Negative interest Rates and the Cashless society

The cashless society

Go to now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted, and your garments are moth-eaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. You have heaped treasure together for the last days. Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabbath. You have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter. You have condemned and killed the just; and he doth not resist you.

Bitcoin , I-pay , you-pay we pay, we all pay! So why do they want a “cashless society” ?

We will call the “fed” a central bank as they are all the same scumbaggery.

The scam goes like this; Quantitatively eased currency allows those closest to the central bank to borrow at almost a zero interest rate. The large financial investors and corporatism buy back their own stock and shift assets. This props up the stock market which seems wonderful and the zombies think everything if all fine and dandy. A strong market pushes up the long term bond rates and yields lower But in order to keep the scam going or the currency flowing a differential ( entropy) needs to exist. The interest rates go negative, this is supposed to encourage “spending”.

Banks that keep “reserves” at the central bank now have to pay to keep their reserves at the bank. The theory goes that this will force banks to lend which boosts consumption and promotes growth.

Not so fast; Richard Werner the economist points out, banks can’t and don't lend out the reserves they have to keep at the central bank ( by laws banks are required to keep 9% or 10% as reserves ). So negative interests now become, effectively “a tax”. A tax which banks bear or more likely pass on to their customers. This puts pressure on the margins of the smaller banks which tend to be the “productive lenders in the economy. Large financial institution tend to concentrate in large market speculations that have higher yields. This forces the smaller banks to nickle and dime their way or merge. Leaving central bank as the only bank in town.

With large financial institutions focusing on speculation and the productive lending sector feeling the squeeze. The economy slows companies and banks fail. Governments need a mechanism to counter a run on the bank which in the past were devastating to financial systems and damaging to the wealth of nations. Those mechanisms are called “bail-ins”, your money becomes an unsecured asset. No point in you going to the bank to get your money. Friday all was well .... Monday morning your savings were gone. Cashless.

So cash is no more.

Central banks go negative. This puts the squeeze on the small retail banks, who then start to nickle and dime the customer. This makes the small retail banks noncompetitive. Productive lending shrinks , the real economy shrinks. So the people complain and take their money and try to get ahead by asset purchase, speculation and bubble timing.

So as the real economy decreases, the financial economy increases. Large financial banks speculate and move large amounts of currency ( energy ) through the system ( markets) creating bubbles and mis-priced markets.

The market crashes. Big banks ask for a “bail out”. Central banks refuse. Big banks consolidate ( Lehman?) leaving only the central bank and the only bank in town with total control of money and credit. Amschel Rothschild famously said “ Permit me to issue and control the money of a nation, and I care not who makes its laws!”

However Central banks may not have it their own way , I-pay you-pay google-pay we all pay bit-coin and all the other crypto-currency is private companies offering digital currency. This takes the power of currency away from the central banks. Scumbaggery do not like their toys being compromised, The toys start coming out of the cot.

In 2019 Mark Carney gave a Guildhall speech entitled “ we need a new financial system to stop climate change” . I kid you not.

Fifty shades of green.

Snip “A 2018 Intergovernmental Panel on Climate Change report stresses that we have only 12 years left to stop runaway climate change. That is two average business cycles, 12 IMF annual meetings, 48 meetings of the Bank of England’s Financial Policy Committee. But currently the world is moving in the wrong direction: global energy emissions increased 1.7 percent last year. To limit warming to 1.5˚C requires a 45 percent decrease by 2030 and net-zero emissions by 2050.

The changes needed to keep warming below 1.5˚C are enormous: massive reallocation of capital is needed, which presents unprecedented risks and opportunities. The International Energy Agency estimates that a low-carbon transition could require $3.5 trillion in energy sector investment every year for decades—twice the current rate. Under the agency’s scenario, in order for carbon to stabilize by 2050, nearly 95 percent of the electricity supply must be low carbon and 70 percent of new cars electric, and the carbon dioxide intensity of the building sector must fall 80 percent.
For markets to anticipate and smooth the transition to a net-zero world, they need the right information; proper risk management; and coherent, credible public policy frameworks.
Here’s how.
A new finance;
A new, sustainable financial system is under construction. It is funding the initiatives and innovations of the private sector and amplifying the effectiveness of governments’ climate policies—it could even accelerate the transition to a low-carbon economy.

Snippity snippity snip; as most of it is just waffle; … “A financial market in the transition to a 1.5˚C world is under construction, revealing the likely future cost of business and payment for emissions, but we need to move much faster.

Now it’s time for a giant step to bring the reporting, risk management, and return optimization of sustainable finance into everyday financial decision making.
Ultimately, the speed with which the new sustainable financial system develops will be decided by the ambitions of government climate policies.”
more snippity; Financial markets increasingly recognize sustainable investment as a new horizon that opens up enormous opportunities ranging from transforming energy to reinventing protein.
With an estimated $90 trillion in infrastructure investment expected between 2015 and 2030, smart decisions today can ensure investment that is both financially rewarding and environmentally sustainable.
The green bond market offers investors stable, rated, and liquid investments with long duration. For issuers, green bonds are a way to tap the huge $100 trillion pool of long-term private capital managed by global institutional fixed-income investors. The shift to capital markets from banks will also free up limited bank balance sheet capacity for early-stage project financing and infrastructure lending. However, while they are important catalysts, specialist investments like green bonds will not be sufficient to finance the transition to a low-carbon future. They accounted for only 3 percent of global bond issuance in 2018.

In 2019 wildfires swept through Australia. Millions of acres were destroyed and sadly people died. One of the most unusual difficulties people face was power outages. The Canberra times reported on a town called Milton where confusion descended and people were thrust back into stone-age when the power failed.
More Snippity snip; “Customers queued outside Milton's IGA to buy food and water as the district went without power on Wednesday.
The supermarket was letting in one customer at a time and limited the amount of items they could buy to six during the outage. Milton IGA co-director Shane Wilson stood at the head of the line, waving customers through as others left with food.
"As you can understand it's just like a cave in there so we've got staff with a torch walking around, just doing a dollar value on what they buy," he said."We're just limiting [items per customer] so we can let more people through."I think we're in this situation for a couple of days." Customers paid in cash only and staff calculated their totals using calculators.”

Well how do we wrap this up.?
We have the destruction of society through Hegelian dialectics, Frankfurt school satanism, a dysfunctional educational system and a corrupt media.
We have a centralization of the banks and the calls for a green bond cyrpto-currency . He who controls the currency controls the people. The UN technocracy inc. agenda to get the stupid into “smart cities” with the control of food and energy and water through the margin manipulations of smaller enterprises. Energy control through the failure mode of alternative energies. Water through privatization. If the people realize, and a few will!. The guns and the means of revolt will have been removed .
The Breton woods agreement .followed WW2. WW2 followed a world wide depression, famines in Japan, dust bowls in America , wildfires in Australia and Steinbeck writes a book, “grapes of wrath”.
WW2 was fought over energy and financial independence. Unless the scumbaggery can find a new “ dotcom” to kick the can down the road, long enough for the “boomer bubble” to pass. History will be fated to repeat. To shift a global paradigm you need a global event. 1971 .