Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The War on Cash: Bye-Bye 500-Euro Note

  by    1   1

Well, that didn’t take long.

In February, we reported that a former Obama economic adviser/ex-Treasury Secretary had floated the idea of eliminating the $100 bill and the 500-euro note in the escalating war on cash.

euro-note-1205315_960_720

On Wednesday, the European Central bank announced it will stop producing and issuing 500-euro notes around the end of 2018. Once the bank stops issuing the notes, those remaining in circulation will remain legal tender – at least for the time being.

In a press release, the EBC said it made the decision to eliminate the 500-euro note due to “concerns that this banknote could facilitate illicit activities.”

Virtually all of the mainstream reporting went with this “we’re doing it to fight crime” spin. Take this opening paragraph from the New York Times:

A suitcase stuffed full of cash may soon be worth a lot less. In a move aimed at hampering cash transactions by terrorists, drug dealers and money launderers, the European Central Bank on Wednesday announced an end to the 500-euro bank note, worth roughly $575.”

Subscribe to Peter Schiff’s Gold Videocast

But buried deep in the Times story, the reporter swerves into the truth. There is another, more fundamental reason central banks want to eliminate large bills:

One leading German economist also accused the European Central Bank of ulterior motives. With fewer large bills, it will be easier for the central bank to push interest rates to new lows, said Clemens Fuest, president of the Ifo economic research institute in Munich, which has been critical of the central bank’s cheap money policies. That is because for almost two years the European Central Bank has been charging lenders a so-called negative interest rate to keep money in its virtual vaults, which are considered the ultimate safe haven…In theory, banks can avoid this de facto rent on their deposits by holding cash in their own vaults. But in practice it is expensive to store large amounts of bills safely — and it would become even more so if the denominations were smaller.”

And there you have the crux of the war on cash. It’s not really about controlling “criminals.” It’s about controlling you.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Speculation Swirls, Trial Balloons Fly: Who’s Next Up for Fed Chair?

Speculation continues to swirl around the question of who President Trump will appoint as Federal Reserve Chair when Janet Yellen’s term comes to an end in February. Trump will reportedly meet with Yellen this week to discuss the possibility of her staying on as the head of the central bank. During the presidential campaign, Trump […]

READ MORE →

Palladium Price Hits 16-Year High

Palladium probably isn’t something you think about when you consider investing in precious metals. Maybe you should. Palladium broke through the $1,000 mark on Monday. The price of the metal has spiked nearly 50% in 2017 and is at its highest level in 16 years. Related

READ MORE →

Is Silver Set to Soar?

Could silver be set to soar? Analysts Barron’s spoke with recently think so. An article published on the business journal’s website last week predicted the white metal will emerge as a winner for the second straight year. With a per-ounce price of $17.41 for silver futures as of Friday, analysts say the white metal is […]

READ MORE →

Australian Gold Mine Production on Track to Fall By Half Over Next 25 Years

Australian gold output will peak in just four years and then begin a steep decline, according to a report issued by a Melbourne-based industry adviser. According to MinEx Consulting analysis reported by Bloomberg Business, Australian mine output will max out in 2021 and then fall by half into the mid-2050s, as aging mines close down. […]

READ MORE →

Bitcoin or Gold? Do I have to Pick Just One?

People seem to enjoy pitting gold and Bitcoin against each other. But do I really have to pick just one? While cryptocurrency and precious metals have many similarities, in many ways they are polar opposites. And you can have both. Related

READ MORE →

One thought on “The War on Cash: Bye-Bye 500-Euro Note

  1. IMissLiberty says:

    I don’t like being punished for the sins of others. That’s why I’m a Libertarian: I have confidence that we, as individuals, can do better than the-powers-that-be. Taken at face value, they’re saying they want to punish good people along with the bad because somebody might use cash illegally–it would make more sense to make drug sales legal and sue those who do harm with them–less illegality and less crime. By their logic, all denominations in all currencies should be abandoned. But, I tend to agree that this is not about crimes committed by bank depositors. A one-dollar bill is only worth a penny or two (less, really), already, and the collapse was set up in 1913. End the Fed.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/key-gold-news/the-war-on-cash-bye-bye-500-euro-note
Call Now