Cash is the King...

Discussion in 'Currencies' started by madaw1, Mar 19, 2020.

  1. 66rounds

    66rounds Well-Known Member Silver Stacker

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    It won't disappear bud, it'll be locked up behind withdrawal limits for the common folk just like has happened countless times overseas. Of course those that are important won't have to face such limits. By locking it up that way, it'll remain in system but restricted to where they want it to be spent. No bullion transactions for you. No cash purchases for you. I often keep my accounts empty. Wages go in, bills get paid, rest is withdrawn same day.
     
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  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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  3. StewyD32

    StewyD32 Well-Known Member Silver Stacker

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    Thanks guys. It's unlikely these institutions e.g. La Trobe Financial would go bust in the newer future but these are uncertain and to a certain extent unchartered territory with the covid impact. Good to know are is a garantee even though your money is doing f**k all in the bank
     
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  4. madaw1

    madaw1 Well-Known Member

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    No, they don't. When Greece was in trouble most politicians kept their money in Switz Bank leaving ordinary people to struggle/the person was permitted to withdraw 80 euro a day.

    I'm not keeping more than 10% cash in the Bank-this is the merely insurance.

    As I've said it is not delusional-it can happen and it has happened in the past in some countries!
     
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  5. SilverDJ

    SilverDJ Well-Known Member

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    Which is why I've been saying forever that you should always have ample cash outside the system, mostly for reasons not to do with remote possibility banking withdrawl limits. Power failures, banking systems issues, hacking, network issues, and just simply individual stores going down etc are the major and vastly more plausible scenarios that can and have actually happened.

    For most people that's just not practical, as all sorts of things automatically come out the accounts. In fact when you have cash withdrawl limits, this is how the economy kicks ticking over, electronic banking.
     
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  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Practical enough for me. I don't care if their fake economy needs my deposits or not.
     
  7. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    No silver, not even Christmas cake sixpences? :eek: :D
     
  8. STKR

    STKR Well-Known Member Silver Stacker

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    The provisions for a 250K guarantee are in place but needed to be activated by APRA. This is where the guarantee becomes murky and confidence is diluted.

    Your currency is doing less than [email protected]#K all in the bank, it's devaluing from inflation! With Q.E and governmemt stimulus packages at every turn...it's going to be worth [email protected]#K ALL in no time.
     
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  9. STKR

    STKR Well-Known Member Silver Stacker

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    Up to 250 Satoshi guarantee
     
  10. Ag bullet

    Ag bullet Well-Known Member

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    buy gold now, when inflation goes up followed by interest rates then dump the gold to pay off the mortgage. the gold held it's value so it should pay off more than inflated dollars earned later.
     
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  11. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    A few token keepsakes that I couldn't part with yet, but relatively insignificant in the scheme of things.
     
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  12. madaw1

    madaw1 Well-Known Member

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    Very good point,but where can you buy now.? ...:(
     
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  13. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    The devil is in the detail.

    The Commonwealth Deposit Guarantee should it be called on does not mean that if a Aust bank / ADI / financial institution (approved and regulated by APRA) went bust that depositors could rock up to the RBA / APRA the next day and get their money back in full. The guarantee comes into play post the liquidation of the bank / financial institution. The liquidator recovers as much money as they can from what is owing to the bank and then distributes those funds to creditors of which depositors are. If there is a shortfall between what you receive from the liquidator and your bank a/c balance (at time the bank went bust), then the Govt pays you the balance.

    The liquidation of a bank will take a very long time. An example was "Pyramid Building Society" in Geelong. It's collapsed in 1990 and it took till 2005 for depositors to receive final payments which amounted to $0.51 on the dollar. Pyramid was small beer compared to one of the Big 4 or larger regional banks...imagine how long the liquidation of a large Aust bank would take, cos that's how long it will take depositors to get their money back with the Govt Guarantee.
     
  14. madaw1

    madaw1 Well-Known Member

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    Operation was very successful,but the patient has died....
    With this Govt Guarantee are you assured,that your grandkids can at least get 50% of your money....
     
  15. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Those in the banking sector know the Govt guarantee is BS. Dudd and the Black Swann assumed the public wouldn't read the legislation and just take their announcement at face value....and it did have the desired effect and calm bank depositors who were starting to withdraw large sums of cash from banks / ATM in the few days leading up to the weekend announcement by the the Dudd Govt.
     
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