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Safes Sell Out In Japan, 1,000 Franc Note Demand Soars As NIRP Triggers Cash Hoarding

Goldhedge

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Larry Summers just called for the banning of the $100 bill...


Posted February 22nd, 2016 at 4:46 PM (CST) by Jim Sinclair & filed under In The News.

Jim Sinclair’s Commentary

The worldwide bank bail in plans and zero interest rates resulted in the following.

Safes Sell Out In Japan, 1,000 Franc Note Demand Soars As NIRP Triggers Cash Hoarding
Tyler Durden on 02/22/2016 09:11 -0500

Negative rates may not have found their way to bank deposits in most locales (yet), but that doesn’t mean the public isn’t starting to see the writing on the wall.

At first, NIRP was an anomaly. An obscure policy tool that most analysts and market watchers assumed would be implemented on a temporary basis in a kind of “let’s see if this is even possible” experiment with an idea that, from a common sense perspective, makes no sense.

But then a funny thing happened. Central banks from Denmark to Sweden to Switzerland went negative and stayed there. They even doubled down, taking rates even more negative and before you knew it, the public started to catch on.

When NIRP failed to resuscitate global growth and trade, the cash ban calls began. The thinking is simple (if crazy): if you do away with physical banknotes, the effective lower bound is thereby eliminated. You can make rates as negative as you like because the public has no recourse as people aren’t able to push back by eschewing their bank accounts the mattress.

If that seems far-fetched, consider that the ECB is seriously considering pulling the €500 euro note and the calls are growing louder for the Fed to drop the $100 bill. Of course officials are pitching the big bill bans as an attempt to fight crime – because only a criminal would pay with a $100. But the underlying push is for a cashless society wherein monetary authorities can effectively force citizens to spend and thereby boost the economy by simply making interest rates deeply negative.

Now that the cash ban calls have gotten sufficiently loud to be heard by the generally clueless masses and now that the likes of Jose Canseco are shouting about negative rates, savers are beginning to pull their money out of the banks.

More… http://www.zerohedge.com/news/2016-...note-demand-soars-nirp-triggers-cash-hoarding
 

nickndfl

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Hopefully they are hoarding gold and silver too. Sometimes cash won't buy a bag of beans.
 

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interesting concept, lack of supply increases demand.............

not to mention the laws of unintended consequences will surely kick in, as the public figures it out,

take away cash, fine then we will use tulips,
take away tulips, then we will use cheerios,
take away cheerios, then we will try to use gold
take away gold, then we will suck it up and use silver,
should that fail, we will resort to bitcoin

point is, money is only a vehicle to expedite a transaction, as it can be anything

the public and black markets will just use something else if .gov scrip isn't available

I would even argue that they might want to be careful of what they wish for, the sum total of the losses to them in the form of taxation and tracking will be far greater than they would ever anticipate receiving using their policies.
 

Bigfoot

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I would even argue that they might want to be careful of what they wish for, the sum total of the losses to them in the form of taxation and tracking will be far greater than they would ever anticipate receiving using their policies.

They need to read Aesop's story about the guy who kills the goose that laid the golden eggs.

iu