Global financial repression has picked up steam. Australian citizens are likely the next victim.
AU News reports Government Floats $100 Note Removal.
SAY goodbye to the $100 note.
Australia looks set to follow in the footsteps of Venezuela and India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”.
Speaking to ABC radio on Wednesday, Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note and cash payments over certain limits as the government looks to recoup billions in unpaid tax.
“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” she said. Despite the broad use of electronic forms of payment, Ms O’Dwyer warned there are three times as many $100 notes in circulation than $5 notes.
“It does beg the question, ‘Why?’” she said.
There are currently 300 million $100 notes in circulation, and 92 per cent of all currency by value is in $50 and $100 notes.
A report by UBS recommended Australia scrap the $100 note. According to UBS, benefits may include “reduced crime (difficult to monetise), increased tax revenue (fewer cash transactions) and reduced welfare fraud (claiming welfare while earning or hoarding cash)”.
“From the banks’ perspective there would likely be a spike in deposits — if all the $100 notes were deposited into banks (ignoring hoarded $50 notes), household deposits would rise around four per cent,” the report said.
Why?
Financial Services Minister Kelly O’Dwyer notes there are currently 300 million $100 notes in circulation, and 92 per cent of all currency by value is in $50 and $100 notes.
“It does beg the question, ‘Why?’” she asked.
It would behoove O’Dwyer to think. People can have 100 pennies in their pocket (each of which is nearly worthless) or they can hold a dollar.
Similarly, people can hold a stack of ten $10 notes in their wallet or they can hold a $100 note.
Mathematically it makes perfect sense that 92 per cent of all currency by value is in $50 and $100 notes.
What the hell does $1 buy these days? Is someone going to carry a wad of fifty $1 notes to go to a movie and buy popcorn?
No Cash Within 10 Years?
Rest assured this will not stop with $100 notes. There will no cash within ten years.
Related Articles
- Cash Chaos in India, 86% of Money in Circulation Withdrawn; Cash Still King in Japan
- India Confiscates Gold, Even Jewelry, in Raids on Hidden Money
Mike “Mish” Shedlock
No cash !?
We’ll all be broke !!!
“Rest assured this will not stop with $100 notes. There will no cash within ten years.”
YOU can “rest assured” that in less then ten years, if things come apart at the seams, YOU won’t have ANYTHING left to worry about.
One thing is for sure…..the 1/10th of 1% are going to survive and thrive….even if it means EATING YOU ALIVE.
Please use the shift key correctly.
A steady march back in time to FEUDALISM is planned for all us DEPLORABLES.
Start hoarding BURLAP, so you and your descendants will have something to wear as you till the soil for your Lords and Masters, while eating GRUEL, if you are one of the lucky ones.
Sleekster and Greenacr – you both gave me the biggest laugh right now. Too funny even though it is not a laughing matter . . . . . I guess I will buy a foot pump sewing machine . . .
The lucky ones are the baby boomers who were born, raised and matured at the height of empire… then rode out their lives during the slow degenerate fall of empire. The last baby boomer to leave will turn out the final light.
Ironically, Trump was born in the first baby boomer year [1946.] The first of the baby boomers turn 70 this year.
.
Yup, they did get to live in the land of milk and honey. Now we get the twin joys of a perverted economy and a climate that’s spinning off the rails.
They’ll have robots to do that for them.
Don’t joke joke about it. It was mentioned 2000/1 as a consequence of policies brought in by the good and the great in the EU. It was outed as a path to medieval feudalism that would take a while to get there but that would be an outcome.
If you hang around long enough some of this stuff looks like part of a plan going back years across multiple time zones.
Mish – are you saying that cash will be eliminated in the US within 10 years?
Find that hard to believe as Congress can’t even eliminate the frickin penny!
They started on the penny a few years ago. They are a copper flash coat over zinc now. Bury in your garden and dig it up every once in a while and watch it corrode away.
They may not be able to eliminate the penny, but they had no problem eliminating the $500 bill and the $1000 bill. Congress may not be capable of doing the sensible thing, but they are ready, willing, and expert at doing the evilest and stupidest things.
Hi Mish,
When convenient [could you, would you] comment on J. Rickards newest book, “The Road To Ruin”.
Thanks in advance.
Jim
Sent from my Verizon Wireless BlackBerry
Government may eliminate cash but they will not eliminate the black market or forms of payment such as barter. My sister’s boyfriend is a doctor and takes a substantial amount of renumeration in barter. Car, Appliance and house repairs, free tax preparation, clothes it goes on an on.
The law of unintended consequences dictates that this move would easily be thwarted and that alternate forms of payment would proliferate.
What goes around comes around.
Rebirth of money.
Barter impacts velocity of money, value stores (there will be less value stored and more in immediate action) and finally leading to time-value stores being created in local accepted currency (perhaps local, very small, stamped silver or gold coinage and written i.o.u. s).
Wasn’t that how it got started once trading goats and wheat became cumbersome?
If this happens expect a period of the authorities stamping on any innovation they can’t control, creation of laws banning barter and some imprisonments/raids.
The result, increased black market activity and/or reduced commercial activity.
Careful what they wish for.
Junk silver would work fine. There is all kinds of that available.
For transactions under $1000, people will easily convert to trading gift cards, phone cards, transit cards, etc. Someone will start a clearinghouse to trade a card from one locale for a card in another locale. Not any different than the way banknotes began.
For larger amounts, stuff like BitGold may fill the niche.
India showed by banning cash the economy will crash, which is far more painful to society than a few tax cheats. Let’s see how quickly the Australian economy crashes as the real goal is to recapitalize banks by forced deposits..
They could offer incentives to cash being deposited into banks to flush cash out into the open. Tax avoidance amnesties for large deposits or a payment to the depositor for deposits below a certain value.
After some period they then null and void the denominations they want gone.
The better the economy, the less power government has. Liberty is never granted, it is only taken.
I call Bullshit..not going to happen until computers never crash or the line between vendor terminal and bank never fail…
I don’t carry much cash on me, but I always try to have a 50 or 100 in my wallet, just in case.There are still shops that don’t accept plastic for purchases and a lot will not do it if the value of the purchase is under 10 dollars.
We should get a discount for using cash(no fees paid to all the intermediaries between you and the vendor bank which is passed onto us)
mixo
It will happen, look at some Scandinavian countries. Phones will also be used to vote.
If you can bank on the phone you can vote on the phone.
Total control of money and votes by whomever controls the collection of digital data.
There will, in time, be a global digital market place for value store and ultimately total governance. Give it 100 years to happen.
Don’t discount the fact that going cashless is running parallel to the agenda to chip people. The House passed a bill to allow offices in the Federal Governemnt (Attorney General and Dept of Justice) to chip people with “mental disabilities.” Not Heath and Human Services. Discretion is in the hands of law enforcement on this one.
Things are coming at us fast and furious. Need to make a stand.
They will not be happy until “they” can stand between every single human transaction and any communication on earth. Then the news will be all about how lucky you are to be born in a free world.
The irony is… oppressive globalist politicians and their draconian laws are much more destructive than the so-called “black economy.” In the time of the Bible hero, Gideon, he was involved in what might be called, “black economy.” Gideon hid the fruits of his labor to keep it from being confiscated by abusive rulers.
Humm,,,,makes more sense to carry one silver eagle for purchases than it does to carry 1700 pennies,,,maybe? After paper money is gone, mind you?
Citizens should be hoarding pitchforks and rope.
Driverless cars accepting cash is a recipe for trouble anyway.
Book by phone, documented on monthly bill as a service, debited automatically from bank monthly. Really easy to do.
Big oo-ha is when they offer the chance for the human to be chipped so your attendance in driverless taxi or public transport is automatically logged. The excuse will be to avoid fraud or loss of phone/terminal/bracelet causing inconvenience to you.
Many scenarios already planned, just needs passage of time before its only natural.
“Big oo-ha is when they offer the chance for the human to be chipped so your attendance in driverless taxi or public transport is automatically logged. The excuse will be to avoid fraud or loss of phone/terminal/bracelet causing inconvenience to you.
Many scenarios already planned, just needs passage of time before its only natural.”
Some fascist professor at Reading University already tried that. I suggested using chip tech implanted in all gun owners in the UK after Dunblane.
People have been manipulated by popular culture to take photos/videos of themselves and share with the world everything they think and do. Most have willingly embraced the death of their personal privacy.
Just look at the Amazon concept store that was recently proposed. All wireless, you grab what you need and walk out, no checkout lane. Phone, item containers, all RFID, if I’m correct. Add a chip to this along with a database of purchases (that probably won’t have any resistance from Amazon or whomever to share with authorities,) and you have a perfect loss of privacy.
Yes, kids, the Orwellian stuff is actually happening. Time to take action.
Mish — you should explain your terms a little more carefully. Government sponsored currency might or might not disappear in 10yrs, but that doesn’t mean there aren’t alternatives.
Many parts of the world already use other currencies. Prisons often use cigarettes for currency (although in US prisons, apparently ramen noodle packets have more value). Most city transit authorities already issue debit cards for subways and trains. Walmart will cash your paycheck and give you a debit card that works in any of their stores — no bank account needed. Check cashing stores and paycheck anticipation loans are in most cities of G7 countries.
In most of the world, people buy things on store credit. Muslim and Asian cultures have traditions of money changers that serve the same function as Western Union (or the Fed’s Fedwire system) — and in many cases they function better and cheaper than Western Union (even US banks try to limit their use of FedWire, its overpriced).
Given that most G20 governments are actuarially insolvent, while the full faith and credit of the legislature is absolutely worthless — it stands to reason that other currency issuers, with more honorable backers, will take the place.
The US had no official currency until after the civil war (each bank issued their own currency). It worked just fine overall — as now, some currency issuers printed too much currency, and theirs became worthless. Others were more prudent, and their currency traded at or above face value.
India’s currency mess is a great example. Maybe Modi had the best of intentions, maybe he just has a giant ego… but whatever the reason India got rid of “large denomination” notes, and the people started using credit and barter.
The Aussi foolishness will backfire on their government if it happens. Most politicians are too short sighted to see the long term consequences of their actions.
Every major empire / kingdom throughout history has tried to wreck their own currency. They all “succeeded” (were replaced)
CEO of Mastercard, Indian born. Big push on mobile wallets in emerging markets to bank the unbanked and it is gaining momentum.
MC, BICS and ESG share Homesend.com ownership for remittances but also involvement with financial inclusion.
Anyway, I wondered if the Indian moves were all intertwined with this. The channels for the unranked are now available.
http://homesend.com/
http://eservglobal.com/
Looks like it is time to start converting my $100 bills into gold bullion.
Driverless vehicles and a cashless society.
The ring is closed.
Total control over the masses.
There already is in some places. In the UK there are ANPR cameras all over (automatic number plate recognition), CC TV and ability to track phone to within 100-300 metres without much of a problem for the authorities. Keep your phone on in the car and you can be tracked easily enough.
Law changes happening so ISP has to keep browsing history records for 12 months, it might even be 24.
Try any reasonable size of financial transaction and it is logged and the money source can be determined.
If you come under any suspicion everything you do can be tracked, traced, logged, affiliations determined etc. etc.
It’s the future everywhere.
The UK is THE worlds surveillance state. I remember reading somewhere it has 75% of the worlds CCTV watching 1% of the worlds population!
These cameras are there for the populations ‘safety’, then why isn’t the UK the safest country in the world? Because it’s BS. It’s all about watching you, It’s about control. Just as taking your money away, is control. As automated cars/trains/planes, are all about control.
We will be given various stories and tales for these changes but it’s all about control. The likes of Hitler, Stalin, Mao, Pol-Pot and other tyrants/dictators would have loved to have the technology to watch their people that we have watching and ‘protecting’ us today. What a repressed world we have coming.
I thought it was already a legal requirement for ISP’s and phone companies to record all e-mails/phone calls so the govt can access them when required, browsing history must be an addition. The UK’s idea of ‘freedom’ is having more than one butter to choose from at Tesco’s.
It seemed a bit of a paradox that when ‘The wall’ came down, the ex-soviet satellites were becoming freer, while the west was becoming progressively less free.
In India Rs.500 and Rs.1000 notes were declared not legal tender (for transactions) from mid-night Nov 8, 2016, but citizens have been provided a window to exchange (initially) and then deposit the notes in their bank account.
But then new Rs.500 and Rs.2000 have been introduced. So in one sense higher denomination currency has not been eliminated and I suspect that once the dust settles on demonetization it should be business as usual in India.
Converting India into a cashless economy will remain a dream for the foreseeable future. In one sense I am happy about it as the central bankers cannot impose negative interest rates or lock you out from your money and also cannot track how I spend my money. Looks like the more developed a country the more prone it is to confiscation (what else is negative interest rate?). Also India is a vibrant democracy (with its warts and all) and it will not be easy for any government to confiscate enmasse (unlike some developed countries) without some serious repercussions.
Give them a phone for free and a slight incentive and the young will be trapped. The old will pass on and finally be out of the picture. All that is needed is a plan, patience and some time.
Given India’s population, unbanked people and political environment, it will likely need SOME planning, patience and time…Show me one politician who is willing to wait that long…
E.g.
“M-Pesa now has 17.6 million active users in Kenya, with, according to the new study, at least one user in 96% of Kenyan households.”
http://fortune.com/2016/12/10/mobile-banking-poverty-research/
http://swarajyamag.com/world/what-kenya-gained-by-going-cashless
Thanks for the links.
From the second link…
One has to simply sign up with M-PESA, where the system will open the user’s M-PESA account:
Money can be credited into the account by approaching a local corner shop Safaricom agent who will then transfer money into the user’s account via the user’s mobile.
Withdrawal of money is possible in a similar manner, where the user will go to the agent, sufficient balance will be checked and amount will be debited from the person’s account.
Now the existing cash system works like this…
Money in my pocket (Bank/ATM/Cash payment received). I go, buy, pay and leave.
Existing cash system is simpler. The problem with this is more for government than for people, and has to do with taxation, and people (especially those in commerce) know it. This is going to make adoption much slower and difficult. Add politicians and corrupt officials who also prefer dealing in cash (the best way when it comes to bribes) to this.
As an aside Kenya’s population is 47 million. India’s is 1333 million. Making India cashless is going to be a Herculean task.
It is not politicians per se who are behind such plans. Indeed it can be argued that the very shortsightedness of politicians, always eager for the immediate fix and damn the longer term and/or unintended consequences view, that allows those in the shadows to succeed with those long-term plans.
Look at the EU, a hundred years in the making and, make no mistake, still ongoing. Brexit and/or a Euro-collapse might stall or even appear to destroy it, but it won’t stop it, could even accelerate it, the only certainty is the ‘plan’ will go on. Most folk and I include myself in that, believe that plan to be One World Government by Technocracy, but no one among the common folk actually knows as the true architects of those plans are unknown as are the outcomes they actually desire. That those plans continue across decades and remain consistent is an especially red flag.
Anyone of my age, 67 and rising, only needs to review their own knowledge of history to see that there has been a ‘plan’ for society since WW2 ended, indeed you can see the first seedlings in the Social Liberalism of the late eighteen hundreds but it is most obvious post WW2, I can not be alone in seeing how many countries around the world seem to near coincidentally pass all manner of legislation, social and economic especially, that is basically the same which holds no real interest to the ordinary person but still brings about fundamental social and cultural changes. Just as some form of Social Democracy has apparently been declared to be the only acceptable political philosophy, never mind that it is the least honestly democratic of all democratic systems.
“Give them a phone for free and a slight incentive and the young will be trapped.”
The young will trap themselves. The young don’t value freedom, not really. They value convenience.
“The old will pass on and finally be out of the picture. All that is needed is a plan, patience and some time.”
For the same reason, if the UK had taken the Exit referendum in 2030, the vote would have been overwhelmingly to stay in, because anyone that knew how things were before the EU would be dead.
People have been manipulated by popular culture to take photos/videos of themselves and share with the world everything they think and do. Most have willingly embraced the death of their personal privacy.
Baby Boomers will be the last generation who lived in relative freedom and privacy… and most of them no longer value it.
Given India’s population, unbanked people and political environment, it will likely need SOME planning, patience and time…Show me one politician who is willing to wait that long…
Outlaw cash in exchange for legalized weed. Sounds like the making of a greenback currency with true intrinsic value.
I want to see a cashless economy work in a crash of the electric grid. And once the anarchists on the web figure out that this is aimed at screwing them, I’m sure they’ll put it to the test.
In Australia if you want to buy gold you have to provide your driving license or passport. Everything is documented here.
In other words, you can’t buy or sell without the mark of the beast.
That has been happening to individual nations for decades. If a nation fails to kowtow to the globalist beast, it is bribed, blackmailed or bombed into submission.
Hi Mish,
Also in Australia to buy gold or silver you have to show your driving license or passport . Everything is documented.
Regards
Farran Mackay
Sent from my iPad
Unfortunately, in Australia, the smallest note we have is the $5 bill. This buys you less than one beer. $6 is a cheap beer! $5 might buy the chips!
So what the Gang-ov-Thieves (Govt) want to do is to make the biggest bill $100 (20 x the smallest bill) obsolete, so the biggest bill is $50 = 10x the smallest bill. NOTE in Australia the smallest coin is 5cents (In New Zealand 10cents). What comes next. Outlaw cash at all!
The problem I have is that the vast majority of citizens will happily give this away on the pretense that it is to stop the “BLACK’
economy, without ever questioning when the $100 note (bill) came into existence (1984) an Orwellian year. After decades of inflation the Gang ov Thieves conceded to the $100 note. After a further 32 years of inflation (Govt stats CPI 1984 =$1 to now 2016 =$0.33). With these lies, who needs evidence! Man, $3 today does NOT buy what could be bought for $1 in 1984! How do you trust statistics (Govt produced), you don’t! In 1986, I could buy a beer for $1.20 and now it costs $6+.
In 1986 I could buy a unit for $90k, now it’d be > $900k!
So even if we take the CPI at face value, the $100 note is now worth ONE THIRD of what it was when it was issued! And now the state wants to reduce us to $50 notes, one sixth of the value of a 1984 $100 note.
Does the populace of Australia see what this is??
I doubt that they do, the stupidity is a drug induced haze, injected in mother’s milk, through generations of public education and “welfare”.
People trust their overlords without question!
I despair!
Tyranny and one world Govt is just around the corner, but who cares?
When I was young, I questioned the book 1984 and the Bible’s Revelation, but I now I see that this is an inevitable outcome, with the majority anesthetised by the state sponsored propaganda services (main-stream media).
All hope is lost!
Give up and make of it what you can!
Bad news, Colin: “Resistance is futile; you will be assimilated!”
“Is someone going to carry a wad of fifty $1 notes to go to a movie and buy popcorn?”… Australia discontinued the $1 and $2 notes many years ago and replaced them with coins…. Maybe they’re planning to replace the $100 notes with coins too, heh
Every US banknote has a serial number. Up until recently it was difficult to track cash because of the tedium of going through the process. But with processing and OCR software nearly ubiquitous it should become fairly trivial to track banknotes as they travel through the economy. Even if the serial numbers aren’t readable, every banknote has random red and blue threads. Again, cameras can read these patterns and use them to track currency. And then there’s http://wheresgeorge.com/
Most dollars only last about a year and a half. Larger denominations will last longer because they don’t see the same circulation, and coins last much longer (but are more difficult to carry), but they all have a finite lifespan. Eventually physical currency will wear out.
And at some point you’re going to have to deal with someone who will put that dollar bill into a bank or other checkpoint where it can be scanned and tracked. Probably only one degree of separation away from the system for almost everything you do. Once bills are scanned (and shredded, if the bank is given the equivalent in electrons) at the point of entry someone will be tracking it and probably eliminating it. Even now only a small percentage of money is actually physical (a few searches turned up an 8% number, but didn’t dig deeper). It won’t take much to get rid of that, mainly when my parents’ generation dies off.
Another point is that if there are two currencies that are labeled the same value, the cheaper/debased currency will be the one in circulation. So when the treasury stopped issuing silver coins in the 1960s they quickly were hoarded while the cheap clad coins remained. I haven’t seen a silver dime in my pocket change for years, but I used to get them a few times a year. Maybe credit/debit cards are the modern equivalent? Use the cheap, unreliable stuff for day to day transactions and dump it off ASAP but keep the good stuff locked up?
“Global financial repression has picked up steam. Australian citizens are likely the next victim.”
Governments are setting about destroying the world economy. All one has to do is look at what just happened in India.
The G20 governments changed the rules for depositors in 2014. Something BIG is coming. Bankers want to outlaw cash so that depositors cannot remove their property, received for their labor, from the banks. There is obviously concern about bank runs, which means the global financial system is precarious, despite any assurances.
Governments want to outlaw cash so they can track everything someone buys, even toilet paper. A perfect recipe for a totalitarian society.
This may be a dumb question but so be it. Is the purpose moving to a cashless society so that banks can skim fees off transactions?
1. It’s to make sure people pay taxes on every penny
2. so the government knows everything you do and everything buy and everywhere you go
To stop bank runs could be another reason.
And to prevent “bank runs” when (not “if”) negative interest rates are implemented and depositor “bail-ins” become necessary.
Dead right ! and you hit the nail on the head, however there are many other sinister purposes that this will enable government to carry out with ease !
The irony is… that is happening now with mobile phones and people love it.
Also face recognition technology that allows someone to snap your photo in public and search the web for your identity. Government entities are light-years ahead of that.
Thanks Mish.
Pay tax as its earned and pay tax on it when depositing cash into bank before it is outlawed or becomes worthless !! Getting ready for depositor bail ins as what happened in Cyprus !!
When the government allows the banks to skim a percentage of all bank accounts or maybe take the lot.
Remember that they have run out of their money , so they now need yours !!! All of it !!
john l don’t understand this war on cash,please explain,also the nyse hit its all time high of
11,200 yesterday,if goes higher from here,l am quitting the business
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But what will become of the bums? Already I have to use the excuse “but I don’t have any money”. Panhandlers won’t be able to survive unless we can give them money-units through our “smart” phones. There will have to be new bank regulations to eliminate fees for e-panhandlers. “threw the bums a dime, in your prime, and then you…”
After the news of recalling the $100 notes by the government, Westpac started charging $0.60 for issueing each ATM balance record. Previously it was free.
Is this more than a coincidence?
Bankers will get more from our pockets with their various fees and charges.