Contact us
CALL US NOW 1-888-GOLD-160

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.


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

The Retail Apocalypse Cometh

Could we be on the verge of a retail apocalypse? February marked the third straight month of declining retail sales. Analysts had not expected another drop, but they got one nonetheless. Sales fell 0.1% in February. Analysts had expected an uptick of 0.3%. This is not good news for a retail sector that is already teetering on […]


Buy King Dollar? Do You Really Want to Take Investment Advice From This Guy?

President Trump’s new economic adviser did an interview on CNBC’s Closing Bell Wednesday and offered a little investment advice. I would buy King Dollar and I would sell gold.” So, should you follow Larry Kudlow’s guidance? Of course, that’s up to you. But Kudlow doesn’t have the best track record when it comes to predicting […]


Peter Schiff: Americans Are Broke

Retail sales unexpectedly fell again in February. It was the third straight monthly drop and the first time the US economy has seen three straight months of declining retail sales since 2012. Sales fell 0.1% in February. Analysts had expected an uptick of 0.3%. According to CNBC, households cut back on purchases of motor vehicles and other big-ticket […]


Turkey Continues Gold-Buying Spree in Quest for Independence from US Dollar

Turkey went on a gold-buying spree in 2017. That trend continued through the first two months of 2018 as the country continues to diversify away from foreign currencies – i.e. the dollar. Data released by Borsa Istanbul shows Turkey imported 44.47 tons of gold in January and 16.03 tons in February for a total of […]


Hungary Plans to Bring Home All of Its Gold

Over the last several years, a number of countries have taken steps to bring their gold home. You can now add Hungary to that list. Related


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
Like Us on Facebook
Add Us on Twitter
Visit Us
YouTube Channel
YouTube Channel
Call Now