Largest bank banning use of cash and paying negative interest rates?

By George Miller

CashBanJP Morgan Chase, the largest bank in the U.S., will be paying negative interest rates- yes you read that right- and banning cash, for many transactions. No, this is not the Twilight Zone- it is for real and it may be just the tip of the iceberg. The financial-savvy blog  ZeroHedge wrote about it yesterday, but they’re not the only ones. These and other financial specialist usually surface news long before the mainstream publications do and are usually correct.  All this has implications for far more than just the investment/banking community. Think about it next time you read some feel-good article about how the economy is “recovering,” etc. Read about what and why and digest….

 

 Submitted by Tyler Durden on 04/23/2015 23:44 -0400

ZeroHedge

The war on cash is escalating. Just a week ago, the infamous Willem Buiter, along with Ken Rogoff, voiced their support for a restriction (or ban altogether) on the use of cash ). Today, as Mises’ Jo Salerno reports, the war has acquired a powerful new ally in Chase, the largest bank in the U.S., which has enacted a policy restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages, and auto loans; and disallows the storage of “any cash or coins” in safe deposit boxes.

Buiter defended his “controversial” call for a ban on cash, as Bloomberg reports:

“The world’s central banks have a problem. When economic conditions worsen, they react by reducing interest rates in order to stimulate the economy.But, as has happened across the world in recent years, there comes a point where those central banks run out of room to cut — they can bring interest rates to zero, but reducing them further below that is fraught with problems, the biggest of which is cash in the economy.

 Read more:

http://www.zerohedge.com/news/2015-04-23/largest-bank-america-joins-war-cash

 

More astounding news ….

Chase To Charge 1% Fee For Deposits, Beginning May 1st

(Peter Coy)  JPMorgan Chase recently sent a letter to some of its large depositors telling them it didn’t want their stinking money anymore. Well, not in those words. The bank coined a euphemism: Beginning on May 1, it said, it will charge certain customers a “balance sheet utilization fee” of 1 percent a year on deposits in excess of the money they need for their operations. That amounts to a negative interest rate on deposits. The targeted customers—mostly other financial institutions—are already snatching their money out of the bank. Which is exactly what Chief Executive Officer Jamie Dimon wants. The goal is to shed $100 billion in deposits, and he’s about 20 percent of the way there so far.

Pause for a second and marvel at how strange this is. Banks have always paid interest to depositors. We’ve entered a new era of surplus in which banks—some, anyway—are deigning to accept money only if customers are willing to pay for the privilege. Nick Bunker, a policy analyst at the Washington Center for Equitable Growth, was so dazzled by interest rates’ falling into negative territory that he headlined his analysis after a Doors song, Break on Through (to the Other Side).

More:

http://govtslaves.info/chase-to-charge-1-fee-for-deposits-beginning-may-1st/

 

Banks are also banning storage of cash and gold in safety deposit boxes ….

 

Shopping with cash is now illegal in this state | The Crux

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George Miller is Publisher of Citizensjournal.us and a “retired” operations management consultant, active in civic affairs, living in Oxnard.

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