FWIW the reason I thought I’d FWIW the reason I thought I’d ask the question is because of global negative interest rates AND the trend of going cashless
[Skimming the news AND reading survey studies] we know millennials look at money differently than any previous generation has,… basically they really don’t want to be bothered or bogged down with traditional payment methods, so they are ready to get rid of the cash altogether in exchange for digital wallets.
This combined w/ the talk of negative interest rates by POTUS
[quote] Donald J. Trump @realDonaldTrump · Sep 11, 2019
The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet…..
[quote] Donald J. Trump @realDonaldTrump · Jan 28, 2020
The Fed should get smart & lower the Rate to make our interest competitive with other Countries which pay much lower even though we are, by far, the high standard. We would then focus on paying off & refinancing debt! There is almost no inflation-this is the time (2 years late)!
which is already happening in many places around the world,…
[quote] To sustain economic growth, central banks in advanced economies have steadily reduced interest rates, encouraging consumers to spend. About 30 percent of the world’s investment-grade securities is in negative rate territory – which means lenders and savers pay others to use their funds.
so any other piggs notice that people in the general public who embrace the digital lifestyle don’t realize if the only option was “digital,…” all the powers that be would have to do is throw a switch and the money people though they saved,… is all of a sudden worth-less than expected
as I see things the only thing keeping idiotic politicians from screwing up the economy (even more than it is now) is the existence of hard physical cash
in other words, because of the existence of physical cash,… a centralized power would have a much harder time devaluing hard earned money people managed to save than if the only form of money was digital
If there was an option for If there was an option for “hells to the God damn fucking no”, I’d have clicked it. It would give government and bank scum (two sides of the same dirty coin) total control over spending. Cash is great. Cash doesn’t require a third party’s permission to spend. Two people exchange money without requring a bank’s approval. Cash is private.
Imagine your bank telling you that you can spend only $25 per month on “junk food.” Or banning purchases of condoms. Or governments simply freezing the cards of people deemed criminals, deadbeats, or just politically unpopular — they’d beg to go to jail since they wouldn’t even be able to buy a cup of coffee. Imagine abusively religious parents being able to track their LGBT teen’s every movement and every date. Privacy and anonymity are freedom. How about your spending data being sold to your life insurance corepiration? Buy a cup of coffee in a “bad” area (too) regularly? You’re obviously at risk of being shot … time to raise your rates. Ka-CHING! Cha-CHING!
Glad NYC just passed a law banning cashless businesses — they’re on the right side of morality. San Francisco, Philly, and Massachusetts are also on the right side here.
FlyerInHi
January 29, 2020 @
3:13 PM
To tie this to real estate, To tie this to real estate, because I am real estate obsessed,…. Many tenants want to pay with Venmo or Zelle. I have a young tenant entrepreneur couple from Venezuela. They pay me with bill pay and they don’t like the fact that the check payment is not instant.
I have a friend who rented out his condo. The pet deposit is $250. The tenants decided they wanted a second dog so they just Zelle sent another pet deposit for that second animal without asking permission.
When you go to court, accepting a pet deposit or partial rent electronically can be a problem when seeking eviction.
gzz
January 29, 2020 @
2:21 PM
Switzerland has negative Switzerland has negative interest on normal checking accounts. No need to ban cash to do this.
Further, a government at the zero bound that wants to further cut real rates can just increase inflation via tax cuts for the bottom 90% or even demogrants and helicopter drops.
FlyerInHi
January 29, 2020 @
2:46 PM
I voted no for privacy. I voted no for privacy. But for business development, innovation and growth, cashless will be transformative. We cannot afford to fall behind China and let their financial solutions rule the world.
phaster
February 8, 2020 @
11:27 AM
gzz wrote:Switzerland has [quote=gzz]Switzerland has negative interest on normal checking accounts. No need to ban cash to do this.
Further, a government at the zero bound that wants to further cut real rates can just increase inflation via tax cuts for the bottom 90% or even demogrants and helicopter drops.[/quote]
yup very aware of the fact that the
[quote] Swiss National Bank (SNB) introduced negative interest rates in 2015 – literally charging domestic banks to deposit money (above a certain threshold) at the central bank.
point I was trying to bring up is what happens when everyone is on one side of the boat (given the big picture),… IOW w/ physical cash money there is friction in the system,… so if money was all digital then it would be easier for the powers that be to throw a switch and money that individuals though they saved and stashed in a bank or some other financial institution like a credit union, would be worth-less an instant later!!!
or said another way let’s ask the question if in a world w/ physical cash AND where the existing SNB’s policy has negative rates of -0.75%,… what would happen if the dollar (the global reserve currency) was digital,… would Swiss banks have negative interest rates of -5.0% or more (because they would need dollars to pay for oil, etc.)???
AND WRT to thinking about the context which this would happen, let’s consider the big picture of global GDP vs global DEBT,… for example noticed rich posted
[quote]
…what is the “investment” alternative (given the big picture)
Record high global debt of $250 trillion ‘could curb efforts to tackle climate risk,’ report warns
The global debt ballooned to a record high of more than $250 trillion and shows no sign of slowing down, according to a new report from the Institute of International Finance (IIF), which warned that this massive debt could impact international efforts to mitigate climate change.
so the simple question that remains to be answered “is the debt serviceable?” and if debt is not serviceable what would happen?? would there be an orderly resolution??? looking at the existing mechanisms 99.999% certain there would not be an orderly resolution!!!!
WRT lowering taxes (in the USA) we should consider
[quote] Only 1.4 % of the $1.45 trillion in taxes paid in 2015 was contributed by taxpayers earning less than $30,000, according to the Pew Research Center. The Institute on Taxation and Economic Policy puts it at 1.9 percent, a very small difference. Two-thirds of those falling into this group paid no income tax at all.
IOW lowering taxes (in the USA at the federal level) only increased the debt that existing mechanisms says must be paid off
bottom line,… the ever increasing debt that existing mechanisms says must be paid off, is fractal (i.e. the pattern happens at all levels w/ in the system),… for example looking at the local city level we have
January 28, 2020 @ 8:07 PM
FWIW the reason I thought I’d
FWIW the reason I thought I’d ask the question is because of global negative interest rates AND the trend of going cashless
[Skimming the news AND reading survey studies] we know millennials look at money differently than any previous generation has,… basically they really don’t want to be bothered or bogged down with traditional payment methods, so they are ready to get rid of the cash altogether in exchange for digital wallets.
http://www.pewtrusts.org/~/media/assets/2016/05/who_uses_mobile_payments.pdf
This combined w/ the talk of negative interest rates by POTUS
[quote]
Donald J. Trump @realDonaldTrump · Sep 11, 2019
The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet…..
https://twitter.com/realDonaldTrump/status/1171735691769929728
[/quote]
[quote]
Donald J. Trump @realDonaldTrump · Jan 28, 2020
The Fed should get smart & lower the Rate to make our interest competitive with other Countries which pay much lower even though we are, by far, the high standard. We would then focus on paying off & refinancing debt! There is almost no inflation-this is the time (2 years late)!
https://twitter.com/realDonaldTrump/status/1222186473849544704
[/quote]
which is already happening in many places around the world,…
[quote]
To sustain economic growth, central banks in advanced economies have steadily reduced interest rates, encouraging consumers to spend. About 30 percent of the world’s investment-grade securities is in negative rate territory – which means lenders and savers pay others to use their funds.
https://yaleglobal.yale.edu/content/global-economy-struggles-negative-rates
[/quote]
so any other piggs notice that people in the general public who embrace the digital lifestyle don’t realize if the only option was “digital,…” all the powers that be would have to do is throw a switch and the money people though they saved,… is all of a sudden worth-less than expected
as I see things the only thing keeping idiotic politicians from screwing up the economy (even more than it is now) is the existence of hard physical cash
in other words, because of the existence of physical cash,… a centralized power would have a much harder time devaluing hard earned money people managed to save than if the only form of money was digital
http://www.npr.org/2019/02/11/691334123/swedens-cashless-experiment-is-it-too-much-too-fast
http://www.youtube.com/watch?v=cj2Fh8aX148
http://www.ft.com/content/539e39b8-851b-11e8-a29d-73e3d454535d
January 28, 2020 @ 8:26 PM
If there was an option for
If there was an option for “hells to the God damn fucking no”, I’d have clicked it. It would give government and bank scum (two sides of the same dirty coin) total control over spending. Cash is great. Cash doesn’t require a third party’s permission to spend. Two people exchange money without requring a bank’s approval. Cash is private.
Imagine your bank telling you that you can spend only $25 per month on “junk food.” Or banning purchases of condoms. Or governments simply freezing the cards of people deemed criminals, deadbeats, or just politically unpopular — they’d beg to go to jail since they wouldn’t even be able to buy a cup of coffee. Imagine abusively religious parents being able to track their LGBT teen’s every movement and every date. Privacy and anonymity are freedom. How about your spending data being sold to your life insurance corepiration? Buy a cup of coffee in a “bad” area (too) regularly? You’re obviously at risk of being shot … time to raise your rates. Ka-CHING! Cha-CHING!
Glad NYC just passed a law banning cashless businesses — they’re on the right side of morality. San Francisco, Philly, and Massachusetts are also on the right side here.
January 29, 2020 @ 3:13 PM
To tie this to real estate,
To tie this to real estate, because I am real estate obsessed,…. Many tenants want to pay with Venmo or Zelle. I have a young tenant entrepreneur couple from Venezuela. They pay me with bill pay and they don’t like the fact that the check payment is not instant.
I have a friend who rented out his condo. The pet deposit is $250. The tenants decided they wanted a second dog so they just Zelle sent another pet deposit for that second animal without asking permission.
When you go to court, accepting a pet deposit or partial rent electronically can be a problem when seeking eviction.
January 29, 2020 @ 2:21 PM
Switzerland has negative
Switzerland has negative interest on normal checking accounts. No need to ban cash to do this.
Further, a government at the zero bound that wants to further cut real rates can just increase inflation via tax cuts for the bottom 90% or even demogrants and helicopter drops.
January 29, 2020 @ 2:46 PM
I voted no for privacy.
I voted no for privacy. But for business development, innovation and growth, cashless will be transformative. We cannot afford to fall behind China and let their financial solutions rule the world.
February 8, 2020 @ 11:27 AM
gzz wrote:Switzerland has
[quote=gzz]Switzerland has negative interest on normal checking accounts. No need to ban cash to do this.
Further, a government at the zero bound that wants to further cut real rates can just increase inflation via tax cuts for the bottom 90% or even demogrants and helicopter drops.[/quote]
yup very aware of the fact that the
[quote]
Swiss National Bank (SNB) introduced negative interest rates in 2015 – literally charging domestic banks to deposit money (above a certain threshold) at the central bank.
http://www.swissinfo.ch/eng/bank-savers-feel-sting-from-negative-interest-rates/45424320
[/quote]
point I was trying to bring up is what happens when everyone is on one side of the boat (given the big picture),… IOW w/ physical cash money there is friction in the system,… so if money was all digital then it would be easier for the powers that be to throw a switch and money that individuals though they saved and stashed in a bank or some other financial institution like a credit union, would be worth-less an instant later!!!
or said another way let’s ask the question if in a world w/ physical cash AND where the existing SNB’s policy has negative rates of -0.75%,… what would happen if the dollar (the global reserve currency) was digital,… would Swiss banks have negative interest rates of -5.0% or more (because they would need dollars to pay for oil, etc.)???
AND WRT to thinking about the context which this would happen, let’s consider the big picture of global GDP vs global DEBT,… for example noticed rich posted
http://www.pcasd.com/content/all-time-highs-are-nothing-fear-plus-virus-scares-and-importance-knowing-where-you-stand
and for context
[quote]
…what is the “investment” alternative (given the big picture)
Record high global debt of $250 trillion ‘could curb efforts to tackle climate risk,’ report warns
The global debt ballooned to a record high of more than $250 trillion and shows no sign of slowing down, according to a new report from the Institute of International Finance (IIF), which warned that this massive debt could impact international efforts to mitigate climate change.
http://www.piggington.com/shiller_pe_ratio_above_30#comment-285839
[/quote]
bottom line,…
global DEBT > global GDP
so the simple question that remains to be answered “is the debt serviceable?” and if debt is not serviceable what would happen?? would there be an orderly resolution??? looking at the existing mechanisms 99.999% certain there would not be an orderly resolution!!!!
WRT lowering taxes (in the USA) we should consider
[quote]
Only 1.4 % of the $1.45 trillion in taxes paid in 2015 was contributed by taxpayers earning less than $30,000, according to the Pew Research Center. The Institute on Taxation and Economic Policy puts it at 1.9 percent, a very small difference. Two-thirds of those falling into this group paid no income tax at all.
http://www.thebalance.com/breakdown-of-who-pays-most-taxes-4178924
[/quote]
IOW lowering taxes (in the USA at the federal level) only increased the debt that existing mechanisms says must be paid off
bottom line,… the ever increasing debt that existing mechanisms says must be paid off, is fractal (i.e. the pattern happens at all levels w/ in the system),… for example looking at the local city level we have
http://www.TinyURL.com/SanDiegoDebtBomb