UPDATE: $10,000 Cash Ban
I want to update you on the cash ban bill that will come before the Senate in this sitting.
This measure from the Morrison Government limits cash transactions to $10,000. If you like to save up and pay in cash, or if you have to use cash because eftpos doesn’t work in the bush, this bill stops you from doing that.
And get this, if a business, which is anyone with an ABN, accepts more than $10,000 in cash, they can go to jail for 2 years.
Scott Morrison would tell you they have to do this to combat organised crime and tax evasion. Yet all the evidence says this is just not true. Drug dealers won’t stop paying for drug deals in cash for fear of 2 years in jail when drug dealing gets them life in prison.
Money launderers won’t stop laundering money for fear of 2 years in jail when money laundering gets them 15 years in prison.
And tax evaders won’t stop evading tax for fear of 2 years in jail when tax evasion gets them 10 years.
Criminals are paying for drug deals not just in cash but in houses and artworks. Money launderers are using prepaid cash cards that can hold up to $100,000, that can be redeemed in 14 different currencies anywhere in the world. Criminals simply post the card overseas.
This bill does not do a thing to stop the actual black economy.
Scott Morrison is forcing you to put your money in a bank, or you will not be able to spend it. Not only does that give the banks more revenue, it makes you susceptible to potential bank bail-ins and negative interest rates.
Today our Government’s 2 and 5 year bonds are trading at 0.66%. Allowing for inflation we already have negative interest rates on Government bonds. Countries all over the world are going negative, including Germany, Sweden, Denmark and Japan.
With negative rates you pay the bank to keep your money. Every month you lose some of your savings, then of course they charge you fees as well.
What can you do to defend yourself from that? Well, until now, you could keep your money in cash, and pay in cash.
The Senate is holding an inquiry into the Cash Ban Bill, which returns it’s findings next week. The Government controls that committee and every indication is they will support their Prime Minister’s position.
We oppose the Cash Ban Bill. Once the Senate Report comes out next week, there will be nothing left to stop this becoming law.
