Skip to comments.Wealth Confiscation for the Digital Age: the New “Cash Tax”
Posted on 05/11/2016 1:35:23 PM PDT by Lorianne
Negative interest rates have become a phenomenon with economists and the media. But Im writing to tell you something about negative interest rates you havent heard. You certainly wont hear about it in the mainstream press.
Whats coming at you is a historic event. Its something our grandchildren will hear stories about, much like the Great Depression or the Cold War. It could send the price of gold much higher in the coming years.
If you know whats coming, it could mean the difference between having lots of free cash in retirement and barely getting by. And please remember this warning: Social Security will help even less than you think.
To understand the gravity of this moment, lets cover one of the most bizarre ideas in the world
Negative Interest Rates.
In a normal world, your bank pays you interest on your savings. It takes your money, pools it with other peoples money, and loans it out. The bank makes money by paying out less in interest on your deposit than it earns in interest from borrowers. For example, it might pay out 3% to depositors while earning 6% from borrowers. This is how it has worked for decades.
Negative interest rates turn your normal bank account upside down. They could only exist in a crazy world where idiot politicians are in control. Unfortunately, thats just what were dealing with right now.
Politicians all over the world are ordering banks to charge depositors (you) a fee for storing cash. Its a perversion of saving. Its a perversion of capitalism. Its a perversion of planning for the future.
And its going to result in disaster.
(Excerpt) Read more at wolfstreet.com ...
Just call it the death of cash
And a move to hasten the death of our fixed-income elderly and flee-to-cash conservative investors.
RE: “Just call it the death of cash”
The death of cash would mean that EVERY transaction would have a fee attached to it. Would that lead to a situation where there would be some popularity for an underground economy using silver in easily verifiable forms? More barter for goods and services? We’re all just guessing.
I thought we were all supposed to be investing and not just saving.
We should all be listening to our brokers at Goldman-Sachs and "investing" in risky derivatives.
That's the American way!
A question if I might.
What happens in a digital world when the atms and digital banking is not available for buying food? On the Southern coast this could be a real issue.
During hurricane Ike we used cash and it worked oh so well. It took 3 weeks before power went on in our area and 4 days after landfall before any government supplies arrived.
For those of you, such as the denizens of DC who don’t have catastrophic weather, it wouldn’t be a problem but for those of us who do experience the really awful weather it could be a real serious problem, especially for older folks.
The government has given up thinking through anything anymore.
This ad is obviously a ploy to buy gold in a panic and not a very good one, but the question has been on my mind since the Treasury started to talk about eliminating cash.
I don't think that's the case. What's happening is that Central Banks are charging banks interest on their deposits at the Central Bank.
I've only heard a few isolated cases where the banks were charging customers or clients to hold a balance.
In a normal world, your bank pays you interest on your savings. It takes your money, pools it with other peoples money, and loans it out.
WRONG WRONG WRONG, Banks have NOT operated like that since 1971.
Pay Attention folks. When you take out a LOAN, they are NOT loaning you money they have or anybody else has, ALL LOANS in the US are FUNDED with BRAND NEW MONEY. The Fed gives Banks Instant 100% credit for YOUR Promissory Note and the MONEY is CREATED OUT OF THIN AIR to meet the DEMANDS of said Loan. The bank turns around and GIVES it to YOU with Interest Attached. They profit off the difference the FED charges them and what they charge you in INTEREST.
If you think otherwise, you are a FOOL!
Our electric company is charging its customers $22.50/mo for not using automatic bill paying. That’s outright thievery.
Every loan is fully funded. That means either the bank already has money to lend you, mostly from deposits, or they borrow money after you take out your loan.
They mostly would borrow from other banks which have extra money, mostly from deposits.
Banks aren't magically lending without borrowing money from someone else.
The Fed gives Banks Instant 100% credit for YOUR Promissory Note and the MONEY is CREATED OUT OF THIN AIR to meet the DEMANDS of said Loan.
They used to borrow from the Fed to do that, rarely, but since QE, banks have so much extra cash that current loans like that from the Fed are only $6 million, with an M.
And there is a haircut, so they wouldn't get 100% of the value of the collateral.
They profit off the difference the FED charges them and what they charge you in INTEREST.
Why would they borrow from the Fed when they already have deposits they can use?
When they say, “Ill tell you what to do in a minute”, this is trying to sell something. GOLD!
You have tried to make this bogus statement before, did someone actually TEACH you this? Or are you just Imagining that’s how it works?? Because if they did, you have a very SOLID case for FRAUD against them. I would encourage you to actually read and study our Credit Money system for yourself. You are so WRONG it is Laughable, ASK ANY BANKER
Like you imagine every loan results in the bank borrowing from the Fed? LOL!
I would encourage you to actually read and study our Credit Money system for yourself.
You are so WRONG it is Laughable, ASK ANY BANKER
You should have no problem proving that banks with trillions in deposits just sit on them, so they can loan money they have to borrow from the Fed.
I'll wait for your proof. I'll try to limit my laughing until you do.
Bump for later.
That's outrageous! Where is that? It seems really weird that they can force someone to use an electronic link to a credit card or bank account. Some people don't even have those things.
That's probably the direction of the future. It's scary. People will lose all aptitude for scrutinizing their bills. Besides that, we'll be at the mercy of banks as far as fees for transactions are concerned.
Do you have the option of paying cash?
Texas. Pedernales Electric.
“Why would they borrow from the Fed when they already have deposits they can use?”
Because they’ve already loaned it out.
There’s only about $1.4T of actual currency. Very little is in banks; most of what we speak of as “money” is just loans, to wit debt.
On top of all those loans, the Fed writes “$0=($1)+(-$1)” in its ledger and loans the imputed/virtual $1 to the bank to in turn loan to customers, with the Fed and bank splitting the interest paid (and the paid back dollar restoring the $0 balance). The bank needs no assets (beyond marketing & bookkeeping staff) to make a tidy profit.
Where does money end up.....after they lend it out?
On top of all those loans, the Fed writes $0=($1)+(-$1) in its ledger and loans the imputed/virtual $1 to the bank to in turn loan to customers,
Banks are currently borrowing $6 million at the Fed discount window. Hardly enough to fund every loan in existence.
Who’s your utility?
You should petition your PSC over that insane decision.
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