The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

[don]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

state-wide test case?

Israel Eyes Becoming a Cashless Society

Monday, May 26, 2014 | Yossi Aloni

A special committee headed by Prime Minister Benjamin Netanyahu’s chief of staff, Harel Locker, has recommended a three-phase plan to all but do away with cash transactions in Israel.

The motivation for examining a cash-less economy is combatting money laundering and other tax-evasion tactics, thereby maximizing potential tax collection and greatly expanding the tax base. This is important considering the enormous strain put on Israel’s national budget by the army, healthcare system and other public services.

The committee estimated that the black market represents over 20 percent of Israel’s GDP, and cash is the facilitating factor. Cash enables tax evasion, money laundering and even financing terrorism.

“According to estimates by the Tax Authority, about one-fifth of economic activity in Israel is not reported, ie. it is a black market,” said Locker. “As a result of this black market, Israel loses tax revenues in the neighborhood of 40–50 billion shekels ($11-$14 billion) annually. This is an amount equal to the individual annual budgets of the Ministry of Defense, the Ministry of Health and the Ministry of Education.”

What the committee would like to see happen, pending government approval, is greater restriction on the use of cash, limiting the use of checks as a means of payment and exchange for cash, and promotion of the use of electronic (and therefore verifiable) means of payment.
The following guidelines were set out by the committee for the short-term:

• Limit business transactions done in cash or by check to NIS 7,500 ($2,150) immediately, and reduce that further to NIS 5,000 ($1,433) one year from the date of legislation;
• Limit private transactions done in cash or by check to NIS 15,000 ($4,300);
• Any violation of these limits would be a criminal offense warranting a stiff fine.

In conjunction with these new restrictions, Israeli banks would be required to provide all account holders with debit cards to further promote electronic payments.

The committee found that Israelis are already prone to choose electronic payments methods, and so hopes the shift to a cashless society would be a good fit for the Israeli economy.

http://www.israeltoday.co.il/NewsIte...=article_title

[Slimprofits]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

^ In order to combat the black market we MUST force our citizens to expose themselves to the risks of poorly designed software and computer hackers! The government, as always, is here to help, Don.

[don]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

I feel better now ;-)

[aaron]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

When I contemplate an economic sudden stop event my little doomer checklist starts with going to the bank and withdrawing several thousand dollars in cash to have around the house until the system reboots.
Not possible in a cashless economy.
.
.
.

A cashless system might lead to a more honest system. It would certainly make crime more difficult. The government can and already does track us. We might as well get the benefits from our loss of liberty instead of just bearing the costs.

Imagine all the illegal aliens who will not be able to work. If this causes wages for the rest of the US to go up, this is a good thing.

How do you pay your drug dealer? Yeah, we will see a massive reduction in illegal drug trade, until they start accepting silver and gold or bottle caps.

I suspect tax receipts would increase beyond the government's wildest dreams and it would be highly deflationary as a result.

For a large portion of the population in the United States, the black market is essential. There would be an epic economic change the country.

But, how would the CIA give away cargo boxes full of American cash to dictators around the world? How would they buy our weapons?

---
By the way, if you have not already gotten your stash of cash for the crash, you will not be able to when you want it. The banks will not open.

[Forrest]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

A cashless system might lead to a more honest system. It would certainly make crime more difficult. The government can and already does track us. We might as well get the benefits from our loss of liberty instead of just bearing the costs.

Imagine all the illegal aliens who will not be able to work. If this causes wages for the rest of the US to go up, this is a good thing.

How do you pay your drug dealer? Yeah, we will see a massive reduction in illegal drug trade, until they start accepting silver and gold or bottle caps.

I suspect tax receipts would increase beyond the government's wildest dreams and it would be highly deflationary as a result.

For a large portion of the population in the United States, the black market is essential. There would be an epic economic change the country.

But, how would the CIA give away cargo boxes full of American cash to dictators around the world? How would they buy our weapons?

---
By the way, if you have not already gotten your stash of cash for the crash, you will not be able to when you want it. The banks will not open.

How much cash in $US do we need on hand for the crash period? 3 Months...6 Months?

[lektrode]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

How much cash in $US do we need on hand for the crash period? 3 Months...6 Months?

very good question...

[thriftyandboringinohio]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

A cashless system might lead to a more honest system. It would certainly make crime more difficult. The government can and already does track us. We might as well get the benefits from our loss of liberty instead of just bearing the costs.

Imagine all the illegal aliens who will not be able to work. If this causes wages for the rest of the US to go up, this is a good thing.

How do you pay your drug dealer? Yeah, we will see a massive reduction in illegal drug trade, until they start accepting silver and gold or bottle caps.

I suspect tax receipts would increase beyond the government's wildest dreams and it would be highly deflationary as a result.

For a large portion of the population in the United States, the black market is essential. There would be an epic economic change the country.

But, how would the CIA give away cargo boxes full of American cash to dictators around the world? How would they buy our weapons?

---
By the way, if you have not already gotten your stash of cash for the crash, you will not be able to when you want it. The banks will not open.

You make a good argument, aaron.
I do realize that the day the banks close it's too late to get some cash, but I'm confident those of us here at iTulip would have a few days warning.

[thriftyandboringinohio]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

How much cash in $US do we need on hand for the crash period? 3 Months...6 Months?

I certainly don't know the answer based on any fact.
But for me, $5,000 would keep us in groceries, gasoline, and medicine for a couple months.
The last time I seriously contemplated it was when Congress was flirting with default on the national debt, and that $5,000 number was what I came up with for us.

[Milton Kuo]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

A cashless system might lead to a more honest system. It would certainly make crime more difficult.

Oh, really? Smart criminals know to do their banking business with HSBC and Bank of America.

[don]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

Smart criminals are HSBC and B of A

[shiny!]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

Smart criminals are HSBC and B of A

Best laugh I've had all day!

[charliebrown]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

i have always wondered about the safeness of electronic wealth. what about my stocks held by my broker in book form. what about a regional power failure, can i use my debit card? what about a cyber or emp attack against the internet? I have worked for several fortune 500 i.t. departments over my career. disaster recovery has always been given second priority. Some times it is talked about, and plans produced but they are never tested well. Often outsourced, low on the budget priority etc.

[Forrest]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

i have always wondered about the safeness of electronic wealth. what about my stocks held by my broker in book form. what about a regional power failure, can i use my debit card? what about a cyber or emp attack against the internet? I have worked for several fortune 500 i.t. departments over my career. disaster recovery has always been given second priority. Some times it is talked about, and plans produced but they are never tested well. Often outsourced, low on the budget priority etc.

In 1994, I was working for Great Western Bank...the Northridge Earthquake happened, and was centered under their main computer facility in California. Naturally, they had backups of their electronic transactions...but they were in Florida, and needed to be copied...that was back in the day they backed up their computers on tape.

Anyway for two full weeks, the banking side of the business was literally unable to access their records...and it took another 6 weeks to get all the transactions they had to do by hand back into the system and then another 30 days for an audit to make sure they had it right.

Since WAMU took over soon after, I don't think they ever did recover from what was a relatively small 'disaster'.

If the current banking system goes down for any reason, I do not think they will recover any sooner, because no one really believes it will happen to them.

If the failing Electrical Grid was damaged, even with better technology, I think it would take just as long for the Banking System to repair, and catch up with their having to revert to written transactions, while the brokerages might be at a standstill the entire time.

[LazyBoy]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

When I contemplate an economic sudden stop event my little doomer checklist starts with going to the bank and withdrawing several thousand dollars in cash to have around the house until the system reboots.
Not possible in a cashless economy.

Safety deposit box? Home safe?

[DSpencer]

Re: The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions

A cashless system might lead to a more honest system. It would certainly make crime more difficult. The government can and already does track us. We might as well get the benefits from our loss of liberty instead of just bearing the costs.

Imagine all the illegal aliens who will not be able to work. If this causes wages for the rest of the US to go up, this is a good thing.

How do you pay your drug dealer? Yeah, we will see a massive reduction in illegal drug trade, until they start accepting silver and gold or bottle caps.

I suspect tax receipts would increase beyond the government's wildest dreams and it would be highly deflationary as a result.

For a large portion of the population in the United States, the black market is essential. There would be an epic economic change the country.

But, how would the CIA give away cargo boxes full of American cash to dictators around the world? How would they buy our weapons?

---
By the way, if you have not already gotten your stash of cash for the crash, you will not be able to when you want it. The banks will not open.

And I, for one, welcome our new insect overlords...