The Global Run On Physical Cash Has Begun: Why It Pays To Panic First

Zero Hedge | 2-29-2016 | Tyler Durden

[blam]

Tyler Durden
2-29-2016

Back in August 2012, when negative interest rates were still merely viewed as sheer monetary lunacy instead of pervasive global monetary reality that has pushed over $6 trillion in global bonds into negative yield territory, the NY Fed mused hypothetically about negative rates and wrote "Be Careful What You Wish For" saying that "if rates go negative, the U.S. Treasury Department’s Bureau of Engraving and Printing will likely be called upon to print a lot more currency as individuals and small businesses substitute cash for at least some of their bank balances."

Well, maybe not... especially if physical currency is gradually phased out in favor of some digital currency "equivalent" as so many "erudite economists" and corporate media have suggested recently, for the simple reason that in a world of negative rates, physical currency - just like physical gold - provides a convenient loophole to the financial repression of keeping one's savings in digital form in a bank where said savings are taxed at -0.1%, or -1% or -10% or more per year by a central bank and government both hoping to force consumers to spend instead of save.

(snip)

[blam]

How long will it be before you'll be required to show an ID before you can get cash at your bank?

Cash?

What do you want cash for?

You gonna do something illegal?

[blam]

Oops.

Here's the link to the article.

[SaveFerris]

Don’t worry, this 999 will enable you to buy and sell in the new economy.

Our new political leader has solved the Middle East problem with a brilliant 2,520 day peace deal which creates a Palestinian State.

He’s even allowing Israel to build a 3rd Temple.

He’s so, so, so, messiah-like.

[UCANSEE2]

How long will it be before you'll be required to show an ID before you can get cash at your bank?

It has always been that way.

[Arthur McGowan]

Well, above certain amounts—and it’s below $10,000 already—that’s exactly how they treat you.

[MikeSteelBe]

“Our new political leader has solved the Middle East problem with a brilliant 2,520 day peace deal which creates a Palestinian State.”

The Obamination that Causes Desolation was the first nickname I came up with in 2008, way before I found out he was a Kenyan Muslim punk bastard.

[SaveFerris]

Even still, it appears he’s vying for U.N. Secretary General.

There was an article a month or two back where Netanyahu was opposing it. It was on FR. I’ll have to search for it.

[Lurkina.n.Learnin]

Tyler Durden ! Is that Keyser Söze in drag? Such a drama queen.

[VanShuyten]

He’s repeating himself. He just had a similar article a few days ago.

Not that he’s wrong. Difficult choice about shipping cash overseas, where the same thing could happen, or buying material goods, which is what Dyler Turden wants us to do.

[The Ghost of FReepers Past]

Well, I want the bank to require a way of identifying me before they give out my cash. Those ATM cards are identification you know.

Still, things are starting to get very weird.

[Organic Panic]

As a manufacturer I have a healthy stock of aluminum, copper, stainless, bronze, etc...But most importantly carbide cutters. Can’t say what this means for macro economics. I know it’s all doomed but we tool and die guys are in a good spot with our very limited capabilities. Chinese can not compete with American creativity.

[lentulusgracchus]

I hear you. "And he might neither buy nor sell, except him that had the Mark."

Bring on the scorpion men.

[lentulusgracchus]

before I found out he was a Kenyan Muslim punk bastard.

I think he and Moochie dreamed that up, and let me tell you why.

When Barky ran for Bobby Rush's congressional seat in the 90's, Rush stomped the snot out of him with the sneer that Bammy wasn't "black enough": He was a "tan man" in a three-piece waving a Hahvuhd Law diploma around and thinking he was all that. (Good gig, by the way .... GOP has never stood up to that worthless s.o.b. since Joe Wilson called him a liar to his face in the middle of his SOTU.)

So Bammy and Mooch dreamed up a cock-and-bull story about his being delivered in Africa itself ("black enough", get it?), and they ran with that until the beginning of 2006.

Then something changed, and they pulled the story.

In January 2006, the Honolulu paper ran a story about a brave paraplegic veteran, Tammy Duckworth, who was running for a Chicago-area congressional seat held by a 'Pubbie (this wa the year when Rahm Emanuel and Red Nancy Pelosi stalked, and with MSM help, which "resonated" their themes at every turn, took down the GOP majorities in both the Senate and the House). Tammy was crippled WIA in Iraq in 2004 and was taken in hand as a political project by Durbin the Turban, now senior senator from Illinois. (She is now an Obama appointee in the Executive Branch.)

In the story about Duckworth, the paper mentioned in passing (sorry about all this fine-grained detail, but I'm going somewhere with it), that Obama and Duckworth had both attended McKinley High School in Honolulu .... and then there was a lacuna, in which the original story apparently said Obama had been born in Kenya, and then put up an erratum saying he'd been born in Honolulu. Some erratum! Size Large wouldn't stretch to cover it! But that was when Obama, having (in the joke) checked in with the Senate just long enough to pick up directions to the White House, launched his presidential campaign .... and realized that his roorback about being "black enough" from Mombasa wasn't going to cut it with Article II of the Constitution.

I think, personally, that Obama may (50/50) be still a citizen of Indonesia by virtue of certain elections he made in his 20's to further his education and travel plans by using his Indonesian passport and citizenship.

JMHO, but it needs a special prosecutor ASAP.

Before Hillary can snatch control of the Senate with massive vote fraud.

[SkyPilot]

After they outlaw cash (which seems to be just just a couple of years away......months if there is a global financial crisis), I believe the will outlaw the ownership, transfer, possession, and sale of gold and silver.

They have to if they want us all under their thumb. There is no other way. No one can be allowed to be "outside the reservation."

People say it could never happen. They are wrong.

Not only was it accomplished in 1933, via Executive Order in fact, but the circumstances today with government surveillance and control make its chances of success again even more likely.

If you owned gold or silver, and disobeyed the order not to hand it over, a global agreement (which is what I believe it will be) to outlaw the sale or transfer of gold would succeed due to electronic monitoring of all transactions once cash is outlawed. The penalties will be stiff, and they will make examples out of the first ones they arrest.

People then say they will "barter" for what they need with gold or silver. Really? Good luck with that. What are they going to do? Drive to your friendly neighborhood "Gold-Silver-Barter-Flea-Market" at 2:00 am and go shopping? There will be some trading and bartering, but as a means of long term survival and practicality, this approach is dreaming and foolish.

They don't get the fundamental idea of where we are going: we are heading straight towards the Anti-christ world system at 100 mph, and there is no stopping it now.

[kearnyirish2]

“a central bank and government both hoping to force consumers to spend instead of save”

For many people, “saving” is a thing of the past; what remains of our economy is built on debt, and I know anything extra after paying standard bills goes towards debt - not p!ssing it away on “toys”.

[Gadsden1st]

That is almost the case now. If we withdraw more than a thousand bucks in cash, the teller ask questions like:
Going on vacation?” etc.

[Ouderkirk]

Your comment is not far off the mark.

Many banks already require ID for cash withdrawls and will limit those withdrawls to $5K per day.

I understand that many bank branches don’t carry a lot of cash these days due to robberies (you cannot steal what is not there), but they definately want to control how you spend your money. I have had on two separate occasions, credit cards declined at gun stores. I have to call the car company, and demand that they authorize the charges.

[yefragetuwrabrumuy]

This is the first stage of something I have long been predicting in much stronger terms. To refresh, in no particular order, and likely with considerable overlap:

1) Bank holidays. In the Great Depression (GD), some of these lasted from 3 to 300 days. You might have a million dollars in the bank, but have to beg for a cup of coffee. And just a few years ago, a new law was passed so that banks, *for their own reasons* can declare a holiday for up to two weeks. Not just unable to withdraw cash, you cannot use bank instruments like checks and debit cards.

2) Cash runs. Currently, less than 4% of American daily retail trade is backed by physical cash. If people suddenly want their money out of the bank, branches will run out of cash in minutes.

3) The BEP cannot print faster, nor can it print higher denominations than $100 bills. Most of what it prints are $1 bills, and most $100 bills are sent overseas. However, virtual money on computers can be “made” instantly. This may result in an odd phenomenon.

A currency split. If there are bank holidays and cash runs, so many people will insist on cash for transactions that its value will skyrocket, yet the virtual currency will enter ultra-inflation. Say a dollar in paper being worth more than $100 billion on computer.

And again, in the GD, we learned that if there wasn’t enough currency about, deflation is king. The saying of the time was, “You could get a pound of hamburger for a nickel, but nobody had any nickels.”

[blam]

Everyone should have some cash on hand....IMO, the more the better.

[discostu]

You already need to show an ID to get cash at the bank, always have to prove it’s actually your account/ check. Cash isn’t going away, people like it too much. Even the most irritating governments eventually give in to the people, and we want cash.