Hope y'all are watching this

[shinnosuke]

If $100 bills are eliminated from US currency, 78% of all cash will have to be replaced with smaller bills...or we will simply be forced to do more high dollar transactions with credit/debit cards. Any of you guys selling in the classifieds section take MasterCard?

Table 1: The largest bills in circulation account for over 2/3 of all currency in circulation - End of 2015 where available

Source: GoldMoney Research, Bloomberg, FED, ECB, BOJ, BOE, RBA, SNB, BOC, BM, RBNZ, SRB, RBI, BCB, CBR, IMF

 

[TheDan]

Any of you guys selling in the classifieds section take MasterCard?

That's a very important point... All the small card processors like Paypal and Square prohibit transactions concerning firearms.

I'll gladly take silver over FRNs for anything I'm selling, tho.

 

[Younggun]

That's a very important point... All the small card processors like Paypal and Square prohibit transactions concerning firearms.

I'll gladly take silver over FRNs for anything I'm selling, tho.

I'm selling cerekote......the firearm underneath is just stuck to it.


Sent from my HAL 9000

 

[InfantryNCO]

 

[HKShooter65]

I'm selling cerekote......the firearm underneath is just stuck to it.


Sent from my HAL 9000

Loopholes are the greatest invention.
America may not have invented them but we perfected them.

 

[shinnosuke]

http://www.zerohedge.com/news/2016-02-27/global-run-physical-cash-has-begun-why-it-pays-panic-first

The Global Run On Physical Cash Has Begun: Why It Pays To Panic First



Submitted by Tyler Durden on 02/27/2016 18:55

Back in August 2012, when negative interest rates were still merely viewed as sheer monetary lunacy instead of pervasive global monetary reality that has pushed over $6 trillion in global bonds into negative yield territory, the NY Fed mused hypothetically about negative rates and wrote "Be Careful What You Wish For" saying that "if rates go negative, the U.S. Treasury Department’s Bureau of Engraving and Printing will likely be called upon to print a lot more currency as individuals and small businesses substitute cash for at least some of their bank balances."

Call it another massive error on behalf of Keynesian central planners who once again fail to appreciate the nuances of the common sense and the liquidity preference of ordinary consumers.

However, just because negative rates have not been passed on to savers yet or just because cash still has not been made illegal, that doesn't mean it won't be.

The question at this point is twofold: what happens after the savings of ordinary depositors in the bank officially taxed and/or cash becomes phased out, and more importantly, what happens just before.

In other words, will there be a run on physical cash?

The truth is that if society panics and there is a full blown rush out of existing electronic bank deposits and into physical currency to avoid negative rate taxation, only those who panic first will be safe. Why? Because of the "magic" of fractional reserve banking - there is simply not enough physical currency in circulation to satisfy all savers' claims.
Here is HSBC's Steven Major trying to explain the problem:

Based on the evidence so far, households have not rushed to withdraw cash and put it into a safe or, more significantly, pay for someone else to store it for them. This is because retail deposit rates have stayed at or above zero as banks have opted to not pass the lower market rates on.

Currency in circulation is small compared to the potential demand in a negative rate environment. As an example, the Fed’s assets are three times the currency in circulation and the Riksbank’s nearly ten times (see Table 1), but production capacity is limited.

​

While largely correct, Major is wrong about two critical things.

First, when estimating the potential demand for physical currency in circulation, one has to take into consideration not only the amount of total Fed reserves (or its entire balance sheet) but the entire fractional reserve banking system, and specifically the amount of paperless deposits parked at banks in the form of demand, checking, and savings account, or in other words, all the core components of M2. Not only that, but one must also consider the threat by increasingly more economists that large denomination bills may be outlawed, first in Europe with the €500 bill and then in the US with the $100 bill.

What a ban of Ben ($100 bill) would imply is that the total notional value of US currency in circulation would plunge from $1.35 trillion in the most recent week, to just $271 billion once the total $1.08 trillion value of $100 bills is eliminated.

Putting this in context, there are as of this moment, $11.1 trillion in various forms of savings parked at banks as summarized in the chart below.


For the sake of simplicity, this analysis ignores what would happen globally in a comparable scenario in which paper currency in other developed markets is likewise "curbed" in part or in whole. Recall that for NIRP to truly work, paper currency has to be substantially eliminated everywhere it is implemented. We will analyze the impact of a global rush into paper currency in a subsequent post.

Still, what the chart above shows is that if, and when, a run on physical cash begins, there will be roughly $1 dollar in physical to satisfy $10 dollars in savers' claims, a ratio which drops to 20 cents of "deliverable" cash if the $100 bill is taken out of circulation.

* * *
The second, and far more critical error Major makes, is the assumption that "households have not rushed to withdraw cash and put it into a safe." As we explained previously, while this may have been true for a long time since 2014 when the first cases of NIRP were unveiled, that is no longer the case. Recall from "Safes Sell Out In Japan, 1,000 Franc Note Demand Soars As NIRP Triggers Cash Hoarding"

Now that the cash ban calls have gotten sufficiently loud to be heard by the generally clueless masses and now that the likes of Jose Canseco areshouting about negative rates, savers are beginning to pull their money out of the banks.

“Look no further than Japan’s hardware stores for a worrying new sign that consumers are hoarding cash--the opposite of what the Bank of Japan had hoped when it recently introduced negative interest rates,” WSJ wrote this morning. “Signs are emerging of higher demand for safes—a place where the interest rate on cash is always zero, no matter what the central bank does.”

“In response to negative interest rates, there are elderly people who’re thinking of keeping their money under a mattress,” one saleswoman at a Shimachu store in eastern Tokyo told The Journal, which also says at least one model costing $700 is sold out and won’t be available again for a month.

Meanwhile, in Switzerland, circulation of the 1,000 franc note soared 17% last year in the wake of the SNB’s move to NIRP.

“One consequence of the decision to cut the Swiss central bank’s deposit rate into negative territory in late 2014, and deepen the negative rate to -0.75% early last year, may have been to increase stockpiling,” WSJ reports. “Holding money in cash would protect it from the risk of Swiss banks at some point charging a broad range of customers to deposit money.”

And then this from "Demand For Big Bills Soars As Japan Stuffs Safes With 10,000-Yen Notes":​

"It isn't a good thing" because it confirms that the global run on physical cash - as much as the bankers of the world would like to keep it under wraps - has begun, and as the chart above shows, in a fractionally-reserved world in which there are $10 in savers' claims for every $1 in physical currency, it quite literally pays to panic first, as the 9 out of 10 people who panic after the first one, will be stuck with nothing.

 

[TheDan]

The Global Run On Physical Cash Has Begun

Meanwhile silver is still hovering around $15. Don't horde paper; get some real money. Better yet buy ammo. Even better buy some ducks. You want to eat eggs while the world's economy crashes right? Three ducklings for 1oz of silver

 

[shinnosuke]

Meanwhile silver is still hovering around $15. Don't horde paper; get some real money. Better yet buy ammo. Even better buy some ducks. You want to eat eggs while the world's economy crashes right? Three ducklings for 1oz of silver

Where do you buy your ducks?

 

[motorcarman]

Some local feedstores sell baby ducks, chicks and bunnies for Easter.
Back in the 50s, 60s and 70s my granny used to put ads in the paper "GOOD HOME TO UNWANTED EASTER DUCKS, CHICKS AND BUNNIES".

People would drop off the animals when the kids got bored with having them and she would raise them until they were big enough to eat.

We always had eggs and meat.
Guinuea fowl are kinda mean and LOUD.

bob

 

[benenglish]

Guinuea fowl are kinda mean and LOUD.

Best. Watchdogs. Ever.

They're related to geese which have actually been used for perimeter security by U.S. bases in Germany. There's no sneaking by them without them making a heck of a racket.

 

[Wyldman]

Best. Watchdogs. Ever.

They're related to geese which have actually been used for perimeter security by U.S. bases in Germany. There's no sneaking by them without them making a heck of a racket.

Truth!


Crush, kill, mangle, maim, destroy.

 

[Texas42]

Meanwhile silver is still hovering around $15. Don't horde paper; get some real money. Better yet buy ammo. Even better buy some ducks. You want to eat eggs while the world's economy crashes right? Three ducklings for 1oz of silver

gold and silver are fiat currencies. They have no intrinsic value. If the world comes to an end, they will be pretty paperweights.

ammo, guns, foodstuffs, farming supplies, all will be very valuable.

 

[ZX9RCAM]

gold and silver are fiat currencies. They have no intrinsic value. If the world comes to an end, they will be pretty paperweights.

Are you sure?
I bet there are millions thinking otherwise, although, they could all be wrong.

 

[Texas42]

Are you sure?
I bet there are millions thinking otherwise, although, they could all be wrong.

I'm sure there are. Doesn't mean they are right.

 

[TX69]

It is far easier to control the masses with electronic transactions than it is with cash. With cash you cannot see where any of it is going so you cannot control people using cash. No interest, taxes, fees or anything can be attached to it. Our masters are watching how many people have figured out how to do small transactions using cash to avoid the masters and they want their control back. The masters know and see the billions that flow by that they want control of and what better way than to eliminate the way that you can do it by abolishing the very bills that you are using?

 

[TX69]

gold and silver are fiat currencies. They have no intrinsic value. If the world comes to an end, they will be pretty paperweights.

ammo, guns, foodstuffs, farming supplies, all will be very valuable.

The collapse you are talking about would be one of total global thermal nuclear war and the destruction of more than half of the worlds population. Even then there wouldn't be an environment to use your farming equipment to grow crops. There has never been a time when GOLD didn't have value to some degree as modern humans have been in existence on this planet. Even when it was used to mold statues and jewelry it was still praised and fought over.

Yes armament will be a tool to steal things like Gold but in of itself it will always have value in varying degrees. Humans like shiny things.

 

[TheDan]

Where do you buy your ducks?

I'm a seller not a buyer
Local farm supply stores should have some every spring.

gold and silver are fiat currencies. They have no intrinsic value. If the world comes to an end, they will be pretty paperweights.

ammo, guns, foodstuffs, farming supplies, all will be very valuable.

They aren't fiat currencies because at the very least they are worth the expenditure of labor it takes to produce them. Personally I've never seen the value in gold or silver beyond their industrial and chemical uses, but many people do. Even in the event of total economic collapse, people need some form of money to make it easier to exchange and store value. Historically that has been gold or silver. Don't worry about me, tho... I have more lead than either of those

 

[shinnosuke]

Usually the argument against precious metals starts with the line, "Yeah, but you can't eat it." The same can be said of an ax or a spare tire, both very good things to have in a pinch. Of course, even with the Roman Empire crumbling (like the American one is now), the people were very upset that the denarious had less and less silver content. Even in TEOTWAWKI events, so far anyway, there is always somebody willing to give up something for gold or silver. I'm also reminded how happy some Vietnamese citizens were when fleeing South Vietnam that they were able to melt down their gold and sew it into the inner lining of their clothing.

Food, water supply, defense, medical items...then precious metals.

Cash is being eliminated. If that is no longer available as a medium of exchange, how do you propose to undertake a private transaction? Nothing better than some silver coins. Or, heaven forbid, an ounce of gold to ransom a spouse or child.

 

[TheDan]

Or, heaven forbid, an ounce of gold to ransom a spouse or child.

Don't even entertain that idea... Kidnappers get nothing but lead.

 

[shinnosuke]

For a real laugh, check out this reporter blathering on about gold. 47 seconds of hilarity.