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Abolish Cash?
Old 04-23-2015, 10:00 PM   #1
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Abolish Cash?

Maybe a way to avoid negative interest rates:

http://etfdailynews.com/2015/04/22/w...deposit-boxes/
Quote:
My mother has a SDB at a Chase branch with one of my siblings as co-signers. Last week they got a letter outlining a number of changes to the lease agreement, including this:

“Contents of the box: You agree not to store any cash or coins other than those found to have a collectible value.”

Another change is that signatures will no longer be accepted to access the box. The next time they go in they have to bring two forms of ID and they will be issued a four-digit pin number that will be used to access the box then and in the future.
Much to think through on this....
... and who determines collectible value?

How will the Fed deal with this?
Suppose your local grocery sstore stops accepting cash?
Good deal for who... whom?
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Old 04-24-2015, 06:06 AM   #2
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Move to the First Bank of Serta.

They can't add fees to cash so they are trying to get rid of it. Negative interest rates, bail ins, the total surveillance state, end of all liberty is on the horizon.
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Old 04-24-2015, 07:49 AM   #3
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WHy do banks care if you store cash? Is this some sort of drug war deal?
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Old 04-24-2015, 08:09 AM   #4
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WHy do banks care if you store cash? Is this some sort of drug war deal?
Money laundering, terrorism, drug deals and bank heists?

Incredible images released in Hatton Garden heist show tunnel inside vault | Globalnews.ca
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Old 04-24-2015, 08:41 AM   #5
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There have been a bunch of news stories lately about getting rid of cash.
They want to impose negative interest rates as a monetary policy but they can't as long as people can pull their cash out of the bank. They want to close the last way people can protect themselves against monetary debasement.
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Old 04-24-2015, 09:01 AM   #6
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WHy do banks care if you store cash? Is this some sort of drug war deal?
Pretty much. It's a regulation thing likely. Most governments think that lots of cash = criminal activity (not just drugs).

Now, if you store cash in a box in a bank authorities can seize it and your bank can point to their regulations.
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Old 04-24-2015, 09:24 AM   #7
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No, the reason for abolishing cash by the banks is to insure all transactions are electronic from which they can elicit a fee. Furthermore, governments are realizing that if interest rates go negative people will withdraw cash from banks blocking the negative rates. By making it unsafe to hold cash by not allowing into safe deposit boxes, and minimizing the amount of cash to hold this will enable the establishment of negative rates on basic cash accounts. This is already being put into place in France which has negative interest rates up to 4 year securities.

The criminal implications is just a cover story, governments are driven by financing needs
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Old 04-24-2015, 09:33 AM   #8
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This is not new. In '07 we were looking for a new bank with SDB option here in South Florida. The "no cash" clause was common, and made it difficult for us to find an acceptable option.
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Old 04-24-2015, 09:35 AM   #9
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France (and many other European countries) has negative interest rates only for bondholders and large corporate accounts. For those two holding large amounts of cash was never an option.

Retail savings accounts - what this refers to - all have positive or zero interest rates. Negative rates won't happen either in the near future, banks fall over each other making that statement all the time here. Many countries even forbid banks charging negative interest rates.
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Old 04-24-2015, 09:38 AM   #10
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My real concern, how to pay the strippers without cash??
Think the whole idea is dead on arrival.
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Old 04-24-2015, 04:02 PM   #11
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As a practical matter the banks have no control over what you store in a safe deposit box and, in fact, they don't want to know for fear of liability. I'm sure this is an attempt to relieve themselves of any potential liability for criminal activity.
Bruce
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Old 04-24-2015, 04:03 PM   #12
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My real concern, how to pay the strippers without cash??
You can't tuck a credit card?
Bruce
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Old 04-24-2015, 04:38 PM   #13
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You can't tuck a credit card?
Bruce
I typed my response twice, but edited myself both times. I must be growing up finally.
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Old 04-24-2015, 05:23 PM   #14
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If this were simple, it could be explained in a paragraph or two. When things get complicated one of two things happen.

1.The propositions get shaken down into terms that most people can a understand and accept. This makes the subject controllable and a matter of passing interest.

2. Details are studied and understood by those most directly affected, who usually go on to benefit the most.

#2 could have this kind of benefit. Here's one possibility:

http://www.acting-man.com/?p=4833

My thinking is that Running_Man was very close to being right.
Quote:
No, the reason for abolishing cash by the banks is to insure all transactions are electronic from which they can elicit a fee. Furthermore, governments are realizing that if interest rates go negative people will withdraw cash from banks blocking the negative rates. By making it unsafe to hold cash by not allowing into safe deposit boxes, and minimizing the amount of cash to hold this will enable the establishment of negative rates on basic cash accounts. This is already being put into place in France which has negative interest rates up to 4 year securities.

The criminal implications is just a cover story, governments are driven by financing needs
Central Banks... and money leverage.
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Old 04-24-2015, 05:59 PM   #15
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Time to go to the mattresses!!! Out of context but it still applies.
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Old 04-24-2015, 07:18 PM   #16
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WHy do banks care if you store cash? Is this some sort of drug war deal?
That and the cash economy entirely. How do you pay the neighbor kid to cut your grass?
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Old 04-24-2015, 07:30 PM   #17
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You can't tuck a credit card?
Bruce
I'll bite: you could try swiping it, but where?...

Incidentally, I just read this week (please don't ask where) that people who use cash instead of credit or debit cards tend pay less and have less debt. It interested me because I pay cash for everything.
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Old 04-24-2015, 08:43 PM   #18
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If the gov't gets rid of cash, some other under the table form of exchange will take it's place. Jewelry, booze, clamshells, glass beads, cigarettes, something. Prohibition never works.
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Old 04-24-2015, 09:26 PM   #19
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Who is getting rid of, or abolishing cash?

It just says you can't store it in a Safe Deposit Box. As others said, probably a money laundering or liability issue.

Nothing to keep you from using cash as much as you want (I loathe the stuff).

-ERD50
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Old 04-24-2015, 09:47 PM   #20
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Originally Posted by ERD50 View Post
Who is getting rid of, or abolishing cash?

It just says you can't store it in a Safe Deposit Box. As others said, probably a money laundering or liability issue.

Nothing to keep you from using cash as much as you want (I loathe the stuff).

-ERD50
From the article:

Quote:
The news arrives on the back of comments by Citi’s Willem Buiter, who recently advocated abolishing cash altogether in order to “solve the world’s central banks’ problem with negative interest rates”.
Quote:
Banks in the U.S. are also making it harder for customers to withdraw and deposit cash, with Chase imposing new capital controls that mandate identification for cash deposits and ban cash being deposited into another person’s account.
Not to mention the first part of the title of the article - "War on Cash Continues".

And it's not a money laundering or drug trade issue, it's clearly (if you read the article) about stopping people from withdrawing cash in the face a possible negative interest rates to help as
Quote:
financial institutions are positioning themselves to handle the fallout of the next economic crash – at the expense of customers.
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