The War On Cash Escalates: No Cash Or Bullion Allowed In Safe Deposit Boxes
Clint Siegner
ETFDailyNews.com
May 12th, 2015
The Federal Reserve bank and its owners, the largest banks on Wall Street, want badly to be able to charge you interest for the privilege of depositing your funds. The problem is getting you to stand for it.
Depositors already complain vigorously about zero percent returns on checking and savings accounts.
If they must start actually paying the bank to hold funds on deposit, many will opt to simply withdraw the cash and stuff it under their mattress or into a safe deposit box. That simply won’t do.
The Goal Is to Force You to Deposit Cash and Charge You Interest
Bankers in the U.S. can learn something from the Swiss. The Swiss National Bank recently implemented negative interest rates without first solving the “problem” of how to prevent cash from fleeing the banks. Predictably, depositors started doing some math.
In one example, a sizable Swiss pension fund, calculated it would save 25,000 francs for every 10 million it held in the bank by simply withdrawing those millions and taking the bales of paper francs to be kept in a vault. The vault storage fees are less expensive than the negative interest rate.
Jumping the gun on the implementation of negative rates put the Swiss banks in an awkward situation. Like all fractional reserve lenders, they don’t have anywhere near enough cash to make good on the withdrawals that may be coming. The bank holding the pension money had little choice but to refuse the client’s demand for millions of francs – funds the client is contractually entitled to. Telling clients “sorry, you can’t make a withdrawal” never goes over too well!
The Rest…HERE
