The Shooting War on Cash Begins

Benjamin-Franklin-U.S.-$100-bill cc

The war on cash is real. It is here. And it is a war on everyday people. As Professor Salerno explains.


Of course,  ECB president Mario Draghi recently insisted that any decision to withdraw the note has nothing to do with “limiting cash.”  Rather the decision is aimed at fighting crime because, as Draghi melodramatically put it:

“There is a pervasive and increasing conviction in world public opinion that high-denomination bank notes are used for criminal purposes.”

As a long-time auditor of central bank-speak, I can tell you that Draghi’s explicit denial that the decision has anything to do with suppressing cash is a resounding affirmation that abolishing cash is precisely its purpose…

…According to Mr Sands, such notes are

. . . [the] currency of corrupt elites, of crime of all sorts and of tax evasion. They play little role in the functioning of the legitimate economy, yet a crucial role in the underground economy.  The irony is that they are provided to criminals by the state.What is truly ironic, however, is that, on Mr. Sands’ watch, Standard Chartered was charged by the New York State Department with conspiring with the Iranian government to circumvent U.S. sanctions and “hide from regulators roughly 60,000 secret transactions, involving at least $250bn, and reaping SCB hundreds of millions of dollars in fees.”

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