When the inevitable correction/crash occurs, the exits will be crowded, the herd will fall over the cliff, a few financial “dead bodies” will float to the surface, and banks will need bail-ins from depositors, so the “war on cash” is designed to force more assets into banks in anticipation of coming bail-ins.
InvestmentWatchblog.com
JUNE 23, 2015
by Gary Christenson
We’ll circle back to the first strike later. Let’s frame the problem:
The War on Cash: Charles Hugh Smith brings clarity to the issue:
“Why are governments suddenly so keen to ban physical cash? The answer appears to be that the banks and government authorities are anticipating bail-ins, steeply negative interest rates and hefty fees on cash, and they want to close any opening regular depositors might have to escape these forms of officially sanctioned theft. The escape from bail-ins and fees on cash deposits is physical cash, and hence the sudden flurry of calls to eliminate cash as a relic of a bygone age—that is, an age when commoners had some way to safeguard their money from bail-ins and bankers’ control.”
“The benefits to banks and governments by eliminating cash are self-evident:
Every financial transaction can be taxed
Every financial transaction can be charged a fee
Bank runs are eliminated”
There is a cliff dead ahead: Charles Hugh Smith
“Investors in stocks, bonds, and real estate are being herded off the cliff by the Federal Reserve. The name of the game in the New Normal is to force investors large and small into risk assets. When the risk assets blow up, the herd plunges headlong over the cliff en masse.”
The Rest…HERE
