More calls to eliminate large denomination bank notes

By Leith van Onselen

UBS is the latest to call for Australia to scrap large denomination bank notes, citing that it would help eliminate the black economy. From Bloomberg:

“Removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS analysts led by Jonathan Mott said in a note to clients on Monday. Benefits would include reduced crime and welfare fraud, increased tax revenue and a “spike” in bank deposits, he said…

In Australia, 92 percent of all currency by value is in A$50 ($38) and A$100 notes, the larger of which is “rarely seen,” according to the UBS report. Removing bigger denominations would boost digital payments in a country where the use of cash payments is continuing to fall, the analysts wrote…

The program would also be positive for banks. If all the A$100 notes were deposited into accounts at the lenders, household deposits would rise by about 4 percent, the UBS analysts said. That would likely be enough to fill the big banks’ regulatory-mandated net stable funding ratios and reduce reliance on offshore funding, they said.

Fairfax’s Peter Martin has been calling for the elimination of large denomination bank notes for nearly a decade. As Martin wrote in September:

…it’s the use of $100 notes – the kind most of us hardly ever see, and the kind bank transfers should have rendered redundant – that is exploding.

Twenty years ago there were only five $100 notes per person in circulation. They were less common than $20 notes, which was appropriate given they were far less used. A decade later in 2005 after the introduction of the goods and services tax (the one we were told would kill the cash economy) we had seven per person, and now we have 12. A graph included in the latest Reserve Bank annual report shows the number of $100 notes in circulation climbing faster than any other denomination.

ScreenHunter_16114 Nov. 15 09.01

Note that I said “in circulation”. They are certainly not in day-to-day use… the [Reserve] Bank expects the typical $100 note to last 70 years. When they do come back they are often not even unbundled…

Who’s got them? According to The Curse of Cash released this week by influential US economist Kenneth Rogoff, they are mainly in the hands of drug lords, human traffickers and tax evaders. We are actually worse than the United States, according to Rogoff. Ninety-two per cent of our currency is in large denomination notes, compared to 84 per cent in the US. Only Switzerland, Israel, Norway and Russia use big notes more than we do…

Phasing out high denomination notes would be painless, for those of us with nothing to hide. We would be invited to deposit them in banks in return for their full value up until a deadline, after which they would no longer be legal tender and worthless.

Phasing-out large denomination bills makes a lot of sense. It would make life difficult for the black economy such as organised crime and tax evaders, as well as those engaging in welfare fraud.

Personally I believe Australia should phase-out both $50 and $100 notes. We are turning into a cashless society anyway, so phrasing-out these bills wouldn’t create much of a burden to the ordinary law-abiding person.

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Comments

  1. Modi (India’s PM) demonetised large demoninations on the day US election results were announced, black-money hoarders in India are getting burnt, big time!

      • Too right! How dare anyone even attempt at living outside the control of the all knowing Government.

        Submit Poors! Your life is not your own, you’re big governments bitch.

      • Taking damage in PR though. Just read about a baby dying ‘because the doctor wouldnt accept the larger bills’. The doctor claims the family couldnt afford it at all, that it wasnt about denomination size of the bill.

        Im not sure any of our pollies would be brave enough to do what India did. They would have to admit that their systems are fallible.

      • I’d be all for this if the banks didn’t have to skim ever transaction that was made. Also, the pessimist in my think this is just one great big ploy to give negative interest rates the firepower it needs.

    • Keeping in line with my dumplings theme this week, no one pays for dumplings with a $100 note. Does nothing to stop ‘black money’. You’re better off banning the $1 and $2 coin for those pesky tax evading coffee shops. And how about gps trackers for tradies in their utes. There I just names two things that would fix tax evasion more successfully than getting rid of a $100 note.

    • I have typed out quite a few posts then deleted them for this post by LVO. Usually I like MB analysis but this one really grinds my gears. I don’t want to over react and say they have Jumped the Shark, but the Fonz is in the water and on his water ski.

      The Black market/crime argument is BS. I would advise readers to consider Jim Rickards writings on this subject where he has been predicting for some time elites will progress their war on cash. Trump’s victory seems to have accelerated the plan. I didn’t expect MB to be parroting the Rogoff(establishments) talking points….

      If I think a bank is going bust, and/or if I think CB’s/governments are going to enact negative interest rates and/or if I think digital holdings are susceptible to cyber hacks I want to be able to hold assets outside of the banking industry without being branded a criminal.

  2. I once saw a young woman in a luxury goods CBD shop pay for an expensive handbag (and by expensive, I mean it cost thousands) by opening up her purse, turning it upside down, and out dropped a hail storm of $100 notes.

    $100 notes are very popular among certain, ahem, ethnicities. Whether this is because of the cash economy, crime or cultural factors, I don’t know. You will also see a lot of them in casinos.

    • ResearchtimeMEMBER

      EU did it first, other countries followed. Its socialism/fascism – that a persons dealings are not his own business, but big governments as well.

      What a surprise that various political commentators are supporting the move. It fits with the Big Brother watching you narrative.

      Its how governments will rob you in the future, they will charge you negative interest rates, but make it unpalatable to withdraw funds from the bank to store. By denominating certain notes, circulation and storage becomes impossible. Government theft becomes probable – or even certain. We become serfs as a result of our collective national largesse.

      There is no logical or financial reason to get rid of large denominated notes. Its merely government intrusion into our lives. Soon they will want to restrict all physical monies, and control every minute of our lives.

      Its classic Fascism/ Socialism (given they are virtually identical)… and MB is leading the call!!! How fire trucking predictable – the next Green bandwagon… Well done. Personal freedoms forfeited.

      • There are many reasons to get rid of large denominated notes. Here are three of them
        1. Tax evasion
        2. Proceeds of crime
        3. Money laundering.

      • ResearchtimeMEMBER

        That is total BS… the black economy’s fringe at best. You would sacrifice your own economy freedom for those nonsense BS arguments??? You are as daft bugger as UE for suggesting them. Not that I am surprised mind. Abuse is UE’s tonic to logic.

        Not that I am superstitious – but many Christians are very wary of a cashless environment, whereby one can be instantly frozen out of society at the switch of the button. This is red line for me.

      • Sorry it’s not often I agree with Researchtime, but on this I do. I don’t see why a digital record of every transaction I make should be kept and intercepted and stored by an all seeing government. There are some cases where cash makes sense and where you don’t necessarily want certain individuals to know what you’re buying, when and why. Not all of it is illegal.

        For the same reason we shouldn’t be comfortable with governments being able to track our every move. Freedom of privacy is important. It’s something we are surrendering day in and day out and I don’t like where we are heading. Even if I am against money laundering and black markets in general.

      • How is a store of value held in government issued paper classified as economic freedom?! The only freedom people see in $100 notes is usually tax evasion and drug dealing. Those pricks impose a greater penalty on people who pay their share, so f*** their freedom. No one is actually free in our society and anyone who claims it is usually happily pissing on others from a great height.

      • ResearchtimeMEMBER

        Thats fiction UE. I cannot remember how many emails you have cut of mine over the years, 50-60 at least.

        Apart from the numerous alias’s you use for abuse, my biggest criticism is that you think you can reduce human endeavour down to dollars and cents, without realising there are freedoms that we have to enshrine or the whole edifice comes crashing down. The above paradigm appeals because you refuse to ask the question – what if???

        Ask the most basic question why are they doing this??? For once, ask the big questions… why do governments want to control the very essence of our transactions. Trust me – its not the black market, that is merely a rounding error in Oz! Bigger in the EU, granted, but its not the real reason why they instituted it there either!

        The real question should be asking – in a world of real negative interest rates, why does the government want to keep you from saving???? How do we maintain wealth in that event (the answer is obvious, gold, real estate, etc – real assets).

      • Bento
        Be careful you don’t actually read anything other commenters say. Saves you having to rationally address their objections.

      • I’m with you mate. I am stunned to read people BEGGING for their own enslavement. Their misguided trust in ‘benevolent’ big government is just astounding to me.

      • ErmingtonPlumbing

        Soon “They” will know where you spent every last dollar, when and where.

        Thats Totalitarianism, Im with Reasearch on this one ,.. its just a [email protected] Dumb Idea.

      • Let me update you on the situation on the ground in Beijing. Within the space of 12 months the whole city has gone almost cashless. Go to a scungey noodle joint, use fintech, your little corner store, same thing. No transaction too small. I now look at cash and think that it is so old school. Visitors from other cities come and say BJ is so advanced, you can pay the guy selling stuff on the side of the road with your phone. They might love their cash here, and they do for all the reasons we know about, but they love their tech too and adopt anything new with gusto.

        However I’m with you on the whole aversion to going cash-free. I use cash on occasions just because I don’t want to lose my freedom and privacy, I don’t trust the government and the banks not to be either stupid or thieving. And I think the crims are smarter than the government and the banks when it comes to security. How was that Tesco robbery the other day?

      • Hey RT, I listened to I think it was Rogoff on LNL the other day with Philip Adams.

        I don’t think this is a call for the abolition of cash in its entirety.

        This is a call for the abolition of large denom notes which on the whole are used for non legitimate uses.

        Ultimately this is not good for society on a raft of measures not the least lost tax which hurts everyone.

        Very interesting: when you 80/20 the split of denominations V crime, it’s more like 99/1 thr $100s being used in crime.

        So, on that basis, and seeing how if you 80/20 legit use of 100s by the masses, I am all for removing 100s.

        He made the point that 1M in cash in 50s is still kind of transportable, but plenty of us still use 50s, legitimately.

        For example, if I sell a second hand car, I’ll either get cash (50s) which suits me. If I am selling a new car second hand, and I am selling, for example, for 50k, well that should be a bank cheque really.

        You can still conduct cash transactions in a world of 20s and 50s

      • Bloomberg USA telling us what to do,. When banks are allowed to do bail-ins as they are in Aust(thanks APRA) and interest rates are at 5000 year lows and bank charges go on as usual.. when the banks business models are looking dangerous, being able to hold cash is important. People evidently want the large notes, so why in our democracy do the banks decide to remove them? Regarding tax evasion, just look at the huge corporate failure to pay tax.

      • Original JohnMEMBER

        @super – Rogoff and his arguments are valid for the US $100. UE is talking about the Australian $100 which does not appear in International operations for drugs etc and is only liquid in Australia (unlike the USD which I can spend, sometimes with annoying exchange rates, quite readily in many countries outside the US). If UE had suggested eliminating the $100 US note, I would tend to agree with him, entirely related to first hand experience in the Fed Reserve in NYC. When I was working with Guardia Civil, we had a lab report circulated showing the results for drug screens done randomly on notes in open circulation sourced in Madrid and Barcelona. All the notes were isolated in individual bags on receipt to avoid cross contamination during the screen. All and I repeat all denominations showed traces of cocaine and most of the low denominations tested positive for other substances consistent with being used in other parts of the black economy.

      • ResearchtimeMEMBER

        Bogus reasoning Superunknown, and is the exact reason they gave in the EU! And its a lie to appease the dumb. Phillip Adams is reading from a script supplied.

        Encourage, think for yourself… makes no logic when you really think about it. Escobar had houses full of $100 notes… had to keep buying houses, had six of them full of cash at its height! I suppose he could have bought 12 houses for $50’s…

        This isn’t about crime – this is all about mass control. Who is in – and who to exclude…

      • “Ask the most basic question why are they doing this???”

        This is a worthwhile question. If they (straya gov’t) gave an actual proper toss about money laundering, you’d think they’d extend AML legislation to property investment. But they don’t, do they?

      • Researchtime – – spot on comments –you’d have to be stupid to not see that Personal freedom goes if Cash goes.

      • +1 to RE. Blind Freddy can see you are basically handing it to the banks who incidently probably run the government.

        Watch the gold price!

      • Soon “They” will know where you spent every last dollar, when and where.

        “They” mostly already do.

        But “they” are private corporations like banks and marketing agencies, not Government.

        I wonder how many of the Libertarians here would get behind regulations enacting serious punishment on corporations that suffer data breaches, require comprehensive deletion on request, and require clear and simple documentation of what data is shared with who, including the ability to easily opt-out of all data-sharing arrangements without suffering disadvantage ?

      • Drsmithy
        Are you fair dinkum???? Do you actually read anything or do you just do what skippy does? Every writer has objected to the data being collected by corporations. But never mind that wee small fact.

      • The Penske FileMEMBER

        While I’m not dodgy and unfortunately work in an industry where the odd soft dollar commission is the only benefit I can squeeze without paying tax I support the cash in our society. Yes getting rid of the “granny smiths” sounds OK as I’m sure most of these are used in the “grey zone” however I don’t want big brother knowing all about me and I use cash most of the time while my wife is a card only operator. Interesting to know if all that are worried about this have their phones privacy settings to preserve their whereabouts as well. I’d be more worried about this and of course why I get the Asian singles add on this site…..

      • Every writer has objected to the data being collected by corporations. But never mind that wee small fact.

        They complain but I bet 9/10 of them would not support “big Government” legislation to try and fix it.

    • @Frank — You sound like a right little Goody Twoshoes. They’ll be coming for you first.

      Perhaps (gasp) that woman who paid for the Handbag with $100 notes had just come from the Casino ??????

  3. Absolutely. However it will have to be sudden and immediate elimination of the high value notes for this to work. India recently did this overnight, naturally some inconvenience initially but the black economy now is in trouble.

    • BitCoin / Dark Coin many other methods..crime always finds a way… While the rest of us will be worse off as a result.

    • People will find a way around it, black money always does.

      One recent fraud method involves people paying with prepaid debit cards and gift cards. Walmart gift cards are a popular choice for this in the States.

  4. Leith, how are banks held accountable in your cashless society? If banks (let’s say all of them), take undue risks, how is a depositor to “opt out”? Gold / Silver?

      • “We have depositor guarantees”

        Which are an abomination. It underwrites bank profits and mitigates their risk at the expense of the taxpayer. It shouldn’t be allowed.

      • At times you have criticised the Australian taxpayer guarantee for banks and deposits, but now use it to support a reduction in the availability of cash/notes? Wow.

      • Wait a second, what’s the rationale for this argument?

        Stamping out crime ? Or saving people from losing a cash stash.

        Sorry, it can’t be the latter. You can’t set the field for poor risk management or stupidity (i.e. storing 100k in cash at home).

        Notwithstanding the OP made the comparison.

        Let’s keep this about crime and lost tax revenue

  5. Nope, nope, nope.

    The first step towards a cashless society, First step towards totalitarianism. Your every digital transaction monitored. No thanks. Government should stay out of our bedrooms and out of our wallets.

      • Arguing that you dont care about privacy because you have nothing to hide is no different to saying you dont care about free speech because you have nothing to say

      • “”Have you got something to hide? Sure looks like it.””

        Yep! That’s all the evidence we need to condemn someone in this new world!

      • “Have you got something to hide? Sure looks like it.”

        This is always the first defense a scoundrel uses in this argument. It is not about having something to hide!!!!!

      • “Do you have something to hide?” was the same mantra the right-wing (and feckless Labor) used to cram internet monitoring down our throats. I think it’s good to see it blow up in their faces.

      • Would you consent to a random strip search on the side of the street? Why not? Do you have something to hide? How about a cavity search? You half wits begging to have your freedoms taken away simply amaze me.

      • “Would you consent to a random strip search on the side of the street? Why not? Do you have something to hide? How about a cavity search? You half wits begging to have your freedoms taken away simply amaze me”

        Haha, They are intellectual pygmies!!!

      • BankWatcherMEMBER

        When Malcolm Bligh Turnbull and other members of the 1% open their bank accounts (both on AND offshore) for inspection, then I will share all the details of my finances, and not before!

      • Its not about hiding Frank, its about the fact that as a retail store owner I have to pay the bastard banks 1% of every dollar that goes through my shop for the pleasure of my customers using a card.

        Cash doesnt have fees attached to it. Its not about hiding cash, its about the banks getting money they dont deserve.

      • I never understand why 9/10 times when I talk to someone and a phone call comes through their mobile, they excuse themselves and move a few meters away to answer the phone. DO THEY HAVE SOMETHING TO HIDE?

    • The government is not as scary as the banks!! When all cash is eliminated, you will not be able to buy anything if the bank freezes your account.

      • I Haven’t seen a $100 note in years but always withdraw $50s from ATMs. $20 is too small, IMO. Over time as electronic payments for small-ish purchases become common we might be able to do away with $50s but not yet.

      • Oh Bulls..t!!! That is not part of the plan!! Anyone who thinks that is just being ostrich like!

        I can tell you where there are quite a few of those green things – buried in a place I know about!!!! Nothing whatsoever to do with tax evasion or black market. I just want to be able to run my business and pay my people for a few months when TSHTF! But we can’t have that can we! We must control everyone and everything! “”WE KNOW what’s good for YOU!””

        P.S. Why is it necessary for Coles, Woolworths or some American financial institution to be able to track every cent I spend ?????????? Why do you all want that??? Their bloody record of keeping data safe leaves a lot to be desired and that will get worse.

        Every time you open your wallet you bust a $50!

      • So organised crime will suddenly start using $20 and $50 notes instead? I guess the black briefcases will need to be twice the size now? How inconvenient for them… I guess that will stop all crime in it’s tracks lol..

      • I have heard that the government pays people to look into organised crime. Some of them are called police. Also we have other legislative and enforcement agencies, ATO etc plus heaps others to look into all the law breaking in terms of financial crime. Perhaps getting these agencies encouraged to do their job would be a better focus of our energies. $100 note removal is a bait and switch.

      • Not often i concur with XO and Researchtime …. but i do on this.

        So if they get rid of $100 bills it will have some effect on proceeds of crime.

        What total garbage !

        We actually need a bigger sized note. $500.

        Tell me how eradicating bigger size notes will impact proceeds of crime or ‘black’ money?

      • Smaller denominations weigh more and take up more space, than say a $100 note.

        Its harder to carry a large sum of cash in small denominations, harder to count it in a short space of time and harder to hide a larger pile of notes. The brown paper bags also have to be a lot bigger 🙂

    • Where were you Xo when the Government legislated data retention laws? Or are you forced to look the other way when The Party conflicts with your precious freedoms?

      • Yeah effit! Get rid of freedoms! They don’t matter! be careful Jason. You are presuming that the extremist government that is surely coming will be of the ‘Left’ (such as it is) PC persuasion. That’s probably first but may be followed by a massive lurch to extreme right! That’s the problem with lost freedoms. Trouble can come for you from anywhere in an uncontrolled fashion.

    • Biggest issue of this is the removal of the arbitrage of interest rates at the zero bound. No physical cash means inability to combat negative interest rates. This has nothing to do with crime and tax evasion, both negligible issues in Australia with respect to this specific cash issue.
      Also removal of cash means no way to avoid bank bail ins either.
      Crime/Tax is the trojan horse to removal of the arbitrage

    • ErmingtonPlumbing

      No doubt my love of Social Democracy and the wealfare state has me and Xo disagreeing on most subjects.
      But this “Socialist” agrees 100% with Xo on this one,…it just another step towards the total erosion of privacy and a big brother police state.

      Like the libs wealfare card that can only be spent on food, how long before the nanny state decides youve spent enough on beer or bacon and egg rolls and as thus have access to your mobey for these things bared!!! How many beers and Bacon and egg rolls I consume is my business!!! not the states or some coporation.

      The loss of freedom to be Anonymous is whats at stake here and thats dangerous.

      And while im at it it shits me all these people who get “excited” by the new technology thats makes this discussion even possible.

      Nazi with new IBM punch card technology certainly knew how to abuse it.

      “pivotal to the Nazis in their efforts to identify, isolate, and ultimately destroy the country’s Jewish minority. Machine-tabulated census data greatly expanded the estimated number of Jews in Germany by identifying individuals with only one or a few Jewish ancestors. Previous estimates of 400,000 to 600,000 were abandoned for a new estimate of 2 million Jews in the nation of 65 million.[15]”

      And

      “without IBM’s machinery, continuing upkeep and service, as well as the supply of punch cards, whether located on-site or off-site, Hitler’s camps could have never managed the numbers they did.”[19]

      https://en.m.wikipedia.org/wiki/IBM_and_the_Holocaust

      • Your comment hits the nail on the head. It’s why I still mostly use cash for everything other than mundane large purchases. I actually had a discussion with a workmate many years ago about something similar. There was a rape in a country town somewhere in NSW. Pretty much the whole town turned up to voluntarily give DNA samples. This workmate was espousing how government should mandate that everyone is sampled at birth. He had a son who was deaf from birth. I said, whats to stop the government from selling that DNA database to the health insurance industry to screen policy holders? Sorry, your sons condition is genetic, therefore he is ineligible for coverage of that ailment. This is getting a bit orwellian, but don’t fucking believe they wouldn’t try it if they could get away with it. It seemed to make him reconsider his idea. Not sure if it changed his mind.

        Now lets take this cashless society bit to that same conclusion.

        HBF Rep: Sorry sir, your account shows in the last twenty years you spent $54,635 on McDonalds, $19364 at Joes Fish and Chips, $123867 at liquorland and $37889 at Wongs Chinese. As per clause 1826A of our policy, this invalidates your cover for a triple bypass. Goodbye. “click”

        Again, orwellian, but with the way that data is money these days, you can bet your arse this will happen if they think they can get away with it. CBA life insurance surely wouldn’t try and dupe people out of money would they?

        Never mind the hapless fuckwits that post stupid shit on facebook and their future employer demands their facebook profile and login prior to giving you a job (this was common in the states a few years back) All this data stays forever in some computer somewhere. This is one of the very few time I have fervently disagreed with something written on this site. Going cashless is the government and bankers and corporates wet dream. So UE can go fuck himself with his argument on this one.

  6. Lol you sure this wasn’t designed to impose negative rates on depositors to unleash the next phase in this Keynesian experiment? With a dash of MP of course.

  7. “”Personally I believe Australia should phase-out both $50 and $100 notes. We are turning into a cashless society anyway, so phrasing-out these bills wouldn’t create much of a burden to the ordinary law-abiding person.””

    Yeah!! Absobloodylutely. let’s force everyopne to hold all their savings in Banks in Digital currency that can be wiped out in a second as soon as the wonderfully intelligent elite, we need to guide us through every action of the day so we get it righ, decide that it is appropriate to do so.t Let’s make it so the banks can cream off whatever commission they choose on every single thing that every person does. Let’s make it so every single transaction from every donation to whatever group can be tracked and stored for later use by any extremist organisation we ever elect. Let’s make it so no small market can exist. We can’t have farmers growing good food and selling it straight to people who want it. We MUST forcfe everyone into the big supermarkets. Let’s make it so when all these mad elitist bastards want negative nominal IR’s there is no way to avoid their lunatic scheme for the world. Let’s make it so we can have whatever lunatic negative nominal interst rate we need to increase consumption even way above the current over-indulgence of the western world so that we can use up our world at a faster and faster rate???????????? What a bloody wonderful world you lot have planned for us all. I’m sure we will all be blithely happy in the world governed by those who think they are so much better and more intelligent than the rest of us poor dozey bastards. We need your guidance and supervision every god-damned hour of the day…effing bozos!
    What’s more I hear all these statements how it is the black market and criminals who have all the $100 Bills – yet strangely not a single shred of evidence is put forward.”” Yeah well screw the evidence – we don’t need that …We just KNOW what’s good for you!!!!””
    The hypocrisy in all this is just astounding. The disregard for civil liberties and the right to think and speak grows every day amongst those who think they are the intelligensia.

    There’s some mixture of idiots fires and accelerants. What could possibly go wrong????????????????????????

    • ” let’s force everyopne to hold all their savings in Banks in Digital currency”

      You do realise, I presume, that they money you have right now in a bank only exists as a digital entry? Yes, you can withdraw cash that is “legal tender”, which means anyone must accept it as payment because the Government stands behind it. And because everyone trusts the Government, you can exchange a $20 note which is comprised of 2 cents worth of plastic and ink for $20 worth of stuff.

      All of that though can be replicated by a government-issued digital currency.

      If you are so distrustful of government, it makes no sense for you to take comfort in holding cash.

      • The bank currently controls which merchant can process a creditcard payment. Once it goes all dogotal, they will control the entire small business sector. When they stop you from accepting payment, you go bankrupt.

      • What a load oif bollocks!!! It’s a bloody lot harder for the government to reprint and reissue all teh currency than to just digitally wipe out everything. WTF do you think they have planned? All the international agreements and legislation are in place!

      • *WTF do you think they have planned? All the international agreements and legislation are in place!*

        Now I get it. You need cash to pay for your tin foil.

      • Strewth! Go and read about ‘bail-in’ provisions. Were you asleep when Cyprus and Greece happened?

      • Frank – how as a saver do I avoid the impact of negative interest rates if you take physical cash away from me as an option?

    • davidjwalshMEMBER

      yes flawse……….it amazes me that anyone would be willing to be totally free of cash. Absolutely mind blowing. It’s got to the point in the US that some banks restrict you making a cash withdrawal over $1k. And if you want in excess of $10k (of your own money in your own account) it usually has to be booked in advance and you are required to sign a waiver….personally, I’m using cash much more often now – and yes $100 and 50’s are the go. $20 doesn’t go very far these days in Oz

  8. Would have no problem with this. Provided we also introduce competing currencies allowing consumers the ability to choose what they want to use as money, that would mean removing all taxes (e.g. GST/CGT) on assets used as money such as gold and bitcoin.

  9. I’m sorry but this is just one of a few posts popping up on this blog that has me raising an eye brow. MB appears to be drifting away from liberty and heading down the path of extreme left?

      • I was being kind. But I agree with the sentiment. I find myself pondering more and more in regards to this blog, “the Democrats captured the US media, why can’t something similar happen here.” Especially if MB’s claims of relevance are correct.

    • “Extreme left?”. Hilarious. Because I supported a reform to curb the black economy. How terrible of me.

      Funny, cause yesterday I was called a Hansonite for arguing for lower immigration – the exact opposite of an “extreme left”.

      • You write often how undercapitalised these damned banks are! MB is full of how the Banks are going down in a housing crash!!
        Yet now you want us all forced to hold all our savings in them??? You don’t give a single thought to the libertarian issues?
        Well I guess you’ll be right. you’re guaranteed to be on the side of the rulers! Better check which one is winning at the time though eh???

      • “is just one of a few posts” does not equal “all”. But pointing this out is not helpful for the conversation.

        I struggle to see how this does not place more power in the institutions of society, thus ultimately leading to further undesirable outcomes. I find it hard (and I imagine I am not alone here) to see the good work MB does in some areas, and then fail to identify key issues (liberty / further control link in this instance) in others (which are equally, if not more important).

      • “Extreme left?”. Hilarious. Because I supported a reform to curb the black economy. How terrible of me.

        WTF ? So now you’re an expert on the Black Economy which you’re going to help reform –Seriously — ha ha pull the other one

    • ErmingtonPlumbing

      “MB appears to be drifting away from liberty and heading down the path of extreme left?”

      Hey! Im Left!,…and I think its a [email protected] of an idea too!

    • No Dennis, whats actually happening is the the extreme right is dominating the press so much that being in the centre now looks like a tree hugging, crunchy granola, hemp wearing lefty hippie.

      Being in the centre means looking at the best out comes for the maximum of people, not the benefit of a few.

      Its not an easy place to be.

  10. Sweden has been talking about eliminating cash but has run into consumer resistance. People say they want notes even though they use them less and less. Banks (I’m not making this up) call it a “Cash 22 situation”.

    • And 16 people have died after the announcement. Hospitals and ambulances refusing to accept the old notes. Along with elderly waiting for hours in line at the ATM.

    • @janet – it does not mean what you think it means. 70% by assets and 95% by people of the banking sector in india is publicly owned (or was a few years ago anyways).

      hence the implications are radically different. think about how much you would care about this if it was the old owned by public service CBA or something, and everyone you knew also banked with the government.

      i’m not saying going cashless is good, or that the indian govts move is good – nope and not enough information respectively. just that how the decision is percieved in india is different from how you see it from here.

  11. FiftiesFibroShack

    No thanks, at the very least It makes central banks too powerful. Then there are the privacy concerns – I’ll be paying for my future sex robot in cash, thanks.

  12. Moving to a cashless economy presently means that you must use a bank as an intermediate. The banks are private corporations that are so powerful they can’t be investigated. Surely we need to find a non corruptible medium of exchange before we go cashless?

    How can you be calling for a RC into banks on one day and giving them the keys to the kingdom on the next?

    • SPOT ON!! This issue should be at the core of any discussion relating to “going cashless”.

      What will the interest rate be in a cashless society? Why stop at negative 1-2%, lets go down to negative 10-20%.

      How will banks be held accountable if depositors can’t “opt out”?

    • Yep, contradiction here is breathtaking.

      Introduce competing currencies, that allows everyone a choice of the monetary instrument they use as a medium of exchange/store of value.

    • Original JohnMEMBER

      Getting rid of $100 will not interrupt the black economy at all. What does every crook in the movies ask for when robbing the bank? He wants the used, low denomination notes, not the large ones. Only the dumb crooks want large denomination bank notes. So the only people disadvantaged by this move are the prudent who have seen how the bail-in in Cyprus went.

      • You watch too many movies. Nowadays nobody blink an eye if you tried to pay for a car in hundreds or fifties.
        When a beer cost more than $10 breaking a fifty is no biggy too anyone.

      • Original JohnMEMBER

        Exactly Cornfed, removing 50’s and 100’s has no impact on the black economy. It just becomes an inconvenience for everyone else. Oh and if you remove these from circulation and force everyone into the “digital banking sphere”, make the default daily EFTPOS transaction limit at least $5000

      • OJ – great point. Italy banned everything over EUR 2000 from being done in cash, you had to pay electronically. I’d advocate for something like $3000 as a limit, anything above that has to be paid electronically.

      • Have a listen to Rogoff on LNL recently.

        The data – not the anecdotal movie evidence – the data, and commonsense, do not agree with you

        And because bank robbers are the large scale crims we are really worried about

        LOL

  13. adelaide_economistMEMBER

    I understand the arguments (and concern) about how it is that the ‘problem’ of large denomination notes has suddenly become a big deal only when negative interest rates are being contemplated. The ‘black economy’ has raged for all human history and inflation (CPI increases) are essentially solving the problem for them locally. I’m not *that* old and I well remember when a $100 note was a fair chunk of buying power. Today… not so much. That said, I also see why notes with serious storage value – like say the 500 euro note – might be earmarked for elimination.

    But in terms of freedom and concern about totalitarian intentions – and they are very valid concerns – I wonder if that ship has already sailed. What’s to stop a government at some point in the future simply issuing an edict saying that there’s a new $100 note being released and all the old ones become invalid at date X (I guess similar to India?). Fiat notes don’t contain metals – there’s probably an inherent value of 1c in the coloured plastic they use to make them.

    So in essence it’s almost a false sense of privacy and safety anyway these days. We’ve already progressed way past the point where you can rely on things like cash to stay off the grid. Everything from facial recognition tech, CCTV everywhere, linked databases of government records (thanks ABS!), police cars with built-in number plate scanners, inability to do much without providing drivers license or other ID, intensive background checks for most jobs, ISPs required to store ‘metadata’, the Snowden revealed capabilities of Echelon (of which Australia is part) – seem to make this no more than just a minor additional step from the perspective of lack of privacy.

    • ae – Yes we are too late to stop government f….ing is over. This no cash BS is just a plan to make it so much easier to totally destroy freedom. Should we all now just succumb because UBS (an effing bank) are now the experts on civil liberites??????? Really????? Should we not give a RA about civil liberties any more. Are those of us who give a rats about civil liberties already outlaws – this country seems to think so.

      • Original JohnMEMBER

        Super, appreciate your link to Rogoff. I am familiar with this, I was working with the Fed Reserve in 2003-2005 on currency tracking and am very familiar with the arguments for the elimination of the larger denomination bills. But Rogoff’s arguments are US and USD centric and can not be related to the Australian situation. They have some relevance to the Euro zone, but research internally at Guardia Civil in 2006 showed that all Euro notes tested (selected randomly across legit vendors in Madrid and Barcelona) had come in contact with cocaine, and most of the low denomination notes had substances consistent with being used in other black market operations. Rogoff acknowledges that the black markets in Europe are huge and that the USD is used widely outside the US as a store of wealth. The same can not be said for the Australian $100 note. The argument for the cash economy and tax avoidance is relevant in Australia. But removing the $100 note will not change this. Only removing all cash will change this. And thus we are back to the crux of the problem. The reasons given for removing the Australian $100 and $50 notes are not consistent with the facts in the Australian economy. Remove the US $100 note and you will make a large dent in international smuggling and other illicit operations. Remove the Australian $100 note and all you do is inconvenience the locals and piss off the pensioners.

  14. The number of home invasions that occur would also probably drop. It is a bit pointless going to break into a house for a TV or Laptop nowadays. They are after the hidden cash a lot of the time/

    • Agreed, I don’t mind if hundreds go, but fifties? How do I pay for escorts without my wife finding out then? They get shirty if you dump a load of twenties on them.

    • Why should hundreds go? If I go to the local pub, I can only buy a round of 8 beers with a hundred dollar note. Does the desire to not have a bali style wad of cash in my pocket make me Pablo Escobar?

  15. “Phasing-out large denomination bills makes a lot of sense. It would make life difficult for the black economy such as organised crime and tax evaders, as well as those engaging in welfare fraud.

    Personally I believe Australia should phase-out both $50 and $100 notes. We are turning into a cashless society anyway, so phrasing-out these bills wouldn’t create much of a burden to the ordinary law-abiding person.”

    makes no sense. ever heard of bitcoin? people should be allowed to transact anonymously. legalising all drugs would do much more to stamp out organised crime than removing large bills. this is just more of the same. elites and corporates will still funnel trillions into offshore havens. sorry leith you are so far off the mark on the above statements its boggles my mind.

    • It’s only only only about -ve interest rates and bank bail ins.
      Agreed on drugs though, legalise the lot, tax it and pay for mental health services required to get people off them.

  16. Drug dealers have largely become prop renovators over the last decade. It’s amazing how you can buy and sell a house, spend no money, and make a killing under current laws.

  17. CounterfiatMEMBER

    The great problem for CB’s to implement negative i/rates is cash.

    Personal freedoms should not be eroded by treating everyone as criminals.

  18. Also, how big is the “black market”? Why should we continue to implement “solutions” that punish the majority in the name of stopping the minority? Instead of treating the symptoms, let’s ask why the “black market” exists in the first place? We may find that most of these markets (I’m not saying all – and some markets are so perverse that of course they need regulation) exist due to archaic laws or vested interests (e.g. big pharma).

  19. Who’s getting paid by Centrelink in $100 notes?!?

    We can’t trust the banks to give us financial advice, and we need a Royal Commission into them just to try and get them honest (unlikely to happen), but it’s okay to eliminate high-denomination notes and keep that money in banks instead?

    A little inconsistent.

  20. “We are turning into a cashless society anyway, so phrasing-out these bills wouldn’t create much of a burden to the ordinary law-abiding person”

    An acquaintance of mine has developed a profile via social media to the point he was quoted by both sides of the presidential campaign, and was known to be quite the disturbance to Hillary.

    He funnily enough had all 7 of his bank accounts frozen on the same day, each citing some spurious reason. By the reasoning, you’d think they were cut from the same cloth… as in… a collusion of sorts.

    Thankfully the decent people of the USA were alert and voted in the only reasonable choice for president, but we were very close to having one of the most evil figures in history as US president. It is clear, and has precedent, that law abiding citizens do have some to be wary of.

    A government having impunity to lock citizens out of means of exchange is not a good outcome. There is a reason for law abiding citizens to have this to themselves and out of the hands of government.

  21. We should fight hard about the elimination of cash. Brainwashed Keynesians actually want this so they can e.g. impose -5% interest rates and force people like guinea pigs to go out and spend or speculate. It’s not only not going to work for the economy, it is also very anti-liberty in nature.

  22. I propose we remove the $50 and the $100 note but make it a crime punished by death for any person who contributes to causing inflation.
    This way in 100 years time the $20 will still be enough to meet our needs.
    We could also ban borrowing to buy housing. All houses must be paid for in $20 notes saved up from a taxable job.

  23. The tin foil hatters are out in force today.
    We need freedom, Freedom goddammit! Freedom to money launder. Freedom to evade tax. Freedom to rort welfare. Freedom to deal drugs. FREEDOM!
    Seriously guys, get a grip. Would getting rid of $100 notes really interrupt your life all that much? Cause it would certainly interrupt the black economy.

    • ah the old ad hominem/conspiracy theory attack. poorly played my friend very poorly played. but please explain how this would address large corporates tax evasion and for instance hitlerys pay to play foundation. black market please. miniscule compared to corporate tax evasion and oh i dont know 16 trillion unnacounted for in bank bailouts. how about you get a grip and stop pushing a mainstream agenda. i thought this site was established to keep the MSM in check. im almost done with this site and i am pretty sure i was one of the first to sign up and congratulate dave on the initiative.

    • Whole lotta’ DERP!

      “The tin foil hatters are out in force today.
      We need freedom, Freedom goddammit! Freedom to money launder. Freedom to evade tax. Freedom to rort welfare. Freedom to deal drugs. FREEDOM!”

      Not need, want. I don’t need government in this area. I am a citizen, not a subject.

      You can only evade income tax or GST… both of which well we know are bad constructs and shouldn’t be in place. You can’t evade tax if it’s LVT.

      Money associated with crime, well it’s a symptom of crime. You think the way to deal with it is lock criminals out of means of exchange? I’d be more focused on policing crime, that’s just me though.

      As I said, this is not about stamping a feet, a tantrum is endemic of the micro-aggressed left who actually believe Donald Trump is racist or homophobic.

      This is about as a citizen, I do not want government in this part of my life, I draw the line in the sand of my liberty, and where I want to government to administer a collective response. It is more galling that they decide to do this without consultation… and making more clear they see me, and other decent human beings, as subjects.

      “Seriously guys, get a grip. Would getting rid of $100 notes really interrupt your life all that much? Cause it would certainly interrupt the black economy.”

      So would ethnic profiling, do you support that?

    • “We need freedom, Freedom goddammit! Freedom to money launder. Freedom to evade tax. Freedom to rort welfare. Freedom to deal drugs. FREEDOM!”

      Yes abuse certainly saves having to deal with rational concerns!!!! Kind of becoming an MB trademark! Just call someone a turd or a drug dealer and you’ve got them and their motivations well and truly pegged!

    • Wow, instead of attempt to refute our concerns (which, judging from the number of responses people consider to be valid) you have resulted in this post. Are you guys feeling the pressure? If you continue to offer this kind of “analysis”, it will be hard to tell you apart from MSM.

    • “So you would abandon this site because I support getting rid of $100 notes. Seems a bit extreme.”

      Extreme? Now nobody is saying the site should be abandoned. That’s your choice to continue your business in its present form. Yet you are telling me that all my funds must be kept in a bank so that Bank should be able to shut my business overnight at its whim?

    • UE,

      Try taking away those Freedoms you talk about from the super wealthy, the big end of town, the multinationals and see the response you get. Yes we get our political leaders and the MSM beating their chests about this issue with them every now and then, promising “tough action”. And the average punter responds strongly that they want this. But it turns out in the end that the “tough action” promised is the equivalent of beating them up with a wet lettuce leaf. And in time the average punter now finds themsevles the eventual target of this “tough action” and not surprisingly its more like a cat -o-nine tails that is used on the average punter rather than a wet lettuce leaf.

      An example, you have had a government department beef itself up with extra resources and with a new CEO who has inside knowledge of the game thats played by the big end of town on the premise of “tackling” (i.e. not tackle) this issue. Only to have those extra resources not do the job they were originally intended to do but instead be turned against middle class/average Australians. This is just one example but this type of thing is becoming increasingly common, its becoming a repeating theme.

    • Macro Business does a lot of things well, considering the opinions of those who disagree with the authors is not one of them. Maybe something to work? Lots of solid arguments put across above, which appear to be considered tin foil hatter material:

      “legalising all drugs would do much more to stamp out organised crime than removing large bills.”

      “I don’t see why a digital record of every transaction I make should be kept and intercepted and stored by an all seeing government. There are some cases where cash makes sense and where you don’t necessarily want certain individuals to know what you’re buying, when and why. Not all of it is illegal.”

      “How are banks held accountable in your cashless society? If banks (let’s say all of them), take undue risks, how is a depositor to “opt out”?”

      “Let’s make it so no small market can exist. We can’t have farmers growing good food and selling it straight to people who want it. We MUST forcfe everyone into the big supermarkets. Let’s make it so when all these mad elitist bastards want negative nominal IR’s there is no way to avoid their lunatic scheme for the world.”

      “Moving to a cashless economy presently means that you must use a bank as an intermediate. The banks are private corporations that are so powerful they can’t be investigated.”

      “..removing 50’s and 100’s has no impact on the black economy. It just becomes an inconvenience for everyone else.”

      “We can’t trust the banks to give us financial advice, and we need a Royal Commission into them just to try and get them honest (unlikely to happen), but it’s okay to eliminate high-denomination notes and keep that money in banks instead?”

      “..If we real see yields on bank deposits head to/below zero and stay there…….why would you keep your money in a bank in that environment”

      “The problem with non cash transactions is the simply ridiculous amount of information (data) that’s being collected (and permanently stored) about individuals and what they buy, when and where. Big data is the corporate gold mine that industry is just starting to really use, most governments are still in the clueless category but they’re learning quick AND they are being sold different service packets by big-database owners. So it’s not simply about the government storing purchase information information about you tomorrows big data is a global corporation and provides a 100% clear picture of each and every individuals life, who they associate with and when and where this happens. Transactions are the glue that ties it all together, the purchase that links you personally with all the available data.”

      “China only has 100 RMB notes (about $20 AUD). It didn’t stop tax evasion. It didn’t stop money laundering. It didn’t stop drug dealing’. Of course, having high denominations will make it easier, but to say all of this will magically disappear when the $100 is phased out is wrong.”

      • ErmingtonPlumbing

        I prefer customers pay using my eftpos machine, but if i gota take cash I prefer 100s caus they are easier to count at the job and at the Bank, it is a pain in the arse gettimg to saod bank at times)
        The payment that shits me the most is when they, say give me your bank details and ill do a funds transfer when im in front of the computer tonight,….takes you 2 or 3 days to realise the pricks haven’t paid you your 300 bucks and you lose time chasing the money.

        Gona start copying my mate who is ultra courtious to clients, tells them up front the job is pay on completion and then if they dont pay cash or on his eftpos at completion gets extreamly unpleasant with them.

  24. [email protected]MEMBER

    Got to tell you – this would be an absolute boom for private vaulting and gold companies – especially if we real see yields on bank deposits head to/below zero and stay there…….why would you keep your money in a bank in that environment……….better to own gold, and if you want notes – you’ll need a lot more of them if there are no $50 or $100 notes…….

    Sorry but this is a ridiculous, unnecessary and totalitarian move – of all the problems the global economy faces (debt/wealth inequality/demographics/rise of extreme right/left political movements etc etc) – all of a sudden the ‘black economy’ is a key concern we need to address – total rubbish!

    Besides – it will just push up house prices further – think of all those extra deposits which can be turned into loans

    • The next step is banning private gold ownership, for economic security/stability reasons or some such.

  25. Looks like I made the mistake today both reading and responding to comments – something I rarely do anymore (bad use of time and effort).
    Lesson learned. Enjoy talking among yourselves. If you need my attention, email me directly.

    • Yep! Who the hell wants to take any notice of people concerned about the implications of your proposed policies? I guess it is good training for us for the sort of government you have in mind for us all.

    • taking the bat and ball and going home. why bother spending time on those that make the site good–you know the customer. have you hired a multi million dollar consultancy to also advise you on the “voice of the customer” too? seriously mate. i just want to know how removing large bills actually helps the little guy. something i thought this site was founded upon. i just think you haven’t thought this through. banning large notes is about control. something we are seeing more and more of by the elites as the system they created enters entropy. we have seen brexit, now we see trump and more is coming. the little guy is tired of being pushed around. this will do nothing to stamp out the black market. nothing at all and shows a real lack of understanding on your behalf of how tax is avoided and money laundering actually works. if you a re going to make statements and put yourself out there either leave it to us to criticise the post and stay out of it or respond to very valid criticisms of this additional erosion of our freedoms. its symbolic of a much larger problem………….i just expected more from you guys. ……….provide a single piece of empirical evidence anywhere in the world how removal of large bills has reduced crime. thats all we ask.

    • Bat, ball, going home. UE this is a foolish initiative, my advice would be to acknowledge that your view is unpopular with your readership, don’t run away with your fingers in your ears, be willing to consider that it is you who may be wrong. If crime is the issue, law enforcement is the answer. If readers disagree with your views, attacking them is not the answer.
      Cash is great, I love it. What business is it of the banks, vendors or government to be able to track how I spend MY wages? This proposal can take a long walk off a short plank.

    • I thought you were a little more secure in your opinons and your ability to defend them than to require an echo chamber.

  26. This debate seems quite divided. I have a suggestion. How about placing an expiration date on our existing bank notes? Say, 2-3 years from its release into circulation (perhaps less for large denominations, and more for the smaller notes). It allows the notes to remain useful, but forces dodgy funds to touch-base every few years.

  27. Not sure if I agree or disagree with UE.
    The problem with non cash transactions is the simply ridiculous amount of information (data) that’s being collected (and permanently stored) about individuals and what they buy, when and where. Big data is the corporate gold mine that industry is just starting to really use, most governments are still in the clueless category but they’re learning quick AND they are being sold different service packets by big-database owners. So it’s not simply about the government storing purchase information information about you tomorrows big data is a global corporation and provides a 100% clear picture of each and every individuals life, who they associate with and when and where this happens. Transactions are the glue that ties it all together, the purchase that links you personally with all the available data.
    Now if you think cash is a solution than frankly you’re delusional, cash especially paid in largeish amounts (say over $200) is SO unusual that the transaction will be tagged, you will be photographed and big data operators will put a name to the face. Make a lot of these sorts of purchases and you’ll be definitely tagged for close observation the big data machine will not be denied, SO if you think that paying cash will help hide your identity then think again because you’re actually just making yourself standout from the crowd.

    • CB
      The transaction may be tagged in some way however
      1. I’ve still got the damned $200 after the banks are shut and savings confiscated
      2. Unless they have digital recognition cameras at the till at the same time they do not know who I am purchasing what.
      With the current scant regard for individual privacy and liberty I guess the digital recognition every where at any transaction will not be far behind. That should basicallymake small retailers of any kind illegal…I guess the world progresses!!!!

    • “The problem with non cash transactions is the simply ridiculous amount of information (data) that’s being collected (and permanently stored) about individuals and what they buy, when and where”

      Nicely put. And anyone who thinks this information is being used, or is going to continue to be used in the future, for their benefit is sadly mistaken…

    • @China -Bob ” Not sure if I agree or disagree with UE. ”

      That’s called fence sitting – – perhaps you should be called – Two Bob (each way)

    • Excuse me? If I spend $200 at woolies I am now photographed? And this photo goes where? Where in the hell did you get this information from?

    • It’s called data mining reporting & match database. There is a growing list of internet merchants who use such system. For example, if you buy shoes from an online store and return it. The store captures your details and files a report to a shared consumer registry. Overtime they buildup a profile of you which is shared among other merchants who subscribes to that service. The service is run under the guise of “fraud prevention”, but if you have seen the reports I’ve seen, merchants and retailers will write nasty things about their buyers in these reports. If you ever got an order rejected for no explanation, it very well could be based on your previous buying habits. Many of these services have been running in the US for years.

  28. Bwanks and Bwankers ( and just about all fin services) have held the garrotte around our collective necks for centuries and with varying but steady and uncomfortable levels of pressure. A move to a cashless society is a panicky move to consolidate power imo as major competitive pressure is rising and but fast.
    Currently, they are leading the ‘disruption’ index and are aware that unless they do something bold and correct that promises to ‘maintain’ their stronghold, they could collapse very quickly. Any alternative that offers a better ‘play’ for the screen gen and those to follow, will be all it takes. There won’t even be a 2d round in that fight.

    http://www.millennialdisruptionindex.com/

  29. China only has 100 RMB notes (about $20 AUD). It didn’t stop tax evasion. It didn’t stop money laundering. It didn’t stop drug dealing’. Of course, having high denominations will make it easier, but to say all of this will magically disappear when the $100 is phased out is wrong.

    An antecedence on why a ‘cashless society’ is a bad idea.

    I went to Cairns last month and stayed at a B&B place at Macchan Beach, which I booked through online using creditcard. It was a wonderful place to stay in and we had a wonderful time. Yesterday, I got an email from the booking agency that the host had not been paid, and I should contact the proprietor. Thinking there is a problem with my creditcard, I contacted her, and discover the reason. The online booking agency, for whatever reason, has suddenly decided to stop processing creditcard payments for all property in Macchan Beach. The guests who booked through the booking agency will now have to contact her and arrange payment themselves. For a small B&B that relies on online booking that is devastating. I paid her through bank transfer, but not all of her guest would be as honest.
    This is why there are so much rejection about going ‘cashless’. It’s not about the $100 notes, it’s about allowing a third party from ruining your business/life for whatever reason.

    • “it’s about allowing a third party from ruining your business/life for whatever reason.”

      Bingo.

      Technical failure or incompetence.. not good.

      Commercial reasons,…. bad.

      Government malignancy… horrid.

      As I stated, you are self-reliant, you want the means to ensure you process this.

      • Yep, I’m agin it for many of the reasons on this thread.
        technichal failure tops my list for not electrifying the entire commerce the country.
        Sun storm, Earth storm, (look at South Australia), terrorist attack on power grid. and at worst airial Nuclear detonation
        The stories from the prolonged power outages caused by natural disasters high lite the prudence of keeping a good supply of cash on hand. Want to by food, fuel, medical services when there is no power?
        I was in the local Bunnings a few years ago when the power wen out. The cards and tills as well as lights ,cooling all died.
        One (older) staff member was able to use a pencil and paper to do tranactions for those few who had Cash.

    • It is more about making existing black money worthless by replacing the notes.

      I would like to see this taken further and forcing banks to track exchanged notes against ID or a TFN-linked account

      • Only small time crooks keep large amount of cash. It’s easier to wash their money through casinos, the the more successful ones have investment advisers.
        Removing $100 notes however will be worthwhile for one reason in Australia : wealthy pensioners who withdraw all their savings in order to claim pension.

      • I agree pensioners are the main hoarders. Although not as easy to shutdown as you think.

        Cashless would solve it but as you have already stated it is unreliable. Also, I fully expect cashless society to coincide with weaponry and terrorism specifically targeting electricity.

  30. [email protected]

    Want more ways to hide ill gotten gains?
    Gold and gold coins, U.S. Dollars, Euros, British Pounds, collectors stamps, diamonds, platinum, silver, gemstones, Japanese yen. Is that enough? WTF needs Australian bank notes?

      • [email protected]

        “Volatility” is a two way street.
        U.S dollars, Yen and Euros are not as good as the little Aussie Battlers?
        Please explain!

      • fark me, if I wanted to earn a return there is nothing currently stopping me from investing already in any of your suggestions. If I am hiding ill gotten gains, as was your point, AUD cash represents the best place to not lose money, risk adjusted!!!

      • And when the volatility preached by MB arrives , would you prefer a cash or cashless society?

      • Cash or Cashless? Cash is what I’d want only because it has more optionality in a time of extreme turbulence ie. Bank bailins, Bank runs etc (is that what MB volatility is predicting??)

      • Australian bank notes have zero volatility.

        Are you kidding me? Have you bought anything from overseas in the last 5-10 years?

      • Jaso – have another read and reconsider the perspective. In Australian Dollar terms Australian Dollars have ZERO volatility!!!
        In Australian Dollar terms ALL the others have volatility!!!!
        SO as said hiding your gains the first priority is to preserve what you have amassed.

  31. Time to break my silence – have some mercy, please.
    Ever tried to count banknotes with a hoove?
    Kochie’s investment advice suxs enough, day in day out – now this.
    Perhaps it is time to seek greener pastures, a place where time stands still and thinking optional.
    RBA or APRA?

  32. This is a sign that governments are getting desperate to get hold of your cash.

    Nothing to do with drugs – why do you think the Americans are in Afghanistan? Narcotic production there has gone up by a factor of 10 since they arrived. Nothing about it in the mainstream media? What a shame!

    • nice to see someone is paying attention to the narco barons in afghanistan. there is the obvious pivot point controlling asia etc. but for sure 90% of the wolds smack now comes from warlords in afghanistan. adam curtis has a great doco called bitter lake that lays out the history of why opium took off. was all due to dam buidling/nation building which increased salinity so only poppies grew well. good doco. worth a watch and i learned a few things

      • energywonk,

        The history is a lot more complex than that. We all know how the British used opium against China – to reverse the drain of silver heading East. The French also used opium for their own purposes – when they were the colonial power in Vietnam, Laos and Cambodia. When the French handed these places over to the Americans, they also handed over the “Golden Triangle”. The CIA – following in the footstep of the French Surté – made good money there.

        When the USA were kicked out of Vietnam, they lost their supplier. Afghanistan is the replacement. I cannot prove it, but I am pretty certain that these mysterious planes which carry out “renditions” also transport drugs. No one is allowed to search them. Their base in Kosovo is very convenient for supplying the Albanian mafias which infest Europe.

        All senior politicians in Europe know this stuff – and they do nothing about it. BTW, running drugs into Iran and Russia is their way to try and damage these societies. There is a war going on and Europe, Russia and the Middle East are the victims.

  33. Great idea. When I go to the bank to pull out some cash I really want to have an inch high stack of fivers.

  34. Diogenes the CynicMEMBER

    Understand the argument for tapping the black market and crime but that is a trojan horse for -ve interest rates and enhanced data monitoring (i.e. tax collection). Can’t see it being much of a hindrance for crime to switch to alternate means such as smaller notes or some other substitute. Cash is still needed and whilst forming less than 50% of my transactions it works when technology is down, the power grid is down, EFTPOS is down etc. I also keep a little cash on hand for just-in-case scenarios, I am constantly amazed when going to a restaurant that won’t split a bill how many people have zero cash in their pocket forcing them to run out and get some from an ATM.

  35. I have a 100 dollar note. Its sealed in a protective sleeve. On special occasions in the dark of night i bring it out and marvel at it in the moonlight. I will leave this to my grand kids one day. I will tell them the story that they can pass onto their children of how this is a symbol of the country that once was called Australia, It is a symbol of a time in a country that used to be. While not perfect it mostly believed in respect and social justice and where once one could work and save and buy a house and own land and raise a family. But that was before the dark times. When greedy lying weasel politicians sold the country out to foreign governments masquerading as corporations for their own financial gain. When the people could see it happening, could see themselves being locked out of any prosperity in their own land but were powerless to do anything about it, because the politicians had gerrymandered the political system to suit their own political ends. Combined with the shrill hysteria of the left social justice warrior brigade successive generations of average working folk where shouted down as racist and stupid if they tried to voice their opinion. How many could see the country being colonized by stealth, but their warnings were shouted down. And so my childrens childrens children will hear this tale and marvel and wonder if this fairy tale could ever have been true. Then they will sleep and get up in the morning in the small hovel they are allowed to live in. The children will go to indoctrination to learn the language of the new masters. English is not allowed. And the adults will go to work, looking after the children of the new masters, as nanny’s, and weeding their gardens and cleaning their houses and toilets, and making coffees.

  36. @Unconventional – – “Phasing-out large denomination bills makes a lot of sense. It would make life difficult for the black economy such as organised crime and tax evaders, as well as those engaging in welfare fraud.
    Personally I believe Australia should phase-out both $50 and $100 notes. We are turning into a cashless society anyway, so phrasing-out these bills wouldn’t create much of a burden to the ordinary law-abiding person.”

    What a load of garbage your above statements are. Totally without thought or common sense. For a start a $100 note in today’s $$ does NOT go very far – so comparing number of notes circulating 20 years ago is a nonsense. To be relating it to drug users , tax evaders , welfare fraud etc is a total furphy and not a smart way to try making a point. The real point is you’re just jumping on a band wagon started by bigger brains than yours.

    IF there ever is a cashless society then you have a captive society that those in power can & will control. If citizens make trouble for or oppose Govt then your access to your digital stash can & will be cutoff. Now how are you going ????
    Personally I carry at home anywhere up to 7-8 K at home in cash at any time and most of it in $100 bills. Why ?
    Because IF/ WHEN there is a “Bank Holiday” for whatever reason ( cyber attack , Black swan, Currency Emergency) I can ride it out. Unlike so many I never queue or use Auto teller machines to get cash. ( Not a sheep !) With the paltry interest rates available some cash may as well be instantly available to me. Also when we travel overseas I always take 4-5 K in cash -mostly in $100 as $50 notes are more bulky. – – – and you stupidly wank on about disposing of both. Clown.

    Oh -by the way – I’m not a criminal -nor a tax dodger. I use credit Cards for nearly all purchases over $20 and pay those off monthly .Also can’t imagine a person on Welfare having a wallet stuffed with $100’s & 50s. What a hoot.

  37. Lol you bunch of libertarian dopes. That’s my new term for people that are libertarian at heart but really don’t give a shite. I’d say 99% of commenters above are PAYG eaners who receive their salary in a Australian ADI. Which already reports interest and other such data to ATO APRA etc. So have a little tanty for the sake of it but you know it means shit. Libertarian dopes.

    • DarkMatterMEMBER

      Wow! Talk about miss the point. We already know that most transactions we do are electronic and monitored. We also know that when it comes to financial crimes, the banks have most of it sown up. From money laundering, real estate, insurance, right down to the 20% credit cards – the banks get a cut. So, why this concern over reducing crime involving $100 notes? No interest at all in a RC into the banks pilfering billions with complete immunity.

      Call me cynical, but the move to cashless seems more about institutionalizing crime so its all under one roof. Its like when the mafia went upmarket they swallowed up the little independent criminals and made them like subcontractors. Same here – no room for the old style crime like drug dealing. The banks and friends don’t need to break into your house – why would they when they can just load you up with a 20% credit card. Criminals using cash is like a competing gang on your patch.

      So, you missed the point – nobody buys the faux concern over stamping out crime. The banks and the Government want their Vig on every deal.

    • First they came for the Socialists, and I did not speak out—
      Because I was not a Socialist.

      Then they came for the Trade Unionists, and I did not speak out—
      Because I was not a Trade Unionist.

      Then they came for the Jews, and I did not speak out—
      Because I was not a Jew.

      Then they came for me—and there was no one left to speak for me

      wake up byron

  38. How about ALL the accounts in offshore tax havens are frozen and seized, immediately taxed at (a reasonable) 35% and the rest given back to the account holders with a please explain on how the funds ended up there.
    If there is no reasonable explanation, then the full amount is seized and goes into an infrastructure fund for the given country that the account holder resides in.
    For international companies, divide the funds between the UN, the Red Cross and other assorted such organisations.

    • Pro As I understand it the days of offshore accounts are coming to a rapid close. The ‘google legislation’ is frightening the hell out of most people and places…I don’t know anythiung about the cayman islands et al.
      For business purposes we recently tried to open an account in HK for a new HK company. The HK company is 100% by an Aus company registered with ASIC ABN’s and TFN and all. It’s been so hard that we have, for the moment anyway, abandoned the project. The HK Banks are s..t scared of the coming legislation.
      I know the situation is the same in Singapore.

  39. Sorry MB but i’m gonna have to disagree with you guys on this one. This sniffs a bit odd tbh, since when was MB supporting this kind of rubbish. Why would we want the establishment to ban cash when that would allow them to fleece humanity via bail-ins through negative interest rates.

    This smells very funny.

  40. The underlying desire for banning high denomination bills can be detected by the voices desiring it: banking elites, academic economists, investment banks, who have all served the world so well! You can bang home about the black economy all you want, those in power want the control (whether that be the ability to enforce negative interest rates or whatever).

    I don’t hear any police or any law-enforcement officials requesting a ban on high denomination bills?

    Anyway, somewhat amusing that the RBA is coming out with its next-generation bills, although, starting with the small bills first.

  41. ErmingtonPlumbing

    IBM and the emerging German regime headed by Adolf Hitler and his National Socialist German Workers Party (NSDAP). Hitler came to power in January 1933; on March 20 of that same year he established a concentration camp for political prisoners in the Bavarian town of Dachau, just outside the city of Munich. Repression against political opponents and the country’s substantial ethnic Jewish population began at once. By April 1933, some 60,000 had been imprisoned.[7] Business relations between IBM and the Hitler regime continued uninterrupted in the face of broad international calls for an economic boycott.[8] Indeed, Willy Heidinger, who remained in control of Dehomag, the 90%-owned German subsidiary of IBM, was an enthusiastic supporter of the Hitler regime.[9]

    On April 12, 1933, the German government announced plans to conduct a long-delayed national census.[10] The project was particularly important to the Nazis as a mechanism for the identification of Jews, Gypsies, and other ethnic groups deemed undesirable by the regime. Dehomag offered to assist the German government in its task of ethnic identification, concentrating upon the 41 million residents of Prussia.[11] This activity was not only countenanced by Thomas Watson and IBM in America, Black argues, but was actively encouraged and financially supported, with Watson himself traveling to Germany in October 1933 and the company ramping up its investment in its German subsidiary from 400,000 to 7,000,000 Reichsmark—about $1 million.[12] This injection of American capital allowed Dehomag to purchase land in Berlin and to construct IBM’s first factory in Germany, Black charges, thereby “tooling up for what it correctly saw as a massive financial relationship with the Hitler regime.”[12]

    Black also asserts that a “secret deal” was made between Heidinger and Watson during the latter’s visit to Germany which allowed Dehomag commercial powers outside of Germany, enabling the “now Nazified” company to “circumvent and supplant” various national subsidiaries and licensees by “soliciting and delivering punch card solution technology directly to IBM customers in those territories.”[13] As a result, Nazi Germany soon became the second most important customer of IBM after the lucrative US market.[14] The 1933 census, with design help and tabulation services provided by IBM through its German subsidiary, proved to be pivotal to the Nazis in their efforts to identify, isolate, and ultimately destroy the country’s Jewish minority. Machine-tabulated census data greatly expanded the estimated number of Jews in Germany by identifying individuals with only one or a few Jewish ancestors. Previous estimates of 400,000 to 600,000 were abandoned for a new estimate of 2 million Jews in the nation of 65 million.[15]

    As the Nazi war machine occupied successive nations of Europe, capitulation was followed by a census of the population of each subjugated nation, with an eye to the identification and isolation of Jews and Gypsies. These census operations were intimately intertwined with technology and cards supplied by IBM’s German and new Polish subsidiaries, which were awarded specific sales territories in Poland by decision of the New York office following Germany’s successful Blitzkrieg invasion.[16] Data generated by means of counting and alphabetization equipment supplied by IBM through its German and other national subsidiaries was instrumental in the efforts of the German government to concentrate and ultimately destroy ethnic Jewish populations across Europe, Black demonstrates.[17] Black reports that every Nazi concentration camp maintained its own Hollerith-Abteilung (Hollerith Department), assigned with keeping tabs on inmates through use of IBM’s punchcard technology.[18] In his book, Black charges that “without IBM’s machinery, continuing upkeep and service, as well as the supply of punch cards, whether located on-site or off-site, Hitler’s camps could have never managed the numbers they did.”[19]

    • HITLER!!! Thank Christ for Godwin and his censorship army!
      ErmingtonPlumbing, when I read your little story my first reaction was to smash a hammer through my IBM PC, then I realised it was a Taiwanese PC compatible.
      Sent from my Galaxy S5

  42. calls to eliminate large denomination bank notes

    This really is strange.
    Once upon a time people used gold coins and money and also used paper notes which could be redeemed for a given weight of gold.
    First govt bans gold and forces citizens to use govt printed paper as money stead of gold coins.
    Now govt is trying to ban citizens from using the very same paper money it earlier forced them to use.

    If the ban goes ahead we will be using bank account money that is no longer redeemable into cash notes which are no longer redeemable into gold.

  43. The number of fearful conspiracy theorists on here makes me laugh, thank you. Get rid of it all, cash is a pain. At best I could keep a small fraction at home anyway. Those who think the black economy is small have there heads firmly up their … they are probably part of it and talking their own book.

  44. CounterfiatMEMBER

    Must be another paid editorial coming from DeepT soon to tell us the reason for neg5% i/rates.

    How about removing limited liability on all bank execs and managers. Make them personally liable and excluded from hiding behind trusts and the like.

  45. I try to always use cash, we are in an age of big data – I work in the industry. For now, cash offers some protection. With everything in Australia being owned by woolworths and coles, I don’t want to be profiled as a 3xl shirt wearing drunkard with no friends. That’s my business.

  46. From ZH
    “We’ve been stuck in this political Groundhog’s Day for so long that minor deviations appear to be major developments while obscuring the fact that we’re stuck on repeat, unable to see the forest for the trees.

    This is what is referred to as creeping normality, or a death by a thousand cuts.

    It’s a concept invoked by Pulitzer Prize-winning scientist Jared Diamond to describe how major changes, if implemented slowly in small stages over time, can be accepted as normal without the shock and resistance that might greet a sudden upheaval.

    Diamond’s concerns are environmental in nature, but they are no less relevant to our understanding of how a once-free nation could willingly bind itself with the chains of dictatorship.

    Writing about Easter Island’s now-vanished civilization and the societal decline and environmental degradation that contributed to it, Diamond explains, “In just a few centuries, the people of Easter Island wiped out their forest, drove their plants and animals to extinction, and saw their complex society spiral into chaos and cannibalism… Why didn’t they look around, realize what they were doing, and stop before it was too late? What were they thinking when they cut down the last palm tree?”

    His answer: “I suspect that the disaster happened not with a bang but with a whimper.”

    Much like America’s own colonists, Easter Island’s early colonists discovered a new world—“a pristine paradise”—teeming with life. Almost 2000 years after its first settlers arrived, Easter Island was reduced to a barren graveyard by a populace so focused on their immediate needs that they failed to preserve paradise for future generations.

    To quote Joni Mitchell, they paved over paradise to put up a parking lot.

    In Easter Island’s case, as Diamond speculates:

    The forest…vanished slowly, over decades. Perhaps war interrupted the moving teams; perhaps by the time the carvers had finished their work, the last rope snapped. In the meantime, any islander who tried to warn about the dangers of progressive deforestation would have been overridden by vested interests of carvers, bureaucrats, and chiefs, whose jobs depended on continued deforestation… The changes in forest cover from year to year would have been hard to detect… Only older people, recollecting their childhoods decades earlier, could have recognized a difference.

    Sound painfully familiar yet?

      • Not sure where you guys are going with the replies.
        My only point, and the writer’s, is like the ‘story’ of Easter Island our liberties are eroded bit by bit. We think a little bit doesn’t matter much. We don’t really notice…hardly discernible till one day we wake up and think the world has changed and it isn’t for the better.

      • I was just making the point that after liberty is eroded away, they will also rewrite history as well to say we never had it so good, similar to 1984.

      • Right! Thanks! I used to have a saying that IO thought was original but maybe it was just something stuck in my head from somewhere “Only history will judge….depending on who writes it” I think at the time i was thinking about wars and their justification.
        Cheers

    • Maybe if people who suggest we worry about consequences of our actions, or even more outrageous, planning for a future based on those consequences, didn’t get called a commie (at best), we might be able to do more of it.

      “Don’t worry, the market knows best.”

  47. CounterfiatMEMBER

    Personally I’d prefer drugs legalised for over 25yo’s, sold otc at chemists. Ofcourse enforce DUI and public disorder. Look at mexico and the drug corruption it has wrought throughout the land. Tax the drugs. Give back freedom to citizens.
    Starve out criminals. DO NOT destroy freedom of innocents. Keep cash. Go after multinationals, and other financial corruption, and after a very long list, let’s talk about someone getting a few bucks mowing lawns for cash.

      • i like that saying “the war on drugs is rich white people on prescription drugs locking up poor brown people on illegal drugs”

      • I tend to agree. The incarceration rate of Latino’s and African Americans in the US for drug offences (some actually minor) is massively disproportionate when compared to actual drug use statistics across ethnic groups. People in the leafy burbs or the wealthy don’t get incarcerated for the same level of offense. The US and Mexico would be far better served if drugs were legalised and addiction treated as a health issue.

    • Re your paranoia – good one! 🙂
      I saw one the other day came round in an email “I hate it when the voices in my head go silent – then I never know what they are planning”

  48. Original JohnMEMBER

    Why don’t we just eliminate the hoarder’s of the $100 bill? Based on many views espoused by posters across the site, pensioner’s are double dipping with their super and housing portfolios to claim a government pension. Said same pensioners are also not downsizing quick enough and thus are hogging the supply of valuable family sized homes that can be used to alleviate the known shortage of housing in Australia (as shown by the extremely low vacancy rates around the country). And they are also the largest holders of Australian $100 notes and according to UBS these notes are only used for tax evasion and proceeds of other crimes.

    If we implement a rule to euthanise everyone on their 70th birthday moving forward and provide all existing people over 70 a small window of time to get their wills in order, we can solve all Australia’s problems in one go! No more worries about the population ponzi, we will need the young intake. Houses previously lost to new families will be opened up once more to an appreciative market. No longer will these ancient tax evaders and criminals be allowed to walk our streets peddling their $100 notes onto the good servants of Australia. Our tax system will be restored and society will be happy in the knowledge that even though they lost one small freedom of long life, the short time they have on this red continent will be full of happiness and joy. And best of all, our current politicians will be able to sleep once again comfortable in the knowledge that the new Australian order they have created will keep them feed to their dates with destiny all while maintaining a continual demand into the future for the most prized Australian asset – The House and PR package.

    So forget the elimination of the $100 note, vote to eliminate the hoarders and make Australia great again.

    sponsored by Logan City Council to commemorate the inaugural Logan Run for Australian prosperity and the Funeral Homes of Australia, ensuring a better place for all.

  49. Don’t worry, I’ve figured it out.
    1. Decriminalise drugs as they are a health and not a legal issue.
    2. Use the freed up police officers to go after human traffickers and other scum like that. Add a few to the internal corruption unit as well.
    3. Introduce a non negotiable LVT. No exemptions or deductions Include churches, private schools, principal place of residence. Everything.
    4. Get rid of any other form of taxation that does not involve rent seeking. There, bye bye black market. Bye bye off shore tax havens and corporations setting up offices and paying tax in Singapore.
    4. Introduce a UBI. No more welfare cheats. Centrelink staff can joint the hunt for the scum that pay their staff $4 an hour, look for the people FIRB can’t seem to find and so on.

    Now you can all strut about with as many $100 notes as you wish. There’ll be a lot about as the welfare cheats and drug lords no longer need them.

    https://media3.giphy.com/media/8B9hGl5neRTNK/giphy.gif

      • They’d be redeployed to hunt out those that underpay their staff. No need for an employer to do that if they aren’t competing with the black market and payroll, gst and all those other taxes are gone.

  50. As a bricks and retail store owner my figures show that credit debit card payments have gone from 60% of sales up to 85% on average with the introduction of the Tap and Go technology.

    There have been a few days where I have taken 0% cash. This never, ever happened before the the Tap and Go payments system came in.

    As a small business owner I hate it. Because I’m hoarding cash and trying to avoid paying tax? Hell no, I’ve got no problem with paying tax because it means I’m making enough money to have to pay tax. It means I’m profitable and thats a good thing.

    I hate it because I have to pay the banks 1% of all the money that goes through my shop and they do sweet #$%^ all to get it.

    • Thanks bubbley
      Absolutely correct. I made the point earlier but not sure any of those promoting repression are interested enough to actually read any the real objections.
      So thank you for trying and highlighting this obviously ‘minor and unimportant fact’ /sarc!!!!

      • second that. i am always interested in alternative digital payments. flint. square, bitcoin credit etc. its coming the friction will go away and it will happen over the next ten years i believe. the blockchain genie is out of the bottle. if only elon had been allowed to develop paypal further we might already be there and UBS would be fighting for survival and not espousing repression

    • In a cashless society VISA and Mastercard can charge whatever they want. MB whinges about Coles and Woolies, yet thinks going cashless is a good idea.

    • I hate it because I have to pay the banks 1% of all the money that goes through my shop and they do sweet #$%^ all to get it.

      Well, they do provide stuff for that 1%, but yeah, as the vendor you probably don’t see any of it (other than how that attracts customers).

      As a consumer, you can potentially get a great deal out of using credit cards instead of cash. Travel insurance, extended warranties, purchase protection, frequent flyer (or similar) points, “free” flights, regular cashback offers, convenience, etc.

      I churn through several credit cards a year for signup bonuses, but most worth doing that with also have annual fees whose cost needs to be recovered. For example, my AMEX Velocity costs $350/yr (which I basically recover through its “free” annual return domestic flight that we use flying to Canberra that would be $400+ otherwise). However, I’ll easily get $1000-$1500/yr of additional value out of it, before even considering what the points earn on spend facilitates. One example of this is their recent “spend $300 at Harvey Norman and get $100 back” promo – $1500 worth of vPay vouchers later bought on my own+supplemental cards and I’ve basically gotten $475 for nothing (then another $2100 on my other bank-issued AMEX cards netting me another $650 😉 ).

      Small businesses running all their expenses through credit cards would easily be realising tens of thousands of dollars worth of value every year essentially “for free”.

  51. From the reading the comments here, there appears to be large amount of MB readers who probably have a large store of 100’s stashed away in their houses….and of course I already knew this on some level, because this something classic nutters do, so of course MB’s readership would be doing it!

    Just out of curiosity, would some of you hoarders post your addresses?

    • I doubt very many at all in practice stash any physical notes at all. It’s not really the point. It is more the underlying abuses that can occur from going “cashless.”

    • Nathan, you’re making multiple assumptions without a factual base except your own opinion.

      You are also being unnecessarily rude and not adding anything to the topic of discussion.

  52. Dealing with a Korean fraudster ripping off my father’s estate. When considering her assets she has failed to declare the >$500K she’s been stashing from her rag trade over the last twenty years. No evidence of its existence apart from the hearsay generated by my late father, so the court can’t take it into account. She’s finished her three decade long raping of Australia. Her plan is liquidate it all and move back to glorious Korea. Let’s hope some mud sticks and something remains in Australia.

    There’s cash loaded garbage quality people everywhere in this joint. Get rid of cash all together. It’s robbing us blind.

  53. CounterfiatMEMBER

    How about if employees and contractors that work for corporations/trusts are the only people that have to pay income tax.

  54. I’ll happily go cashless the day banking transactions are 100% free. The global banking elite make $100 billion a year from banking transactions alone. There’s many reasons why they want a cashless society and it’s not to stop illegal activities. These corporations infiltrate the political elite with their banking reps and so called monetary experts to guide our politicians on how to “run” the country. As a business that takes credit card payments, we’ve had 3 fee rises in the past 2 years!! VISA last year processed $1.86 trillion, which was up 47% from the year prior and on every single one of those payments, they took a little cut, aka. Mr Middleman. This is what it’s all about. The law of percentages will ALWAYS ensure that criminals exist. If you offered 1 billion people, a million dollars with no strings attached, statistics says that some of them will still reject that money.

  55. UE, I’m a fan and subscriber to MB, but couldn’t disagree more with this article. If it weren’t for the many commenters on here sharing their disagreement I would have started to wonder if I had to check myself in to the funny farm for being so diametrically opposed to moves towards cashless society.

    Eliminating cash eliminates the option of using cash to protect oneself in various difficult circumstances – some legal, some quasi-legal and some no doubt illegal…. but all *ethical*. The most obvious one is trying to survive when your government falsely believes you are a criminal. This happens all too often now and is probably only more likely in future. Removing cash without providing an alternative for people who might face these challenges is a VERY F*CKING BIG DEAL.

    I see the trend to cashless society occurring globally. It is no surprise given the timing:
    – when the world is drowning in debt (therefore many don’t have the ability to stash cash savings even if they wanted to)
    – when individuals have, over the past few decades, been conditioned to just “pull out the plastic” to “pay” for stuff. It even has some real practical benefits to ice that cake.
    – when governments have just gobbled up 100 gazillion metric shit-tons of formerly private junk debt which will have to get written down (via negative interest rates or other forced seizure which is oh-so-easy in a cashless society)

    All this means that there is all the incentives in the world for the profligate (govt and individuals) to want to corral, tax (and probably outright stead) from the savings of those who have been less profligate. Because so many individuals are in debt, have no cash anyway, and as the straw poll in the comments section reads have little appreciation for what is about to transpire – all these people will agree to the transition to cashless. Just like that – trapped in the net with out as much as a whimper. Willingly even.

    My only hope is that there is enough enterprising people who can create private mediums of exchange (a-la bitcoin etc., but also potentially other private physical or digital cash equivalents) which will provide safe haven from this incredible power grab underway globally that people like UE and a great many others seem to be happy walk straight into. Lambs to the slaughter. Come to big daddy government, my dear little sheepies…. big government only wants well for you, my precious. I would NEVER hurt you, my dear citizens!

    …cue “there’s another tin-foil hatter” responses. Whatever, fellas. Enjoy your socialist cashless utopia.

    Edit: And if you think going cashless or even banning high denomination notes will upset the long run abilities of the criminals to ply their trade, then I’m truly flabbergasted by the shallowness of your thinking. The criminals will be working on contingency plans already – guaranteed. Whack a mole, with massive collateral damage thrown in.