A report by the Australian Payments Clearing Association (APCA) in July 2014 has revealed that despite the Reserve Bank having increased the notes on issue every year, the total amount of cash being used in the payment system of the economy has been falling. While the use of cash in transactions may be declining, there are no signs that holdings of cash are doing so.
Australians aren’t stupid. For as long as we have known, Liberal and Labor controlling governments have extracted too much tax, then wasted taxpayer wealth on crap, and sold off public assets for more cash. Kevin Rudd set the benchmark. Abbott’s own wishlist continues the decadence.
So, smart Australians are successfully stashing an estimated $10 billion “under the bed” for personal use and for ‘rainy day’ reserve, according to a landmark report revealing the extent of hard currency being removed from Australia’s increasingly centralised economy.
Apparently, it is now rare to see $100 notes in circulation. That green stash is good – so rare that each green $100 bill is probably worth more than its currency value. Cash discounts for example. Nothing wrong with that, so long as it’s not criminal.
Independent cash reserves ought to be encouraged by independent Australians. It is just like what the Australian Reserve Bank, indeed what any smart bank does legitimately in case there is a cash shortage.
“By adding black economy, illicit activities, and hoarding, around $35 billion of cash inventory exists outside the payments system,” the APCA report said. “This works out to be $1517 per Australian that exists outside the payments system.”
What surprised the authors of the study, however, was just how much of the total $60 billion cash inventory which accounts for 15 per cent of the total currency value was being
stashed for reasons assumed to include a cultural mistrust of the grubby hands of banks, the tax office and government.
Yep! Pay cash, pay less. With cash transactions, the seller and buyer both benefit; only the rorting government loses.
“If Labor wins, your money would be safer under the bed!”– Australian Prime Minister Malcolm Fraser, 1983.
Australians would be wise to have a secure home safe with a six month supply of cash.
A serviceable firearm with ammunition in a secure gun cabinet, shooters license and straight shooting skills – all wise too.
With cash you are king, not a pawn of big government.
Economic Nationalism is all about our own people controlling our economy.