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Old 06-16-2014, 08:55 AM   #1
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Paper currency is the new gold

http://finance.yahoo.com/news/paper-...004346371.html

"The real problem, which economists are starting to recognize, is that paper cash is an impediment to effective monetary policy, and therefore economic growth."

"In our world of ultra-low inflation, it may be necessary for central banks to cut rates to below zero. However if that happens, consumers can always take physical cash out of the banking system to avoid paying negative rates. In a world of purely digital money, the central bank could set interest rates wherever was appropriate."

"So not only is cash cumbersome like gold (time consuming, physically costly) it's an increasingly problematic component of the monetary system. Like gold, it's a form of hard money that's growth-constraining and deflationary."

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Old 06-16-2014, 09:54 AM   #2
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Essentially, they are arguing to eliminate physical cash and go to a full digital monetary system - to force people to keep their "money" in the banks/system where the Fed & govco can manage it easier.

When cash is outlawed, only outlaws will have cash:

http://rt.com/news/terrorism-credit-...overnment-613/
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Old 06-16-2014, 03:59 PM   #3
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Eliminating cash as a tangible, immediately fungible medium of exchange would be problematic at best and impossible at worst. There are far, far too many people that do not have or cannot afford computers and the like. In addition, many folks do not trust banks at all, so forcing them to use digital money will force them out of the system. I can see hundreds of billions of "dollars" lost as a result of direct barter/trade because folks are pretty tired of having their wallets and savings strip mined at the whim of the government and the Brotherhood of Darkness. I am one such individual.

JMHO. ;-)
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Old 07-13-2014, 10:00 PM   #4
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You have some company in that, Ancona, and not just me.
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Old 07-14-2014, 12:03 AM   #5
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...

Despite the paper-y nature of CA$H (well, OK, linen-y), would cash be as vulnerable to boating and ice-fishing accidents like gold seems to be?

One other reason to hold cash fiat is that there is no "Opportunity Cost", an economist term for nothing lost (no lost interest in this case with ZIRP for our savings). And, cash is probably SAFER outside of the banks (well hidden) with all of the Bail-In talk now going around.

***

I wonder what the effect would be on all the dollar FRNs would be there in the Third World (where $100s are popular)? So much FRN value is held in $100 form in Peru for example (and likely in may other countries). If .gov were to switch over to electronic money only, they would lose some "priviledge" (more people accepting it as money) to the Euro -- unless Europe would do away with the paper Euro as well.
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Old 07-14-2014, 12:06 PM   #6
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In case of emergency, spend the linen first - it will be easier than PMs for awhile, and those will still be appreciating - keep them for later. History has shown that governments will force-devalue it and offer one "new dollar" for X "old dollars" inside a time window, after which they become worthless except as collector's items generations later. People tend to have about as much loyalty to paper as it has to them. Not much.
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Old 07-16-2014, 10:25 AM   #7
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Originally Posted by ancona View Post:
Eliminating cash as a tangible, immediately fungible medium of exchange would be problematic at best and impossible at worst. ...
I saw a headline just the other day regarding businesses in Colorado and Washington that have a massive problem with physical cash on hand from legal marijuana sales because banks don't want to deal with it (they would then be subject to federal regulations - money laundering IIRC).
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Old 07-17-2014, 08:23 AM   #8
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Originally Posted by PMBug View Post:
I saw a headline just the other day regarding businesses in Colorado and Washington that have a massive problem with physical cash on hand from legal marijuana sales because banks don't want to deal with it (they would then be subject to federal regulations - money laundering IIRC).
SttRRRaannge, the reverse of butterfly effect which began the melt down in 2007. Strange how banks will utilize law when they see fit. If the cartels of S and Central America had not requested lower laundering costs, and withheld deposits, the banking system would still be rolling along with the housing market and subprime/derivative partying. Now, Federal passive aggressive control for corporate pharma lobbying is making the pot dealers hold their profits in debt form, US dollars. Sadly, we are not hearing of these dealers utilizing their liquidity to further or protect their wealth. They should be buying farm land, PM's, commodities, renewable resources, water rights, and taking over what pharma money already owns. I have no empathy for stupidity.
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Old 07-17-2014, 08:53 AM   #9
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Here's the article I was referring to:
Quote :
...
Options are limited, however. Unlike most other businesses, marijuana-store owners can't easily open bank accounts for fear of running afoul of federal law. Despite Washington state joining Colorado last week in legalizing sales of marijuana for recreational purposes and 23 states plus the District of Columbia permitting medical pot, the federal government still classifies the plant as an illegal drug more dangerous than cocaine or methamphetamine.

By opening a bank account, pot growers and shop owners run the risk of being charged with money laundering, because federal banking laws and regulations are deliberately aimed at tracking large flows of cash like those generated by both legal and illegal drug sales. A single such charge can bring decades in prison, and most banks and pot-shop owners don't want to run that risk.
...
More: http://www.usatoday.com/story/news/n...rado/12271369/
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Old 07-18-2014, 07:47 AM   #10
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The difference between terrorist/rebel/revolutionary and PATRIOT;

is TIME.

One must venture forth, beyond defined barriers and obstacles presented.

Only oligarchs tell you, evolution must wait.
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