Posted on 11/20/2016 7:10:20 AM PST by blam
Tyler Durden
November 19, 2016
India's 'de-monetization' scheme has caused chaos across the nation, and while SocGen says the government's plan may have some short-term success in curbing so-called 'black-money', investors should "brace for economic disruption" as Bloomberg reports the Indian government is considering a cap on cash holdings for individuals. As SocGen concludes, "people will now be more inclined to park their black income in gold rather than in currency."
The daily images of utter chaos in India that has brought the conutry's economy to a standstill since they unleashed their war on cash...
Are perhaps about to get worse, as Bloomberg reports, India is set to consider a cap on cash holdings for individuals...
Measure planned to prevent people from hoarding cash and generating income that could evade taxes, according to government officials with direct knowledge of the matter.
Planned measures include limit on large cash withdrawals from bank, the officials said, asking not to be identified citing rules on speaking to media.
Budget, due in February, may have steps to encourage use of checks, credit and debit cards.
Purchase of gold jewelry said to be made more stringent to prevent switching of asset from cash.
Finance Ministry spokesman D. S. Malik couldn’t be reached for comment.
(snip)
(Excerpt) Read more at zerohedge.com ...
The War On Cash Goes Nuclear In India, Australia and Across The World
Australia: War On Cash Intensifies: Citibank To Stop Accepting Cash At Some Branches
Indian Economy Grinds To A Halt After Cash-Ban: "Faith In System Shaken"
Gold has been sinking.
Ah, the return of mattress stuffing and burying coffee cans full of cash in the back yard.
So... Gold dropped?
SocGen - Société Générale S.A. is a French multinational banking and financial services company headquartered in Paris.
I just post'em.
I do so, so that someone else can explain.
What are simply free-market transactions among free, rational actors out of the reach of government are of course referred to by statists as “black money.”
Instead of money being guaranteed by the weight of governments, it will have zero value except at the whim of those who rule.....
Any coincidence that Citibank is involved?
Anyone want to tell me my thoughts are all wet? I am no expert on these things and use the little common senses and gut feelings that God was kind enough to toss my way.
If India is taking 500 and up Rupee bills out of circulation, it will go a long way towards discouraging tax cheats. We have also removed large denomination bills as legal. Good move by India. Any disruptions will be temporary.
your thoughts are not all wet but do not reflect the reality of the times.
Cash is simply no longer required in today’s economy. commerce is conducted electronically and reflected on electronically accessible ledgers. That ledger is contained on a computer the size of a smart phone. the smartphone is in reality a computer with a phone app.
Businesses not able to accept electronic payments will find themselves with out customers and then no customers as folks insisting on using cash die out.
Access to the ledger is via a card with an identity strip and communication to the ledger. In a transaction, the payment is transmitted from one ledger to another instantaneously. Although there is a fee involved, businesses have built the fee into the price and the cost is also absorbed because it is less than fooling around with cash.
Increasingly, commerce is conducted by individuals over great distanced. Any one with a plastic card can purchase what ever they want from merchants thousands of miles away. That increase in purchasing and selling capability is favored by both merchants and their customers.
From the Financial Review:
“Central banks are also exploring curtailing the use of cash to enable them to implement negative interest rates. This is a response to the “zero lower bound” problem, where paper currency effectively guarantees a zero nominal interest rate, acting as an interest rate floor. This issue is explored in detail in economist Kenneth Rogoff’s new book, The Curse of Cash. “
I guess cash is most convenient for sliding into the slots on the slot machines and isn't even needed for that any more.
I appreciate your response because it didn't take much more on my part that I only use cash as a local convenience and preference while most of my transactions are not done in cash. Of course, if all tangible assets such as precious metals and such become purely representational of a certain value, what keeps it from tipping into the black hole of total government control?
LOL! (at me). I will sleep just fine tonight because it's the sane thing to do.
Pleasure hearing from you on the topic.
The War On Cash Goes Nuclear In India, Australia and Across The World
https://www.youtube.com/watch?v=qjf3Sbn2__0&t=348s
SWEDEN – THE FIRST CASHLESS SOCIETY?
https://sweden.se/business/cashless-society/
In Sweden, a Cash-Free Future Nears
http://www.nytimes.com/2015/12/27/business/international/in-sweden-a-cash-free-future-nears.html
IMAGINING A CASHLESS WORLD
http://www.newyorker.com/magazine/2016/10/10/imagining-a-cashless-world
ONE SWEDE WILL KILL CASH FOREVER—UNLESS HIS FOE SAVES IT FROM EXTINCTION
https://www.wired.com/2016/05/sweden-cashless-economy/
Modi Heats Up Indian War Against Cash
https://www.youtube.com/watch?v=Jy5jt7K18kc
If cash is eliminated and bartering is made illegal there will never be a free transaction between two parties, the government will be the third-party in every transaction.
But as we have seen in India, Greece and other places, it also give government access immediately to YOUR assets.
And they will take them to satisfy their lusts.
YES, I do enjoy dealing with Amazon or a fly shop in NY from NC. But I am also aware that at any moment, that can be stolen from me because some agency said so.
Cash is a strong weapon against that happening.
Phoenix Currency 2015-2018 New World Order currency
http://beforeitsnews.com/new-world-order/2014/07/phoenix-currency-2015-2018-new-world-order-currency-2582.html
And bitcoin as well.
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