Continue to prepare for the coming financial collapse…
While there are several comments one can make here, “dirty money”, “flush with cash” and “flushing money down the toilet” certainly coming to mind, perhaps the ECB was on to something when it warned that €500 “Bin Laden” bills (which it has since discontinued to print) tend to be used by criminals.
The reason for this is that in recent weeks, Swiss prosecutors have been gripped by a mystery, trying to figure out why someone tried to flush tens of thousands of euros down the toilet at a Geneva branch of UBS.
And not just once.
The first €500 bills were discovered several months ago in a bathroom close to a bank vault containing hundreds of safe deposit boxes, according to a report in Tribune de Geneve confirmed by the city prosecutor’s office. A few days later, Bloomberg adds that more banknotes turned up in toilets at three nearby restaurants, requiring thousands of francs in plumbing repairs to unclog the pipes. Indeed, AP adds that at one pizzeria, police were informed after the clogged toilet had overflowed
Irlmaier warned of the collapse of the Euro. Expect this to lead to high inflation and then hyperinflation, which Irlmaier also warned of. https://t.co/D90Q6jhUGo
— Alois Irlmaier (@AloisIrlmaier) April 22, 2017
— New Eastern Outlook (@JournalNEO) April 22, 2017
* * *
The Brexit was only the beginning.
Four months ago, Great Britain voted to leave the European Union (EU). The decision caught investors by surprise and triggered one of history’s most violent selloffs.
It erased more than $3 trillion from the global stock market in just two days. And the pound sterling, Britain’s currency, plunged 8% in one day. The pound is now trading at its lowest against the U.S. dollar in three decades.
In the shadow of Donald Trump’s spree of controversial actions, the European commission has quietly launched the next offensive in the war on cash. These unelected bureaucrats have boldly asserted their intention to crack down on paper transactions across the E.U. and solidify a trend that has been gaining momentum for years.The financial uncertainty amplified by Brexit has incentivized governments throughout Europe to seize further control over their banking systems. France and Spain have already criminalized cash transactions above a certain limit, but now the commission has unilaterally established new regulations that will affect the entire union. The fear of physical money flowing out of the trade bloc has manifested a draconian response from the State.
ATHENS, Greece (AP) — Nothing is inevitable in financial markets — except perhaps the return of Greece as a source of concern. More than seven years since Greece’s sky-high debts first unnerved investors and stoked speculation of the end of the euro currency, the country is back in the spotlight for the same reasons.
H/t reader squodgy:
“Not long now….”
* * *
In the most far-reaching move toward a cashless society to date, the European Commission proposed enforcing “restrictions on payments in cash” under an all-too-familiar premise — because terrorism.
“Payments in cash are widely used in the financing of terrorist activities,” the Commission’s proposal states. “In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold.”
On the heels of the European Central Bank’s discontinuation of the €500 note, the Commission’s plan would drastically scale back civilians’ ability to conduct transactions using currency — and, by default, will allow banks and the State further means to track individuals via bank cards.
According to the Commission’s Inception Impact Assessment, “Cash has the important feature of offering anonymity to transactions. Such anonymity may be desired for legitimate reason (e.g. protection of privacy). But, such anonymity can also be misused for money laundering and terrorist financing purposes. The possibility to conduct large cash payments facilitates money laundering and terrorist financing activities because of the difficulty to control cash payment transactions.”
Professor Ted Malloch, Trump’s expected ambassador to the EU says “The one thing I would so in 2017 is short the euro.”
“I am not certain there will be a European Union in which to have negotiations… The one thing I would do in 2017 is short the euro. I think it is a currency that is not only in demise, but has a real problem and could in fact collapse in the coming year or year and a half.”
The first time the ECB officially warned about the dangers of virtual currencies in general, and in particular, bitcoin – what was then a mostly unknown currency trading in the single digits (in USD terms) – was in November 2012 when in a report called “Virtual Currency Schemes” it warned that “in an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes).”
Ironically, since then the ECB has moved significantly down the narrative of currency substitution, and in fact, following a recent push to eliminate paper currency (now that the €500 bill is no longer produced) the central bank has been urging for a shift away from real, paper money and into electronic variants.
However, overnight in a surprising reminder how the European central bank feels about bitcoin and other virtual money, the ECB urged EU lawmakers to tighten proposed new rules on digital currencies such as bitcoin, fearing they might one day weaken its own control over money supply in the euro zone.
None of the following about the EU will come as a surprise to most of you, but the language used by Otmar Issing is nevertheless pretty remarkable.
The Telegraph reports:
The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.
“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.
H/t reader squodgy:
“Just wondering how much longer the Rothschilds can keep it afloat.”
The Euro “will collapse” as it is a”house of cards” warned Otmar Issing, the founder and creator of the euro in an extraordinary interview on Monday.
In the explosive interview with the journal Central Banking, Professor Issing, said “one day, the house of cards will collapse” as the European Central Bank (ECB) is becoming dangerously over-extended and the whole euro project is unworkable in its current form.
The founding architect of the monetary union has warned that Brussels’ dream of a European superstate will finally be buried amongst the rubble of the crumbling single currency he designed.
Following the denial in February that this action is in any way about reducing cash, The ECB has made its decision on the EUR500 Bill:
- *ECB ENDS PRODUCTION AND ISSUANCE OF €500 BANKNOTE
- *ECB SAYS ISSUANCE OF EU500 NOTE TO STOP AROUND THE END OF 2018
- *ECB SAYS OTHER EURO BANKNOTES WILL STAY IN PLACE
- *ECB: EU500 CAN BE EXCHANGED AT CEN BANKS FOR UNLIMITED TIME
And just like that the second highest denominated European bank note in circulation (after the CHF1000 Bill) is dead…
by James Corbett
February 16, 2016
You might remember that a couple of weeks ago we launched an open source investigation into the war on cash. As I noted at the time, the investigation was spurred by an uptick in anti-cash rhetoric over the last few months from the media, from central bankers and from politicians. Since that investigation took place, however, things have gotten even more in-your-face.
Just four days after we started the investigation Bloomberg came out with an op-ed urging the banksters to “Bring On the Cashless Future.”
Four days after that PayPal kicked off their anti-cash, “PayPal is New Money” advertising campaign at the Super Bowl.
“…a moratorium on printing new high denomination notes would make the world a better place.”
– Larry Summers, Harvard Professor
… and the world would be a much better place without …
esterday we reported that the ECB has begun contemplating the death of the €500 EURO note, a fate which is now virtually assured for the one banknote which not only makes up 30% of the total European paper currency in circulation by value, but provides the best, most cost-efficient alternative (in terms of sheer bulk and storage costs) to Europe’s tax on money known as NIRP.
That also explains why Mario Draghi is so intent on eradicating it first, then the €200 bill, then the €100 bill, and so on.
EURUSD just broke to a 1.05 handle, its lowest since April. With EURUSD now down 9 big figures from Draghi’s mid-October jawboning, the US Dollar index (heavily-weighted to EUR) is soaring, reaching back above to its highest since March. Bearing in mind that Fed’s Fischer says that the worst of USD’s impact on the US economy is yet to come, we may have a problem.…