Every year, the Elite gathers at Davos, Switzerland, for the World Economic Forum Annual Meeting, and following this year’s meeting (20-23 January 2016), it seems that the Elite are ready to push forward a global cashless economy so that they can effectively tax bank deposits of the entire global population.
According to a PowerPoint slide obtained by ZeroHedge, and that was prepared by global financial services firm Morgan Stanley, a policy maker who attended the Davos meeting was quoted as saying, “We should more quickly to a cashless economy so that we could introduce negative rates well below 1%.”
(Source of photo above: ZeroHedge)
ZeroHedge also quoted another Davos attendee as saying:
One of the most surprising comments this year came from a closed session on fintech where I sat next to someone in policy circles who argued that we should move quickly to a cashless economy so that we could introduce negative rates well below 1% – as they were concerned that Larry Summers’ secular stagnation was indeed playing out and we would be stuck with negative rates for a decade in Europe. They felt below (1.5)% depositors would start to hoard notes, leading to yet further complexities for monetary policy.
In a negative interest rate environment, bank depositors are forced to pay a percentage of their savings annually (in other words, a “tax”) to the banks.
Indeed, according to another ZeroHedge article, the government of Australia had in April last year already mulled over taxing bank deposits, and there was speculation that the United States government might someday follow suit.
In the event that interest rates turn negative, it is foreseeable that depositors would withdraw cash from their bank accounts, and stash them in their mattresses.
However, in a totally cashless economy where paper money is made redundant, depositors have no other option than to surrender to the loss of their hard-earned savings to the banks.
The Elite, of course, will pay no tax by funneling their wealth in corporate tax havens.