Central banks are warning people to stockpile extra cash at home.
Another Record High For Gold
October 1 (King World News) – Peter Schiff: Earlier this morning gold traded above $3,890, a new record high. Some attribute gold’s rise to the government shutdown. Gold isn’t rising because the government is shutting down, but because it remains open, creating inflation to monetize deficits it can’t honestly repay.
Central Banks Warn People To Stockpile Extra Cash At Home
Gerald Celente: Households should consider building up a reserve of paper money and coins at home, the European Central Bank (ECB) said in a statement last week that reminded people cash is a fail-safe backup if digital currency and payment systems malfunction.
The bank’s urging follows similar statements from the governments of Austria, Finland, and the Netherlands suggesting people keep a cash reserve in the house of €70 to €100 per person.
Earlier this year, the European Commission called for households to maintain a three-day supply of cash, food, medicine, and water in case digital systems crash.
The Ukraine war, the COVID era, inflation, and recent Russian jet fighter incursions into NATO member states’ airspace have reminded governments of the continent’s vulnerabilities, the Financial Times said.
“Cash is a critical component of national crisis preparedness,” the ECB’s statement said, adding that physical money “not only serves to meet individual needs but also contributes to broader systemic resilience.” The bank likened a cash stash to a spare tire for your car.
Most of Europe’s retail payments are made digitally and banks are closing branches and ATMs, but the public still must have access to paper notes and coins during an emergency, advocates say.
Increasingly, Europeans have no cash on hand. However, in emergencies people are desperate for it, the FT noted, as exemplified during power blackouts in Portugal and Spain in April. After power was restored, cash withdrawals from banks surged.
During the COVID War, the amount of cash European households kept on hand rose to €140 billion, compared to only €55 billion before 2020. Cash holdings jumped even though people shopped more online or paid in person largely with contactless cards.
A cash reserve is similar to the Netherland’s flood defense system, the ECB suggested. “Infrastructure and strategic reserves must be prepared for [rare], less predictable, high-impact surges,” it said.
TRENDPOST:
These warnings are stark reminders that any complex system or equipment made by humans will fail at some point.
The more dependent on a particular infrastructure we become, the more we suffer when it fails. (Think of a power outage lasting even a few hours.)
Many of us have been behind someone at a checkout counter when the digital card reader malfunctions and the shopper has no cash.
The warnings also are a reminder that economies that go entirely cashless are catastrophically vulnerable to a hack or cyberattack on their digital payment systems.
As Gerald Celente has warned that this is a time for GC’s three G’s: Guns, Gold and a Getaway Plan. Indeed, as the world goes digital, gold will be the best and the brightest of a real value currency rather than digital currencies made up of nothing more than thin air.
Silver Preparing To Explode Above $50
To listen to James Turk discuss his price targets for silver as it prepares to explode above $50 as well as what to expect from gold and mining stocks CLICK HERE OR ON THE IMAGE BELOW.
JUST RELEASED!
To listen to Alasdair Macleod discuss silver approaching the $50 all-time high set in 1980 as well as gold’s surge along with the mining and exploration stocks CLICK HERE OR ON THE IMAGE BELOW.
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