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Unlucky at the ATM

August 20, 2017 in Bank Notes, Blogs, Collecting, Education, Entertainment, Numismatica, Numismatics, Opinion, Paper Money, U.S. Notes, US Federal Reserve

By: Scott Barman Coin Collectors Blog (CoinsBlog.ws)

You need a quick amount of cash. After all, not every transaction can be made with a credit card. You hop in the car and drive to the bank to use the ATM. Within seconds, the machine spits out money and you drive away. Early the next morning you look at the bills and notice […] Full article at the source>

Source: Coin Collectors Blog (CoinsBlog.ws)

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Why Governments and Banks Want to Eliminate Cash, Explained By Noted Economist Dr. Scott Sumner

September 29, 2016 in Coins, Currency, Education, History, Investing, News, Numismatica, Numismatics, Opinion, Press Releases, World Coins

September 29, 2016

News media contact:
Michael Contursi, President of RCW Financial, at 949-679-1222

Why Governments and Banks Want to Eliminate
Cash, Explained By Noted Economist Dr. Scott Sumner

Summary:

In a commentary prepared for RCW Financial, economist Dr. Scott Sumner explains why governments and banks are eager to discourage the use of cash, and the resulting potential loss of anonymity and future negative interest rates.

      (Irvine, California) — Governments and banks are discouraging the use of cash, but a problem with a cashless society is a loss of privacy, explains Dr. Scott Sumner, Professor Emeritus of Economics at Bentley University.  He points out that Sweden already is moving toward eliminating all coins and paper money, and Italy and Canada are beginning to discourage the use of cash.

Dr. Sumner predicts the elimination of cash would make it easier for governments to impose negative interest rates and could lead to increases in values for gold and alternative currency, such as the Bitcoin.

      In a commentary prepared on behalf of RCW Financial of Irvine, California (www.rcwfinancial.com) and entitled, “Why Governments & Banks Want To Eliminate Your Cash,” Dr. Sumner wrote about the irony of the push for a cashless society at a time when there are billions of U.S. dollars in circulation.

“Surprisingly, despite the increasing use of credit cards, cash holdings are about 8% of Gross Domestic Product, which is actually a larger share of the US economy than a decade ago, indeed even larger than 90 years ago.  The amount of cash in circulation (paper currency and coins) is roughly $4500 for every man, women and child in America. It is believed that roughly half that total is held overseas, but even $2000 per person would be a surprisingly large figure, far higher than people admit to in government surveys.  Ironically, it is this increasing popularity of cash holdings that helps explain why governments are so anxious to discourage the use of cash,” wrote Dr. Sumner.

      He pointed out that until a few years ago, most economists thought negative interest rates were virtually impossible, but that now is reality in some European countries and Japan.

      Another implication of a cashless society is the loss of privacy.

“The anonymity of cash is what makes it appealing to many people, but it’s also what makes it increasingly unpopular with governments.  They see cash as a way of evading taxes, as well as facilitating drug dealing and other nefarious activities such as terrorism…. But regardless of how you feel about privacy, this seems to be the direction the world is moving,” Dr. Sumner stated.

He concluded: “The removal of cash would not have a major impact on the overall economy.  It would slightly increase the government’s ability to collect taxes, and it would somewhat increase the effectiveness of monetary policy during recessions.  Banks would benefit from increased use of credit cards.  For investors, it might lead to an increased demand for cash substitutes, such as Bitcoin and precious metals, pushing their price higher.”

The entire 1,700 word commentary is available free online at www.rcwfinancial.com/cashless-society.  

About Scott Sumner, Ph.D.:

Economist Scott Sumner, Ph.D

Economist Scott Sumner, Ph.D

Dr. Scott Sumner studied economics at the University of Wisconsin and received a PhD from the University of Chicago. He has done extensive research on the role of the gold standard in the Great Depression and is Professor Emeritus of Economics at Bentley University in Waltham, Massachusetts, where he has taught since 1982. Dr. Sumner received national recognition in 2012 as one of the “Top 100 Global Thinkers” by ForeignPolicy.com and was named “The Blogger Who Saved the Economy” by The Atlantic magazine.

About RCW Financial:

      RCW Financial of Irvine, California provides estate planning and wealth preservation services focused on the acquisition of the most popular and exclusive numismatic rarities.  For additional information, visit online at www.rcwfinancial.com, call Michael Contursi, President of RCW Financial, at 949-679-1222, or email at info@rcw1.com.

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U.S. Government Is Turning Seized Silk Road Bitcoins Into Cash

April 29, 2014 in Bitcoin, Digital Currency, News, US Government

By John Biggs. April 28th, 2014 (http://techcrunch.com/)

As I noted in January, the U.S. government is quite interested in getting out of the Bitcoin business and has, thus far, been working hard to convert seized bitcoin to actual cash, a move that could affect the BTC markets if these large transactions happen

Full article at the source>

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Made of money: The Royal Mint where cash is banned

July 26, 2013 in Coins, Education, English Coins, News, The Royal Mint, UK Coins

By Kevin Peachey Personal finance reporter, BBC News (http://www.bbc.co.uk)

Old, damaged or rejected coins are among the materials thrown into a roaring furnace by workers – some employed here for nearly 40 years – on eight-hour shifts, night and day.

Their job is to make money.

Melting down metal in the hot end is the start of the process that results in five billion coins being produced at this site in Llantrisant, south Wales, every year.

Despite churning out currency for the UK and around the world, one thing you will not find in the pockets and purses of staff at the mint is their own cash.

Full article at source>

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