Saturday, April 22, 2017

Fear of bank runs and insolvency behind IMF's newest proposal for elimination of cash

While both the Fed and the mainstream media will never tell the truth on how solvent or insolvent a bank is right up to the day when they go under or collapse, the IMF a few weeks ago issued a new report pushing for the elimination of cash as the means to keep account holders from taking their money out of domestic and global institutions.

The fear of bank runs and all out bank insolvencies are what are at the heart of the IMF's push to eliminate physical cash and bring all economies under the dominion of a digital system according to the former head of Germany's Federal Association of German Industry in an interview he participated in on April 21.

Image result for the move to eliminate cash is to stop bank runs
In its recent report, the International Monetary Fund (IMF) proposed to abolish cash and recommended to adopt measures in order to restrict its use. In an interview with Sputnik Germany, former head of the Federal Association of German Industry (BDI) Hans-Olaf Henkel said that this "could lead to terrible consequences." 
Henkel believes that one of the main reasons behind this proposal is the desire of financial institutions to force people to keep their money in banks. 
"The European Central Bank (ECB) does not want that depositors to keep their money under the pillow. If any bank in Europe goes bankrupt, then depositors have a guaranteed right that the state will return them the amount of up to 100,000 euros. But not more," the economist told Sputnik Germany. 
So, if a bank goes bankrupt, people who have savings of over 100,000 euros will remain with nothing. Thus, many keep their cash not in banks, Henkel argued. – Sputnik News

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