Bank Of England Economist Calls For Cash Ban, Urges Negative Rates

Storm clouds on the financial horizon? It is interesting that Negative Interest Rates are actually being discussed as a long term viable option.



www.zerohedge.com...

Bank of England chief economist Andy Haldane appeared a lone voice of sanity in a world fanatically-religious Keynesian-esque worshippers.

Haldane now made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.


Andy Haldane, one of the Bank’s nine interest rate setters, made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished
He said that the "the balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside".
As a result, "there could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target".

Traditionally policymakers have resisted cutting rates below zero because when the returns on savings fall into negative territory, it encourages people to take their savings out of the bank and hoard them in cash.

NIRP - it would appear - is about to global.

So Haldane has gone from worrying that "financial markets were detaching themselves too materially from fundamentals" and fearing the "biggest risk to global financial stability right now it would be a disorderly reversion in the yields of government bonds globally," the BoE's chief economist has not only called for policies which will enable an even bigger bond bubble but will also remove freedom from the people to do what 'they' think is best with their capital. Indoctrination is complete (or more ominously, is there something Haldane sees that has driven him to this extremist perspective?)

Fed Opens Negative Interest Rate Pandora's Box: What Happens Next
www.zerohedge.com...
libertystreeteconomics.newyorkfed.org...

a reply to: infolurker

Might as well ban cash. Big money is nothing anymore but a lot of numbers on a computer screen anyway.

a reply to: infolurker

I had the Fox financial talking heads on yesterday, and I about snipped my pants when one of them said, "Why do we even NEED the Federal Reserve Bank?"!

Wall Street knows the bubble is about to pop and was prepared for at least a 1/4 percent hike of a non existent interest rate hike. When it didn't happen, they were looking at each other going, "WTF?".....

Make some popcorn folks! Between this upcoming "Selection" and the faux banking system? Things are going to get REAL!

a reply to: seeker1963

Buy more food.

So England wants to ban cash so no can access their savings and then institute negative interest rates to that they can steal the money you saved that you can't access?

Sounds legit, and I'm sure people would take that lying down.

Additionally, they always portray plans to put savings in the full control of the people who saved it as "driving granny off the cliff," but this really would. After all, retirees aren't like productive folks who can keep slaving away for the state against a negative rate. They'll be tapped out in no time.

What's next? State pushed euthanasia for the Greater Good?

originally posted by: infolurker
a reply to: seeker1963

Buy more food.

Already have a months supply. No need for more, because if things aren't wrapped up by then, I will have to mobilize which means travel lite!

originally posted by: seeker1963

originally posted by: infolurker
a reply to: seeker1963

Buy more food.

Already have a months supply. No need for more, because if things aren't wrapped up by then, I will have to mobilize which means travel lite!

Ah, in that case, make sure you have a few p38's or p51's and a sawyer or two

Ban cash? FFS, what next?

The Tories have wined and dined the most affluent people on the planet and they have invested in the U.K property market.

Property is very shaky at best, what effect will the left have?

I look at negative interest rates as U.S. Owing the same amount of money, but also losing money from our accounts.

When these things are seriously being discussed, it's time to make a run on the banks.

Also, probably coincidental, but the word property, is the easiest eight letter word to spell on the Qwerty keyboard.

I build a car engine. It's a real powerhouse. I put it in my car, and take a drive down the highway. I run out of gas! The solution is to drain the oil?

Doesn't make sense, does it?

Neither does blaming a trade medium for our economic woes. A trade medium is nothing more than the oil in the engine. It makes trade easier because I don't have to directly trade my goods or services for your goods or services. We just exchange a commonly valued trade medium, so we don't have to waste time finding a compatible trade partner for each and every transaction.

Unfortunately, just like an engine, if you remove the oil, without a suitable replacement, you will quickly find that the engine doesn't have the power to overcome its own friction, and that engine will cease to function.

The only reason banks and governments are starting to call for the abandonment of cash is for control purposes. Cash, once out of their hands, is extremely difficult to control. Take away cash, and you remove that problem. They want you using a trade medium that they can control and manipulate at all times, under all circumstances.

a reply to: infolurker

Very interesting read and thanks for posting the information Infolurker!.... We have been removing cash out of the bank at a steady and slow rate for the past 7/8 years. Both of our parents lived through the "Great Depression" and all four of them preached to us if you had cash you were a king.

They spoke of neighbours in mansions selling out or just leaving their home to live on the street or a tent. My mothers step family had every cent in the world stashed in the fruit cellar and it paid off in spades. There was no shortage of goods if you had the money to buy food and fight off the tax man so you kept your home.

The rules have changed or they are about to change, during the depression cash was not banned they simply locked the doors on all banks.

With the digital age we live in it would be so easy to cut off everything in the blink of an eye. What I can imagine is people would be so pissed off that they would just keep using cash banned or not. I mean what choice do you have?

Just imagine a negative interest rate and having to sit and watch your saving's account go to zero year by year and you can't do a thing about it.

I found some of the comments at the bottom of the article you provided eye openers ........what I mean is if you read them you will see people are really really pissed already.

S&F
Regards, Iwinder

a reply to: infolurker

Your OP is a little scary, but nice find. s&f.

a reply to: infolurker

Those storm clouds are from a strong hurricane that sooner or later will hit the financial world.
For years now central bank interventions have been destroying and fixing the value of the national valuta, the interest rate has been at zero for about 7 years and price discovery for stocks is something of the past to because the plunge protection teams will intervene.
This simply cannot end well, they seem to have forgotten that it is 'main street' by which i mean the entrepreneurs who support and grow the economy, who add real value and provide jobs through projects and investments.
All this shuffling with money does not add anything, only re inflated bubbles that will undoubtedly burst and create a next credit crunch.

don`t we already have something like negative rates, we pay the banks to let us put our money there.
after the banks take all their fees and whatnots you don`t get back as much as you put in.

a reply to: Tardacus

ya, but if they ban cash and force you to keep all your money in their bank till you use your little plastic card to buy something, they can make more money on their fees and such!! heck really how many are gonna be stupid enough to pay more to their bank to hold their money without banning cash.

I wonder if tomorrow they will come out and tell us how good the economy is doing....like oh ya, we always pay our banks to store our money in them matter of fact, the more we pay, the healthier it is!

a reply to: dawnstar

Well,

The trick is get stuff you need now while you still can.

Food, water, all the survival stuff you need money for.

You don't own anything unless you physically possess it generally.

a reply to: infolurker

well, before my husband passed we had that, but at the moment, I am wondering how I am gonna get groceries for next week, so what can I say...
if they decide to chip away at the money I have in the bank well, less bills will be paid. and the people I owe that money to can complain to the bank I guess.
we got into the habit of not keeping more than we needed to pay out before my husband passed also. we started that when we found out that if our bank went under we might have to stand in line and wait for till their creditors got paid and settle for the crumbs they left behind divided among the depositors.

The purpose of a negative interest rate is to attract more borrowers.

Imagine getting a mortgage at a negative 1% interest rate, you would actually be making a little money every month on the principle running balance.

They don't care about investors and savers. What they care about is consumption - consumers going into debt to make purchases.

It's the act of consumerism and debt that keeps this ridiculous economy we operate under alive and kicking.

And I guarantee you that many many many people would fall for the negative interest rate scam, hook line and sinker.... they'd be scrambling over top of one another to borrow monies.


Bread and circuses folks, bread and circuses.

a reply to: CranialSponge

LOL

They will never let the people have that! The banks yes, but to loan to you, no.

a reply to: CranialSponge

or, the investors can borrow the money at such a low rate, use it to invest in the stock market, and well, play the game. and well, it will help prop up the stock market a little while longer. but if we ever get a crash, well, we will be seeing quite a bit more defaults.