Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Hell To Pay
By: Chris Martenson

She's your humble servant -- not the debaters
By: George Smith

Beware of What You Wish For, as You’re About To Get It.
By: Andrew Hoffman

Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve
By: Jordan Roy-Byrne, CMT, MFTA

U.S. Imports Record Amount Of Gold From Switzerland In July
By: Steve St. Angelo, SRSrocco Report

The Rally Has Begun
By: Warren Bevan

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 5% on the Week
By: Chris Mullen, Gold-Seeker.com

COT Gold, Silver and US Dollar Index Report - September 23, 2016
By: GoldSeek.com

Pension Shortfalls Could Be 4X To 7X Greater Than Reported
By: Daniel R. Amerman, CFA

Gold Unleashed by Fed
By: Adam Hamilton, Zeal Intelligence

 
Search

GoldSeek Web

 
More and More Countries Are Moving to Ban Cash Transactions


 -- Published: Monday, 26 October 2015 | Print  | Disqus 

By Graham Summers

 

More and more institutions are trying to make it harder for you to move your money into cash.

 

Globally, over $5 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades. In the simplest of terms this means that investors are PAYING to own these bonds.

 

Bonds are not unique in this regard. Switzerland, Denmark and other countries are now charging deposits at their banks. France and Italy have banned any transaction over €1,000 Euros from using physical cash. Spain has already banned transactions over €2,500. Uruguay has banned transactions over $5,000. And on and on.

 

This is also at work in the US. Louisiana has made it illegal to purchase second hand goods using cash. This is just the beginning. The War on Cash will be spreading in the coming weeks.


The reasoning is simple. Most large financial entities are insolvent. As a result, if a significant amount of digital money is converted into actual physical cash, the firm would very quickly implode.

 

This is true for banks around the world. European banks as a whole are leveraged at 26 to 1. In simple terms, this means they have just €1 in capital for every €26 in assets (bought via borrowed money).  If a significant percentage of their depositors took their money out of the bank, the bank would violate its capital limitations at best and implode at worse.

 

The US financial system isn’t any better. Indeed, the vast majority of it is in digital money. Actual currency is just a little over $1.36 trillion. Bank accounts are $10 trillion. Stocks are $20 trillion and Bonds are $38 trillion.

 

And at the top of the heap are the derivatives markets, which are over $220 TRILLION.

 

Notice that less than 1% of the “wealth” in this system is actual physical cash. Now imagine what would happen if investors decided to move their money out of the system and into physical cash.

 

This is precisely what imploded the money market system during the 2008 crisis.

 

If you think the banks aren’t terrified of what this market could do to them, consider that JP Morgan managed to get Congress to put the US taxpayer on the hook for it derivatives trades. Mind you, this is the same bank that is now refusing to let clients store cash in safe deposit boxes.

 

This is just the beginning. As anyone can tell you, it’s all but impossible to move large amounts of money into cash in the US. Even the large banks will routinely ask you for 24 hours notice if you need $10,000 or more in cash. These are banks will TRLLLIONS of dollars worth of assets on their books.

 

This is just the beginning.

 

Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings.

 

Best Regards

Phoenix Capital Research

 

http://www.phoenixcapitalmarketing.com/cash.html

 

 


| Digg This Article
 -- Published: Monday, 26 October 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2016



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.