Costs and benefits to phasing out paper currency

[fourandsixpants]

"This paper explores the costs and benefits to phasing out paper currency beginning with large-denomination notes, later extending to all but small coins and bills, and eventually those as well........

........given the role of paper currency (especially large-denomination notes) in facilitating tax evasion and illegal activity, and given the persistent and perhaps recurring problem of the zero bound on nominal interest rates, it is appropriate to consider the costs and benefits to a more proactive strategy for phasing out the use of paper currency."

http://scholar.harvard.edu/files/rogoff/files/c13431.pdf

.....maybe same will be applied to Australia in not too distant future?

what do you think?

[fourandsixpants]

aps said:

Er, It is more often than not city folk travelling in the country that are the one's who get stuck.

Those who live in the country often have cash on them.

I remember one farmer where I was staying relaying exactly my story to me, same as I have seen.

If the shyte hits the fan, cash will talk, credit cards won't.

..............................................................................................................................................................................................

1.         ....not if ............when

2.       if cash money is canned then no-one will want it as payment in an exchange for services/goods.

and err.......with the reliability and structure of our communications  *cough ...... with Telstuck and how we experience serious outages all the time don't see how we could depend on the eftpos.

[aps1080]

You can't outlaw or "can" cash, it is the whole basis of the currency.

[fourandsixpants]

All over the world, governments are either placing stringent reporting requirements on large cash transactions or they are banning them altogether.

We are being told that such measures are needed to battle illegal drug traffic, to catch tax evaders and to fight the war on terror.

But are we rapidly getting to the point where we will have no financial privacy left whatsoever?

[aps1080]

The limit is $10,000 and is pretty much world wide and has been for donkeys years.

[fourandsixpants]

not quite correct......there is no limit.

The Australian Customs and Border Protection Service does not currently have any restrictions on the amount of money you bring into or take out of Australia, whether it is cash, cheque, money order or any other form.

However, amounts of AU$10,000 or more, or equivalent in foreign currency (meaning notes and coins of legal tender), must be declared on departure and arrival.Penalties apply for the failure to declare.

For further information with regards to declaring and reporting of currency into and out of Australia please view the Australian Transaction Reports and Analysis Centre (AUSTRAC) website.

There are currently no regulations, which require the Australian Customs and Border Protection Service to track or record wire and electronic transfers of funds. Amounts of AU$10000 or more, or equivalent in foreign currency (meaning notes and coins of legal tender), must be declared on departure and arrival.Penalties apply for the failure to declare.

http://www.customs.gov.au/faq/Currency.asp

[fourandsixpants]

https://www.youtube.com/watch?v=YxG3O49uVjg

On Thursday 20th November 2014, for the first time in 170 years, UK parliament has debated the creation of money.

Few people know that 97% of our money supply is created not by the government (or the central bank), but by commercial banks in the form of loans.

[fourandsixpants]

The banks are enslaving the planet

[the_hawk*]

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@paintsew007 wrote:

https://www.youtube.com/watch?v=YxG3O49uVjg

On Thursday 20th November 2014, for the first time in 170 years, UK parliament has debated the creation of money.

Few people know that 97% of our money supply is created not by the government (or the central bank), but by commercial banks in the form of loans.

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ummm where do you think banks get the money they lend???????

[softail-joanie]

what do you think?

It could work, I guess. It might also be used to track your purchases, if that kind of thing troubles you. I suppose anything can be abused, paper money or dollars has been abused in the US. The federal reserve isn't even a federal agency, it's a private corperation of central banks who are breaking one of America's highest constitutinal laws with fiat currency not based in gold or silver.

https://www.youtube.com/watch?v=G7K9YASQ3do

[rabbitearbandicoot]

what? you mean no more black money? no more paying cash to plumbers, electricians, and miscellaneous workers etc - that means everything increases.

seriously, all the people who rely on a tiny extra income like markets etc will have to carry eftpos machines everywhere?

and what about buskers?  what are we going to throw in their guitar cases instead of a few 'silvers'?