AuthorTopic: All Your Money Are Belongz to US!  (Read 1694 times)

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All Your Money Are Belongz to US!
« on: October 30, 2015, 01:51:35 AM »


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Published on the Doomstead Diner on October 30, 2015



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All over the Collapse Blogosphere, and even in the MSM, the latest greast paranoia is the disappearance of CASH to STASH in the Bank of Sealy.  Tom Lewis on The Daily Impact wrote a post on this last week which I am cross posting today here on the Diner.



Over in the MSM on Biz Insider, they also had a nice FEAR INDUCING article on NEGATIVE INTEREST RATES coming down the pipe for retail banking customers.  In this case, instead of the bank paying you some interest for the priviledge of gambling with your money, you pay the bank so they can risk your life savings on some dogshit IPO like Poop-On or Alipoopoo.



Quite obviously, the Banksters and their Political Puppets have reached the end of their rope here, not to mention having lost their sanity in trying to keep their monetary system from imploding.  In today's rant, we look at why this fucking nonsense cannot possibly work and is the last gasp of a dying monetary system.






Snippet:




…This week in Doom, I do have a specific topic of interest getting a lot of play not just in the Collapse Blogs but in the MSM as well. This is the rampant FEAR that TPTB running the TBTF Banks and their Marionettes running Da Goobermint are going eliminate CASH, aka Paper Notes in favor of an all digibit monetary system. There is a certain amount of irony to this, since the people most upset and outraged are the same people who hate Paper Fiat Notes to begin with! LoL. Just in this case, they hate the digibit money even more, except for Bitcoin which some folks think is a new and more secure form of money itself.



Now first of all, paper money is already only a small fraction of the total pool of notional money currently being pushed around by supercomputers sporting HFT algorithms, a maximum of 10% of the money supply and that is not counting all the notional money wrapped up in derivatives contracts, which nobody knows the actual amount of, just that it is probably more than a quadrillion dollars…




For the rest, LISTEN TO THE RANT!


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Offline Fenixor

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Re: All Your Money Are Belongz to US!
« Reply #1 on: October 30, 2015, 07:08:02 AM »
Most people out in the collapse blogosphere focus on the topic of money and finance, recommending people to hold gold or physical cash. And yes we are all experiencing the same problems of over indebtedness, currencies becoming increasingly worthless while salaries are stagnant and unemployment rising. But I seriously don't think that holding physical cash instead of having digital money in the bank is going to solve anyone's problem. Sure it might help in an immediate pinch but over the long run its still just paper money, not real capital (ecological, social etc). The only way to increase resilience is to own actual capital without taking on debt, which of course few people can afford. [Talked to a friend who is stupid enough to borrow perhaps SEK 3 million to buy a 40 m2 flat in central Stockholm]. Or to institute alternative local currencies (time banking, swapping etc) which have sprung up in regions most affected by economic hardship but that are lacking in countries like Sweden that are still under the illusion "that all is well" (because people have been able to continue borrowing and speculating on house prices).

In other words, one cannot survive a monetary collapse on his/her own or by simply owning physical dollars or kronor. In time of great financial hardship family and community is what counts, not pieces of paper.

Offline MKing

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Re: All Your Money Are Belongz to US!
« Reply #2 on: October 30, 2015, 07:49:44 AM »
Most people out in the collapse blogosphere focus on the topic of money and finance, recommending people to hold gold or physical cash. And yes we are all experiencing the same problems of over indebtedness, currencies becoming increasingly worthless while salaries are stagnant and unemployment rising.

Well, except in the places where unemployment is falling anyway. But generally even normal folks would agree that the powers that be are screwing over everyone, and all the cash they have, in any way they can.

And salaries must stay stagnant, while things inflate in price, because this is the only way to diminish the value of the ever increasing debt and make things seem at least reasonable to Joe Sixpack, who is busy screaming about abortion or immigration or some other distraction to the central issues.

Quote from: Fenixor
But I seriously don't think that holding physical cash instead of having digital money in the bank is going to solve anyone's problem. Sure it might help in an immediate pinch but over the long run its still just paper money, not real capital (ecological, social etc). The only way to increase resilience is to own actual capital without taking on debt, which of course few people can afford. [Talked to a friend who is stupid enough to borrow perhaps SEK 3 million to buy a 40 m2 flat in central Stockholm].

Stupid only until they sell it in 3 years for SEK 8 million anyway.

Sometimes one creates a dynamic impression by saying something, and sometimes one creates as significant an impression by remaining silent.
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Re: All Your Money Are Belongz to US!
« Reply #3 on: October 30, 2015, 10:00:28 AM »
Most people out in the collapse blogosphere focus on the topic of money and finance, recommending people to hold gold or physical cash. And yes we are all experiencing the same problems of over indebtedness, currencies becoming increasingly worthless while salaries are stagnant and unemployment rising. But I seriously don't think that holding physical cash instead of having digital money in the bank is going to solve anyone's problem. Sure it might help in an immediate pinch but over the long run its still just paper money, not real capital (ecological, social etc).

Over the long haul all form of current money (including PMs) will go worthless for buying industrially produced goods (including industrially produced food) because it simply won't be available to buy.  However, over the short haul, the day they declare a Bank Holiday and your debit card doesn't work is the day you take your CASH out of the Bank of Sealy (mattress money if you don't know the metaphor) and head over to Safeway (or the Swedish version of a food superstore) and unload the shelves of as many 50 lb bags of rice as your still working money will buy.  All the folks with only Plastic in their wallets are shit out of luck.  Just ask the folks in Cyprus or in Greece about this.


Quote
The only way to increase resilience is to own actual capital without taking on debt, which of course few people can afford. [Talked to a friend who is stupid enough to borrow perhaps SEK 3 million to buy a 40 m2 flat in central Stockholm]. Or to institute alternative local currencies (time banking, swapping etc) which have sprung up in regions most affected by economic hardship but that are lacking in countries like Sweden that are still under the illusion "that all is well" (because people have been able to continue borrowing and speculating on house prices).

As I pointed out in the rant, alternative currencies and LETS can be gamed just like the current system.  How well they will really work when the current currency regime fails is anybody's guess.

Quote
In other words, one cannot survive a monetary collapse on his/her own or by simply owning physical dollars or kronor. In time of great financial hardship family and community is what counts, not pieces of paper.

Absolutely true there.  Community is what counts over the long haul.

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Online RE

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Time to Keep Your Cash in the Microwave?
« Reply #4 on: October 30, 2015, 06:51:03 PM »
In the new world of Money, Eddie will need to pay his patients for them to have their teeth drilled.

RE

http://wolfstreet.com/2015/10/29/time-to-keep-your-cash-in-the-microwave/

Time to Keep Your Cash in the Microwave?

by Bill Bonner • October 29, 2015

“If you have to pay in cash, something is wrong.”

By Bill Bonner, Chairman, Bonner & Partners:

NORMANDY, France – “Now, I think I’ve seen everything” is an expression that – like “this is the end of history” and “I’ll never leave you” – usually turns out to be premature.

But it is what we found ourselves saying yesterday. Not out loud. We just moved our lips in mute amazement. On Tuesday, the Italian government sold a 2-year note yielding MINUS 0.023%. We don’t know what is more preposterous: that the Italians were able to borrow money at a negative nominal interest rate or that the press reported this transaction with a straight face.
The Fed’s Big Pivot

It should have provoked howls of laughter, withering scorn, and unvarnished derision. But here at the Diary, we will not point the finger and chuckle. We will not invoke our usual tone of sarcasm. We will not damn the whole thing to Hell with loud and blustery cussing. Instead, we’ll take the high road; we just want to know what it means. But before we get to that, let us pick up the news. Here’s the latest, from Bloomberg:

    Federal Reserve officials pivoted toward a December interest-rate increase, betting that further job gains will lead to higher inflation over time and allow them to close an unprecedented era of near-zero borrowing costs. The Federal Open Market Committee dropped a reference to global risks and referred to its “next meeting” on Dec. 15-16 as it discussed liftoff timing in a statement released Wednesday in Washington, preparing investors for the first rate rise since 2006.

“Pivot” has become the latest fad verb. It seems to mean “move” or “go toward.” You can use it in practically any setting. Investors pivoted toward higher prices yesterday, with a 198-point increase in the Dow. You might tell your husband that you’re pivoting toward buying a new Tesla. And we pivoted back to France last night… after a few days in Ireland. It is a gray day in Normandy this morning. But the leaves have pivoted to such glorious shades of orange that the effect is a profound and melancholy splendor.

A beautiful melancholy – a leaf-covered path in Normandy

But let us pivot back to our subject for today…
An Odd World

A negative nominal interest rate – meaning a negative rate before you account for inflation – implies an odd world… maybe even a world that cannot really exist.

To lend at less than zero suggests you believe the present value of money is less than its future value – in other words, deflation. And you must assume that the risk of default or inflation is near zero.

This allows the Italians to go out and build roads or pay pensions with money that cost them less than nothing.

How long this will last, we don’t know. But as long as rates remain below zero (and they could go lower!) money is not just free… it’s a cost not to borrow!

Imagine you are buying a house. (Now, you can see the mischief afoot!) If lenders are willing to grant a loan at a negative nominal interest rate that’s secured by nothing more than the full faith and credit of the Italian government, then lenders should surely be willing to extend credit to you against the value of your house.

That would leave you with a curious mortgage – one that pays you interest. At the Italian rate, a $1-million house would come with an extra income of about $19.16 a month.

This raises profound metaphysical issues. If a mortgage carries negative interest, it implies that the house (an equal capital value) also has negative value.

After all, you have to pay someone to live in it. And if houses are worth less than nothing, we have to wonder what a car is worth… or a diamond ring… or a luxury cruise?

Does that mean that money has no value? Or even negative value?

After all, you can no longer give it to someone in exchange for a positive interest payment. Now you must pay him to store it for you, as though it were furniture that won’t fit in your house. You don’t like it anymore. But you don’t have the heart to throw it away.

And if money has no value, what happens when you hire, say, a gardener to pull out weeds? Should you pay him? Or should he pay you? How many hours should he have to work for you before you consent to take his money?

The whole thing is so contrary to nature we gasp when we think of it. We are flummoxed. But you are a smart person, dear reader: Maybe you can figure it out for us.
The Strange Case of Sweden

This is all prelude to taking up the strange case of Sweden. All we know about Sweden is what we learned by watching the movie The Girl with the Dragon Tattoo. And all we learned from that was that Swedes tend to be murderers, sadists, lesbians, and pock-marked wimps. Maybe that accounts for the torturous financial system the Swedes are creating.

Reports Business Insider:

    Sweden is shaping up to be the first country to plunge its citizens into a fascinating – and terrifying – economic experiment: negative interest rates in a cashless society.

    The Swedish central bank, the Sveriges Riksbank, on Wednesday held its benchmark interest rate at -0.35%, the level it has been at since July.

    Though retail banks have yet to pass that negative rate on to Swedish consumers, they face increased pressure to do so as long as the rates remain where they are. That’s a problem, because Sweden is the closest country on the planet to becoming an all-electronic cashless society.

Remember, Sweden is the place where, if you use too much cash, banks call the police because they think you might be a terrorist or a criminal. Swedish banks have started removing cash ATMs from rural areas, annoying old people and farmers. Credit Suisse says the rule of thumb in Scandinavia is: “If you have to pay in cash, something is wrong.”

A resistance is forming, and some people are protesting the impending extinction of cash. Björn Eriksson, former head of Sweden’s national police and now head of Säkerhetsbranschen, a lobbying group for the security industry, told The Local, “I’ve heard of people keeping cash in their microwaves because banks won’t accept it.”

Alert readers will recognize this negative interest story as one we have been following. We believe it won’t be long before we have negative rates in the U.S., too.

The feds will pivot to even stricter controls on cash to gain more control over the economy and practically unlimited power to tax and spend – without congressional approval.

Sweden is ahead of the U.S. feds on this one. We can only hope it goes far ahead, fast, and blows itself up before the U.S. pivots down that path, too. By Bill Bonner, Bonner & Partners

Businesses are now catching the drift. Read… Chilling Thing Hershey Just Said About American Consumers
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Offline Eddie

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Re: All Your Money Are Belongz to US!
« Reply #5 on: October 30, 2015, 06:55:44 PM »
I read this earlier. I just wonder how much blow-back would occur if we were suddenly forced to go cashless. I hope I never live to see it.
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Online RE

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Re: All Your Money Are Belongz to US!
« Reply #6 on: October 30, 2015, 07:17:44 PM »
I read this earlier. I just wonder how much blow-back would occur if we were suddenly forced to go cashless. I hope I never live to see it.

You can see this one coming.  Here in the FSoA, how many transactions still use cash?  How many of your patients hand you a wad of cash versus those that pay with Debit Card or Check?

Since about everyone has a Smartphone, everyone can have their own POS terminal.  This would not be hard at all to pull off in the current FSoA.

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Offline Mercury

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Re: All Your Money Are Belongz to US!
« Reply #7 on: October 30, 2015, 07:31:39 PM »
I read this earlier. I just wonder how much blow-back would occur if we were suddenly forced to go cashless. I hope I never live to see it.

When the economy crashes perhaps you will.
Do you know what 'Nemesis' means?

Offline Fenixor

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Re: All Your Money Are Belongz to US!
« Reply #8 on: October 31, 2015, 05:41:42 PM »
Haha yes I read this one on The Local, microwave article. I mean it's so bizarre I can do nothing but laugh at the stupidity of it all, one bank has already started charging people for having money in the bank (Handelsbanken) but mostly people above a certain income level and so while I actually have my account there I'm too poor already so it doesn't affect me. Swedes are just too gullible when it comes to believing the government's knows it all or that the Riksbank has any clue of what it's doing. I mean, most people are probably smart enough to figure out that something is majorly wrong but there has been little or no outcry, because people like order and credit too much. Its this linear thinking again, believing that all will be fine if we can just adjust interest rates, growth will come back. We also have the most over indebted private sector in the world according to some, and so the fall is going to be brutal, my bet is that it will come soon, keeping an eye on commodity trade and the housing market. Both steel and paper are down, mostly steel. Housing prices could be at a turning point. When it all comes tumbling down people will be poorer than porest since they have no cash and the banks have closed all possibilities of owning cash and so we will beg the government to bail us all out.

Online RE

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Re: All Your Money Are Belongz to US!
« Reply #9 on: October 31, 2015, 05:55:08 PM »
Haha yes I read this one on The Local, microwave article. I mean it's so bizarre I can do nothing but laugh at the stupidity of it all, one bank has already started charging people for having money in the bank (Handelsbanken) but mostly people above a certain income level and so while I actually have my account there I'm too poor already so it doesn't affect me. Swedes are just too gullible when it comes to believing the government's knows it all or that the Riksbank has any clue of what it's doing. I mean, most people are probably smart enough to figure out that something is majorly wrong but there has been little or no outcry, because people like order and credit too much. Its this linear thinking again, believing that all will be fine if we can just adjust interest rates, growth will come back. We also have the most over indebted private sector in the world according to some, and so the fall is going to be brutal, my bet is that it will come soon, keeping an eye on commodity trade and the housing market. Both steel and paper are down, mostly steel. Housing prices could be at a turning point. When it all comes tumbling down people will be poorer than porest since they have no cash and the banks have closed all possibilities of owning cash and so we will beg the government to bail us all out.

Sweden definitely appears to be at the forefront of the NIRP/Cashless push by the Central Banks and Goobermints.  So you folks are kind of a Canary in the Coal Mine on this one.


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