Home Australia Cash Ban in Australia – Really?

Cash Ban in Australia – Really?

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[Editor’s note: John Gilbert Alexander OAM (b 1951) is an Australian politician and former professional tennis player. He reached a singles rank of #8 in the world (1975). He later became a tennis commentator, and then won the seat of Bennelong for the Liberal Party at the 2010 election. He resigned 11 November 2017 due to constitutional ineligibility arising from his dual citizenship of the United Kingdom, but after renouncing his UK citizenship he won the seat back on 16 December 2017.]

Open Letter to Federal Member For Bennelong, John Alexander

John Alexander

Member for Bennelong, Epping NSW

Dear Mr. Alexander,

I have become aware of the Liberal government’s intention to ban cash transactions over $10,000 in Australia to commence from 1st January, 2020. Furthermore, the $10,000 limit can be “adjusted” by regulation at a later date, thereby negating the necessity to re-introduce legislation, and thus streamlining the government’s ability to further restrict, by decree, the use of cash in the economy.

This proposal would be a gross erosion of freedom in our society.

The ostensible rationale, to limit the proliferation of the “Black economy”  is disingenuous bordering on patently ridiculous. The majority of off-books financial activity (and thus tax evasion) is conducted by major corporate entities and of course organised crime, not by hairdressers and trades people accepting a cash payment or two.

As with the financial legislation introduced on the 14th February, 2018 (Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 [Provisions]), where wording was deliberately made vague and obtuse in relation to the types of financial instruments capable of being bailed in (“or other instruments“) which specifically does not rule out bank deposits, the currently proposed cash ban legislation appears more an attempt to herd or corral citizens into the banking system generally, in order to restrict or limit cash removal from the system. This would be necessary in the event of a Bail In scenario, should the need arise for a banking institution to actually use this egregious piece of legislation for their financial survival.

It would be very difficult for a bank to Bail In large numbers of accounts if substantial amounts of cash had already be removed.

Furthermore, in the event of a major financial shock similar, or worse than the GFC in 2007/8, it is generally accepted economic theory that the government, via the Reserve Bank of Australia, would need to drastically reduce interest rates in the order of 3-5%, in order to prolong the viability of the banking system and the economy generally.

As we currently have a cash rate of 1%, one can easily see that deeply negative interest rates would be an inevitability, leading to a major disincentive to hold cash in  a bank account. Hence the proposed cash restriction/ban.

As an aside, if the trend is to gradually introduce a cashless society, heaven help citizens in the event of a major internet hack or blackout.

As a previous lifelong supporter of the Liberal Party, and its supposed charter of support for freedom, free markets and free enterprise, I am greatly disturbed by the increasing tendency to introduce legislation which has the opposite effect. Indeed, the appearance of an increasing leaning towards a totalitarian or even a fascist state is becoming apparent. This is certainly not the Australia I have been proud to support and it is certainly not the type of Australia I want to pass on to the next generations.

Where do you stand on this specious attempt to restrict the citizen’s right to conduct honest transactions in any legal manner they choose? Will you oppose the passage of this Bill and will you publicly state your opposition on the record? Or will you quietly vote along party lines?

The voters of the Bennelong electorate eagerly await your response.

Phil Hingston 

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29 COMMENTS

  1. There’s also the fact that, like all politically-driven restrictions, it would be virtually impossible to uphold/police such a ban

    • Ah, but if you are traveling across the Pacific on Jetstar and get hungry and the stewardess won’t sell you a sandwich unless you pay with a card… she is the enforcer. And at that moment you can’t “vote with your feet.”

    • Berry, True, but $10,000 is just to get the foot in the door. As usual, it will be incrementally reduced to Zero. The ATMs will disappear. Vendors will refuse cash payment for fear of penalties and because banks will refuse to process deposits of cash. As usual, the Powers That Be haven’t really thought this out well.
      An amusing thought occurred to me that due to Legal Tender Laws, governments compelled us to use cash as payments. Now, they are restricting the use of sash as payment. Wish they’d bloody well make up their mind.

      • In the early ‘80s I thought the World would be cashless by 2000. Twenty years on and it still hasn’t happened but I daresay that the hour will roll around eventually.

        The fact that all cash bears the image of some Ruler or other doesn’t get a whole lot of attention but it’s central to understanding certain fundamentals

  2. By having to use a credit or debit card the banks skim off a percentage of every financial transacrion from the retailer that is passed on to the purchaser.
    So what does Hayne think of this banker’s theft?
    Well Mr Alexander; whose side are you on? The bankers, or those whom you are employed to represent?
    If you are for the bankers, piss off and let a genuine representative care about Aussies.
    We await a reply to Mr Hingston’s letter.

  3. And for Hon Josh Frydenberg, Member for Kooyong. After handing out 200+ flyers from the CEC website in my neighbourhood there was not one person I could speak with who knew of the draft Currency (Restrictions on the Use of Cash) Bill 2019!

    Here are some excerpts from The War Against Cash by Ross Clark, Chapter 2.

    The United Nations project to turn the world cashless – The United Nations Capital Development Fund has set up a lobbying organisation, the Better Than Cash Alliance, to push towards the elimination of cash.

    Commercial interests are pushing hard for the abolition of cash. The payments industry is engaged in a huge lobbying operation. Commercial organisations, management consultants advise governments on how they could and should be pushing populations away from cash and towards electronic forms of payment.

    It wasn’t enough simply to allow the market for cashless payments to develop, it (the management consultant’s paper) suggested; there had to be an element of coercion. Governments should embark on a three-phrase programme, the first of which was “a long-term plan for discouraging cash use”. It went on to label this phase as “the war on cash”.

    In a deflationary environment a pile of cash is just about the best investment there is. But what if we couldn’t keep cash, if there was no cash to keep? Cash held in a bank account is not the same as physical money because it can be manipulated through the device of negative interest rates. The theory is that this would force us to spend our money rather than squirrelling it away, generating economic activity. Not only that, goes the argument, negative interest rates could help drive up inflation, helping to erode the ever increasing and hard-to-manage debts that are being built up by many governments. (End of excerpts) https://books.google.com.au/books?isbn=085719626X

    G20 and the United Nations Capital Development Fund –
    During the G20’s Global Partnership for Financial Inclusion (GPFI) meeting in Hobart, Australia, on May 6, 2014, the Better than Cash Alliance was invited to become one of its Implementing Partners, joining the World Bank, International Finance Corporation (IFC), Consultative Group to Assist the Poor (CGAP), Alliance for Financial Inclusion (AFI), Organisation for Economic Co-operation and Development (OECD) and International Fund for Agriculture Development (IFAD).

    First, we (the Better Than Cash Alliance) are specifically focused on the shift from cash to electronic payments as an on-ramp to financial inclusion. Second, we’re an alliance which integrates the private sector with governments and international development organizations as well as foundations.
    https://www.betterthancash.org/news/blogs-stories/btca-becomes-an-implementing-partner-of-the-g20-global-partnership-for-financial-inclusion

    And godly instruction: 1 Timothy 2:1-3

  4. OMG. OMG. Please help. deadline august 12. GOVERNMENT ASKS YOUR OPINION.

    at treasury.gov.au we find this — please attend to it now, Gumshoers:

    “You can submit responses to this consultation up until 12 August 2019.
    Interested parties are invited to comment on this consultation.
    While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.”

    All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence.

    How To Respond

    Email. blackeconomy@treasury.gov.au

  5. Off Topic, (sorry)

    Jeffrey Epstein has “apparently” been found dead in his cell, after “apparently” being placed on suicide watch after he “apparently” tried to commit suicide 10 days ago.

    Do you believe that? I have some land in Florida to sell you.

    I will only believe that if they seal J Epstiens body in a sealed clear plastic coffin where he can be put on public display in the centre of, say, New York, for the next two weeks, so everyone can see for themselves he is actually dead.

    Otherwise he’s “actually” living with Elvis on a UFO.

    Over to you, Mr Trump.

  6. So if he’s dead, the Clinton body count just cranked up one notch. Personally, I don’t believe it. Didn’t he apply for bail, get refused, then challenge the ruling?? This dude wants to continue with his miserable, perverted life. Probably thinks he’ll get a plea deal if he turns over enough evidence.
    Tell him he’s dreaming……

  7. As to clamping down on money laundering and tax evasion, coming from the new head of AUSTRAC, Nicole Rose, her comments make a farce of the governments proposed Cash Ban to limit or restrict the black economy.

    On 5 April 2018, Nicole Rose,the newly appointed head of AUSTRAC (Australian Transaction Reports and Analysis Centre) addressed the Australian media:

    “I thought coming from the Australian Criminal Intelligence Commission that I had a pretty good handle on serious and organised crime side. I didn’t appreciate the depth and breadth of involvement with private entities and banks. I didn’t appreciate how many industries it does actually touch. There’s a mis-perception that money laundering is a victimless white-collar crime that’s probably just looking at tax avoidance -and it’s not. It is criminal entities using financial institutions here and nationally to move criminal funds around our country and our financial system overseas. And it has a massive impact on everyday life. Whether that’s child exploitation, serious and organised crime, drug importation it all involves money laundering.”

    The Commonwealth Bank of Australia (CBA) was subsequently fined $700 million for almost 54,000 breaches of anti-money laundering and counter terrorism financing laws, including the laundering of proceeds from child sex trafficking, and the channeling of these funds into overseas terrorist organisations. This massive criminal operation involved 27 different groups or cells, each of which accessed a CBA account. Each of the 27 accounts was used for money laundering by multiple, possibly hundreds, of criminals,with each individual depositing amounts of over $10,000 into the automatic tellers per sitting. Police obtained footage of people sitting at tellers at night with large bags of cash, patiently feeding notes into the IDMs (Intelligent Deposit Machines). About 80 percent of CBA-laundered money was obtained via drug trafficking, while the remaining 20 percent came from child sex trafficking (namely by Fijian nationals operating in far north Queensland). The CBA sting operation incorporated the biggest illicit drug bust in Australian history. This massive Perth, WA drug bust went unreported in the Australian media. And that is not all the government covered up. AUSTRAC cut short their investigation and action against the CBA because if they continued, the laundering operation was so massive the CBA would have run out of money paying the appropriate fines. The most telling cover-up regarding the CBA case is that, while the CBA as an organisation was fined, law enforcement authorities never prosecuted the individual CBA employees identified as responsible for masterminding the laundering operation. Those offenders simply left the CBA to assume senior executive positions within other organisations. Police prosecutors claimed they had insufficient evidence to prosecute the executives, when they in fact possessed ample evidence. I suggest the true reason the DPP did not pursue the individuals responsible for these crimes is because the perpetrators were CIA agents, and the CBA money laundering operation was part of the CIA-coordinated global child and drug trafficking operation. As I write, Westpac and the NAB (National Australia Bank) are under AUSTRAC investigation
    for the very same crimes.”

  8. Nicole have you ever heard of the saying “If a man will lie to you once, he’ll lie to you twice”?

    You can spin this legislation anyway you want, but the government has long lost it’s credibility. – “Trust us, we’re from the government” – LOL!

  9. As a Christian I’m always mindful of the fact that there’s a much deeper issue at stake than daylight robbery:

    “Facebook – in partnership with major banks, payment processors, and e-commerce companies – has announced plans to launch a digital currency called the Libra. Unlike decentralized, free-floating cryptocurrencies, Libra will be tied to national fiat currencies, integrated into the financial system, and centrally managed.

    Critics warn Libra is akin to a “spy coin.” Many of the companies involved in Libra (including Facebook itself) routinely ban users on the basis of their political views. Big Tech has booted scores of individuals and groups off social platforms for engaging in “hate” speech. If Libra one day becomes the predominant online payment method, then political dissidents could effectively be banned from all e-commerce.

    A lesson from the past is the Bush administration’s attacks on the credit card processors of pornography sites more than a decade ago.  While we might applaud the effort to shut down pornography sites, the financial targeting set a precedent as New York’s Comptroller, Thomas DiNapoli, appealed in a letter to major banks and credit card companies to block all transactions associated with firearms. 

    The efforts failed but we have seen recent attempts in a similar way with MasterCard and Visa being pressured to deny service to those that promote “hate”, or put another way – Christian and Conservative businesses that don’t act politically correct.”

    http://prophecynewswatch.com/article.cfm?recent_news_id=3345

    • “A mark to a government ruler in your right hand that controls your ability to buy or sell based on your political/religious loyalty is exactly what is described in the book of Revelation and is often referred to as ‘the mark of the beast’.

      Those who like to dismiss the book of Revelation as mere allegory may want to take another look.

      The technology described in Revelation is already here and the next step is taking place before our eyes as the masses are being conditioned to accept it’s spread. Slowly but surely we are also seeing our ability to conduct commerce becoming linked with our political/religious views. Are we prepared for what will happen next?”

  10. Are you racist? well that’s politically incorrect.
    Are you sexist? that’s politically incorrect too.
    Are you homophobic? politically incorrect.
    Are you transphobic? politically incorrect.
    Are you Islamophobic? politically incorrect.

    This is why I say that political correctness is the iron fist in the velvet gloves of the movements listed above.
    And if you are politically incorrect, then they use the methods described by Frederick Toben, which essentially boil down to social ostracization.

    Now, I’m not saying that political correctness is the top of the chain, but it might be worth picking at it to see how it connects with the rest of the rabbit hole.

    “And now: The Inaugural Political Correctness Comedy Festival!”

  11. Not sure how a cashless society can possibly work to any degree of reliability with power-outages on the increase. The idea of a cashless society is just a Utopian dream – it’s not going to happen.

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