Wednesday, February 03, 2016

War On Cash Gathers Momentum - Germany Unveils Cash Controls

by Ian R Thorpe

Money laubdering: big business or a sign of bankers' paranoia

On Monday (1 February, 2016) just two days ago, Bloomberg called on the central banks of the world to “bring on a cashless future” in an Op-Ed that calls notes and coins "dirty, dangerous, unwieldy, and expensive."

We can imagine it would be quite easy to harm someone by firing large coins at them from a gun and terrorists could probably stuff an improvised explosive device with small coins rather than nails or nuts and bolts. And if somebody tried hard enough they could probably choke on a bank note. But cash dirty? No more so than the hundreds of things we must touch in public areas in the course of our daily lives. Unwieldy? Not compared to the lead boxes we will have to carry to ensure our contactless cards don't debit our accounts every time we go near a suitable reader. And expensive? Not to us, we buy an item for £$€1 and that's exactly what we pay for it.

So like me and my colleagues, you probably never thought of your cash in any of those ways, but increasingly, authorities and the powers that be seem determined to lay the groundwork for the abolition of what Bloomberg calls “antiquated” physical money.

We’ve documented the cash ban calls and moves on a number of occasions including, most recently, the one from DNB, Norway’s largest bank where executive Trond Bentestuen complained that although "there is approximately 50 billion kroner in circulation, the Norges Bank (Norway's Central Bank) can only account for 40 percent of its use."

That mean, Bentestuen says, that 60 percent of money usage is outside of any control." "We believe," he continues, "that is due to under-the-table money and laundering." He really does have limited imagination if he seriously thinks that is all people use cash for.

DNB backed up its executive by claiming that after identifying “many dangers and disadvantages” associated with cash, the bank has concluded 'it should be phased out'.

On Tuesday we got more evidence that the thieving banks around the world are preparing to create a cashless “utopia” in which systems will be implemented to enable them to plunder our hard earned to cover the disasters their reckless gamblings incurs. German finance magizine Handelsblatt reported (in a piece called "The Death of Cash) that the Social Democrats - the junior partner in Angela Merkel’s coalition government - have proposed a €5,000 limit on cash transactions and the elimination of the €500 note.

“Limits on cash transactions would discourage foreign criminals from coming here to launder money,” says a study published by the Social Democrats. "If sums over €5,000 have to pass through traceable bank transactions, laundering would be severely hampered," it adds.

Today (3 Feb, 2016), we learned via the news feeds that German Deputy Finance Minister Michael Meister had confirmed the government's support for the idea when he told reporters that Germany is proposing a pan - European ban on cash transactions over €5,000 to combat terrorism financing and money laundering.

“Since money laundering and terrorism financing are cross-border threats,” it makes sense to adopt a bloc-wide “solution”, but “if a European solution isn’t possible, Germany will move ahead on its own,” he added. Really Herr Meister. Why not just close your borders and stop criminals entering the country.

This sudden outbreak of money laundering comes at a rather convenient time for policy makers in Europe. Interest base rates are already sitting at -0.30% and are likely to be cut by an additional 10bps (one hundredths of one per cent) in March. But that’s not likely to halt the disinflationary impulse. European Central Bank chief Mario Draghi isn’t anywhere close to his inflation target and efforts to stimulate European economies have been totally ineffective.

What is needed is a revival of consumer spending and the gradual phasing out of cash is seen as a way of stripping the public of its economic autonomy. At present Central banks can only control interest rates down to a certain "lower bound". Once negative rates are passed on to depositors - as Swiss and Japanese banks have already done, for different reasons - people will have to pull their money out of the banks and spend it rather than pay the banks for gambling with it. The more negative rates go, the faster those withdrawals will be.

Ban cash and this problem is eliminated. In a cashless society with a government-managed digital currency there is no effective lower limit. If the economy isn’t doing what bureaucrats want it to do, they can simply make interest rates deeply negative, forcing would-be savers to become consumers by making them choose between spending or watching as the bank simply confiscates their money in negative interest.

As for that money laundering bollocks, if you want to know who is really behind it: US Department Of Justice helped cover up Big Banks money laundering for drug cartels

The War On Cash

Smart Phones Will Not Make Banking Safer

Yet the war on cash goes on. The latest move is to encourage people to use their smartphone to do their online banking. My first reaction on reading this was, "They're having a laugh aren't they?" laptops and tablets are ridiculously easy to hijack, smartphones don't even need to be hacked, like tired old slappers whose sexual allure has gone south, but who still crave attention, they will offer themselves without needing to be asked.

Norway's Biggest Bank Joins Push To Abolish Cash
The move by governments to eliminate cash as a means of trading goods and services is moving faster than we imagined. With another global financial crisis looming according to financial journalists and investment experts this is as understandable as it is undesirable for us ordinary punters.
The Financial Times Calls for Ending Cash, Calls it a “Barbarous Relic”
Earlier this week, as the financial world was in turmoil following a rapid crash and recovery in financial markets. While we the punters shook our heads and wondered how the banksters get away with this kind of shit, The Financial Times published a dastardly little piece of fascist New World Order propaganda.
Cashless Society omnibus post

Greece draws up drachma plans, prepares to miss IMF payment
Greece is preparing plans to nationalise the country’s banking system and introduce a parallel coupon currency so that citizens can carry on their day to day activities in the event of the Eurozone taking steps to defuse the simmering debt crisis. Sources in the governing Syriza party said the government may be forced to take the unprecedented and high risk step of missing a payment to the International Monetary Fund (IMF) as early as next week.

New Global Crisis Imminent, New Geneva Report Warns
The Geneva Report refers to a “poisonous combination of high and rising global debt and slowing nominal GDP [gross domestic product], driven by both slowing real growth and falling inflation”. The total burden of world debt, private and public, has risen from 160 per cent of national income in 2001 to almost 200 per cent after the crisis struck in 2009 and 215 per cent in 2013. “Contrary to widely held beliefs, the world has not yet begun to delever and the global debt to GDP ratio is still growing, breaking new highs,” the report said.

Cashless Society - The Resistance Begins Here

A seaside market town in Norfolk may be less than 100 miles from the world's financial capital, London, , it may be the commercial centre of West Norfolk’ as the town website boasts, it may be home to 45,000 people — but there, unlike in London, cash is king.

Establishment Pushing ‘Cashless Society’ to Control Humanity

The global establishment is increasingly pushing the notion of what it calls a “cashless society” — a world in which all payments and transactions would be conducted electronically, creating a permanent record for governments to inspect and track at will.Multiple governments from Africa and Asia to Europe and ...

London transport bans cash
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