War On Cash Escalates: Australia Proposes Ban on $100 Bill; No Cash Within 10 Years?

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Global financial repression has picked up steam. Australian citizens are likely the next victim.

AU News reports Government Floats $100 Note Removal.

SAY goodbye to the $100 note.

Australia looks set to follow in the footsteps of Venezuela and India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”.

Speaking to ABC radio on Wednesday, Revenue and Financial Services Minister Kelly O’Dwyer flagged a review of the $100 note and cash payments over certain limits as the government looks to recoup billions in unpaid tax. Continue reading

War On Cash Intensifies: Citibank To Stop Accepting Cash At Some Branches

Less than a week after India’s surprise move to scrap its highest denomination cash notes, another front in the War on Cash has intensified down under in Australia.

Yesterday, banking giant UBS proposed that eliminating Australia’s $100 and $50 bills would be “good for the economy and good for the banks.”

(How convenient that a bank would propose something that’s good for banks!)

This isn’t the first time that the financial establishment has pushed for a cashless society in Australia (or anywhere else). Continue reading

Global stocks in ‘panic mode’ as Chinese factory slump drags on markets

Global markets are hemorrhaging. How many more band-aids can be put on a wound that is somehow only delaying the death of the patient?

 

Britain’s leading share index fell to 6,286 points on Friday morning immediately after opening, a decline of 1.26%.
The drop mirrored stock markets across Asia-Pacific after they went into “panic mode” when further signs of a weakening Chinese economy compounded overnight losses on Wall Street and European bourses.

China’s factory sector shrank at its fastest pace in more than six years in August as domestic and export demand dwindled, a private survey showed, adding to worries that the world’s second-largest economy may be slowing sharply and sending financial markets into a tailspin.

China’s surprise devaluation of the yuan and heavy selling in its stock markets in recent weeks have sparked fears that it could be at risk of a hard landing, which would hammer world growth. Continue reading

The US Dollar is Breaking Out Against Every Major Currency

The US Dollar is breaking out against EVERY major world currency.This is not some blip on the financial radar. The US Dollar has been trading sideways for several years. But in the last 8 months, that all changed as the US Dollar broke out against the Yen, the Euro, the Australian Dollar… literally everything. Continue reading

Aussie under pressure amid new currency war

The Australian dollar came under renewed selling pressure on Tuesday as the consolidation of global imbalances continues to fuel a rally in its US counterpart.

The Aussie dropped briefly to touch a four-year low around  $US86.5 cents on weak trade data and an upward revision in unemployment, before recovering to around $US86.9 cents as the market took heart from strong retail sales figures.

However, the main driver of more general weakness is a new surge in the US dollar, spurred by another bout of extreme monetary easing by the Bank of Japan.

The BoJ on Friday caught markets off-guard by announcing a larger-than-expected boost to it quantitative easing program, less than 48 hours after the US Federal Reserve confirmed a halt to its own six-year stimulus scheme. Continue reading

Asia’s Currency War

Global finance chiefs may have denounced it, but that has not stopped Japan joining other central banks in driving its exchange rate lower. With Australia and South Korea forced to respond, will the Asia-Pacific region be the main battleground in a global currency war? Continue reading

Billion dollar bet on rate cut pays off

From the man that nearly broke Britain:

It may go down as one of the great currency bets in Australian dollar history  – a $US1 billion gamble on a Reserve Bank  rate cut that has delivered a $US19 million ($18.65m) profit in 36  hours.

The beneficiary, if you believe the rumour mill, is investment legend George  Soros.

Best of all, it appears the 82-year-old American pulled off the deal three  times, all with different foreign exchange brokers in Asia, for a tidy profit of  almost $US60 million. Continue reading

Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility

The world continues dumping and abandoning the USA as it remains lulled into a false sense of security — even by the traditional ‘allies’. The rude awakening is coming and it’s not a matter of ‘if’, but when. Some say 2013 is the year the United States has its rug (unsustainable standard of living) pulled out from under it and crown swiped.

A month ago we pointed out that as a result of Australia’s unprecedented reliance on China as a target export market, accounting for nearly 30% of all Australian exports (with the flipside being just as true, as Australia now is the fifth-biggest source of Chinese imports), the two countries may as well be joined at the hip.

Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world’s “reserve currency” in its trade dealings with the world’s biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process “slashing costs for thousands of business” and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar’s reserve currency status until one day it no longer is. Continue reading