Something Very Disturbing Spotted In A Morgan Stanley Presentation

Tyler Durden's picture

With central bankers losing credibility left and right, and failing outright to boost the “wealth effect” no matter what they throw at it, the next big question is when will central planners around the world unveil the cashless society which is a necessary and sufficient condition to a regime of global NIRP.

And while in recent days we have seen op-eds by both Bloomberg and FT urging the banning of cash, the most disturbing development we have seen yet in the push for a cashless society has come from the following slide in a Morgan Stanley presentation, one in which the bank’s head of EMEA equity research Huw van Steenis, pointed out the following…

 

… and added this:

One of the most surprising comments this year came from a closed session on fintech where I sat next to someone in policy circles who argued that we should move quickly to a cashless economy so that we could introduce negative rates well below 1% – as they were concerned that Larry Summers’ secular stagnation was indeed playing out and we would be stuck with negative rates for a decade in Europe. They felt below (1.5)% depositors would start to hoard notes, leading to yet further complexities for monetary policy.

Consider this the latest, and loudest, warning on the road to digital fiat serfdom.


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Uncommon
Uncommon
MuckAbout

Gold already smells blood in the water!

MA

Homer
Homer

Negative rates won’t work. That doesn’t mean it won’t be tried. So, what to do? Why we will ban cash because those uncooperative miscreants will take their money out of the banks rather than being fleeced.

Of course, there could be a restrictive withdraw policy with no need to ban cash. You get ten dollars a day per person. So why ban cash? Could it be to further restrict your freedom and exact total control over you? After all, money is the lifeblood of your existence. How could you exist without money?

Not to worry, they will say. You can use bank credits, they say, that way, all transactions must go thru a bank using your special number in a chip in your hand. It’s much safer and more convenient, they will say. By the way, I thought Federal Reserve Notes were credit.

Why it won’t work, I say. It won’t work because there are billions of cash transactions world wide. These exchanges will cease to exist in a cashless society. This diminishes everyone as needs go unfulfilled. The economy will grind to a stumbling halt. People will stop producing. (Sorry Bernie)
Barter will flourish as needs become paramount. Alternate currencies will come into being, short circuiting the banking system. Of course, Governments will institute draconian suppression schemes to force compliance. Perhaps, even instigating the death penalty. It’s been done before.

Then people will see clearly the true nature of unfettered governments. I remember telling my daughter when she was two yrs. old that the wood stove was hot and I watched as she proceeded to touch it. It was hot. Some people need to touch the stove. That’s the only way they learn.

Homer
Homer

Of course, there are many people who don’t have a bank account and live in a cash world. Minorities, undocumented aliens, the underground economy for example. These people will be forced to open up accounts in banks, adding to the banks liquidity or have their needs unmet. More likely, the underground economy will surpass the real economy as is happening in Venezuela and Argentina, sanctions be damned.

Mark Baumann
Mark Baumann

There will always be a currency to exchange… from silver to cigarettes!

Homer
Homer

What’s the purpose of negative rates? Is it to force consumers to spend, thereby increasing GDP? Is it to create inflation in prices, which is to reduce the purchasing power of the dollar, thereby reducing the burden of the debt by paying back the creditors with cheaper dollars? That’s what happened after WWII to knock down the war debt. It got paid back with cheaper dollars. It worked and it worked well.

But…It won’t work this time because there isn’t any headroom for credit to expand. The people are all tapped out and becoming scared and pulling up on the reins. Were changing from a ‘jack rabbit’ economy to a ‘tortoise’ economy. Were pulling in our heads. We don’t see fire yet because we are distracted by the actors on the stage, but we are beginning to smell the smoke.

Dear readers, I’m going to tell you a secret. We don’t have a debt problem in the country, never did, we have a credit problem. I know the congress and bankers are telling you that the problem is debt, there’s too much of it, but that’s just misdirection. It puts the onus on the borrower not the lender.

The combination of Keynesian gibberish and fiat money created by the banks out of thin air requires ever expanding credit creation. Unbounded credit, liar loans, car loans, student loans, corporate buy back loans, shale oil loans, the Federal Reserve Note, etc. just to keep the credit scheme going. Like in all things, there is a finite limit to expansion. Even the Universe. We have reach our Minsky Moment. The whiff of deflation is permeating the air. Credit is pushing on a string. Were broke and any more credit is an out and out gift never to be repaided.

Fiat money was like falling off a 10 story building. It was exhilarating, but we have now passed the second story and falling fast.

But, dear readers, I will tell you another secret. It was all planned that way. To be continued…

rhs jr
rhs jr

I’s so simple a 5th Grader can understand it: Rev 7:3 Hurt not the earth, neither the sea, nor the trees, till we have sealed the servants of our God in their foreheads. (get Saved and Right with God ASAP!)
Rev 13:16-17 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
Once TPTB outlaw cash and everyone must use their (The Beast) e-money: they will have infinite money themselves and all Goy will be their slaves (and they have had specific plans for Goy for decades). TPTB are the people chosen giving us the Faux News, the Muslim Invasion, GMOs, sterilizing vaccines, Chemtrails, Vote Fraud, Cultural Communism, False Flags, The Works, etc.

Brian
Brian

Go cashless you fuckers! Bring it! What about common U.S. coin? You can’t ban that as it is mandated by article 1 section 8 clause 5. Gold and silver will become the new cash as will many other commodities like booze, smokes, mary jane, etc…..

Persnickety
Persnickety

Article I, Section 8, clause 5:

“Section 8 – Powers of Congress
The Congress shall have Power ***
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;”

Article I, Section 10, clause 1:

“Section 10 – Powers prohibited of States

No State shall *** coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; ***.”

And yet, for some reason the dominant form of currency in the US is Federal Reserve Notes, which are not coin money issued at the behest of Congress, and states have allowed FRNs to be legal tender (aka tender in payment of debts).

Can you explain? It’s almost as if the Constitution is not being observed, and the “Federal Reserve Bank” is somehow being given a money power not authorized to it.

ottomatik
ottomatik

Buckle up, this is some of the doomiest doom around. The ring fence is nearly complete, then The Great Castration will begin. At least that’s how we did it growing up in Nebraska.
Rocky Mountain Oysters for all(banksters and statist, that is)!!!! There is not totalitarian fantasy this scheme will fail to fulfill.
They are not even going to let the plebs have the fuckin paper, the metal long gone. The fact they are even floating this notion around brings clarity.
Theft through Bail in’s
Theft through NIRP
Theft through Bankster 3% vig
Theft through commoditized purchase history
Theft through Capitol Controls
Theft through forced Account Minimum Penalties
to just get started, a veritable Banker/Statist Orgy.
I cannot get the image of a bunch of these inner circle totalitarian fucks with cigars and tumblers and BIG smiles slapping each other on the back talking this plan up at Davos.
Either that, or a group of hard core Satanist hurting children, planning their role for the arrival of the Anti-Christ.
Probably both.

General
General

For those either naive, or stupid, the Federal Government doesn’t follow the constitution anymore. (Otherwise then the general outline perhaps)

Federal Reserve Notes are clearly unconstitutional, but the average person doesn’t understand that.

IndenturedServant

Gold has been on a freaking tear over night. Up almost $30 to $1229 and silver is closing in on $16. I just bought last Friday @ $1173 and just before Christmas @ $1070. Shit must be gettin’ bad at DB! The usual price smashes have been either ineffective or non-existent. I thunk metals have bottomed but platinum is still well under $1000 which is damned strange. I think the last time it was this low was back in 08-09 when the US auto makers were on death watch.

Persnickety
Persnickety

@General: I may have forgotten the smiley face. Sometimes my sarcasm is subtle.

Erumpo
Erumpo

lol The powers that be reach exceeds their grasp by an almost infinite margin.

Nothing new under the sun .

Take away the labor dollars of the so called goy and they will be in a wtf moment .

Their computerized calculations are scewed . Same as the globull warning calcs are scewed due to never factoring in the Sun.

They do not factor in the human element .
Their reactions are not determinable . Too many variables . That are not quantified.
I think it was Celeste? that said when people lose everything , they lose it?

You cant quantify 7 billion unique organisms .

Keep putting on the pressure , lets see what happens?
One person hungry , no issue. 10 million peeps hungry , well shit happens then .1billion peeps hungry and well change will happen I think .
Can it be plotted ? Not really .

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