Citibank to Stop Accepting Cash at Some Branches

When watching for impending financial crises, pay attention to talk of any sort of currency controls.  Dramatic moves such as placing ever more onerous restrictions on the flow of funds in and out of the country are cause for concern.  So are domestic actions such as noises about moving to a cashless society.  Take note.

Less than a week after India’s surprise move to scrap its highest denomination cash notes, another front in the War on Cash has intensified down under in Australia.

Yesterday, banking giant UBS proposed that eliminating Australia’s $100 and $50 bills would be “good for the economy and good for the banks.”

(How convenient that a bank would propose something that’s good for banks!)

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Most notably, two days ago, Citibank (yes, THAT Citibank) announced that it was going cashless at some of its Australian branches.

The media and political establishments have chimed in as well.

Could all of this be coming soon to a bank near you?

This is how it works.

The government, media, banks, and even academia have formed a single, unified chorus to push this idea out to consumers that “cashless” is good for everyone.

And it’s happening across the planet, from Australia to India to Europe to North America.

They’re partially right.

Going cashless probably will save a lot of money; paper currency is costly to transport in large quantities due to the need for security.

It’s also accurate to suggest that going cashless will be “good for the banks.”

The banks will benefit, but US citizens will not.

Governments would benefit from a cashless society because all savings would be in the banking system, and they have full regulatory control over the banks.

This means that your politicians would have more control over your savings and fewer obstacles to impose capital controls or engage in Civil Asset Forfeiture.

Even policy wonk academics would have a rare opportunity to take their lousy theories and PhD dissertations for a test drive.

Everyone benefits from a cashless society… except for you.

For individuals, cash still has plenty of important advantages.

Cash is one of the few remaining options for financial privacy that doesn’t create a permanent record of every purchase or transaction you make.

It’s also an easy way to reduce your exposure to risks in the broader financial system.

ZeroHedge offers some recommendations for your consideration.

Cash essentially eliminates the middleman between you and your savings… at least, the portion of your savings that can be easily exchanged for goods and services in the economy.

Cash is a pitiful store of value over the long-term. Precious metals and other real assets are much better alternatives.

But we still can’t walk into Starbucks and pay for a cup of coffee with a quarter-ounce silver coin.

So until that day comes, cash remains an asset that you’ll want to hold.

Just make sure you don’t go overboard. The War on Cash is very real. So if you have more than a couple of months worth of living expenses, you’re taking on unnecessary risk.

Also, keep the denominations low.

So if you’re in the US, don’t keep a mountain of $100 bills in your safe. Keep 10s, 20s, and 50s.

The “underground” or cash economy is estimated to cost the federal government billions in lost taxes.  Don’t think that cash transactions are not a target of the IRS.

Source:  ZeroHedge