Sweden Has Declared War On Cash

There are some ‘jeopardized species’ in Sweden, and, as of now, we can consider ‘cash’ to fall into that category. It appears that Sweden is now moving away from using cash. In Sweden, cash in physical form is disappearing, though cash in the bank is safe.

Here is a chart revealing the Swedish banknotes in the yearly value in circulation. This chart shows that there is a decline in the circulation of the Swedish banknotes.

swedish_banknotes_in_circulation_2005_2015The chart above clearly shows the demise of cash. That is to a large extent driven by the choice of the Swedish people to adopt mobile payment systems.

The concerning part is that the demise of cash looks as it is devised as a scheme by the Swedish central bank, enjoying benefits of this new trend. The benefit resides in a fee that is charged with each financial transaction in an electronic system.

Apart from this, interest rates in Sweden are in negative territory since July, currently at -0.35 percent. That is meant to ‘force’ Swedish people to spend money, as not spending it will result in a decline of a bank account.

Negative rates are currently found in Switzerland and Denmark, where it is as low as -1.25 percent. In fact, a 10-year old Swiss bond fell to -0.40 percent and this shows people must pay to the government to hold their investment.

An interesting perspective is given by Casey Research’s Nick Giambruno who says that ‘negative interest rates are a scam in a cashless society’.

Central planners are using negative interest rates as a tool to stimulate the economy, by forcing people to spend, and, hence, creating a ‘war on cash’.

Negative interest rates and the War on Cash are threats to financial security, resulting in a currency catastrophe at some point in the future. This clearly is a violation of financial privacy as banks monitor our bank accounts continuously.

Apart from this, regulations strangle investors and small businesses. With these perils, the question is what can be done to protect people’s hard earned wealth. The best option is to invest in gold, as it is storing value on the long run.

gold_commodities_1990_2015

It is really recommended to take advantage of lower gold prices, and recognize gold’s wealth preservation characteristic. It is highly recommended to invest 5 % in gold stocks, 10% in the yellow metal and 5 percent in bullion and coins.

This article is inspired by Frank Holmes’ article at USFunds.com. Chart courtesy USFunds.com.

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