Quote:A lot of perfectly legal businesses operate with only cash. What are you supposed to do exactly?

 

That's why it's a problem.  That's why people are losing their life savings.

 

We are seeing the first rumblings of a War On Cash by the banks.  They do not like cash.  They can't create it with a few taps on a keyboard like they can create digital money.  When you get a house loan, the check you hand to the previous owner comes from nowhere.  The bank just made it up.  The money was invented when they decided you were willing to make payments.

 

If the bank had to come up with $250,000 cash for you to give to the previous homeowner, that would be a problem.  But if they hand you a check to give to the previous owner, the previous owner will have to deposit the check - in a bank - in the system.  The cost is zero for the banks.  The payments you make for 30 years are pure profit.  It wasn't their house or their money.

 

Money in the bank is not equivalent to cash in the hand.  For now, they interchange at 1:1, but they are not the same.  Put 50k cash in the bank and try to withdraw it and you will run into problems with both the deposit and the withdrawal. 

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