Home » Posts tagged 'cash' (Page 5)

Tag Archives: cash

Red Screen At Morning, Investor Take Warning

February 10, 2018

Shutterstock

Red Screen At Morning, Investor Take Warning

It’s time for safety. And it’s beginning to pay better, too

Growing up as I did in coastal New England, this old rhyme was drilled into us as children:

Red sky at night, sailor’s delight;

Red sky at morning, sailor take warning.

Because many of the people in town still made their living on the sea, the safety of person and property depended on being able to recognize the signs of approaching danger.

A notably red sky at morning is usually due to sunrise reflection off of moisture-bearing clouds, signifying an arriving a storm system bringing rain, wind and rough seas. Those who ignored a red sky warning often did so at their peril.

Red Sky In The Markets

I’m reminded of that childhood rhyme because the markets are giving us a clear “red sky” warning right now. One that comes after (too) many years of uninterrupted fair winds and smooth sailing.

The markets have plunged nearly 8% over just a single week. And the losses are across the board. Nearly every asset class from stocks to bonds to commodities to real estate are participating in the pain. Market displays are a sea of red.

We’ve written so often and recently of the dangerous level of over-valuation in asset prices (caused by years of central bank intervention) that to re-hash the premise again feels unnecessary.

But the chart below is worth our attention now, as it really drives home just how dangerously over-extended the markets have become. It’s a 20-year chart of the S&P 500, showing how it has traded vs its 50-month moving average (the thin green line).

Importantly, the chart also plots the Bollinger bands for this moving average. These are the thin red (upper) and purple (lower) lines above and below the green one.

…click on the above link to read the rest of the article…

From the Moneyness Blog: Electronic Money Will Only Save Central Banks From Subjugation if it is Anonymous

February 9, 2018

FROM THE MONEYNESS BLOG: ELECTRONIC MONEY WILL ONLY SAVE CENTRAL BANKS FROM SUBJUGATION IF IT IS ANONYMOUS

50 SEK banknote issued by the Riksbank in 1960

“Do we need an eKrona?” asks Stefan Ingves, the Governor of the Riksbank, Sweden’s central bank. The Riksbank is probably the central bank that has advanced the furthest in discussions surrounding the introduction of a central bank-issued digital currency (CBDC)—a new form of risk-free digital money for use by the public. Canada, New Zealand, Australia, the ECB, and China are also dissecting the idea, with more central banks to come in 2018.

Sweden is approaching the issue from a unique angle, says Ingves. It is the only country in the world showing a consistent decline in cash and coin usage. I’ve written about this interesting pattern here, here, and here. Below is a chart:

Ingves floats two theories. Either the Swedish public no longer wants central bank money, or alternatively they do want central bank money but not the type that is “made of pieces of paper,” preferring instead an as-yet non-existent digital alternative. If so, then it may be the Riksbank’s duty to provide that alternative, says Ingves.

Duty is an admirable motivation, but let me propose another reason for why the Riksbank is exploring the idea of an eKrona—self preservation. I think Sweden’s central bank is terrified that it will become powerless in the future. It is desperately casting around for solutions to resuscitate itself, one of these being an eKrona. This fear is rooted in the fact that declining cash usage has led to a collapse in the resources that the Riksbank believes that it needs to function.

These worries about powerlessness are shared by central bankers around the world, many of whom expect advances in private payments technology to lead them to the same cash-light world that Sweden is currently entering.

…click on the above link to read the rest of the article…

Corporate Coercion and the Drive to Eliminate Buying with Cash

January 6, 2018

Corporate Coercion and the Drive to Eliminate Buying with Cash

“Sorry we’re not taking cash or checks,” said the clerk at the Fed Ex counter over a decade ago to an intern. “Only credit cards.”

Since then, the relentless intensification of coercive commercialism has been moving toward a cashless economy, when all consumers are incarcerated within a prison of corporate payment systems from your credit/debit cards to your mobile phone and very soon facial recognition.

“Terrific!” say those consumers for whom convenience and velocity of transactions are irresistible.

“This is nuts!” say a shrinking number of free-thinking consumers who are unwilling to be dragooned down the road to corporate captivity and coercion. These people treasure their privacy. They understand that it’s none of any conglomerate’s business – whether VISA, Facebook, Amazon or Google – what, where, when and how consumers purchase goods and services. Or where and when they travel, receive healthcare, or the most intimate relationships they maintain. Not to mention consumers’ personal information can be sent to or hacked around the globe.

Cash-consumers are not alone in their opposition to a cashless economy. When they are in a cab and ask the driver how they prefer to be paid, the answer is near-unanimous. “Cash, cash, cash,” reply the cab drivers in cities around the country. They get paid immediately and without having to have a company deduct a commission.

Back some 25 years ago, Consumers Union considered backing consumer groups to sign up Main Street, USA merchants who agreed to discount their wares if people paid in cash. For the same reason – merchants get to keep all the money on sales made with cash or check. Unfortunately, the idea never materialized. It is, however, still a good idea. Today, payments systems are much more comprehensively coercive.

…click on the above link to read the rest of the article…

Transparent citizens, negative interest rates and other crazy ideas of economic experts

December 17, 2017

Transparent citizens, negative interest rates and other crazy ideas of economic experts

In a March paper, Alexei Kireyev of the International Monetary Fund advises abolishing cash without having the citizens aware of the process. First, large banknotes are to be withdrawn from circulation, next limits on cash transactions are to be imposed, then computerization of the world’s financial system and control of international cash transactions are to be enforced and, finally, private companies are to be encouraged to avoid cash transactions The Macroeconomics of De-Cashing.

Kireyev draws on the ideas of former IMF chief Kenneth Rogoff. In his 2016 book “The Curse of Money”, he advocated the abolition of cash. In his opinion, it would contribute to the fight against crime, tax evasion and the reduction of the grey area. The ECB obliged him and promised not to print the 500 euro note after 2018. The government of India did the same thing: on November 9,2016, it unexpectedly devaluated all 500 and 1000 rupee banknotes over the night – a severe blow against the black economy and corruption. The next day, chaos reigned on India’s streets – crowds of people in front of banks, empty ATMs – everyone wanted to withdraw his money, exchange the old rupees for new, valid ones, and there were even casualties.¹⁾

The other governments eagerly followed this ideas of great economic gurus, not worrying about what was happening in the Indian streets: Australia wants to withdraw its 100 notes from circulation,²⁾and Venezuela has already abolished the 100 bolivar note. France, Italy, Spain and Greece already have ceilings for cash withdrawals, and a ceiling of EUR €5000 is currently being discussed in Germany. In some countries, the renunciation of cash is becoming a means of political struggle. In Poland, Prime Minister Mateusz Morawiecki introduced cashless payments to the state postal service. Soon it will also be possible to pay his tickets directly on the patrol car.

…click on the above link to read the rest of the article…

EU To Restrict Movement of Cash

December 13, 2017

EU To Restrict Movement of Cash

The EU is now developing strict rules for carrying cash when traveling to non-European countries and returning to Europe. The revision of the First Cash Control Regulation from 2005, which stipulated that EU citizens should register cash in excess of € 10,000 when leaving the EU or when returning to the customs authorities have to, is what is under review. They want to lower the number and include gold, gemstones, and cash debit cards.

Interestingly, cryptocurrencies are not to be regarded as cash. Why? They are not sure how to detect them. The EU explanation reads: “Despite the high risk emanating from cryptocurrencies like Bitcoin, these are not added to the cash. The reason for this is that the customs authorities lack the technical means to discover cryptocurrencies. “

The customs authorities can now seize any amount of cash less than € 10,000 if they suspect that the money is somehow involved in any criminal activity. This is authorizing the Civil Asset Forfeiture that has been so profitable to the United States. Hence, the EU does not clearly define what suspicion is required to classify as a possible criminal activity. That will be avoiding taxes.

The EU is also extending the new rules to any freight shipment involving cash. Already, one cannot send cash by mail. This is now freight shipments. A friend used the service where you can send your baggage ahead of you for a trip. He was called down and had to remove $2.75 cents that were in a suitcase headed back to London. So there is no amount too small.

The purpose of the rules is now openly being justified to fight against tax evasion, along with moonlighting and terror financing. The government clearly understands that cash is the only way for citizens to protect their savings from access by states and banks and any special levies or wealth taxes. Closing this door merely opens the door to cash investment turning to movable assets particularly shares.

A New Stealth Attack in EU’s “War on Cash”

December 11, 2017

A New Stealth Attack in EU’s “War on Cash”

And the definition of “cash” widens.

The EU’s Orwellian-dubbed Civil Liberties and Economic Affairs committee has approved tough new rules on cash that travelers might bring into or take out of the bloc. It’s also broadened the definition of cash to include precious stones and metals and prepaid credit cards.

For the moment the new definition does not include Bitcoin and other cryptocurrencies, for one simple reason: “customs authorities lack the resources to monitor them.”

Most importantly, the draft law will enable authorities to impound “cash” below the traditional €10,000 threshold, if criminal activity is suspected. The new rules would repeal the First Cash Control Regulation (CCR) from 2005, which requires individuals to declare sums over €10,000 when leaving or entering the EU.

The draft law still needs to be approved by the European Parliament. Then the legislation needs to be negotiated with EU governments. If the law is passed, anyone acting suspiciously carrying any amount of cash, whether in notes, precious stones, precious metals or prepaid credit cards, could face having their “money” impounded.

“Large sums of cash, be it banknotes or gold bullion, are often used for criminal activities such as money laundering or terrorist financing,” said Mady Delvaux, the Committee’s co-rapporteur. “With this legislation, we give our authorities the tools they need to improve their fight against those crimes.”

It could be argued that any legislation aimed at disrupting criminal financial networks is, de facto, a welcome move, but that would ignore the fact that many forms of modern-day tax evasion, avoidance and money laundering are conducted without cash through shell corporations located across multiple jurisdictions, including Luxembourg.

…click on the above link to read the rest of the article…

How A North Korean Electromagnetic Pulse Attack Could Kill Millions And Turn America Into A Post-Apocalyptic Wasteland

November 29, 2017

How A North Korean Electromagnetic Pulse Attack Could Kill Millions And Turn America Into A Post-Apocalyptic Wasteland

This is why North Korea’s test of an intercontinental ballistic missile is so important. North Korea had test fired a total of 22 missiles so far this year, but this latest one showed that nobody on the globe is out of their reach. In fact, General Mattis is now admitting that “North Korea can basically threaten everywhere in the world”, and that includes the entire continental United States. In addition to hitting individual cities with nukes, there is also the possibility that someday North Korea could try to take down the entire country with an EMP attack. If the North Koreans detonated a single nuclear warhead several hundred miles above the center of the country, it would destroy the power grid and fry electronics from coast to coast.

I would like you to think about what that would mean for a few moments. Suddenly there would be no power at home, at work or at school. Since nearly all of our vehicles rely on computerized systems, you wouldn’t be able to go anywhere and nobody would be able to get to you. And you wouldn’t be able to contact anyone because all phones would be dead. Basically, pretty much everything electronic would be dead. I am talking about computers, televisions, GPS devices, ATMs, heating and cooling systems, refrigerators, credit card readers, gas pumps, cash registers, hospital equipment, traffic lights, etc.

For the first couple of days life would continue somewhat normally, but then people would soon start to realize that the power isn’t coming back on and panic would begin to erupt.

…click on the above link to read the rest of the article…

Spain’s Third Biggest Bank Just Made it Harder to Get Cash

November 27, 2017

Spain’s Third Biggest Bank Just Made it Harder to Get Cash

War on Cash bogs down, despite best efforts of government, banks, and credit card companies.

Spain’s third biggest lender, CaixaBank, has just launched a pilot project in Madrid aimed at limiting cash services in their branches to less than three hours a day, from 8:15 am to 11 am. After that point, all cash operations, including the settlement of bills and cash withdrawals and deposits, must be conducted through an ATM.

Caixabank is not the first Spanish bank to try out such a scheme, but it is the biggest. Spain’s fourth largest lender, part state-owned Bankia, has removed all cash services from select branches (including my local branch), forcing customers to withdraw or deposit cash at the ATM or travel further afield to another branch that still offers cash services.

It’s part of a broad trend. Bank branches are increasingly becoming so-called “customer advisory points,” where the primary role of branch staff is to sell customers a myriad financial products, many of them no doubt risky.

Those same customers are forced to perform many of the more rudimentary bank operations (cash withdrawals and deposits, transfers, payment of bills…) themselves, either at the ATM or online. It’s a great way of getting your customers to do your work for you while also cutting back on staffing costs.

pain’s banking industry has already witnessed a savage cull of branch and office staff since the financial crisis began as many banks collapsed while those left standing closed many of their branches. In 2016 the total number of workers in the sector was 189,280 — 81,605 fewer than in 2009. What’s more, it’s a trend that shows little sign of ending, especially with most other banks almost certain to follow CaixaBank and Bankia’s lead in paring back their cash services.

…click on the above link to read the rest of the article…

China and Russia: Full Steam Ahead Towards a Cashless Society

October 20, 2017

China and Russia: Full Steam Ahead Towards a Cashless Society

Puerto Rico Without Electricity, Wifi, ATMs Shows Importance of Cash, Gold and Silver

October 14, 2017

– Most of Puerto Rico remains in the dark and without power three weeks after storm
– With widespread power failures, Puerto Rico remains cash only with retailers only accepting cash and few consumer having cash
– Shortages of food, fuel and medicine with infrastructure repairs delayed
– Power could be ‘out for months’ as 85% of people remain off the grid
– Around 75% of ATMs disconnected
– Electronic forms of payment including bitcoin have been rendered non viable
– Puerto Rico’s accidental ‘cashless society’ shows risks of cashless society and importance of holding cash, gold and silver out of the financial and digital systems

Aerial photo of flooding in Puerto Rico. Washington Post

Puerto Rico has been destroyed by two savage hurricanes which have plunged the island into darkness and despair. The landscape of ruined homes and entire towns resembles Hiroshima after the man made disaster of a nuclear bomb being dropped on the city.

More than three weeks since Hurricane Maria hit the island, 3.7 million American citizens are on the precipice of a humanitarian disaster. The majority of these people are desperate for food, water, electricity and shelter. They are desperate for cash that will allow them to secure these basic necessities.

Over 84% of the island remains without power and 37% of people are without access to water. Without power, much of the population is does not have electricity to charge their phones and iphones. Very few have wifi and this is severely impacting their ability to communicate and conduct their lives.

Inevitably, the future of Puerto Rico now lies in the wrangling hands of government and financial organisations, all of which seem to be pointing the finger of blame at one another.

…click on the above link to read the rest of the article…

In a Cashless World, You’d Better Pray the Power Never Goes Out

October 11, 2017

In a Cashless World, You’d Better Pray the Power Never Goes Out

When Hurricane Maria knocked out power in Puerto Rico, residents there realized they were going to need physical cash — and a lot of it.

Bloomberg reported yesterday that the Fed was forced to fly a planeload of cash to the Island to help avert disaster:

William Dudley, the New York Fed president, put the word out within minutes, and ultimately a jet loaded with an undisclosed amount of cash landed on the stricken island…

[Business executive in Puerto Rico] described corporate clients’ urgent requests for hundreds of thousands in cash to meet payrolls, and the challenge of finding enough armored cars to satisfy endless demand at ATMs. Such were the days after Maria devastated the U.S. territory last month, killing 39 people, crushing buildings and wiping out the island’s energy grid. As early as the day after the storm, the Fed began working to get money onto the island,

For a time, unless one had a hoard of cash stored up in one’s home, it was impossible to get cash at all. 85 percent of Puerto Rico is still without power, as of October 9. Bloomberg continues: “When some generator-powered ATMs finally opened, lines stretched hours long, with people camping out in beach chairs and holding umbrellas against the sun.”

In an earlier article from September 25, Bloomberg noted how, without cash, necessities were simply unavailable:

“Cash only,” said Abraham Lebron, the store manager standing guard at Supermax, a supermarket in San Juan’s Plaza de las Armas. He was in a well-policed area, but admitted feeling like a sitting duck with so many bills on hand. “The system is down, so we can’t process the cards. It’s tough, but one finds a way to make it work.”

…click on the above link to read the rest of the article…

The Globalists Are Systematically Destroying America’s Middle Class

October 2, 2017

The Globalists Are Systematically Destroying America’s Middle Class

When people are dependent on the government they are much easier to control. We are often told that we are not “compassionate” when we object to the endless expansion of government social programs, but that is not how the debate should be framed. In America today, well over 100 million people receive money from the federal government each month, and the number of Americans that are truly financially independent is continually shrinking. In fact, only 25 percent of all Americans have more than $10,000 in savings right now according to one survey. If we eventually get to the point where virtually all of us are dependent on the government for our continued existence, that would give the globalists a very powerful tool of control. In the end, they want as many of us dependent on the government as possible, because those that are dependent on the government are a lot less likely to fight against their agenda.

Back in 1992, the bottom 90 percent of American income earners brought in more than 60 percent of the country’s income. But last year that figure slipped to just 49.7 percent. The wealth of our society is increasingly being concentrated at the very top, and the middle class is steadily being eroded. Surveys have found that somewhere around two-thirds of the country is living paycheck to paycheck at least part of the time, and so living on the edge has become a way of life for most Americans.

Earlier today, I came across a Business Insider article that was bemoaning the fact that the U.S. economy seems to be rather directionless at this point…

…click on the above link to read the rest of the article…

“What Are We Going To Do?” Puerto Rico In Chaos As Cash Runs Out

September 28, 2017

“What Are We Going To Do?” Puerto Rico In Chaos As Cash Runs Out

Most Puerto Ricans haven’t had access to electricity, cell service or financial services for nearly two weeks now. And as we reported yesterday, residents who didn’t stockpile enough cash have been struggling after Hurricane Maria essentially knocked the island’s economy into the 1950s, forcing some to forgo essential supplies – or worse – resort to looting. For those who do have access to working ATMs and banks, long lines have sapped cash reserves as the country has effectively reverted to a “cash only” economy.

Those whose access to cash has been limited – or cut off entirely – are becoming desperate as they start to wonder how they will begin the process of rebuilding their trashed homes – or even where their next meal will come from. As Reuters reports, cash has become just one of many scarce resources on the island (food, medical supplies and gas are also in incredibly short supply).

With electricity and internet down in Yauco, southwestern Puerto Rico, Nancy and Caesar Nieve said they could not access paychecks directly deposited into their bank accounts.

“What are we going to do when we don’t have any cash? The little cash we have, we have to save for gas,” said Nancy.

Cash demand spiked in the first few days after the hurricane as merchants were unable to accept other modes of payment. First BanCorp, one of the island’s largest banks, said that nearly two-thirds of its 48 branches remained closed, and that electronic transactions had resumed at only 25% of its ATMs.

Apparently, word of these privations made its way back to the New York Fed, which has assured the world via the Wall Street Journal that the central bank has plenty of physical cash to keep banks on the island stocked for the forseeable future – lowering the likelihood that anybody will suffer for lack of access to cash.

…click on the above link to read the rest of the article…

Hurricane Maria Has Transformed Puerto Rico Into A “Cash Only” Economy

September 25, 2017

Hurricane Maria Has Transformed Puerto Rico Into A “Cash Only” Economy

Electricity, internet access and cell phone service have been offline in parts of Puerto Rico for a whole week. And with the island still struggling to rescue people stranded in remote villages, those managing the emergency recovery effort have yet to focus their attentions on the monumental task that looms ahead: Rebuilding the island’s devastated infrastructure, from communications to sewers and water treatment plants that have been damaged by flash flooding and 155 mph winds that Hurricane Maria visited upon the island.

The damage, as Bloomberg reports, has essentially knocked Puerto Rico’s economy back into the 1950s. For locals who’re struggling to begin the process of rebuilding their damaged homes, shops across the island are only accepting cash.

The cash economy has reigned in Puerto Rico since Hurricane Maria decimated much of the U.S. commonwealth last week, leveling the power grid and wireless towers and transporting the island to a time before plastic existed. The state of affairs could carry on for weeks or longer in some remote parts of the commonwealth, and that means it could be impossible to trace revenue and enforce tax rules.

The situation further frustrates one of the many challenges already facing a government that has sought a form of bankruptcy protection after its debts swelled past $70 billion: boosting revenue by collecting money that slips through the cracks.

The cash-only economy could create problems for the island’s cash-strapped government, as business owners will no doubt be tempted to avoid declaring some of their revenues, depriving PR’s government of badly needed revenue.

In fact, the power blackout only exacerbates a situation that has always been, to a degree, a fact of life in Puerto Rico. Outside the island’s tourist hubs, many small businesses simply never took credit cards, with some openly expressing contempt for tax collectors and others claiming it was just a question of not wanting to deal with the technology.

…click on the above link to read the rest of the article…

The Sermon On The Mount[ain Of Debt]

September 24, 2017

The Sermon On The Mount[ain Of Debt]

“Blessed are the young, for they shall inherit the national debt.” – President Herbert Hoover

The Hoover administration thought there was no room and was ideologically opposed to fiscal expansion to stimulate aggregate demand. Furthermore, Keynesian theory was not even developed at the time. The General Theory of Employment, Interest and Money was not published until February 1936.

A policy error, partially due out of ignorance, that led to the Great Depression, though it was monetary policy and the Fed’s failure as “lender of last resort” that “put the Great in the Great Depression.”

…what happened is that [the Federal Reserve] followed policies which led to a decline in the quantity of money by a third. For every $100 in paper money, in deposits, in cash, in currency, in existence in 1929, by the time you got to 1933 there was only about $65, $66 left. And that extraordinary collapse in the banking system, with about a third of the banks failing from beginning to end, with millions of people having their savings essentially washed out, that decline was utterly unnecessary – Milton Friedman

Here is Ben Bernanke,

The problem within the Fed was largely doctrinal: Fed officials appeared to subscribe to Treasury Secretary Andrew Mellon’s infamous ‘liquidationist’ thesis, that weeding out “weak” banks was a harsh but necessary prerequisite to the recovery of the banking system. Moreover, most of the failing banks were small banks (as opposed to what we would now call money-center banks) and not members of the Federal Reserve System. Thus the Fed saw no particular need to try to stem the panics. At the same time, the large banks – which would have intervened before the founding of the Fed – felt that protecting their smaller brethren was no longer their responsibility. Indeed, since the large banks felt confident that the Fed would protect them if necessary, the weeding out of small competitors was a positive good, from their point of view. – Ben Bernanke

…click on the above link to read the rest of the article…

Tag Archives: cash

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Red Sky In The Markets

Post navigation

Latest Posts