Petition Guarantee British savers and investors that cash will not be abolished
The Bank of England’s Chief Economist Andrew Haldane on 18th September 2015 raised the possibility that the Bank could abolish use of cash in Britain in order to allow the bank to impose negative interest rates on savers;
Sounds daft, but it’s no laughing matter. When you combine a cashless society with negative interest rates, you put savers in a no-win situation. You either spend your money or you lose a little bit more of it each day. If you want to know how that works, look at Sweden.
Sweden’s central bank, the Riksbank, has kept official interest rates negative since July. They’re at minus 0.35%. The theory is that this discourages commercial banks from ‘hoarding’ excess cash in the safe hands of the central bank. Instead, they go out and lend it, expand credit, and grow the economy as they grow the money supply. That’s the theory.
But that’s not what’s happening. And that’s where having a cashless society comes in. Sweden is already well on the road to abolishing cash. ATMs are hard to find in rural areas. And there’s a creeping social idea that if you do business in cash, then you’ve probably got something to hide.
If you still possess your cash, you don’t have to do what other people want you to do with your money. With cash, you still have choices. You can plan for a rainy day and choose to take possession of some of your savings. If it’s still in your hands, the choice is yours.
But if there’s nothing to possess, no cash to put under the mattress or in the freezer, how much control do you have left? Not much, And that’s precisely the idea.
See full article by Tim Price called “Financial Martial Law”.