Monday, July 17, 2017

95% of Europeans polled are against EU and IMF proposal to restrict or ban cash

Even with more and more consumers and businesses in Europe being content to use debit and credit cards in the majority of their transactions, a new poll out on July 14 shows that these individuals are adamantly against proposed EU restrictions on cash, and especially the banning of it altogether.

In fact in a poll to determine support for the EU's desire to limit the total amount of cash that could be used in a given transaction, over 95% of the 30,000 individuals asked across Europe responded that there is no benefit at all in the EU restricting or eliminating cash transactions.

In January 2017 the European Commission announced it was exploring the option of imposing upper limits on cash payments, with a view to implementing cross-regional measures as soon as 2018. To give the proposal a veneer of respectability and accountability the Commission launched a public consultation on the issue. Now, the answers are in, but they are not what the Commission was expecting. 
A staggering 95% of the respondents said they were opposed to a cash ceiling at EU level. Even more emphatic was the answer to the following question: “How would the introduction of restrictions on payments in cash at EU level benefit you, or your business or your organisation (multiple replies are possible)?” 
In the curious absence of an explicit “not at all” option, 99.18% chose to respond with “no answer.” In other words, less than 1% of the more than 30,000 people consulted could think of a single benefit of the EU unleashing cross-regional cash limits. – Wolf Street
The entire premise behind restricting or banning cash has little or nothing to do with money laundering, or in fighting the war against terrorism, but instead has everything to do with protecting the banks and financial system from runs on these institutions by depositors in the instance of another financial crisis or collapse.  Additionally, banning cash also acts as a mechanism to allow central banks to print even more money electronically since it will force everyone to hold all their wealth inside of a bank, thus expanding the capital base needed to increase leverage in their fractional reserve system.

In the U.S., Congress is right now mulling over the introduction of a new bill to restrict and even label anyone who carries more than $10,000 in cash, Bitcoin, or other monetary assets as a criminal without due process of the law.  And this alone, along with the EU's new proposal limiting the amount of cash one can use in a normal everyday transactions, should speak volumes as to the fragility of the entire financial system, and also to whom governments are supporting when the next crisis hits.


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