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Cash to be abolished by the Bank of England

Community Veteran
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Registered: 21-03-2011

Cash to be abolished by the Bank of England

Not content with having stood by as the Banking System almost collapsed, then printing billions of pounds in a process mildly entitled "Quantitative Easing" the Bank of England have come up with a new wheeze.  To help pay for the banking collapse they want to further attack savers and pensions by introducing "Negative Interest Rates". The concept is quite simple. If you hold money in a bank account you are not paid interest, but you have to pay a fee to keep the money in the account.
The BoE Chief Economist Andy Haldane is a bright chap and has realised people might just pull their savings money out of the banks and hold it as cash. It is a bit difficult to demand a fee  (Negative Interest) on cash. So Mr Haldane is proposing that cash should be abolished and replaced with an official UK Government BitCoin or Cryptocurrency. The banks would add a fee to store your wealth in the BitCoin. So you'd either pay any transaction electronically through credit/debit card or use BitCoin. No more coins to ruin pockets or grubby bank notes. It would help control the black market, prevent crime, prevent tax avoidance, counter terrorists, stop illegal immigrants hiding in this country and finally remove those nasty charity collection boxes from the street.
At the very least the Government might be forced to introduce an Internet infrastructure covering the whole country instead of the 95% planned coverage.
What could possibly go wrong?
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29 REPLIES
Community Veteran
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Re: Cash to be abolished by the Bank of England

Quote from: AlaricAdair
What could possibly go wrong?

Everything, and we'll return to a shiny bead bartering system... Grin
PowerLee
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Re: Cash to be abolished by the Bank of England

Well both my local Tesco stores are lagging behind.
No contactless payment in either store due to old card readers.
The card reader I used on Saturday was so knackered you had to hold the card in to stop it dropping out the machine  Roll eyes
Mayfly
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Re: Cash to be abolished by the Bank of England

Amazing isn't it!
Not only did I have to pay up to 15% interest rate when I had a mortgage but now they want me to pay for having savings.
St3
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Re: Cash to be abolished by the Bank of England

its time to start saving money under the floorboards
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nanotm
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Re: Cash to be abolished by the Bank of England

I thought they only wanted to charge people with more than 100k for storage fees, leaving the vast majority free to not incur this direct theft by the treasury ?
besides it doesn't affect those who invest the cash in portfolios or bond schemes only those that leave giant sums of cash in a bank account doing nothing
just because your paranoid doesn't mean they aren't out to get you
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Re: Cash to be abolished by the Bank of England

Quote from: St3
its time to start saving money under the floorboards
We have no floor boards but that not the problem, the problem is we have no money to save !
Cheesy
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Re: Cash to be abolished by the Bank of England

Quote from: nanotm
I thought they only wanted to charge people with more than 100k for storage fees, leaving the vast majority free to not incur this direct theft by the treasury ?

What has this got to do with the Treasury? The BoE is completely independent of the Treasury.
itsme
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Re: Cash to be abolished by the Bank of England

BoE is independent of the Government can it be independent of the Treasury?
Community Veteran
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Re: Cash to be abolished by the Bank of England

This is nothing new of course. It dates back to Roman times, only then it was called coin clipping. Or as my old nanny used to say: humiliata nostri argenteos pretium adpretiati
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Re: Cash to be abolished by the Bank of England

Operational wise, it has to be independent.

nanotm
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Re: Cash to be abolished by the Bank of England

yes of course the policy creation department has to be operationally independent of the policy implementation branch otherwise how can you blame the governor of the BoE for screwing things up ......oh wait that's why Gordon brown separated them so he could shove all the blame in someone else's lap, yet every time there is a big issue (like we need to nationalise northern rock by printing cash we don't currently have to buy it out.....) they have to ask for ministerial approval to act (and we all know that Alistair Darling dithered like an simpering fool rather than take action) both sides have to agree for anything to actually happen, the laws have to be made for the bank to implement them and the bank can ask for new ones but cant make them .......
there's no true separation between the two its just now things have a couple of extra civil servants to bounce through before the info gets from one side to the other .....
just because your paranoid doesn't mean they aren't out to get you
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Re: Cash to be abolished by the Bank of England

Quote from: AlaricAdair
To help pay for the banking collapse they want to further attack savers and pensions by introducing "Negative Interest Rates".

Now in mathematical terms, two negative numbers make a positive. Eg if you have -1 and subtract -2 you are left with 1.
So does this mean that the very poor.. those with overdrafts etc will finally benefit? - If thats the case surely it would pay just to live on an overdraft and earn money on your debt?  Crazy
Quote from: AlaricAdair
What could possibly go wrong?

Grin Grin Grin Grin Grin
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pwatson
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Re: Cash to be abolished by the Bank of England

I'm all for -ve interest rates - My mortgage will go down all by itself Smiley
Community Veteran
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Re: Cash to be abolished by the Bank of England

Ah those with overdrafts and mortgages already benefit Wink  Low interest rate at x points over the base bank rate.
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