by Jeff Berwick, The Dollar Vigilante:
We are living in a world where paper fiat money is becoming a novelty.
In Australia, Citibank has just become the first to declare that it no longer will accept notes or coins. Only digital transactions. This follows on the heels of India banning large cash denominations.
The cash-oriented changes of these two countries are especially troubling in light of the eventual plans to phase out large denomination euro notes and the US 100 dollar bill by 2018. Just as the Economist predicted nearly 30 years ago, the world is going cashless.
A few days ago we wrote (here) about how the Reserve Bank of India eliminated 500 and 1000 rupee banknotes from the money supply. These notes represent 20% of the cash value in circulation and 80% of cash outstanding in the country.
The main reason India has been combating cash in conjunction with selling off gold, is because people in the “black” or “free” Indian marketplace were supposedly circumventing the financial system by conducting business and then slowly buying physical gold with large denomination bills.
Since the transactions were not being tracked or monitored, it was much easier to hide earnings from the government trying to extort them. So naturally, being a greedy crime syndicate that operates parasitically on extorted funds, the government is putting a stop to something that it views as an ongoing, expanding threat.
Of course, there’s a reason why Indian women wear their wealth – gold and silver – on their bodies. Indians have been through this before. Indian societies are very old, perhaps the oldest in the world, and they’ve gone through numerous metals confiscations in the past.
Of course, what’s going on is not being described as a “confiscation.” So far, reasons to remove cash are not coordinated. In India, it’s because of “corruption.” In Australia, it’s supposedly because customers simply don’t want or need cash.
Citibank’s Australian head of retail banking Janine Copelin stated, “We have seen a steady decline in the demand for cash services in our branches — in fact less than 4% of Citi customers have used this service in the last 12 months.”
Which is both believable and possible considering most people don’t understand the significant benefits of paying with cash or don’t care that the government and banks are able to track their every move and transaction. Then again, Citi could simply be exaggerating.
It’s the same mentality that people inside the US had and continue to have after they learned that the NSA was tracking all their information after Edward Snowden’s revelations.
A lot of people responded by saying that they have nothing to hide and therefore nothing to worry about. “Let the government track me all they want, we have to stop the criminals and terrorists”.
The criminals and terrorists ARE the government, dummies. But, that’s what government indoctrination camps (schools) are for.
So starting November 24th, Aussies who bank with Citi, will be forced to use ATMs to withdraw their money – which besides being more inconvenient for customers, will likely also cause them to have to spend much more money on ATM fees.
Perhaps the Aussies liked what they saw in India, though that seems hard to understand. The Indian economy is heavily reliant on revenue from tourism starting in November. The recent attack on cash is squelching the industry by turning away foreigners who are having trouble exchanging their money for the local currency the minute they land in the airport.
According to UBS Group AG: “Australia should follow India’s lead and scrap its biggest bank notes.”
On Monday, UBS analyst Jonathan Mott, said:
“Removing large denomination notes in Australia would be good for the economy and good for the banks. Benefits would include reduced crime and welfare fraud, increased tax revenue and a ‘spike’ in bank deposits.”
Increased tax revenue, by the way, is only a “benefit” to the government, not anyone else.
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