I just received a letter from Chase Bank about my annual renewal for safe deposit box rent. I scanned through the letter, and it looked like sort of the standard stuff that we get every year from banks. It had a cover letter and 5 pages of typical "boilerplate." Then I spotted something that said "Contents of the Box: You agree not to store any cash or coins other than those found to have a collectible value" -- That seemed like something new! I didn't remember that!
I always thought that the reason people had safe deposit boxes was to keep extra cash, so that if the banking system collapsed they'd have cash to use to survive. I figured that most of the boxes probably had bundles of $100 bills. However, I don't think we have ever kept money in a safe deposit box. It always seemed dumb to not be able to get some sort of interest on the money -- particularly if it was losing value each year due to inflation. So if I left $100 in the box for a year, I would then only be able to buy $97 worth of stuff if we had 3% inflation. But if I could get 6% interest on the money, I could buy $103 worth of stuff. But, during the past few years, we've had almost zero (officially) inflation, and the interest I'm getting on a $6000 bank balance is less than 10 cents/month, so maybe people would be tempted to keep money in their bank box!
After I read this letter, I looked on the internet. Apparently Chase's change in policy did hit the news in April. See this link. Some people and organizations are concerned about this change. I found this web page: http://www.infowars.com/report-jpmorganchase-bans-storage-of-cash-in-its-safety-deposit-boxes/
Paul Joseph Watson wrote an article for Alex Jones "infowars" website that the "war on cash" continues, and attributes it to the banking industry trying to get away from handling cash. It doesn't seem like anyone else is concerned. Apparently there is an obscure law that prohibits taking cash out of "circulation" --which is interpreted as putting cash into a safe deposit box. I suppose the Feds could prosecute someone for putting currency in a safe deposit box. But according to this Marketplace Report, 80% of US Currency is in $100 bills, at least 30% of that is outside the country, and the US ships overseas pallets of $100 bills, each worth $64 million--sounds like moving a lot of cash outside of US circulation, doesn't it? .
I'm very suspicious that this change in policy may be coming from our Government's war on individual privacy. Could this change have been part of the Government's settlement with Chase for their part in the mortgage industry meltdown? I'll bet we will see other banks do the same thing -- probably due to Government pressure. Government would like to be able to see every financial transaction we make at any time they want. It makes it easier to catch bad guys, drug dealers, blackmailers, etc. We saw in the recent Dennis Hastert case that the Government is charging him with money transfer crimes and lying about it. Not any concern about child molestation, of course. Government was concerned when he withdrew amounts less than the $10,000 limit for being reported. By forcing everyone away from cash, the Government will now be able to track us much closer. Yes, they may be able to catch criminals -- but they will also be able to know more about who we donate to for political campaigns too! Of course the multi-millionaires like Koch Brothers will still be able to keep their donations anonymous -- but not the rest of us!
I always thought that the reason people had safe deposit boxes was to keep extra cash, so that if the banking system collapsed they'd have cash to use to survive. I figured that most of the boxes probably had bundles of $100 bills. However, I don't think we have ever kept money in a safe deposit box. It always seemed dumb to not be able to get some sort of interest on the money -- particularly if it was losing value each year due to inflation. So if I left $100 in the box for a year, I would then only be able to buy $97 worth of stuff if we had 3% inflation. But if I could get 6% interest on the money, I could buy $103 worth of stuff. But, during the past few years, we've had almost zero (officially) inflation, and the interest I'm getting on a $6000 bank balance is less than 10 cents/month, so maybe people would be tempted to keep money in their bank box!
After I read this letter, I looked on the internet. Apparently Chase's change in policy did hit the news in April. See this link. Some people and organizations are concerned about this change. I found this web page: http://www.infowars.com/report-jpmorganchase-bans-storage-of-cash-in-its-safety-deposit-boxes/
Paul Joseph Watson wrote an article for Alex Jones "infowars" website that the "war on cash" continues, and attributes it to the banking industry trying to get away from handling cash. It doesn't seem like anyone else is concerned. Apparently there is an obscure law that prohibits taking cash out of "circulation" --which is interpreted as putting cash into a safe deposit box. I suppose the Feds could prosecute someone for putting currency in a safe deposit box. But according to this Marketplace Report, 80% of US Currency is in $100 bills, at least 30% of that is outside the country, and the US ships overseas pallets of $100 bills, each worth $64 million--sounds like moving a lot of cash outside of US circulation, doesn't it? .
I'm very suspicious that this change in policy may be coming from our Government's war on individual privacy. Could this change have been part of the Government's settlement with Chase for their part in the mortgage industry meltdown? I'll bet we will see other banks do the same thing -- probably due to Government pressure. Government would like to be able to see every financial transaction we make at any time they want. It makes it easier to catch bad guys, drug dealers, blackmailers, etc. We saw in the recent Dennis Hastert case that the Government is charging him with money transfer crimes and lying about it. Not any concern about child molestation, of course. Government was concerned when he withdrew amounts less than the $10,000 limit for being reported. By forcing everyone away from cash, the Government will now be able to track us much closer. Yes, they may be able to catch criminals -- but they will also be able to know more about who we donate to for political campaigns too! Of course the multi-millionaires like Koch Brothers will still be able to keep their donations anonymous -- but not the rest of us!