Central banks consider abolishing cash. End of May, representatives of the central banks of Switzerland, Denmark, the United States and countries that have adopted the euro met in London to discuss the abolition of cash. Reported that the US economist Martin Armstrong on his blog.
The people want an end to our economic freedom are planning to introduce a new economic world order, an economic dictatorship in which we are no longer able to make anonymous purchases with paper money, says Armstrong.
Abolishing cash is seen as a way to defend the system, he explains. But that is a threat to our freedom and civil rights. The big problem for central banks is that cash is very popular with negative interest rates. Pension funds and large investors in Switzerland for example, consider some of their assets to convert into cash as the negative interest rate – you pay interest on your bank balance.
The cost for safe storage of cash are about a third of the current negative interest rates. The Swiss club of pension plans to hold more cash and the Swiss central bank can’t do nothing against it.
Abolishing cash among economists is now a serious discussion. It could support the policies of central banks. Willem Buiter, the Dutch chief economist of Citigroup, called the ban cash as well as an option.
If cash is abolished, banks are no longer vulnerable to bank runs. In England and the US, the uptake of large amounts of money given as suspicious activity. In America —bank employees are instructed to call the police if customers taking $ 5,000 or more. And in France cash payments are banned exceeding 1,000 euros in September.