Guest Post: "The 'War on Cash' Migrates to Switzerland", by Pater Tenebrarum of

Written late last week, I thought that this was an excellent summary of negative interest rates and the movement afoot by global banks to eliminate cash and the viability of actual script currency.

But first, I'd like to add some additional thoughts.

Remember, all banks operate on a fractional reserve basis. In the U.S., this currently means that for every $100 a bank takes in as a deposit, it can lend out (create!) $90 of new "money". If you're new to this idea, I strongly urge you to check out Mike Maloney's YouTube channel as he has created a series of educational videos designed to explain this process. One of the best examples is below:

Now there's A LOT of banter out there about this "War on Cash" and how it is a precursor to the elimination of physical paper currency. This would open the door to a new global, digital currency and expanded financial and political tyranny. Maybe. That may very well be where this is all headed. For today, however, I'd like you to keep these points in mind:

  • Banks are in the business of making money. They do this by charging interest and collecting fees. Therefore, anyone or any entity that withdraws paper cash and places it in a safe deposit box is depriving the bank of an income/revenue stream. The bank would much rather charge you a fee for the "safekeeping" of your digital savings. Viewed this way, the new prohibition on storing cash in a safe deposit box is a logical business decision for them.
  • Withdrawing physical script and placing it in a deposit box is also an act of forced deleverage for the bank. Remember, each deposit is multiplied and new money is created through the fractional reserve system. Pulling physical cash from the bank has some of the same impact as paying down a debt. It reduces the digital "float", thereby forcing deleveraging and even creating some deflation. "Deleveraging" and "deflation" are death knells to a system (and any institution) built upon a reliance of ever-increasing supply, leverage and inflation.

So, after considering those two bullets as context, please read this article. Think about where this is headed. Are we going to see more of this "War on Cash" in the weeks ahead or less? In this environment, how in the world can any central bank raise rates, much less "normalize" their balance sheet? And just how valuable is your physical precious metal? I'll help you with gets more valuable by the day!!



"The 'War on Cash' Migrates to Switzerland"

by, Peter Tenebrarum of

The war on cash is proliferating globally. It appears that the private members of the world’s banking cartels are increasingly joining the fun, even if it means trampling on the rights of their customers.

Yesterday we came across an article at Zerohedge, in which Dr. Salerno of the Mises Institute notes that JP Morgan Chase has apparently joined the “war on cash”, by “restricting the use of cash in selected markets, restricting borrowers from making cash payments on credit cards, mortgages, equity lines and auto loans, as well as prohibiting storage of cash in safe deposit boxes”.

This reminded us immediately that we have just come across another small article in the local European press (courtesy of Dan Popescu), in which a Swiss pension fund manager discusses his plight with the SNB’s bizarre negative interest rate policy. In Switzerland this policy has long ago led to negative deposit rates at the commercial banks as well. The difference to other jurisdictions is however that negative interest rates have become so pronounced, that it is by now worth it to simply withdraw one’s cash and put it into an insured vault.

Having realized this, said pension fund manager, after calculating that he would save at least 25,000 CHF per year on every CHF 10 m. deposit by putting the cash into a vault, told his bank that he was about to make a rather big withdrawal very soon. After all, as a pension fund manager he has a fiduciary duty to his clients, and if he can save money based on a technicality, he has to do it.



Swiss National Bank headquarters

Photo credit: Daniel Rohr


A Legally Murky Situation – but Collectivism Wins Out

What happened next is truly stunning. Surely everybody is aware that Switzerland regularly makes it to the top three on the list of countries with the highest degree of economic freedom. At the same time, it has a central bank whose board members are wedded to Keynesian nostrums similar to those of other central banks. This is no wonder, as nowadays, economists are trained in an academic environment that is dripping with the most vicious statism imaginable. As a result, withdrawing one’s cash is evidently regarded as “interference with the SNB’s monetary policy goals”. Thus SRF reports:


“Since the national bank has introduced negative interest rates, pension funds in the country are in trouble. Banks are passing the negative rates on to them. This results in the saved pension money shrinking, instead of producing a return. A number of pension funds are therefore thinking about keeping their money in an external vault instead of leaving it in bank accounts.

One fund manager showed that for every CHF 10 m. in pension money, his fund would save CHF 25,000 – in spite of the costs involved in vault rent, cash transportation and other expenses.

However, as our research team has found out, there is one bank that refuses to pay out money in such large amounts. The editorial team has gotten hold of a letter from a large Swiss bank in which it tells its customer, a pension fund:

“We are sorry, that within the time period specified, no solution corresponding to your expectations could be found.

Bank expert Hans Geiger says that this “is most definitely not legal”. The pension fund has a sight account, and has the contractual right to dispose of its money on demand.


(emphasis added)

Indeed, although we all know that fractionally reserved banks literally don’t have the money their customers hold in demand deposits, the contract states clearly that customers may withdraw their funds at any time on demand. The maturity of sight deposits is precisely zero.

So how come the unnamed “large bank” (they should have named it, just to see what happens…) is so bold as to break the law by refusing to pay out funds in a demand deposit? Note here that it is indeed breaking the law, as there is nothing in Swiss legislation that states that banks are allowed to refuse or delay servicing withdrawals from demand deposits upon request.

The answer is that it has probably received a “directive” from the Swiss National Bank. Note here that these directives are not legally binding. SFR further:


“The president of the pension funds association ASIP, Hanspeter Konrad, has been irritated for weeks that pension funds are suffering from negative interest rates. He says: “We simply cannot understand that the banks are butting in here”. Konrad suspects that the National Bank is exerting its influence.

Indeed, the SNB confirms that it doesn’t like to see the hoarding of cash to circumvent its negative interest rate policy. “The National Bank has therefore recommended to the banks to approach withdrawal demands in a restrictive manner.”

Hans Giger, professor emeritus at the University of Zurich, says to this that the question how far the SNB can go is legally complicated. While the SNB is not allowed to influence the contract between a bank and a pension fund, it can however “issue directives to the banks in the collective interest of the Swiss economy”. What banks do with the SNB’s directives is however up to them.


(emphasis added)

In other words, large depositors in Swiss banks have now become victims of collectivism. Collectivism is of course precisely what informs all central planning endeavors. Obviously, property rights count for nothing if the central planners can revoke them at the drop of a hat.



It is undoubtedly a huge red flag when in one of the countries considered to be a member of the “highest economic freedom in the world” club, commercial banks are suddenly refusing their customers access to their cash. This money doesn’t belong to the banks, and it doesn’t belong to the central bank either.

If this can happen in prosperous Switzerland, based on some nebulous notion of the “collective good”, which its unelected central planners can arbitrarily determine and base decisions upon, it can probably happen anywhere. Consider yourself warned. As the modern day fiat money system inevitably cruises toward its final denouement, individual rights will come increasingly under attack as the world’s ruling elites and centrally directed banking cartels begin to batten down the hatches.

Better continue stacking, and keep a pile of this within grabbing distance – after all, it can be purchased at a generous discount these days:





jonesmw's picture


Didn't even try

arch stanton's picture


I didn't either

usk's picture

The swiss national bank is probably insolvent

They are stuffed to the gills with equities, and probably more than reported (with their undisclosed derivative book)

They are longs 100 billion stocks! And some are asking why the markets are still holding in this depression... central banks have morphed into hedge funds, they ARE the market.  Japanese CB is still buying today futs to save their book. They are probably the worst, their losses are going to be huge with the coming bond crash. They will stop when the people will stand up and ask these non-elected bastards to open their book: this will be to late, these banksters are already bankrupted and have compromised the value of the work of our children.

Stack, stack stack.... Get physical, ignore the paper price.

Marchas45's picture

I Dont Care

But 4th I need to get back on track.

"And just how valuable is your physical precious metal? I'll help you with gets more valuable by the day!! "  Nah!! can't be true, the charts say so as does Mel. Keep Stacking

canary's picture

Crooks paradise

When I grew up in Eastern Europe I looked @ the Wall Street as something noble. How naive I was. Seems like the crooks will always have the upper hand on me.  

vonburpenstein's picture

Wash, Rinse and.....

REPEAT...over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and over and, already knew this anyway

Safety Dan's picture

Health Canada to Relabel

Glyphosate a Carcinogen

Health Canada to Relabel Roundup Weedkiller

April 28, 2015 | 183,019 Views

It's just been declared a class 2A carcinogen, yet it's been invisibly applied to your food for years. Warning: don't read this while eating, you may...

Discover More »

Swift Boat Vet's picture




P.S.  Obviously not first ---- far from it.  I've got to learn not to read the whole post and watch videos before posting


Safety Dan's picture

S&P repeating 2000 and 2007

S&P repeating 2000 and 2007 pattern right now?

Posted by Chris Kimble on 04/30/2015 at 7:30 am; This entry is filed under S&P 500

spxascendingtrianglefailedbreakoutsapr28CLICK ON CHART TO ENLARGE

In 2000 and 2007 the S&P created bullish ascending triangle patterns, which two-thirds of the time suggest higher prices are ahead. The key to this pattern is support holding.  Both times multi-year support failed to hold and you know the rest of the story.

Now the S&P appears to be creating the same pattern again, at 161% Fibonacci extension resistance.

In 2000 & 2007, what the S&P did at support was very important!

Safety Dan's picture

The Financial Markets Now

The Financial Markets Now Control Everything 

Posted on April 30, 2015 by Charles Hugh Smith

The entire economic and political structure is now dependent in one way or another on the continued expansion of financial markets.

The financial markets don’t just dominate the economy–they now control everything. In 1999, the BBC broadcast a 4-part documentary by Adam Curtis, The Mayfair Set ( Episode 1: “Who Pays Wins” 58 minutes), that explored the way financial markets have come to dominate not just the economy but the political process and society.

In effect, politicians now look to the markets for policy guidance, and any market turbulence now causes governments to quickly amend their policies to “rescue” the all-important markets from instability.

This is a global trend that has gathered momentum since the program was broadcast in 1999, as The Global Financial Meltdown of 2008-09 greatly reinforced the dominance of markets.

It’s not just banks that have become too big to fail; the markets themselves are now too influential and big to fail.

Curtis focuses considerable attention on the way in which seemingly “good” financial entities such as pension funds actively enabled the “bad” corporate raiders of the 1980s by purchasing the high-yield junk bonds the raiders used to finance their asset-stripping ventures.

This increasing dependence of “good” entities on players making risky bets and manipulating markets has created perverse incentives to keep the financial bubble-blowing going with government backstops and changing the rules to mask systemic leverage and risk.

The government must prop up markets, not just to insure the cash keeps flowing into political campaign coffers, but to save pension funds and the “wealth effect” that is now the sole driver of “growth” (expanding consumption) other than debt.

To maintain the illusion of growth and rising wealth, the financial markets must continually reach greater extremes: extremes of debt, leverage, obscurity and valuations. These extremes destabilize markets, first beneath the surface and then all too visibly.

The technological advances of the past decade have enabled a host of financial schemes that together have the potential to destabilize the markets globally.Technology enables high-frequency (HFT) traders to only suffer one losing day per year, complex reverse-repo swaps/trades, huge derivative bets and shadow banking, where all the risks generated by these activities can pool up outside the view and control of regulators.

The entire economic and political structure is now dependent in one way or another on the continued expansion of financial markets.

This spells the end of the electoral-political control of the economy, as politicians of all stripes quickly abandon all their ideologies and policies and rush to “save” the markets from any turmoil, because that turmoil could destabilize not just the financial markets but the economy, pensions and ultimately the government’s ability to finance its own profligate borrowing and spending.

Goldencross's picture

Andrew Maguire

once more a HFT gifted buying opportunity.Easy COT pickings rinsing hot money at the 50.Good riddance.

canary's picture

I hate those PM raids....

.... but my doggies always love them...enjoying those long, long walks.

thedukes's picture

Brotherjohnf belangp busted

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SS121's picture

Lovin it!!!

The system and all it's unseen machinations are either being openly exposed or  now considered fraudulent at a rapidly increasing pace.

The system's long slow death (time for stacking) will not have a long slow ending.

How do nuclear weapons work?

...and just like that, all that was declared to be real from behind the curtain, will be gone.   Not discussed, excused, reasoned about, spun, repackaged, and recycled.  GONE.

"Only Silver and Gold are Money", they will all then say.

US Sillver Eagles 500 count

Dr. P. Metals's picture


well, until then, this investing in "sound money" sure is terrible for your "financial health" :( geesh...trying not to look today. JNUG almost back to a buck 90 something again. 

Turd Ferguson's picture



Actual footage of the earthquake striking Nepal.


SS121's picture

JNUG isn't "Sound Money" investing my friend.

JNUG is some pixels on your screen.

Physical Silver and Gold are sound money.

This will be perfectly clear post "kaboom".  

Until then i'll just politely ask you to consider the difference.

realitybiter's picture


had about 15 seconds to react....from first visible shaking.

speaking of reacting to things.....sure is looking like stockmarket Spring 2000....back then we had some wicked drops in April and May....wiping away 2000 pts, then a partial recovery into the Summer and that Fall it just ground down for the next two years.....of course it is different this time.  What supports Amazon?  Nothing other than revenue, not profit.  Who knows if their model will work?  It is a confidence in the future play.  What happens when revenue can't grow and it becomes more unprofitable?  I don't know.

Just sayin'.  And back then in 2000 it was the beginning, not the end, of the great resource trade...rhymes, I know....who will be this seasons petsdotcom?  webvan? or myriad of chip and networking hardware cos....biotech seems to have flown the highest.....BIS and JNUG.....for the thrillseeker...

Dr. P. Metals's picture


I didn't say JNUG was sound money. The point still remains my chart friend :)

Dr. P. Metals's picture

This item is still out there

realitybiter's picture


I risky risky....however, IF the PM thesis is correct, there are several degrees of resolution:

1)  things get slowly, though in lumpy jumps, worse...PMs get expensive, grinding higher, QE forevah, economy just limps along, ocassionally in ICU...jnug will probably perform agq in 2010-11.....

2) crash.  markets close.....Big mess.  Banks confiscate deposits.  Futures get priced to yesterday's close, miners?  who knows?  maybe they work out....maybe the hard money etfs work out...futures based etf's don't...

3)  Mad max.  whole thing goes poof.  Alls bank stock accounts get vaporized...Obvious what wins.

Seemed like this in 2008.  Or 87....or post 9/11....but it worked out.  I wouldn't bet the farm on the etf's like jnug, but I think the probability of them getting totaled is small.

LNKD jus spent the last 10 minutes erasing the price action of the last 800 days.  A similar behaviour in silver would double the price...just sayin'.  What are you going to do with your scared LNKD money?  Buy bonds that pay negative interest rate?  Real estate?  In the face of a desperate Keynes mad Fed?

and FCX was up today...huh.  what do they mine?  everything!

Scooter's picture

@ infometron

As the owner of milk cows I must say the German capitalism appeals to me greatly  =- )  Do my cows need to learn German as a prerequisite?

On the other hand one of my steers I'm fix'n to process needs neither to learn nor speak any language as his only "ism" is whether he ism to be rare or medium rare......   lol, man is it gonna be good ! I have him fed out to perfection.

Markedtofuture's picture

Allied Nevada Special Shareholders Meeting

Allied Nevada  Special Shareholders Meeting  is being formed for the removal of the current board of directors and management.    Instablog post can be found here:

The amount of shares necessary to petition Allied Nevada Gold Corp. for the special meeting, is approximately 25.25 million shares.

For those interested in taking action, Send an email to: 

with the following details:

1. Name 

2. Address if a registered holder

3. Contact Number 

4. Current number of shares held in Allied Nevada or redacted brokers statement if needed.

Your address or statement is required to verify that you are the holder of record.

(any information provided will be used solely for this petition). 

The Shareholder Rights Group will tally the exact share count, in order to better the required 25.25 million shares. The final count will be used to petition the company to convene the special meeting.

Thank you for your support in this matter.

Safety Dan's picture

Wage Earners..


SS121's picture

d e l e . . .

. . . . t e d 

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