When Cyprus banks were about to go belly up a couple of years ago, they saved themselves by raiding customers’ accounts, which is more palatably described as a bail-in.
The reaction of global savers to this action by the Cyprus banks was one of horror and revulsion – and they made it plain that they weren’t going to stand idly by and watch banks plunder their funds. They would withdraw them as cash if any such threat should appear over the horizon. This reaction set the great minds of the banking community to work on how to stop savers withdrawing their funds in the face of these threats. The solution was and is simple – abolish cash!
The solution was and is simple – abolish cash!
Thus we have seen production of the 500 Euro note in the European Union stopped…so that it gradually fades into oblivion. In the US, Larry Summers has proposed abolition of the $100 bill, which accounts for most of the money in circulation.
The idea is to implement the policy for a global cashless society in stages … because if it is done all at once, the public will revolt. They need to be trained to go cashless and this will take time.
By starting with high denomination notes you actually remove most of the currency in circulation at a stroke. However, the masses can still buy cigarettes and candy bars at street corner shops with small denomination notes. The excuse given for the removal of the notes is that it impedes organized crime and money laundering etc, which is of course a convenient smokescreen.
The arrival of the cashless society will not only mean that banks will be able to avail themselves of citizens funds as and when they please, it will also mean that the banks, and by extension the government, will know all your financial business, what you do and when. Tax evasion will be impossible, and eventually you will not be able to do business with companies that are not approved of by the government.
Extracts from Gold Eagle
The Holy Grail of safe-haven assets would be a digital currency that is backed by gold, but this does not exist … yet.