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

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver End Mixed
By: Chris Mullen, Gold Seeker Report

Looking Forward to Gold's Next Rally
By: Craig Hemke

New book, 'American Default,' examines dollar devaluation, gold confiscation of 1933
By: Chris Powell

What’s Next for Gold
By: Jordan Roy-Byrne CMT, MFTA

Gold: A $100 Price Sale
By: Stewart Thomson

Gold Market Charts – May 2018
By: BullionStar

Blockchain Will Completely Revolutionize How We Mine Gold and Precious Metals
By: Frank Holmes

Is Oil About To Become Front-Page News? “A Glut That Held Prices Down For Years Is Essentially Gone”
By: John Rubino

Jack Chan's Weekly Precious Metals Update
By: Jack Chan

Mayday, Mayday, Gold Is Sinking!
By: Arkadiusz Sieron

 
Search

GoldSeek Web

 
The War on Cash is Not Over… It’s About to Intensify


 -- Published: Monday, 21 November 2016 | Print  | Disqus 

By Graham Summers

 

The Trump Presidency has distracted from the next major move to be implemented by Financial Elite.

 

That move is a cash ban.

 

Cash, particularly physical cash (as in bills and coins) is a huge problem for insolvent banks.

 

Indeed, it is the ONLY problem they have yet to address.

 

If you’re a large bank and you’re overleveraged due to excessive assets to capital ratios (particularly assets that are at risk of losing value or default) there are three key issues you need to control.

 

1)    You need to be able to value your assets however you please.

 

2)    You need access to liquidity without lowering you asset to capital ratios.

 

3)    You need to be able to stop bank runs or capital flights.

 

The Central Banks have already fixed #1 and #2 by suspending “mark to market” accounting standards and implementing QE, respectively. And thanks to rehypothecation, banks can sell assets to Central Banks via QE and still use those same assets as collateral on their derivatives trades.

 

That leaves #3: capital flights.

 

At the end of the day, no matter how many tricks the Financial Elites employ via accounting gimmicks and QE programs, depositors can still choose to take their money out of the banks and transfer it to physical cash.

 

Hence the call for cash bans, particularly of large bills.

 

The Elites claim that they want to do away with $100 bills (or greater denominations) to stop money laundering or other illicit practices.

 

The reality is that banning large bills makes it much more difficult for depositors to move their money into cash. Taking out $20,000 or more in deposits when it’s broken down into $100 bills isn’t too difficult.

 

Taking out $20,000 in $20 bills or smaller denominations IS.

 

In effect, a cash ban is an attempt to stop bank runs. The process is starting with large denominations, but it will be spreading to even small bills. The process is already underway in France, India, Spain, Uruguay, even Australia have begun implementing or preparing to implement similar schemes.

 

This is just the start. In the coming months the Fed will be announcing similar plans for a cash ban in the US.

 

Best Regards

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 


| Digg This Article
 -- Published: Monday, 21 November 2016 | 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 - 2017



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.