Banning cash and NEGATIVE interst rates.

[hardyakkagold]

Oh for fucks sake!, so there hasn't been any advice from the RBA that it intends to replace cash with CBDC and you believe the lying sods.

These are the same SOBs who told you last year there would be no rate hikes till next year, how did that reassurance work out for you?

What they say they will do and what they are actually planning to do are two different things.

I thought you would have woken up to that by now.

 

[DJE]

Physical cash like physical liquid assets provide freedom to make untracked unmonitored transactions. Remember when the WHO pronounced cash as "dirty" spreading covid what about cards, newspapers,etc all the pieces fall into place organised for many years. An emergency fund is a must and something that vast majority of us here know and have in place...along with other measures. Another brick layed paving the way for CBDCs

Ha ha that.reminds me of when I paid cash for a motorcycle in 2021, the seller got his wife to count the cash with a mask and surgical gloves on...
Oh the brainwashing worked a treat.

 

[Oddjob]

The private sector innovates whilst the Govt sector, waits, watches then regulates.

Given that ANZ and NAB already have developed their own AUD stable coins..plus along with CBA and WBC have invested in blockchain start-ups / existing businesses in both Aust and overseas, I see the RBA and Commonwealth Govt letting the banks / private sector do all the heavy lifting re developing out digital currency / FX / trade and other platforms, then regulate and tax the hell out of it...cos that's Govt's strong suit.

https://blockworks.co/news/anz-banks-stablecoin-used-to-purchase-tokenized-carbon-credits

https://www.afr.com/companies/finan...instant-cross-border-payments-20230313-p5crjt

The development of new digital platforms will accelerate the decline of cash being used but given we still live in a "democracy" where we can vote, until that older, non tech generations pass away, then it's a brave move by a Govt to try and ban cash as they will face backlash at the ballot box....all things remaining equal eg the current economic and political set-up still being in place.

If digital currencies can be done in an off-line - peer to peer environment as an adjunct to the existing payments platforms...great and bring it on given the potential benefits to reduce transaction costs, speed up processing time etc.

If goes through some Govt controlled exchange / data bank then my view will be different. Like many here, my trust level of all forms of Govt is low and nil when it comes to unelected public servants forming policy.

https://www.lexology.com/library/detail.aspx?g=63e0d746-044a-4c37-9316-628770f1bec2

 

[leo25]

I see the RBA and Commonwealth Govt letting the banks / private sector do all the heavy lifting re developing out digital currency / FX / trade and other platforms

Before the RBA stepped in it was taking 3+ days for bank payments to clear. From my perspective our banks were doing stuff all to innovate. Not to mention their working hours are a joke. Don't even get me started on banks brokerage fees for trading stocks, these big banks are living in the past.

 

[GoldenEye]

Australian businesses and companies could soon cop huge fines if they don't accept or carry cash. Politicians Andrew Gee and Bob Katter have introduced a bill that aims to keep physical money in circulation.
https://au.finance.yahoo.com/news/major-fight-against-cashless-revolution-threatens-aussies-with-25000-fine-231536295.html?guccounter=1

 

[mmm....shiney!]

Katter's big hat obviously hasn't done anything to prevent heat damage to his brain. Forcing businesses to accept or carry cash is ridiculous. Just shop elsewhere. I haven't got an issue with forcing banks to accept cash.

 

[Genghicat]

Katter's big hat obviously hasn't done anything to prevent heat damage to his brain. Forcing businesses to accept or carry cash is ridiculous. Just shop elsewhere. I haven't got an issue with forcing banks to accept cash.

If it's food, or other essential face-to-face services, then I disagree. If Coles, Woolworths and Aldi all agreed not to accept cash, then a lot of people would be severely negatively impacted.

Similarly, you should be able to pay your electricity, rates, rent or other bill via cash using a 3rd party service such as Australia Post's "Post Billpay".

But it shouldn't be a requirement for discretionary spending where the product or service is not a necessity or where you can easily either shop elsewhere for a similar service.

 

[pmbug]

... Forcing businesses to accept or carry cash is ridiculous. ...

Either cash is money - a medium of exchange universally accepted - or it isn't.

 

[Golden ChipMunk]

Either cash is money - a medium of exchange universally accepted - or it isn't.

They are trying to tell us theirs currency is worthless. Here by CASH are not acceptable.
Now, they also reducing the atm withdrawer to lesser than $1k.
No one, do actually knows what they are doing, just follows the sheeps???

 

[dollars]

Either cash is money - a medium of exchange universally accepted - or it isn't.

I agree with pmbug. If you wish to use something else more convenient for you fine. However I believe if you offer cash and they refuse you don’t owe them anything!

 

[mmm....shiney!]

Either cash is money - a medium of exchange universally accepted - or it isn't.

Clearly it isn't to some. I'm pretty sure there's been 100's of comments made on this forum in the past that fiat is not really money.

What constitutes a medium of exchange can change over time. For most of history debt recorded on ledgers was the universally accepted medium of exchange, then during the empire building stages of history it was the various State imposed gold/silver standards which suited the "violent" nature of the political systems. Now we're in a fiat system.

FWIW I think cash is money however. But governments shouldn't force private business houses to accept hard currency when an alternative digital currency may suit their business model better.* Let the free-market decide.

However I believe if you offer cash and they refuse you don’t owe them anything!

You're not advocating theft are you?

* see #247

 

[mmm....shiney!]

Now, they also reducing the atm withdrawer to lesser than $1k.

I think it's deposits isn't it?

 

[sammysilver]

In terms of fiat, the petrodollar agreement is at an end and it will be interesting to see if it is renewed.
In some ways it replaced the gold standard as the US dollar was somewhat tethered to a barrel of oil.
If the agreement does not continue then some currencies, say from BRICS, may introduce a partial gold standard.

 

[mmm....shiney!]

Remembering though that the fiat system and the petrodollar are not structurally related.

We all understand that a fiat system is one where governments issue currency that is backed by the reputation of the government and the nation's financial system mainly for the domestic market. The petrodollar is just the USD as a unit of account for the exchange of goods at an international level. As Mosler has said, we could use paperclips instead of USD in international trade for all that matters. By way of example there is no "petroOz" yet the AUD functions fine as a fiat currency domestically.

If the BRICS choose to go down the gold standard path for international trade, then they'll bump into the same hurdles that saw the last gold system abandoned.

 

[sammysilver]

However, the mere fact that oil is traded in USD gives it cred as a unit of currency which is 2/3 existent overseas. Further as every currency is measured against the USD we then have a fairly stable world currency construct.

 

[JohnnyBravo300]

The brics countries and brics hopefuls already said they aren't signing again, even saudi arabia.
it's over for the petroscammers.
Won't be long now.

 

[mmm....shiney!]

However, the mere fact that oil is traded in USD gives it cred as a unit of currency which is 2/3 existent overseas

I think you're putting "the cart before the horse".

Oil and other commodities traded are priced in USD because it has credibility due to the stability of the US government and the financial institutions in that country.

Further as every currency is measured against the USD we then have a fairly stable world currency construct.

Now you're channeling your MMT side there.

 

[dollars]

You're not advocating theft are you

I believe theft is not offering to pay at all or having no intention to pay. Offering to pay and not accepting payment isn’t theft.

The advice I have received, has been to always accept payment, or even part payment with agreement to provide the remainder , of a debt.

Another thing to consider and understand is the intracicies associated with providing “credit”. For instance when you pull up to a petrol bowser and fill up your tank is the petrol station owner providing you credit until you walk in to the cashier to offer payment? Another one to consider is when you walk into a restaurant and are seated at the table, provided a menu and order a meal and or drinks. Is the restaurant offering you credit until after you have finished and you offer payment? Also to help clarify you walk into the fish and chip shop, place your order and the proprietor asks for payment before your order is prepared.

 

[Real $ Return]

I think you're putting "the cart before the horse".

Oil and other commodities traded are priced in USD because it has credibility due to the stability of the US government and the financial institutions in that country.



Now you're channeling your MMT side there.

The stability of the US gov and the financial institutions in my ignorant opinion are based on the piss poor wage so many live on...standard wage of what 8-$9 multimillions on poverty line cheap labour allowing companies and institutions to thrive with record profits while many work two jobs and can barely survive.On another matter Random how silver is back to showing $ value after mths of being blank I remember afew years back $ to silver was almost 4k and gold 25k interesting times...a system of endless debt still rolling on

 

[mmm....shiney!]

@Real $ Return, view it this way: in the light of all the world's currencies, economies and political systems, which is issued by the world's largest economy and therefore able to offer the greatest security and stability? That's why it's the currency of choice when dealing in international trade. We could use NZD but nobody knows where that is.

Though paperclips would make more sense.