative nominal rates.

    However, if you abolish cash, there is no escape from negative interest rates. All your money must be in an institution that can then punish you for saving any cash. There are half-way measures such as taxing currency, too.
    Buiter does not have to go far to find an example of where a central bank may have wanted to set interest rates much lower to -100bp. He uses (a fairly aggressive) Taylor Rule to show that Federal Reserve rates should have been as low as -6 percent during the financial crisis.”
    Sure, some people will protest the abolition of cash, Buiter concedes, but overall the arguments in favor of cash “seem rather weak.”
    "Life IS mystical! Its just that we're used to it." - Wolf, the movie
    "Dad, if God is everywhere then, when he's in a piece of paper, is he squished?" - My daughter, age 7

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    Administrator Ross's Avatar
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    Re: The Totalitarian War on Cash

    While interestingly disturbing, we all know this has always been the agenda for over 25years. Credit and debit...that is it!

    Once chase has this formula operating and the public quietly accept the change, it will be a matter of time where we see other institutions/countries employ this tactic...

    What will be interesting are all those who hold cash and or use cash, like say drug cartels, Gun runners, Fanatical groups who rely on laundering means to get their cash into the system.

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    Senior Member Adam Bomm's Avatar
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    Re: The Totalitarian War on Cash

    Well, surprise, surprise...I actually have a thought on this...

    Someone has coined the term, "The Financial Matrix". Elites exploits the masses, now that's an old story and while the mechanisms have changed the intent has not:
    slavery->feudalism->financial debt...The intent has always been the same, bleed the masses of their assets with the most valuable asset being oneself.

    I heard this from a decidedly mainstream individual but the cause is the same...Start a revolution by not falling into the trap set by the masters of the game.

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