01/22/2016 - China Accelerates The War On Cash
The central bank of China is targeting an early rollout of China’s own digital currency to boost its control of money in the country .. this is another development in the worldwide war on cash – how governments are limiting the use of cash or abolishing it outright .. it’s all about capital controls & financial repression .. governments are now anticipating bank bailins & negative interest rates, & by limiting or abolishing cash, this will minimize or prevent the possibility of bank depositors from withdrawing their cash from their bank ahead of or during a bank bailin .. People’s Bank of China statement: “To enhance the central bank’s money supply and currency in circulation control.” .. Zero Hedge commentary: “There are three enormous flaws with the war on cash: “One is that households and businesses have cash to hoard. The reality is the bottom 90% of households have less income now than they did fifteen years ago, which means their spending has declined not from hoarding but from declining income .. The second flaw is that hoarding cash is the only rational, prudent response in an era of financial repression and economic insecurity. What central banks are demanding — that we spend every penny of our earnings rather than save some for investments we control or emergencies — is counter to our best interests. This leads to the third flaw: capital — which begins its life as savings — is the foundation of capitalism. If you attack savings as a scourge, you are attacking capitalism and upward mobility, for only those who save capital can invest it to build wealth. By attacking cash, the central banks and governments are attacking capital and upward mobility .. When the dust has settled who ultimately benefits by this war on cash – government and the central banks, pure and simple.”
