More and More Outlets Are Suggesting a Carry Tax on Physical Cash…”A Carry Tax… or tax on physical currency… is coming.”
By: Graham Summers
GoldSeek.com
Thursday, 28 May 2015
A Carry Tax… or tax on physical currency… is coming.
The Fed and other Central Banks literally took the nuclear option in dealing with the 2008 bust. Collectively, they’ve printed over $11 trillion and have cut interest rates to zero for nearly six years.
All of these efforts were focused on driving in trashing cash and forcing investors/ depositors into risk assets.
But these policies have failed to generate growth.
Rather than admit they are completely wrong, Central Banks are reverting to more and more extreme measures to destroy cash and force investors to move into risk against their will.
Things went into hyperdrive last June when the ECB cut interest rates to negative, thereby CHARGING depositors to keep their money in cash.
Since that time, Denmark, Switzerland and other nations have followed suit.
The banks are following in their footsteps. Julius Baer, JP Morgan, and other firms have begun to charge large account holders for parking in cash. JP Morgan openly stated it wanted to LOSE $100 billion in deposits.
This is just the beginning. More and more we’re seeing hints that Central banks are planning on charging individuals who sit on cash… or possibly even banning physical cash entirely.
Now comes the interesting part. There are signs of an innovation war over negative interest rates. There’s a surge of creativity around ways to drive interest rates deeper into negative territory, possibly by abolishing cash or making it depreciable…
As long as paper money is available as an alternative for customers who want to withdraw their deposits, there’s a limit to how low central banks can push rates.
The Rest…HERE
