Real money

Dorothy lusted for three ginger cookies. ‘Make it six,” I said, feeling flush and manly. And six it was.

“That’s eight dollars,” said Amy, the pigtailed woman who stood on the other side of the folding, groaning card table at the farmer’s market. A twenty was presented. “Wow,” she said flatly. “it’s paper.” And so it was, not the plastic kind, and not what she wanted. “I can square that,” she said sweetly but firmly. Amy handed me her iPhone with a card reader stuck on the top. “It’s safer.”

We swiped.

Money, the folding kind, is endangered. It gets lost. People steal it. Currency is a medium for the exchange of germs, dirt and even wee bugs. It tears, burns and melts. It costs money to take the money to a bank. They don’t want it, either. You have to count it, separate it, record it, bundle it and worry about it. Get too much of it, and you’re accused of being a criminal. Money launderer. Dealer.

No doubt about it. Cash money’s déclassé. The stuff rubbies and day workers convert from cheques at a payday loan store so they can drink, smoke and womanize. The rest they waste.

I mean, have you ever seen a Millennial with a pocket full of cash? Or entering a bank to get some? Folding money is generational, paleo and disparaged. These are the PayPal, ApplePay, tap-and-go, e-transfer, debt/credit card times when the whole notion of money is changing. Normal people don’t get paid with cash or cheques, but by direct deposit, from which bills are dispensed online. It’s possible to go days, weeks and years never touching an actual bank note. In fact, cashless is now a retail thing.

It’s getting more common (especially in the US) for stores to refuse cash, coins or hard currency of any kind. Nobody can rob them at night or wear a balaclava and demand, ‘Empty that till.’ There’s no employee time spent counting bills or making change. No armoured truck or guys with holsters showing up to cart it away. No staffer is endangered by having to carry a bag of it to the bank. No safe. No temptation for a worker to Hoover off a few twenties. No counterfeit bills. No cash registers or drawers.

In the States there are cashless stores, toll roads, stadiums and airlines – plus the exploding online marketplace which is 100% digital-pay. Folding money grows unloved, unused and actually controversial.

Cashlessness is being banned in a growing number of places. New Jersey and Philly, plus (soon) NYC and Washington.  The argument is that replacing hard money with the virtual kind makes life tougher for lower-income folks who may not have a bank card, credit card or smart phone with apps. Apparently 17% of black households in the US lack a bank account, for example.

But Canada seems ripe to go completely cashless. The Canadian Bankers Association says only 1% of us don’t have a bank account. Over 90% claim banking is better now because of new technologies. And 76% of us do our banking online. In fact the CRA doesn’t even want you to pay your outstanding taxes at the bank anymore. This country leads the world when it comes to embracing cashless technology, with Sweden at No. 2.

So, do you carry cash? Do you have a shoebox of it at home? In a freezer bag? Toilet tank?

Besides being fragile, dirty and dangerous, cash has big advantages. It’s still there when the lights go off or the servers crash. Bank of Canada official Tim Lane puts it this way: “Cash works even when the systems are down, when the power goes out and people can still make payments using bank notes. Second, bank notes offer privacy for your transactions. You can use them without giving anyone your personal or your banking information. Using cash avoids the risk of being hacked or having your card compromised.”

Exactly. This could get dangerous.

When you can’t buy six damn cookies with a bill, we’re halfway there.

215 comments ↓

#1 Rick Fast on 03.26.19 at 3:29 pm

Cash is king!

#2 Azashi on 03.26.19 at 3:39 pm

A cashless society is the dream of naive young children, and those multi-billionaires who want to make sure the peasants pay all the bills and every penny is tracked, while their non-cash is electronically transferred off-shore into perfectly semi-legal tax havens.

#3 Lee on 03.26.19 at 3:47 pm

Interesting early post. CRA loves cashless because it makes it harder to commit tax evasion in cash businesses. Presumably they can track all electronic transactions at a location regardless of how many electronic devices you use there as the owner, even if you spread the funds around to different bank accounts. The transactions all track back to the debit and credit card machines on the counter. Diabolical. How’s a guy supposed to make a buck?

#4 Lee on 03.26.19 at 3:47 pm

Oh, sorry. Fiiiirst.

#5 Susan M on 03.26.19 at 3:47 pm

Hard buying anything at flea markets or book shows with anything but cash. Also, lunch in China town yesterday at a fabulous film sum place has a sign that they prefer cash.

#6 RPM on 03.26.19 at 3:50 pm

First off- Big fan of the blog.

Second- this is why I bought Visa stock many years ago at $60US, rode it up, sold some, bought more at xmas for $125, currently new high of $156US

#7 amral on 03.26.19 at 3:54 pm

I still carry around a few bucks in my wallet and I keep a couple of hundred bucks at home at any given time in case of an emergency.
Cash is King in my books. I cannot see myself paying for a cup of coffee with my debit card or my phone. At the end of the day I know what I spend.

#8 Dups on 03.26.19 at 3:58 pm

Early posting today.

#9 zork Meister on 03.26.19 at 4:00 pm

Garth, you forgot to mention the biggest beneficiary of cash in Canada: domestic and foreign criminals using lightly regulated real estate transactions and casinos to magically “white-wash” dirty/ill-gotten money.

#10 Chris Walker on 03.26.19 at 4:01 pm

Canadian sheep sleepwalking to increasing enslavement.
Digital transactions are a very useful development but should NOT wholly supplant cash – let’s keep the best of both worlds.
And Garth, what about the service fees of going cashless?

#11 crowdedelevatorfartz on 03.26.19 at 4:02 pm

A few weeks ago I pulled a $50 bill out of my wallet stuffed with $50, $20, and a few $100’s.
The pimple faced kid behind the counter…..thought it was fake…..

#12 FLHTK on 03.26.19 at 4:05 pm

Cash is king! Need more of it

#13 timoftrees on 03.26.19 at 4:06 pm

Use the Cash Envelope budgetting system.

The kids of ‘Cash Investing’ and ‘Cash Spending’ jars.

Keep a bit of USD and Swiss bucks in a safety deposit box (yeah, ‘sorta’ illegal, but it is traceable to a good old, tax-deducted paycheque).

Pay cash for groceries, toys for the kids, clothes at the thrift shop, church basket, farmer’s market, and when I buy a cow, every fall, from our local beef farmer.

Pay for gas with a company fleet card.

Keep some in the gun cabinet, for emergency ( ie more ‘pay the pizza guy’ then ‘survive the banking apocalypse’).

Rest in chequing, savings, and some ETFs.

Rarely pay with Credit Card or Debit unless big (>1000.00) purchase.

#14 DaleFromCalgary on 03.26.19 at 4:07 pm

Good timing for your article. My smartphone wasn’t working properly this morning because the service provider’s software upgrade failed. Fortunately I carry cash and could still buy lunch. When the cashless society arrives, a failed or lost device will be a nightmare if you are traveling away from home. Also great for others to track everything you do.

In China, if you are politically incorrect, you cannot buy so much as a bus ticket, thanks to their new social credit system. If their facial recognition system makes a mistake, good luck getting the problem fixed.

#15 crowdedelevatorfartz on 03.26.19 at 4:08 pm

@ Sold Out and Mtl one

Apparently working 11.5 months a year and 5 days a week is quite a sore spot with you teacher groupies…….

#16 Fairmont emp on 03.26.19 at 4:09 pm

Made a visit to the local notery office the other day. She told me it would cost $40 for the service. I panicked, as I only had $25 in paper stuff and 2 plastic cards and didnt see any payment processing machine anywhere. I asked how she would like payment, figuring cash was going to be the only option without a register in sight. She said credit card only. Still confused where this payment processing apparatus was I waited. Turns out a little attachment to your smartphone turns it into a payment processing unit. Done.

I hardly ever carry cash. Sometimes I don’t even have a 5$ in my wallet. Use credit card for everything because I get points. No one ever offers me a discount if I was to use cash

#17 TalkingPie on 03.26.19 at 4:10 pm

Middle class Millennial here. Looking through my wallet right now, I have:

CAD 140
Euro 95
USD 95

Then I have a grab bag of small amounts in 5 or 6 other currencies in my travel bag, and that’s all typical for me. The different currencies are because I often travel at a moment’s notice.

Having some cash on hand can solve problems quickly. Card doesn’t work, want to tip or pay someone quickly, repay a friend or stranger – cash can easily do all that. Besides, call me irrational, but pulling out plastic to pay for a pack of gum or a burger just strikes me as a little pathetic.

For whatever reason my outlook seems be unique among peers; people often cite the risks of carrying $100 cash. This is usually done while wearing a $200 watch and $600 jacket, and carrying an $800 phone and keys to a $30,000 car. Or, for maximum irony, in the case of some women I’ve met, they’re afraid to put a C-note into their $300 purse.

#18 Dave on 03.26.19 at 4:10 pm

Always needs to be cash and tonnes of it. A Billion dollar underground economy runs on it.
Perhaps you want to avoid paying taxes, just need cash.
Digital money has tracking, too hard to hide your dirty little secrets

#19 earthboundmisfit on 03.26.19 at 4:11 pm

Next week ….. cash only at the OCS.

#20 PeterfromCalgary on 03.26.19 at 4:12 pm

Once the big solar storm wipes out computer networks people will be sorry they gave up cash.

#21 SoggyShorts on 03.26.19 at 4:18 pm

I just got back from a couple of months in Vietnam where 99% of transactions are in cash. The few places that do take credit cards (like hotels) charge 3% plus if you don’t have one of the 4 Canadian credit cards without a foreign exchange markup you lose another 2.5%

Such a strange experience after having zero Canadian cash for years. I even have a fake $1 coin for the shopping carts at Superstore.

M38AB

#22 marcus on 03.26.19 at 4:18 pm

The cashless society is the Globalists wet dream. If a society allows this they are willingly putting the metal collar around their own necks and marching into slavery FOREVER. No joke. Paper money and more importantly precious metals and the ability to barter maintain the ability for an individual to remain sovereign. Short of metals, cash and barter ability you are a slave. Never doubt that.

#23 They're even trying ... on 03.26.19 at 4:20 pm

to wean us off CrappyTire “cash” money.

#24 James on 03.26.19 at 4:23 pm

My father loves a song by Pink Floyd called Money, he used to play it all the time. Actually I really liked the tune and the group called Pink Floyd. Anyway their song lyrics pretty much sum it all up.

Money
Get away
Get a good job with more pay and you’re okay
Money
It’s a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream
Think I’ll buy me a football team
Money
Get back
I’m alright, Jack keep your hands off of my stack
Money
It’s a hit
Don’t give me that do goody good bullshit
I’m in the high-fidelity first class traveling set
And I think I need a Lear jet
Money
It’s a crime
Share it fairly but don’t take a slice of my pie
Money
So they say
Is the root of all evil today
But if you ask for a rise
It’s no surprise that they’re giving none away
Away, away, away
Away, away, away
– Yeah — (chuckles) — I was in the right!
– Yes, absolutely in the right!
– I certainly was in the right!
– Yeah, I was definitely in the right
That geezer…
Songwriters: ROGER WATERS

#25 Smartalox on 03.26.19 at 4:27 pm

We’re trying to introduce our five year old to money management concepts. Still can’t do that without cash. Five bucks a week: A twonie to save / invest, a twonie to spend (or save up for a bigger purchase) and a loonie to donate to charity.

#26 Bad at Being a Millennial YYC on 03.26.19 at 4:33 pm

The Homeless are going to need interac machines…

#27 LP on 03.26.19 at 4:37 pm

Forget how you paid for them…you paid EIGHT DOLLARS for 6 cookies!!!!!!!!!!!!! Boy, I hope they were good.

You should get out more. $2.25 a pop is common. This was a bargain. – Garth

#28 Hmmmmm on 03.26.19 at 4:37 pm

Will you look at that? Garth’s now advertizing for Bitcoin!. Cuz you know that’s what’s next after a bank based digital-fiat money system. Garth won’t mention it, but JP Morgan just announced it’s launching its own cryptocurrency last week; SWIFT is heavily researching crypto and so is every G20 Central Bank. Probably it won’t be Bitcoin that wins out, but decentralized global monetary system is coming. Paying for stuff over the Internet with credit cards that require you to hand over all your info (including the password to your credit card – have IT people ever heard of a more ridiculous protocol?)… and which charge you and the merchant large fees, most of which go to pay off the costs of credit card fraud… those days are numbered. Oh and Facebook is also coming out with a digital crypto token of some sort. They are trying to mimic WePay from China with its Whatsapp message platform. Imagine that … US tech firm copying a Chinese one. But you know such a system will be abused, and it’s not just because Zuckerberg will get his filthy hands deep in it, but simply because any currency system controlled by a single entity is subject to corruption, not to mention questionable information gathering. Maybe it will last 5 or 10 years, but think about it… when you have more secure, private money that also goes up in purchasing value over time and that is free to use… which would you rather use? Look, Bitcoin’s deflationary design will assuredly lead to price explosions and implosions – as it already has many times before, but software money is upgradeable and open source software money is copiable such that another group of software developers will alter certain characteristics and improve further on it. As such, it is inevitable that 20 years down the road money is nearly all digital, private/encrypted, stable and easy to use. Don’t believe me? Compare MS DOS to Windows 10. HPUX to MacOS. Analogue cameras to your triple camera phone. “Software is eating the world” and it will eat our monetary system too.

Bitcoin is not no more money than is gold. – Garth

#29 thebarold on 03.26.19 at 4:38 pm

That millennial should learn that she would have gotten $0.21 more (assuming a 2.65% processing charge) if she had made change herself. I guess this generation is willing to pay others to do stuff we used to do ourselves.

#30 Stan Brooks on 03.26.19 at 4:48 pm

Sure,

After getting people deeply in debt thanks to corrupt politicians and CMHC, now banksters want to abolish cash so they can charge you insane fees on your bank account and implement negative interest rates.

#31 Hmmmmm on 03.26.19 at 4:51 pm

I forgot to mention… Samsung’s new S10 phone includes a secure hardware crypto wallet built in. It’s coming. Don’t be a luddite using slow and expensive SWIFT and credit card systems.

#32 Stan Brooks on 03.26.19 at 4:57 pm

Bitcoin is not no more money than is gold. – Garth

At some point in Europe/19th century, the gold coins were standardized across the major economies – 20 Swiss franks were the same weight as 20 French franks.

As a result, there were no currency conversion fees such as the 2 or even 3 % % + that greedy banks charge today.

banks are the cancer of this society, I hope some fin tech makes them obsolete, there are some fin-techs in Europe that almost eliminate currency conversion fees.

The banks feel it so they have enslaved the populace through ‘guaranteed/insured’ mortgages.

Time to move their ‘high quality’ prudent garbage loans back to their balance sheets and eliminate the rates suppression at BoC to the normal 6- 8 % that current inflation justifies.

Money loaned is money created by the banks that have to be returner with interest that does not exist and eliminates the savings of the normal people, 95 % of the ‘money’ in Canada is created through banking loans, imagine that.

#33 Changeemall on 03.26.19 at 4:59 pm

#29 Stan Brooks

You are absolutely right.

Have you considered that Garth is a globalist?

#34 renter in Surrey on 03.26.19 at 5:01 pm

But Canada seems ripe to go completely cashless.

———————————————————————–

Except when some dude walks into Richmond casino with hockey bag full of cash.
Then no questions are asked.

#35 TurnerNation on 03.26.19 at 5:03 pm

I guess our forum host isn’t visiting Chinatown, taxi cabs or Dive bars. Cash is a requirement and it speaks volumes.

CASH IS KING where it really matters.
Gimme dat Green
Dalla dalla bills

#36 Bob Dog on 03.26.19 at 5:03 pm

You covered every single minute detail of cashless except two.

1. The obscene interest rates our worthless POS government permits banks to charge in credit cards.

2. The 3% + our corrupt puppet government allows banks to charge merchants on each and every purchase.

#37 Mtl_One on 03.26.19 at 5:07 pm

#14 crowdedelevatorfartz on 03.26.19 at 4:08 pm

Not sure what you are assuming.

Better half is the teacher, myself, self-employed capitalist.

Building a small business as been a lot of blood sweat and tears and sleepless nights, working weekends just to enjoy 2 weeks off with the family in the summer while she’s off with the kids.

More like 6 to 7 days a week for this hombre and 10-15 hours a day for the first few year while trying to keep food on the table and a business a float.

That other 0.5 months a year in your math is the “time” that is priceless to me and makes the other 11.5 all worth it so far.

As they say…each to their own.

Peace!

#38 TurnerNation on 03.26.19 at 5:12 pm

It’s been suggested the outwardly poorest ‘hoods are actually flush with cash.
Tax free, obtained via the gigantic trade in drugs, stolen goods and human trafficking.
Smart keeping it off the books.
Don’t believe all the tears.

#39 Mean Gene on 03.26.19 at 5:12 pm

“Dorothy lusted for three ginger cookies. ‘Make it six,” I said, feeling flush and manly. And six it was.”

Cool, you didn’t have to pay HST/GST.., smart cookie!!

I’m busted! – Garth

#40 Wallflower on 03.26.19 at 5:15 pm

Songwriters: ROGER WATERS
hahaha hha!

#41 Dolce Vita on 03.26.19 at 5:17 pm

I see your $8 worth of GMO ginger cookies with one €2.50 Zeppole di San Giuseppe, in season now in Italia until the end of the month.

Garth, you poor Mangiacookie you. That $8 buys you a doppio macchiato and 2 delicious brioches here in NE Italia and, they’ll give you change back.

Buonanotte e Ciao d'[*]Italia where they still use paper money, the little of it they have in *recession.

https://brilliantmaps.com/italian-food/

That map, so, so true.

Italia, the land of no GMO, steroids, antibiotics etc. in the food chain (well, for the exception of a smidge of Roundup in our flour from Canadian grain that we import).

#42 Dazed and CONfused on 03.26.19 at 5:19 pm

“…..The Canadian Bankers Association says only 1% of us don’t have a bank account……”

Correct. 1% of us keep their money in the Caymens.

#43 Amral on 03.26.19 at 5:20 pm

On a side note I found out the other day that my usual ATM no longer uses envelopes. To my astonishment I had to insert the cash into the machine instead just like that. Took me 8 mins to deposit 500 bucks. Some bills were curled up and the machine kept rejecting it. In the end I only deposited 420.00

#44 Dazed and CONfused on 03.26.19 at 5:28 pm

“……Took me 8 mins to deposit 500 bucks. Some bills were curled up and the machine kept rejecting it. In the end I only deposited 420.00……..”

ATM software written by Boeing. Who knew?

#45 SoggyShorts on 03.26.19 at 5:29 pm

#12 timoftrees on 03.26.19 at 4:06 pm
Pay cash for groceries, toys for the kids, clothes at the thrift shop, church basket

It doesn’t bother you at all to always pay 1-3% more than if you used a credit card with rewards?
————————————————————
#35 Bob Dog on 03.26.19 at 5:03 pm
You covered every single minute detail of cashless except two.

1. The obscene interest rates our worthless POS government permits banks to charge in credit cards.
The interest rate on all credit cards is zero if you set it up to come right out of your bank account.

2. The 3% + our corrupt puppet government allows banks to charge merchants on each and every purchase.
This is where my hypocrisy is revealed: I ask all of our clients to pay by check/e-transfer/direct deposit so that I don’t pay a 2.9% fee.

#46 Bob on 03.26.19 at 5:36 pm

Eight bucks for six cookies?

I hope they were awesome….

#47 yorkville renter on 03.26.19 at 5:38 pm

I use my CC for almost everything and collect tons of points.. but, I always carry $$$ and have emergency cash in the car ‘just in case’ we’re stranded.

besides, without cash how will I shop at the dispensary next month?

cash is still king.

#48 Craig Cherlet on 03.26.19 at 5:40 pm

No country is moving faster to cashless society than Sweden.

Retailers there are predicting they will stop accepting bills before 2025.

Going one step further with taping and swiping, more than 4,000 Swedes have implanted microchips in their hands, allowing them to pay for rail travel and food, or enter keyless offices, with a wave.

#49 Bob on 03.26.19 at 5:41 pm

I asked my Indian (South Asian) wife if any of her relatives would ever stop using cash.

She hasn’t stopped laughing yet….

#50 Billy the millennial on 03.26.19 at 5:44 pm

Those are some pricy cookies. Garth is rolling in it. A little more self awareness would be great.

Some moments (like now) I hate this blog. – Garth

#51 AGuyInVancouver on 03.26.19 at 5:45 pm

#15 Fairmont emp on 03.26.19 at 4:09 pm
…I hardly ever carry cash. Sometimes I don’t even have a 5$ in my wallet. Use credit card for everything because I get points. No one ever offers me a discount if I was to use cash
_ _ _
Merchant agremeents in Canada make it illegal for you to offer to do it cheaper in cash. Sure, maybe Visa won’t catch you, but mayeb they will. Meanwhile it doesn’t seem to be a problem in Australia where they advertise a surcharge for credit cards at many places. Just the Big Banks screwing us again.

#52 yorkville renter on 03.26.19 at 5:47 pm

some are posting about travel…

I always bring cash – USD$ – way cheaper to exchange into a local currency than CAD, accepted everywhere, and I never feel ripped off by Visa for their unsavory exchange rates.

not that people care, but I don’t buy USD.. i get paid in USD from time to time

#53 Randy on 03.26.19 at 5:47 pm

In Portugal right now on vacation most restaurants and touristy places want cash only. I am guessing to avoid Mastercard and visa fees

#54 crowdedelevatorfartz on 03.26.19 at 5:48 pm

two ship crashing into docks in 4 days.
1st the brand new Coast Guard Ship Franklin and now the BC Ferries Queen of Surrey.
Which one will get priority to be repaired in the last available dry dock on the west coast?

It’s a race……

https://vancouverisland.ctvnews.ca/new-coast-guard-vessel-damaged-after-striking-ogden-point-1.4350664

https://www.ladysmithchronicle.com/news/breaking-bc-ferry-crashes-onto-terminal/

#55 Andrew on 03.26.19 at 5:50 pm

I love it when you really talk money. Great post. The march to cashless appears inevitable, though I applaud those lawmakers making cashless illegal. China is a great example of the dangers of cashless with their social credit scoring system already in place in many cities. Millions of people last year were denied the right to travel or to take out loans because their behaviour was tracked and deemed ill. In a cashless society it’s easier than ever for the state to “turn you off”.

Luckily we have bitcoin. Your non sovereign digital gold able to be teleported across the table into cookies or across the world to settle a billion dollar M&A, all in seconds.

The price volatility in bitcoin is the volatility of the world exiting fiat currencies.

Bitcoin yearly LOWS:
2012 – $4
2013 – $65
2014 – $200
2015 – $185
2016 – $365
2017 – $780
2018 – $3200

Whether you accept it or not bitcoin is the apex predictor of money. When people realize their value will hold over time better in bitcoin than in their own inflated currency they will seek the harder money.

If you could teleport gold would you still use national currencies that lose 2%~ in value per year? Bitcoins inflation’s rate will be lower than golds soon.

I am simply sharing my thoughts, there is nothing wrong with questioning or being inquisitive. Don’t let others decide things for you, all of the best technologies of today went through periods of ridicule. Take some responsibility and an open mind and go learn. Then choose for yourself.

Bitcoin

#56 Blacksheep on 03.26.19 at 5:50 pm

Lobster Man # 130,

“#125 and #126 Blacksheep,

“I am aware of the Modern Money Creation Theory, particularly after modern QE. Japan started QE almost two decades ago.

That is where the MAJORITY of money is coming from. Banks still need the retail depositors etc. just to start the “Creation”.

Just ask any bankers if they ever need to borrow.”
———————————–
B.S. Never claimed, bankers never need to borrow or attract deposits, my refrence was to your comment below.
———————————–
Lobster Man # 52,

“Normally, commercial banks borrow short to lend long.”
———————————–
This is an inaccurate statement.

Banks may need monies lent to them to operate (not newly created via the customer giving the bank a mortgage) to facilitate daily operations, but these deposits made by private parties (again, not just newly created) are not lent out to other customers. Period.

Meaning they are not lending constrained by the $ volumes deposited, (not newly created) as described above.

This is where the BoE document deviates from the traditional, but completely incorrect thinking that:

Banks must borrow $100 from Jim, pay Jim 2% on his GIC and only then can lend, $ 100 to Bob @ 5% interest, with the bank pocketing the 3% spread.

This is not how commercial chartered banks function.

https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy

Quote from BoE pdf:

“Lending creates deposits — broad money
determination at the aggregate level”

“As explained in ‘Money in the modern economy: an
introduction’, broad money is a measure of the total amount of money held by households and companies in the economy.”

“Broad money is made up of bank deposits — which are
essentially IOUs from commercial banks to households and companies — and currency — mostly IOUs from the central bank.

Of the two types of broad money, bank deposits
make up the vast majority — 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.”

#57 Andrew on 03.26.19 at 5:52 pm

*predator

#58 Samuel on 03.26.19 at 5:53 pm

I saw a group of high school / university age kids trying to figure out how many 5 cent mini cookies they could buy at the coffee shop for $1.00. They finally figured it out, as they all agreed there are 60 cents in a dollar. And no, they were not American. 100% true story.

#59 Penny Henny on 03.26.19 at 5:57 pm

‘The Jar Lady’ Gail only deals with cash, cause electrons are notorious for seeping out of the jars.

#60 theoryAndPractice on 03.26.19 at 6:05 pm

#47 Craig Cherlet on 03.26.19 at 5:40 pm
No country is moving faster to cashless society than Sweden.
—-

Nope, Most advanced cashless society is located in Canada !

#61 timoftrees on 03.26.19 at 6:13 pm

@SoggyShorts

I don’t really think about the points thing. I’ve seen CC/HELOC/Loans ruin lots of smart people, or at least put them in a lot of debt. I don’t feel I have any more discipline (and certainly less smarts) than them! It’d likely get me in trouble.

#62 Blacksheep on 03.26.19 at 6:14 pm

Shawn of the banks # 131

“I believe as between Blacksheep and I, only one of us is a registered professional accountant”

“fractional reserve banking”
—————————————-
Shawn Buddy, are you an American.
I thought you hailed from Wild Rose Country?

So what the hell are you talking about? Canada, does not have fractional reserve requirements.

Quote from link:

“Canada, the UK, New Zealand, Australia, Sweden and Hong Kong have no reserve requirements.”

https://en.wikipedia.org/wiki/Reserve_requirement#Canada

Yet you put your real name on here, Mr. Allen,
I’m going to guess your clients do not frequent this forum…

#63 akashic record on 03.26.19 at 6:14 pm

Screw cashless. The smooth feeling of 15-20 folded banknotes in your packet, with at least 2 digits on them, wrapping around your card…

Sooner or later, though, you run out of these casual topics, you will have to mention Trump.

#64 Come to be entertained and stay for the wisdom of the comments section on 03.26.19 at 6:20 pm

Sometimes (like now) I hate this blog – Garth

Just remember why you’re keeping it.
It’s a place where you come to learn.

#65 life is good on 03.26.19 at 6:21 pm

one word : optionnality

The cash option need to stay, period !

Two options (cash or digital) is way better then one option (digital)

#66 timoftrees on 03.26.19 at 6:23 pm

Oh, @Garth.

The fact that you go to farm markets, and pay a little more for ethically sourced food (from some young person, trying to make a few dollars)- whether potatoes, tomatoes, or hand made cookies – is so greatly appreciated. It is admirable, and ethical, and I would expect nothing less!!!!

Not like you need the encouragement, but thanks for that, Garth.

#67 Miguel on 03.26.19 at 6:24 pm

I was in Halifax when Hurricane Juan hit (2003 I believe). Power was off (and phone lines were down) for a number of days in large parts of the city. Meaning, credit and bank card services were generally not working. If you didn’t have cash, it was hard to buy milk (or whatever). At present, I don’t use cash much day-to-day, but I now keep a supply on hand for emergencies, both US and Cdn currency.

#68 John on 03.26.19 at 6:25 pm

Going cashless is the only way a central bank can promote negative interest rates for an extended period of time. If an average persons chequing account was charging them interest instead of paying it to them they would withdraw the cash. Cashless forces them into a spot where negative interest rates can effectively ‘tax’ holders of cash whenever a central bank decides to

#69 jimbo on 03.26.19 at 6:26 pm

so what happens when you’re a 12 year old that wants some ginger cookies with your allowance money?

#70 Penny Henny on 03.26.19 at 6:26 pm

#45 Bob on 03.26.19 at 5:36 pm
Eight bucks for six cookies?

I hope they were awesome….
////////////

Garth is a 1% er, he has enough dough to buy a gazillion cookies. The irony is no one trusts his money is real.

#71 mj on 03.26.19 at 6:26 pm

next thing you know, strippers will pull out their phone for payments lol

#72 tkid on 03.26.19 at 6:30 pm

Third, there are no fees when paying for purchases with cash, just the one fee to withdraw the money.

Fourth, I can instantly tell how much money I have left to spend for the week when it’s cash. Credit or debit purchases can creep up on you and leave you broke well before payday.

#73 Coopoiler on 03.26.19 at 6:35 pm

When my last employer declared they were going direct deposit one person refused to accept that. The company said okay, when you change your mind and provide your bank deposit info we will deposit your pay to it. No cheque will be issued. He lasted six months before he provided the bank info

#74 Penny Henny on 03.26.19 at 6:39 pm

#70 mj on 03.26.19 at 6:26 pm
next thing you know, strippers will pull out their phone for payments lol
///
no phone needed. implanted microchip card reader. just swipe and you’re done!

#75 Insurance Company on 03.26.19 at 6:42 pm

They are going paperless, and gave me a choice of apps to download that were apple or google. I told them don’t do either out of security concerns, and they could shove it somewhere else.

#76 Ab Boxster on 03.26.19 at 6:51 pm

For some interesting perspective about holding actual cash as well as precious metals, have a read of the book:. The Mandibles by Lionel Shriver.

While it takes place in the future, it is not a dystopian look at society but rather an interesting exploration and extension of one possible path that might occur, and is not as far fetched as one might expect.

The people of Venezuela likely would never have expected their currency to dissolve and their society to fall apart so rapidly.

That something similar might happen in the first world (Canada and USA) is not as improbable as once thought.

#77 All Gone on 03.26.19 at 6:55 pm

Another home blew up which is happening all too often in my opinion. No video to look at the signature, but cop says in a few days they will know the cause – really?
https://www.youtube.com/watch?v=FyQqTopE5qQ

#78 All Gone on 03.26.19 at 6:56 pm

Another home blew up which is happening all too often in my opinion. No video to look at the signature, but cop says in a few days they will know the cause – really?
https://www.youtube.com/watch?v=FyQqTopE5qQ

#79 Stock Market Speculator on 03.26.19 at 6:57 pm

Only 20% of the world has credit cards. The growth runway for Visa and Mastercard is still huge

#80 Cowtown Cowboy on 03.26.19 at 7:13 pm

Japan is a huge cash society, it was very common to have a few grand on you at all times..this was a few yrs ago mind you. Ever since I usually keep a few honey on me at all times…makes me feel like a big spender!

#81 under the radar on 03.26.19 at 7:20 pm

A greenback in Venezuela goes an awful long way right now. Debit or credit not so much.

#82 Dave on 03.26.19 at 7:24 pm

I rarely carry cash. I like to track all transactions myself for budgeting and accountability, and am somewhat proud of the fact that I’ve never written a cheque.

I don’t at all agree with retail businesses not accepting cash as payment though, and I understand the privacy concerns of online transactions.

#83 Oakville Sucks on 03.26.19 at 7:25 pm

I have a thick wod of $1000 bills in a safety deposit box for when they hair cut us like they did in Cyprus and control all ATMs.
$1000 bills can still be traded at the Bank of Canada at any point.

#84 n1tro on 03.26.19 at 7:25 pm

Cashless society? How will the ballers make it “rain” at the local gentleman’s clubs? The poor girls already have to deal with loonies and toonies being thrown at them since we lost the paper $1 and $2.

What’s going to happen next? The ladies will have to endure being slapped on their bottoms by smartphones to activate the NFC tap pay??

Garth, indeed things are getting dangerous.

#85 espressobob on 03.26.19 at 7:26 pm

#54 Andrew

Bitcoin is not legal tender. Therefore it is a commodity just like PMs.

Cash is the real deal like it or not.

By the way speaking of commodities any gains made are treated as capital gains when realized. The CRA has no sense of humour.

As far as a capital loss, well that’s your problem, at least you can carry it forward.

#86 Oakville Sucks on 03.26.19 at 7:31 pm

I should mention, that storing some of your wealth in silver/gold maple leaf bullion is a prudent thing to be doing! THEY are coming after your cash!

#87 Nonplused on 03.26.19 at 7:37 pm

Even my 13 year old wanted a debit card so he didn’t have to carry cash when he went to the Tim Horton’s with his friends. Now we have to pay him for doing his chores online.

I’m not sure cash is all that good in a power down situation either. When the power is down most shops close up because the tills don’t work and the staff can’t add everything up manually. The freezers stop freezing so the food all goes bad. The gas pumps won’t pump gas. So there really isn’t anything to buy until the power comes back on. Still, I keep a couple hundred in my wallet just in case.

#88 Linda on 03.26.19 at 7:37 pm

I generally have some cash on hand, because I shop at farmer’s markets. While more of the vendors do have the ubiquitous machine these days, many still prefer cash & some of the vendors will accept nothing else.

The point regarding the electronic system going down is well made; I’ve been shopping at the local grocery store a couple of times when the network decided to take a break. Luckily, both times I was not stuck waiting for the system to come back online, as I had both cash AND a cheque book, both of which the shop was willing to accept. Funny how the loss of technology suddenly makes that old fashioned stuff popular again:)

My take on the cashless society is that it will effectively allow others to track ones every move & that may not necessarily be because they’ve your best interests in mind. As for the crime angle – cashless stops crime! – bah. If that were the case, how is it that white collar crime is rife & why is it that multiple millions regularly get siphoned off (think Enron) & gee, isn’t it amazing how hacked accounts lead to peoples assets disappearing in that magic digital way. Without a gun, even, 3D printer notwithstanding. I’ll say this, the digital version of robbing the bank is way more effectively & far easier to move the money. No bag men, no getaway vehicle, no pesky camera showing your mug. No traceable bills! Yep, going cashless, that will ensure complete monetary security. Not.

#89 Kootenay Hippie on 03.26.19 at 7:40 pm

Currently in Thailand and here it is the complete opposite. Almost no one except high-end retailers and restaurants take plastic. Everything must be paid cash.

#90 James on 03.26.19 at 7:42 pm

Be careful before we surrender yet another freedom! What people do with their money shouldn’t be easily trackable by corporations,governments, or anyone for that matter. Cash can be demonstrated to be antiquated and cumbersome, but never gives up the huge advantage of keeping people/entities out of your damn business! As a bonus when bargain hunting cash often lowers prices as people can see that you are making serious offers.

#91 tccontrarian on 03.26.19 at 7:42 pm

Wow! An entire post about “Real Money” and not a single word mentioning ***GOLD***?

Perhaps you’re accumulating in stealth mode (as are the ultra-rich and Central Banks), as am I; when we’ve got our ‘fill’ then let the sheeple in on it so that they bid up the price. Genious!

Anyway, a couple charts of interest here (and a quote, although clearly biased). Demand pre-2008 and demand post-2008. Something’s definitely changed:

“Physical gold demand is still quite strong and is nearly three times higher than before the 2008 financial crisis. Which means, savvy investors continue to acquire the yellow monetary metal, even though 99% of the world plays in the Grand Global Casino.”

http://silverseek.com/commentary/staggering-amount-gold-silver-investment-2008-financial-crisis-17612

TCC

When you can gas your car and pay for it with rocks, get back to us. Until then, it’s not money. – Garth

#92 Andrew on 03.26.19 at 7:49 pm

#84 espressobob

https://imgur.com/a/q59GKQz

#93 Al Whyley on 03.26.19 at 7:51 pm

Bottom line. You bought the cookies. Resistance is not futile. :)

#94 Blacksheep on 03.26.19 at 7:56 pm

“no more money than is gold. – Garth”
————————
“The status of gold as a risk-free asset in Basel III will certainly have a positive effect on the price of gold, as I am sure the gold Shariah standard, which was adopted at the end of 2016, will also have. Gold was accepted for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading gold. The rules approved allow gold to be used in the $1.88 trillion Islamic finance business.”

“The world banking sector will take a little longer to abandon its false anti-gold indoctrination, but it will. Gold is already a de facto zero-risk asset and has been for thousands of years. As it stands, Basel III, according to LBMA and other industry bodies, makes funding gold transactions for commercial banks difficult and increases the cost of doing business.”

“But as the reset of the international monetary system approaches, gold will be adopted even by the banking establishment, irrespective of Basel rules, as the only riskless asset, as the Chinese and Indians are already doing. Movement in that direction can already be observed in Europe, and even in the US.”

https://seekingalpha.com/article/4083114-gold-zero-risk-monetary-asset?page=5
——————————
Seems as of March 31 2019, the BIS would disagree….

Hardly. It’s an asset. Not money. – Garth

#95 meslippery on 03.26.19 at 7:58 pm

Cash is legal tender, Can you refuse it as payment?

#96 Diversified in Oakville on 03.26.19 at 7:59 pm

Cash is great but I don’t use it much, I want the points. I went to Edmonton for a 10 day business trip with $40 cash, came back with $36.

#97 Mike on 03.26.19 at 8:00 pm

@16
No combi bar?

#98 Rob on 03.26.19 at 8:01 pm

Canada may well be on the way to being the Cashless Society but we still have a way to go –

“No loose change? Beggars in China now accepting mobile payments”

https://www.asiaone.com/china/no-loose-change-beggars-china-now-accepting-mobile-payments

#99 baloney Sandwitch on 03.26.19 at 8:04 pm

Great column. Apple and Google now want you to pay with the phone. Even the TTC got rid of tokens and want you to use the pronto card.

#100 tccontrarian on 03.26.19 at 8:07 pm

I always carry some cash for those times when machines get…well, stubborn.
I remember the panic on travellers’ faces when attempting to gas up before heading to the Ferry (about 1.5 hours away), and the electronic payment option was down. I just handed the cashier a couple 20-dollar bills and was one of 2 others pumping away in seconds. The others just stood by ‘waiting’ for the computer to re-boot, or whatever…
I’m sure several card-only travellers missed that ferry on that day.
A lesson for the kids as well (13, 15 at the time), who never quite understood why dad always carried some cash.

TCC

#101 "And for my next trick, I'll need a few billion volunteers from the audience " on 03.26.19 at 8:09 pm

-privately owned central banks
-fiat currency
-debt monetization

“you’ve been a wonderful audience..we may have time for one more trick”

It’s called ‘virtual money’

#102 S.Bby on 03.26.19 at 8:13 pm

Nothing impresses the ladies like a huge wad of hundred dollar bills…

#103 Unhinged Trader on 03.26.19 at 8:14 pm

If you people think that this new cashless model of society is somehow going to take shape without the use of cryptocurrency, I can only feel sorry for you.

Buy and hold Ethereum for a 100x growth opportunity.

#104 n1tro on 03.26.19 at 8:18 pm

#20 SoggyShorts on 03.26.19 at 4:18 pm
I just got back from a couple of months in Vietnam where 99% of transactions are in cash. The few places that do take credit cards (like hotels) charge 3% plus if you don’t have one of the 4 Canadian credit cards without a foreign exchange markup you lose another 2.5%
———
Most south East Asian countries only accept cash because it’s real and in their hands. Also, the population is just getting onto the information superhighway. Plastic and plastic providers are starting to make a run at the population with a lot of advertising for credit cards the last time I was in Vietnam.

Interesting fact is that property is bought/sold based on the dong (local currency) amount which is usually in the billions given the inflation the government created over the years (sound familiar?) . To make things simple, the seller converts the sell amount into the equivalent bricks of gold. So a nice condo which sells for roughly $20B dong or $100K USD, can also be bought for about 25 bricks of gold.

Holding onto bricks of shiny rocks, so barbaric and dangerous. Well people over there can deposit the gold bricks into banks which pay them interest on the deposits! When the bank gives out the rare loan (most people buy out their home) for property purchases, its terms are listed in gold bar equivalent given the silly inflation over there.

#105 tccontrarian on 03.26.19 at 8:22 pm

“When you can gas your car and pay for it with rocks, get back to us. Until then, it’s not money.” – Garth
////

No, I probably can’t buy gas with it, as you say, but if your wife (or mine), was kidnapped while vacationing in the Congo, I think the kidnappers would ask for ransom in gold (or Crypto?), not Legal Tender.

Besides, the post had to do with ‘real money’, not just ‘money’ which is really equivalent to ‘currency’ for most people – hence the distinction in my comment.

TCC

#106 Salutations Sally on 03.26.19 at 8:24 pm

We still carry cash and we also keep some in our safe. In our recent winter 4 day storm outage, those with cash could continue to purchase food, pizza, etc., and we were glad to be counted amongst them. We try to use cash as much as we can, unless we are buying big ticket items. I have seen the recent news articles that are talking about the benefits of a cashless society, and like self-driving vehicles, wonder who and what is really behind all of these so-called “great” ideas. Big Brother is watching….

#107 tccontrarian on 03.26.19 at 8:26 pm

101 S.Bby on 03.26.19 at 8:13 pm

Nothing impresses the ladies like a huge wad of hundred dollar bills…
———–

Yuk! Gold-diggers! Oops there’s ‘gold’ again! Why don’t we call them cash-diggers?? Cause gold is old and permanent (most stable element known to man – screw the PC crowd!)

TCC

ps reached my quota, buena note…LOL

#108 Paul on 03.26.19 at 8:28 pm

Home Depot is doing the same thing, Lowe’s here I come.

#109 Tony on 03.26.19 at 8:28 pm

What about cash for birthday presents and Christmas presents? I give my brother’s children a stack of hundreds twice a year.

#110 Greg on 03.26.19 at 8:30 pm

Lucky enough to spend four months in Mexico last winter, cash only (preferably US $). I think their economy would collapse going cashless.

#111 will on 03.26.19 at 8:30 pm

I still have my piggy bank from childhood and stuffed with coins. Mostly coins that are unusual for some reason – old worn quarters made of silver, centennial coins – stuff like that. I think in all that I even have a V victory nickel. Also a small collection of paper bills. I have one each of the beautiful old Canadian bills – $1 $2 $5 $10 and $20. My plan is to carry enough coins around during the day to give to the people who ask me every day. I highly recommend the Canadian mint in Winnipeg if anyone is touring there. The tour is excellent and they have lots of coins and stuff to buy in the gift store. I don’t identify myself as a numismatist but I guess I do have an appreciation for beautiful coins and bills. Seems to me I read somewhere a long time ago that Canadian bills won some kind of international awards for artistry.

#112 Eco Capitalist on 03.26.19 at 8:30 pm

If we went cashless, they’d have to legalize prostitution, otherwise SNC would have no way to pay for it…

But hey, before you could tap the escort, you’d have to tap the escort! :-D

G’night everybody!

#113 JuliaS on 03.26.19 at 8:37 pm

Millenials don’t know what cash is because they are broke. They don’t know what ownership is, because they rent everything. They don’t know how to interact with living people, because they are dopamine junkies, spending their lives staring at their pocket zombie boxes. They don’t know how to drive manual, and soon won’t know how to drive, period. All they will know is that they are in debt forever, and the net balance is always negative. They won’t marry, won’t reproduce, won’t rid boomers of their houses so that old geezers could cover their medical bills, and they won’t buy appliances.

#114 Blacksheep on 03.26.19 at 8:39 pm

“Hardly. It’s an asset. Not money. – Garth”
————————
Don’t get me wrong, after learning about MMT 6 years ago, I dumped 95% of my P.M. holdings.

No, you can not buy timmies with it, but that is not it’s true purpose and does not diminish its real worth in international markets.

Gold is the insurance policy against global instability for Central Banks and I believe this is why many C.B.’s having been buying, big time.

When wacky sovereign leaders in control, can do crazy things, gold is still the riskless constant it’s been for millennia…

Gold lost 30% since 2011. That’s ‘riskless’? – Garth

#115 The Fat Lady on 03.26.19 at 8:40 pm

I need cash for my favourite hobbies:

Cocaine and Hookers

They dont take nothing else but large bills.

#116 espressobob on 03.26.19 at 8:48 pm

Commodities, what are they?

https://en.wikipedia.org/wiki/Precious_metal

Gold standard?

https://en.wikipedia.org/wiki/Nixon_shock

Goldbugs beware,

https://en.wikipedia.org/wiki/Executive_Order_6102

Goodnight.

#117 SimplyPut7 on 03.26.19 at 8:50 pm

I love using tap (contactless debit/credit). It makes life simple. Even if it’s $2.00 at the dollar store. The bigger chains prefer it too, no worrying about staff not giving out the right change or taking anything that’s doesn’t belong to them.

To avoid overspending I always make a list when I go shopping and don’t go into stores or shop online when I don’t need anything. I also like being able to see my one credit card bill at the end of the billing cycle, you can easily see what you spent your money on that month and how to improve your spending habits next month.

I do keep money in the house for emergencies but if the grid goes down for more than a month, I was probably done for anyway, I’m not a prepper. I don’t have an off-grid homestead to run to if society went south like Venezuela.

#118 BobC on 03.26.19 at 8:50 pm

Everybody is talking about gold again. One year ago I could have bought krugerrand’s for a $30US premium. If I did I’d be down 5% at today’s closing. I keep watching. I made a lot of money with the last run up so I can’t let go of it. I would have made more if I listened to Garth when he said sell at $1900.00.
I’m counting on Garth to say when the time is good. I believe he will, if there’s a reason, even though he hates PM’s.

Don’t hate them. But they’re lousy investments for almost everyone, and they’re not money. – Garth

#119 will on 03.26.19 at 8:53 pm

I refused to get a credit card for many years and set myself a weekly cash limit. When that limit was reached there were no more purchases. But at some point I needed a card to do some basic business like reserving a hotel room or renting a car and things like that. I hardly ever use cash now but I spend a lot more with the credit card.

#120 SoggyShorts on 03.26.19 at 8:53 pm

#60 timoftrees on 03.26.19 at 6:13 pm
@SoggyShorts

I don’t really think about the points thing. I’ve seen CC/HELOC/Loans ruin lots of smart people, or at least put them in a lot of debt. I don’t feel I have any more discipline (and certainly less smarts) than them! It’d likely get me in trouble.
***************************
You can set it up with your bank so that the entire balance automatically gets paid each month out of your savings/checking account.
However, if that’s not something you want, and are worried about a missed payment, then yeah stick with cash– Points are awesome, but if you pay interest on your visa balance one time it wipes out many months of points.

#121 Big B on 03.26.19 at 8:56 pm

Hey garth, just moved from van to to, condos are a little cheaper here than van. More ladies in to though. How many more years before we’re cashless? I figure 30 atleast. Thanks
Big B

#122 SoggyShorts on 03.26.19 at 8:58 pm

#87 Linda on 03.26.19 at 7:37 pm
As for the crime angle – cashless stops crime! – bah. If that were the case, how is it that white collar crime is rife
*************************
Obviously, the point is that going cashless prevents almost allviolent crime.
If someone does hack your plastic or clones it(happened to the wife) the bank/insurance fixes it.
If you get mugged for cash, guess what?

#123 Robert Ash on 03.26.19 at 8:58 pm

Cash is kind of interesting … Talking USD here… it is almost all cotton, with a small amount of Linen, it is then spicyed up with some cool, colored Fibers, to make the Material almost impossible to counterfeit. It is hard to tear, can, be soaked, and heated up or boiled, frozen and still carries on for many many years… The Ink is very special even containing Magnetic components for the Money Counting machines to recognize… No let’s keep our Money…. it is fun to have and it will give you a nice and warm feeling on a cold ass day, if your wallet is Fat enough…

#124 Dual Citizen In Canada on 03.26.19 at 9:01 pm

Have all banks collect cash notes and exchange them with the BOC for notes with, “This Note is Legal Tender to those who accept it” printed on it. The BOC will always accept the newly printed notes and will happily adjust the digits in your bank account in exchange.
That’s the first step.

#125 Shawn Allen on 03.26.19 at 9:01 pm

BlackSheep Back Pedals Furiously

Blacksheep yesterday:

“Why would chartered commercial banks, “borrow” to lend?”

Blacksheep today:

B.S. Never claimed, bankers never need to borrow or attract deposits, my refrence was to your comment below.
———————————–
Lobster Man # 52,

“Normally, commercial banks borrow short to lend long.”

*********************
Okay, whatever, that’s a lot of back pedaling.

Weirdly whenever I explain how banking works, Blacksheep inserts a link to a Bank of England paper that in no way contradicts anything I said or say about how individual banks need to continuously attract deposits.

For goodness sakes what happens is (yes) a bank can create a deposit out of thin air by simultaneously lending a customer money but putting the loan in a deposit account which effectively means the customer has loaned the deposit back to the back. You too can lend a friend $1 million if he just promises to let you hold onto the $1 million you “lend” him.

But in step two the customer spends the deposit (that’s why she got the loan) and with the deposit gone, the bank needs to attract a new deposit (created in the same way by another bank) since it does not want to fund that loan with share owner equity.

Banks typically need to pay a competitive interest rate in order to attract deposits.

Bank lending is constrained by the fact that they must , by regulation, fund their assets (mostly loans but also cash) with a certain minimum percentage of equity capital – and not 100% with deposits. Banks typically have only so much equity capital and don’t like to issue new shares. They also are unable to lend more if they can’t attract enough deposits back. Deposits are low-cost funding. Without deposits a bank might be funding loans with equity which is far higher cost as share owners expect to earn say 10% minimum, not the 1% or 2% cost paid on deposits.

Banks also must keep a certain amount of their assets in cash to cover withdrawals. In Canada there is no set minimum but in practice a bank still needs some cash around (mostly of the electronic variety on deposit at the central bank). The minimum cash reserve on the asset side of the balance sheet is not be confused with the minimum equity capital percentage ration on the other side of the balance sheet.

As a result of all this, banks tend to have deposits equal to or greater than their loans. Cash may be about equal to owner’s equity. Check any bank balance sheet. I recommend Canadian Western Bank as a n example since it is almost a pure lending operation as opposed to the big banks who are into a lot more lines of businesses. But they too have deposits about the same level as loans. Check and see.

With that I am done explaining this.

#126 Nbe on 03.26.19 at 9:10 pm

My corner market won’t take plastic. Cash only. Less tax. Sucks.

#127 Linda on 03.26.19 at 9:17 pm

Yo Ho Ho & a bottle of Rum. The gold thing. OK, shiny metal, sends people into a frenzy (apparently). However, one thing about paper vs. gold – weight. Having done the roll the coin thing a few times over the past few decades, I am always astonished at how much just a dozen or so rolls of coin weigh. All I can say is, those pirates must have had some serious muscles to haul a ‘chest of gold’ anywhere. Ditto a thief grabbing a ‘sack of gold’ & running off with it.

Question: does anyone have an explanation as to why gold affects some people the way it does? Gold gets credited for a frenzy. For instance one doesn’t hear about people going nuts when they find a cache of precious rocks but gold? Foam at the lips reaction seems par for the course. Why?

#128 AlMac on 03.26.19 at 9:21 pm

My cousin, living in Calabogie, keeps his pile of cash earned from under-the-table operations in a large coffee can. He tells me whenever he has an argument with his wife he goes down to basement, brings out the hidden can, and counts the bills. It apparently has a big calming effect. Another big plus for cash!

#129 The Real Mark on 03.26.19 at 9:21 pm

“Weirdly whenever I explain how banking works, Blacksheep inserts a link to a Bank of England paper that in no way contradicts anything I said or say about how individual banks need to continuously attract deposits.”

Don’t lose too much sleep Shawn, I’ve been over the fact that balance sheets must….balance, and banks must borrow every dime they lend out, many times here before. The Bank of England paper is highly academic and is intended for academics as a description of the systemic impact of fractional reserve banking. It is no more a working manual of the banking system than the three laws of thermodynamics are descriptive in how to repair a car’s engine.

Lobster Man # 52,
“Normally, commercial banks borrow short to lend long.”

Actually Canadian banks do a fairly good job of keeping the term of their borrowings relatively well matched to the terms of their investments. In other words, they have matched the maturities of their assets to the maturities of their liabilities. This is why when the yield curve has inverted in the past (ie: 2000-2002, 2008/2009) inverts, the Canadian banks’ balance sheets are not decimated due to a negative carry between short liabilities and long-term assets.

In the wake of the 2008/2009 financial crisis, a lot of people ran around claiming that the Canadian banking system is more stable because of ‘regulation’, but I’d suggest that it was the actual fact of the Canadian banks (unlike their US counterparts) running matched balance sheets that mostly saved them from the worst of the balance sheet destruction that occurred when long-term asset prices collapsed (particularly on MBS), while short term funding costs surged.

#130 Robbie on 03.26.19 at 9:34 pm

Cash is still needed on Salt Spring. No other way to buy eggs, baking, plants, produce, etc. at all the “honour system” (means you just put your cash in a box) roadside stands. I also have a wad of cash at home for emergencies…such as the many days without power when a storm hit a few months ago. Nobody takes plastic when the computer isn’t working. An earthquake hits…not likely plastic will be accepted.

#131 Real Trancome on 03.26.19 at 9:40 pm

Reprint this article in 5-10 years garth, with all the quantum hacking vulnerabilities, could cash be king once again?

#132 Yuus bin Haad on 03.26.19 at 9:43 pm

and you can always launder your 50s and 100s at the LCBO

#133 USD on 03.26.19 at 9:48 pm

#109 Greg – What will they do with USD in Mexico being an illegal transaction? Only Pesos are the legal currency there.

#134 Lobster Man on 03.26.19 at 9:52 pm

#124 Shawn Allen,

Thanks for saving my breath!

Blacksheep #59 yesterday:
“Why would chartered commercial banks, “borrow” to lend?”

Blacksheep #55 today:
“B.S. Never claimed bankers never need to borrow…..”

Enough said!

LM

#135 Glen B on 03.26.19 at 9:53 pm

Cash and PMs rock! I think we can get rid of nickels and dimes though. They are now useless.

#136 Cash or cashless on 03.26.19 at 9:54 pm

Thank you for a fun post and interesting comments
Comment about Gath not paying tax on the cookies. He paid correctly it is up to the retailer to remit the tax. Many markets prices include the tax.
As far as price of cookies, if they were homemade, you got a bargain, and if you went back for more! All the better.
To the guy who has a thousand dollar bill, good luck in cashing that, ha ha I can hardly pass a hundred without people looking at me twice, putting it under a UV light and marking it with a blue pen.
So I am in my late 50s have observed not cashless but a real growing trend towards younger people paying with apps. I was in a line up of 10 people buying coffee and lunch, I was the only one who paid cash. 7 people used an app 2 used a debit card. I was amazed.

I think younger people use debit cards more than anything, and older people tend to use more cash.

I use credit cards for almost all purchases, except low items under ten dollars I pay cash, however I do have a Starbucks app and I have a compass card (for bus transit in Vancouver)

Believe in the philosophy of keeping $2,000 in cash in the house and even more, yes for an emergency but also in case I need to close a great deal at a garage sale.
I charge everything, rarely use a debit card. Use PayPal to buy online and to transfer money and e transfers at the bank. Pay all my bill automatic withdraw.

Do I believe we will go cashless, like everything else as the cash generation passes on, the younger generation will embrace change to cashless society eventually.

For me I never would have dreamed take a picture of a cheque and deposit it on your mobile banking, but I think that is passé now even though it’s new technology in pass few years.

Change is constant I believe we will be all using a combination of cash, credit, apps and maybe some form of bitcoin, who knows maybe …….heaven forbid we will all barter and forget all the rest.
Thanks again for a fun post!

#137 Blacksheep on 03.26.19 at 10:00 pm

“Gold lost 30% since 2011. That’s ‘riskless’? – Garth”
———————-
So what your saying, Gold is on sale! ; )

Any currency can go to zero, but Gold, will never go to zero. That why C.B.’s are buying. This does not mean its a good idea to buy for us working stiffs, as our puny human lifespan, is far to short to hold it for any thing more than a modest insurance policy…

#138 ShawnG in TO on 03.26.19 at 10:00 pm

bankers said only 1% don’t have a bank account. how ‘d they get that number? did they ask everyone at the bank, and somehow 1% of peeps put up their hands?

cashless is bad, especially with negative interest rate. right now you can stash cash under your mattress, and you wont get charged. what you gonna do when cashless? banks can charge you interest on top of fees.

it’s like hording bus tokens before the presto thing. some tokens i now use i bought at two fifty. best investment ever. you can’t horde with plastic swipe card. ttc will charge whatever they want.

#139 Blacksheep on 03.26.19 at 10:10 pm

Shawn of the banks # 125,

“Blacksheep inserts a link to a Bank of England paper that in no way contradicts anything I said”
———————–
Honestly Shawn, never read a word after that.

#140 BigAl (Original) on 03.26.19 at 10:15 pm

We all remember from our 1st year economics that people will always find a means of exchange with a store of value for private transactions if the powers that be take away cash.

Side Note…
Anyone of the opinion that JWR is a Harper planted saboteur, with her determined destruction of the liberal party from within, refusing to leave the party, just the right time for an election, and trying to appoint hardline conservative judges? And Philpott just a well meaning stooge?

#141 Things Are Changing on 03.26.19 at 10:16 pm

#110 Greg – Cash only for 4 months preferably USD, and have you heard of SAT? Now if you went to an ATM machine what comes out is only pesos. Any purchase with a credit card exchanges pesos into the other foreign currency. SAT is equivalent to the secret police, and if strange transactions got reported you would be taken away for an interrogation. Things have changed lately.

#142 Blacksheep on 03.26.19 at 10:25 pm

Lobster Man # 134,
———————–
Lobster Man # 52,

“Normally, commercial banks borrow short to lend long.”
———————–
Blacksheep # 56,

“This is an inaccurate statement.”
———————-
Prove me wrong, if you can…

#143 the Jaguar on 03.26.19 at 10:26 pm

“But Canada seems ripe to go completely cashless. The Canadian Bankers Association says only 1% of us don’t have a bank account. Over 90% claim banking is better now because of new technologies. And 76% of us do our banking online.”…Garth

I don’t doubt this statistic for a moment. But show up at many bank branches, especially on the days welfare cheques are cut to see how many are in line to visit the ‘teller’ and marvel at the length of those lines. No amount of coaxing with clever tablets or gentle prodding or pushing alternatives seems to make a dent. It isn’t blue haired old ladies taking up expensive Big Five floor space, either. The lost, the disadvantaged, the huddled masses. They’re all there. Many that society simply cannot risk to offend. Not in the current virtue signalling environment for sure.
Of course if cash disappears like chicken wings at a biker bar it’s only a matter of time before bricks and mortar in their present format do the same. It’s already happening in a highly discreet, corporate image saving kind of way. Funny how one hears ‘cluck clucking’ about retails stores shutting down due to on line shopping but many don’t equate similar change to the financial services world. Guess what city is the financial services capital of Canada and doesn’t manufacture much anymore? Oh well. The patient still presents with a heartbeat and is breathing on its own. Visit any US city and venture outside of the usual tourist zones and into the areas of the cities where immigrants live – legal or otherwise. So many standing in line at some Western Union equivalent to send funds back home, pay telephone bills or speeding tickets, etc. Never think the USA resembles the bridge of the Starship Enterprise from a banking perspective. The reality can be quite the opposite. Stone knives and bearskins. Maybe in the ‘Investment Banker’ world, but not for the undocumented mexican worker who needs to send money home. Oh, but that must be a small minority of the general population………..

#144 TurnerNation on 03.26.19 at 11:07 pm

A post script. Lore says “In GOD we Trust” really stands for ‘Gold, Oil and Drugs’. Lord knows it’s what we are fighting for overseas. Our wacky elite controllers know the score. Inclined to believe them.

#145 Doug Finestein on 03.26.19 at 11:12 pm

People are becoming more stupid everyday. Pretty soon people will not even know how to count and spell their on name.

Remember the movie that the guy kept saying I love money.

#146 Out Of Work CEO, Will Travel on 03.26.19 at 11:16 pm

In Latin America including our Nafta partner Mexico, only 39% of the population have a bank account and 85% of transactions are “cash” based. The population does not trust financial institutions and credit is not widely available or preferred and also lacking is a banking infrastructure.

#147 conan on 03.26.19 at 11:21 pm

Going cashless will recoup almost all of the underground economy. That’s a big tax find. Also stops suitcases of cash. Meaning, money laundering.

Too big not to do.

#148 The Bruce on 03.26.19 at 11:21 pm

Cash is liberty. It is personal autonomy. And the masses are being convinced to give it up for convenience and to earn Air Miles and other incentives using credit cards. Little by little the noose tightens on the world, until one day, there will be restrictions over who can buy or sell based on ideological conformity. Think that can’t happen? Think again. China’s social credit program is already doing exactly that.

Then there are the prophetic words of Revelation 13:6, 7:

And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads, And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Think it can’t happen? It will.

#149 Barb on 03.26.19 at 11:24 pm

“You can use them without giving anyone your personal or your banking information.”

——————————-
With cash, you don’t become an automatic datapoint for StatsCan.

They compile how much of the population’s spending is discretionary vs ‘essential’.
Of course government uses that data, over time, to know what people are spending their money on.

It ain’t paranoia folks, it’s a fact.

#150 Damifino on 03.26.19 at 11:43 pm

I use cash for emergencies. It just so happens almost everything is an emergency.

#151 Greg on 03.26.19 at 11:48 pm

#141 we were there (Cabo area) less than four weeks ago. At that time we had the option of USD or pesos at the ATM.

#152 Smoking Man on 03.27.19 at 12:25 am

My days are numbered , so are all of yours.

For true to happiness , lose the fear of being judged. Its difficalt with all your lessons in school and then in the work place reinforcement.

Life is a competition, dont run from it. Embrace it. Beat the shit out of it..

The loot is just a small trophy. Winning is beating down you programming, not giving a shit is up there as a fantastic religious or sexual experiance.

Dont go to your grave with I wish I did this.

Risk is living..

Dr Smoking Man
PhD Herdonomics.

#153 Vampire Studies on 03.27.19 at 12:30 am

Used to take a bill on bike rides. You can fold them to make a boot on the inside of the tire if there is a small slash.

Last time I did this I used a new fiver. If you put 100psi into your tires and keep riding, the folded bill will crack along the creases. Stupid mylar.

So I never pack just 20s on my rides. Always have a fiver. Or a foil candy wrapper.

Otherwise I still use cash for coffee and small purchases. I also collect the change and roll it. Always fun to go to the bank with it and see the tellers chuckle when I deposit my draws and get a few bucks back for the coins.

#154 SoggyShorts on 03.27.19 at 12:31 am

#110 Greg on 03.26.19 at 8:30 pm
Lucky enough to spend four months in Mexico last winter, cash only (preferably US $). I think their economy would collapse going cashless.
————————-
#133 USD on 03.26.19 at 9:48 pm
#109 Greg – What will they do with USD in Mexico being an illegal transaction? Only Pesos are the legal currency there.
————————-
#141 Things Are Changing on 03.26.19 at 10:16 pm
#110 Greg – Cash only for 4 months preferably USD, and have you heard of SAT? Now if you went to an ATM machine what comes out is only pesos. Any purchase with a credit card exchanges pesos into the other foreign currency. SAT is equivalent to the secret police, and if strange transactions got reported you would be taken away for an interrogation. Things have changed lately.

————
When I was in The Mayan Riviera last November there was a USD bank machine at the resort (and peso ones)
Also, every single store in Playa De Carmen has signs with prices in USD
so I’m pretty sure paying with USD isn’t illegal, or at least it is definetly not enforced.

#155 Nonplused on 03.27.19 at 12:34 am

I’m not surprised gold came up in the comments today, but to me it suffers the same problem as cash in a SHTF situation.

The big thing everyone says about cash and gold is that perhaps in a SHTF situation like a prolonged power outage caused say by an ice storm is that you can trade them outside the electronic banking system which is down. But for the most part that isn’t true.

If you own gold in an ETF it won’t be available for trade until the power is back. If you own a few gold coins you can only trade them if you can find someone who knows what they are worth and is willing to trade his generator gasoline for them, which is not likely at the time. You can take them to Walmart but the store will be locked up and the gas pumps non-functional. In fact, there is pretty much nothing you can do with a gold coin until the Bank of Nova Scotia reopens their gold window.

Gold can be an inflation and currency hedge. I still think owning 5-10% of your portfolio in gold (as Garth used to recommend) makes sense for people with enough money, but it is sort of a long term currency hedge. It isn’t going to make you rich. I have such a position, and it has performed very well in Canadian dollars, even with gold down 30%. Why? Well, the Canadian dollar is down the better part of 30% over the same time period. But in retrospect I would have done just as well to hold US dollars.

So I have come to the conclusion that holding gold is a hedge against the US dollar. If, for some reason, the US dollar were to collapse, gold would sky-rocket. But what are the odds of that? Not high.

Central banks like those in Russia and China seem to have quite an appetite for gold these days, and are buying a lot. But this is, more than anything, an attempt to diversify into an asset class that they can trade that the US can’t stop through some sort of sanction. The US controls the money supply, not just for the US but pretty much the whole world. With all the sanctions and tariffs and even transaction restrictions they seem to be applying on a whim, other countries are looking for a way around, and gold is a component of their evasive maneuvers. That doesn’t mean we will on a personal level ever carry gold coins again.

Linda made a comment about how much gold weighs. It actually doesn’t weigh that much compared to it’s value. Try carrying $1300 US in paper bills around as compared to 1 ounce of gold. Sure the paper still weighs less but it’s a lot harder to hide. But try selling a gold coin for $1300 US in a power down situation. Most people don’t even know what it’s worth and they certainly don’t want to trade their gas for it. You have to wait until the gold desk reopens.

Here is a video to prove it, where Mark Dice tries to sell 1 ounce gold coin for $20 dollars and can’t get a buyer:

https://www.youtube.com/watch?v=Xzt3EcIo5tk

Here is a longer version:

https://www.youtube.com/watch?v=ndshbH3qZ6Y

Mark Dice is not exactly a reliable media personality, but if these videos are true and not fake, it shows that gold is only fungible among the people who know.

And as a side note consistent with my theme, the gold is only worth something while the pawn shop is open!

#156 crowdedelevatorfartz on 03.27.19 at 12:38 am

You can also buy a house with cash….but only if you bring it in a black nylon bag…..

https://vancouversun.com/news/local-news/b-c-civil-forfeiture-case-alleges-drug-money-laundered-in-real-estate

#157 Gotta Get Out of Calgary on 03.27.19 at 12:39 am

Not every payment machine has the “tap” feature. I still see a lot of retailers with machines that have no tap function and requires the customer to enter the credit/debit card’s PIN.

I have witnessed in-store tantrums and meltdowns from people who tap, tap, tapped their way through all their retail shopping and now can’t remember their PIN.

Another advantage to using cash.

#158 John in Mtl on 03.27.19 at 12:47 am

Couldn’t have said it any better myself.
Pay attention and meditate on these 2 paragraphs, Millenials and young ones:

#22 marcus on 03.26.19 at 4:18 pm

The cashless society is the Globalists wet dream. If a society allows this they are willingly putting the metal collar around their own necks and marching into slavery FOREVER. No joke. Paper money and more importantly precious metals and the ability to barter maintain the ability for an individual to remain sovereign. Short of metals, cash and barter ability you are a slave. Never doubt that.

#90 James on 03.26.19 at 7:42 pm

Be careful before we surrender yet another freedom! What people do with their money shouldn’t be easily trackable by corporations,governments, or anyone for that matter. Cash can be demonstrated to be antiquated and cumbersome, but never gives up the huge advantage of keeping people/entities out of your damn business!

#159 Smoking Man on 03.27.19 at 12:59 am

Safe spaces are for cowards.

In your quest for financial security. Dont kill anyone. Keep em alive to show em that a good bet is better than a no bet.

Violance is for ass holes WITH no brains that gave up.

Win with your mind. Satisfaction garanteed

#160 Nonplused on 03.27.19 at 1:18 am

PS –

I don’t think a completely cashless society is possible. A mostly cashless society is possible, but there must always be some sort of contract a person can look at like a coin or a piece of paper to understand what they are trading. Plus the “unbanked” must have some sort of access to the system. Cash can never go away completely.

Garth got busted today for not paying his HST on his cookies. That’s not really how it works. Vendors have the option of including the HST in the price or not, so long as they pay it. HST is collected from the vendors, not the customers. You can sell a thing priced at a dollar and not attach a whatever it is tax on top so long as you send in the money. It just means, depending on where you are, that the price was actually $0.95 + $0.05 HST. You don’t have to put separate line items. That’s something vendors do to make it clear they aren’t the ones screwing you. It’s the same as the deposit for bottles added as separate line items on the bill. You don’t need to know how much the government charged you for the bottle, only the guy with the shopping cart has to know how much he’s getting for it. And it’s entirely uneconomic. If recycling made a shred of sense, it would be economic on it’s own. Glass bottles are a great example. They are made of sand. And it takes just as much energy to make new glass bottles out of old ones as it does to make new glass bottles out of sand. Therefore shipping old glass bottles all over for remelting doesn’t make any sense. In the old days when they used to just wash the milk bottles, ok, that made sense, but that is not what they do anymore. They pulverize and remelt them. That is why dairy companies now find it to be cheaper to use plastic jugs than washed glass, and coke comes in a can not a glass bottle. You can still get beer in a bottle, but it’s mostly cans. It’s just way to darn expensive to recycle glass.

#161 Smoking Man on 03.27.19 at 1:20 am

Going out before your best before date , tragady

https://youtu.be/_Jtpf8N5IDE

#162 Gordon on 03.27.19 at 1:35 am

Cashless is a panacea for those of you who are so poor you can’t afford to leave the country and have no need to exchange. It’s good for the massively indebted Mom who wants to go on vacation but has to put it all on plastic. 17% of black Americans don’t have a bank account? Am I seeing a pattern here. Cash is for rich people, for whom cash is available. Plastic isn’t as embarrassing as cash. Plastic you hide your wretched state. Pull a wad of hundreds out of your jeans and you’re somebody. It’s better than a Black Titanium Am Ex, those have been cloned into Visas and nobody takes them seriously, but cash is another matter. Cash rocks. And, like I said, cash is still the international language. Want to meet a pretty girl in a Sky Bar, lays a few Benjamins down for a Signature Scotch or Napolean. she’ll notice. A Visa card, nothing. Cash makes for conversation. Plastic just affirms you’re poor.

#163 I prefer tap on 03.27.19 at 1:51 am

#135 Glen B on 03.26.19 at 9:53 pm
Cash and PMs rock! I think we can get rid of nickels and dimes though. They are now useless.

….

My kids used to say “you can give me your toonies and loonies, but keep your punies.”

#164 Dominion Minion on 03.27.19 at 4:10 am

How will junior fill his piggy bank? Sell lemonade?

#165 Dolce Vita on 03.27.19 at 4:11 am

I subscribe to Twitter with enough sources from the Left, Center and Right with the idea being that somewhere in there lies the truth; thus, I seek balance in informing ones self.

And yes, a singular data point not a trend make but this AM’s read struck me as there were few if any positive Tweets be it about debt, government, economy, World affairs, law and order…you name it.

The few “feel good” Tweets came from Rachel Notley then again, she’s in the middle of an election.

I like it that TORONTO CITY COUNCILOR Mike Layton got a whole new rear orifice torn in him by Kenney and Notley…

Kenney: “You see, a Toronto city councillor, with his head up his butt…”.

Jason always was plain speaking

Notley: “Unlike some other industries, including those in Ontario, our oil and gas sector is world-leading when it comes to environmental standards”.

She also said “…out of touch with Canada’s economic reality and doesn’t see Alberta’s contributions because he has tunnel vision” and the WHO PAYS FOR YOUR MEAL TICKET comment: “He would also be wise to read the federal budget and see exactly what Alberta contributes to Confederation.

Rachel more long winded than Jason but delivers more zings (and veiled threats).

CONCLUSION:

Almost a TREND (2 of 3 data points) that the SPAWN of great men like Pierre Trudeau or Jack Layton seldom measure up in to their progenitors brains…not deign to stand in their fathers shadow.

———————————————-

Big Electron, please save us from the children of great men.

Buona Mattina Garth.

#166 Basil Fawlty on 03.27.19 at 4:13 am

Sure, gold is down from its 2011 high. However, it is way up from its year 2000 lows.
Why do you consistently present the most negative price history of what you call an asset?

#167 BillyBob on 03.27.19 at 7:11 am

#71 mj on 03.26.19 at 6:26 pm

next thing you know, strippers will pull out their phone for payments lol

====================================

Was in the London Underground yesterday. Busker had a Square paypoint on his guitar case and a sign that said “Tap to give £1”.

But cash is a long way from dead worldwide. A snapshot of my own inventory of cash shows:

138 GBP
5,000 USD (earmarked to replace my IT gear if/when my 2013 MB Pro ever dies)
145 CAD
4,500 CZK
196 EUR

I would never purposely travel somewhere without at least enough local currency to transact for a taxi, a hotel, a meal. That’s just well, stupid.

And yes, I do make extensive use of fintech products like Revolut and Transferwise that the Canadian banking cartel blocks from Canadian residents. They come with debit cards that allow multiple currencies on the same card, exchanged at spot rates in real time with no fees or markup. I also use credit cards to get rewards points (no balance carried, ever) and direct deposit for recurring bills, for the same reason.

But it’s all about using the right tool for the specific job. The argument for or against cash or digital is pointless. Cash just another tool in the toolbox and it would be foolish to discard it completely. Not everyone is quite as enamoured of pissing away their freedoms and privacy. Not all countries are quite as sheeplike as bastions of socialism like Canada and Sweden. And technology works wonderfully right up to the point that it doesn’t.

And speaking as someone whose livelihood is rather technology-intensive, with consequences when it doesn’t work that go beyond not being able to purchase something, I find the millennial’s faith in their cards and apps…touching. I just smile when some 20-something dolt won’t tip a crew driver a couple bucks because “I don’t carry cash *sniff*”. But have no problem dropping 400EUR on their card for a new purse.

Can’t. Cure. Stupid.

#168 Gordon on 03.27.19 at 7:27 am

#53 Randy, most businesses in Portugal are running like hell from the egregious tax regime at 50+% . 99% of the face to face economy is tax free no receipt cash. Italy & Spain ditto. Canada has a huge underground economy, more than government wants to admit because there are a greater number of people who are increasingly poor, more than is admitted to. Canadians face an increasingly egregious tax regime that makes living more difficult by the day. Most open markets are now open to bargaining and barter. I could have likely bought Garths eight dollar cookies for $5.

#89 Kootney Hippie. Since your likely spending time away from your tax free grow op , realize the the lower class Thai do the same, pay tax only if you have a gun to your head. Taxes are collected here in the Kingdom the old fashioned way, you just don’t see it as a tourist. The BIB busy themselves going door to door of thier precincts collecting cash.

When you’re at the very bottom of the social ladder, a soup stall, a musty bedbug ridden bungalow in the tourist ghetto of Khao San Rd, the economy is done in cash as you say.

On the other hand, I am surrounded by the Thai middle class who use debit cards and credit as cash in the same ratio. My Tesco Card saves me plenty in loyalty points, for example. Making your claim of cash only confirms to me that you are a low budget backpacker traveler living on the fringes of Thailands dynamic economy. Enjoy the street food though, mostly excellent. It’s the lack of running water on the sidewalks that contaminated your utensils. That’s why so many tourists come away with runny discharge.

#169 NoName on 03.27.19 at 7:51 am

@short shorts and violent crime and few deep thoughts

Obviously, the point is that going cashless prevents almost allviolent crime.

Is this a joke? But you know whats funny few yrs back whey Android came out with hotspot i remember reading no cellular phone data “bad” kids beating and forcing “good” kids with data to make them hotspot sonthey can use internet. No money but violence and crime is there…

How about washing detergent?

https://www.google.com/amp/s/amp.businessinsider.com/the-tide-black-market-2013-1

#170 Good point on 03.27.19 at 8:17 am

#105 tccontrarian on 03.26.19 at 8:22 pm
“When you can gas your car and pay for it with rocks, get back to us. Until then, it’s not money.” – Garth
////

No, I probably can’t buy gas with it, as you say, but if your wife (or mine), was kidnapped while vacationing in the Congo, I think the kidnappers would ask for ransom in gold (or Crypto?), not Legal Tender.

*****

Garth, he got you. You should have state:

“When you can gas your car and pay for it with rocks, get back to us. Until then, it’s not money. Disclaimer: this does not apply if you are vacationing to Congo with my wife (or yours).” – Garth

#171 NoName on 03.27.19 at 8:18 am

Good bet is better than a no bet. – SM

This one is going on a fridge, right beside this one; “If you want to win, you must not lose”.

#172 Remembrancer on 03.27.19 at 8:26 am

#165 Dolce Vita on 03.27.19 at 4:11 am

They’ve all lost legitimacy if the biggest issue to spend talking points on in an ALBERTA election is a TORONTO city councilor. Sad.

#173 crowdedelevatorfartz on 03.27.19 at 8:35 am

Hmmmm
Possibly
10% of Lower Brain Land real estate foreign owned?
Maybe even higher?
And in some communities like Richmond 25% of real estate foreign owned?

One wonders why the local, Provincial and Federal politicians turned a blind eye to what residents were screaming about for years and years and years.
Political correctness or financial subservience?
Empty condos, sky high prices and sky high rents.
Nothing to see, move along….
Real Estate cartel Lobbyists contributing millions to election campaigns, advertising, on and on and on……?

https://theprovince.com/news/local-news/dan-fumano-a-75-billion-snapshot-of-foreign-owned-vancouver-real-estate/wcm/9abb6b0a-77b7-4586-8808-404b8dd36376

#174 Remembrancer on 03.27.19 at 8:39 am

#171 NoName on 03.27.19 at 8:18 am
Good bet is better than a no bet. – SM

This one is going on a fridge, right beside this one; “If you want to win, you must not lose”.
————————————-
The Tao of SM. Now that would be a Amazon Best Seller, in the humour section…

#175 Livinlarge on 03.27.19 at 8:47 am

“If we went cashless, they’d have to legalize prostitution”…surprise surprise, prostitution in Canada has been “legal” for a very long time. The prostitutes are expected to report income and pay taxes that way.

Soliciting, running a bordelo, being a pimp…that’s what’s illegal.

#176 crossbordershopper on 03.27.19 at 9:15 am

DELETED

#177 dharma bum on 03.27.19 at 9:34 am

Cash is still needed to buy heroin, cocaine, PCP, mescaline, peyote, crack, speed, LSD, magic mushrooms, ketamine, fentanyl, ecstasy, crystal meth, oxy, trammies, and ayahuasca.

So, since these substances are the worlds largest industries and form the fuel of our society, cash will continue to exist.

#178 MaxBerniersShorrs on 03.27.19 at 10:08 am

Speaking of cash and unmarked bills…what’s the deal with Wanzhen Lu, the Chinese “student” allegedly kidnapped? A Bentley, Lamborghini and Range Rover in the garage of an expensive Markham condo. I wonder how that was all paid for?

Who cares? Worry about your own life. – Garth

#179 Islanddave on 03.27.19 at 10:16 am

Gold..in my younger years I did a bit of gold panning up zeballos way, found a tiny little nugget not much bigger than the head of a pin.. got so excited I promptly lost the damn thing.. good thing gold isn’t money, I’m pretty sure I would be doing without cookies lol

#180 Gravy Train on 03.27.19 at 10:22 am

Couldn’t resist calculating the imputed interest rate on the payday loan (featured in the picture).

Let’s see: $30 gets you $300 for two weeks. So the equivalent annual simple interest rate is 260.71% ((0.10*(365/14)*100%), and the effective annual interest rate is 1099.95% (((1.10^(365/14)-1)*100%).
https://en.m.wikipedia.org/wiki/Payday_loans_in_Canada

The deplorables using payday loans should be protected from us globalists with effective usurious-loans laws. Do you agree, Smokey? Yes? Good boy! Who’s a good boy? :)

#181 Kreditanstalt on 03.27.19 at 11:06 am

Cash is individual liberty. It’s THAT simple.

#182 Gordon on 03.27.19 at 11:08 am

Obama slushes billions around the world to brainwash the naive and science was squashed.Now that science isn’t being squashed the real facts coming out indicate that climate crazies are fund raising and don’t give a shit about climate.

https://www.breakingisraelnews.com/125543/climate-change-scientists-gods-hand/

You poor saps. It’s going to be horribly embarrassing to admit you’ve been duped.

https://www.breakingisraelnews.com/125543/climate-change-scientists-gods-hand/

#183 Thanks Billybob on 03.27.19 at 11:17 am

Thanks Billybon enjoyed your posts
I looked up Revolut and it’s coming to Canada

#184 jess on 03.27.19 at 11:21 am

so is it really cheaper /safer? what about all the digital crimes

“Wall Street firms cannot offer misleading assurances about the execution quality they provide their customers while engaging in electronic trading strategies that undermine those promises,” Underwood said in a statement.

Dark pools are private trading venues that let people trade quietly, often in large orders with minimal price movement.

…the bank robbers of the future (pdf)—more commonly known as computer hackers.

https://qz.com/1218290/cash-is-dying-in-sweden-in-part-because-of-its-history-of-robberies/

=====================

Credit Suisse to Pay $77 Million to Settle Princeling Probes
By Matt Robinson
and Patricia Hurtado
July 5, 2018, 10:13 AM EDT Updated on July 5, 2018, 6:02 PM EDT

Bank hired more than 100 at request of government officials
‘Princess’ got $1 million, although often didn’t show for work

“relationship hires” with a spreadsheet that linked them to specific business deals for the firm, the SEC said.

One of the “princesses” allegedly got more than $1 million in compensation even though her colleagues complained she often didn’t show up and when she did she was rude and unprofessional.
====
trump university —all quid no quo to show

“Credit Suisse Hong Kong’s practice of employing friends and family members of Chinese government officials as a quid pro quo for lucrative business opportunities was both profitable and corrupt,” Brooklyn U.S. Attorney Richard Donoghue said.

Credit Suisse Group AG agreed to pay $77 million to settle U.S. bribery probes claiming the lender’s Hong Kong unit attempted to win banking business by offering jobs to friends and family of Chinese officials.

https://www.cpacanada.ca/en/news/canada/2018-06-15-seniors-too-ashamed-to-report-financial-fraud

#185 Gordon on 03.27.19 at 11:34 am

Trudeau’s preparing to kill the Canadian economy in a desperate attempt to change the channel on his pile of crap tenure to date. Is a this another try at playing the anti- Trump card before the election?

Justin Trudeau as Captain Canads? Who does he think he’s joking?

https://business.financialpost.com/news/economy/im-not-optimistic-political-will-evaporating-in-u-s-for-passage-of-new-nafta

Comment edited. – Garth

#186 expat on 03.27.19 at 12:04 pm

No more corner lemon aid stands
No more backyards projects for cash
More revenue for socks to spend
More eyeballs watching your every move

Life is great

#187 Expat on 03.27.19 at 12:07 pm

The ability of the zombies to be stupid knows no bounds.
But you love your Siri, Google home, remote control lights, your self driving cars, your voice activated toasters, your frigs that tell you that you are out of beer, etc.

Your behaviour modification is now complete.

Signed very smart big brother

#188 Road Trip To WV on 03.27.19 at 12:08 pm

We bought a couple of rolls of new loonies, and at every restaurant left one as a tip. The server thought it was GOLD, and they screamed and jumped with joy to our smiles. We even got a few hugs and kisses out of the deal.

#189 Expat on 03.27.19 at 12:09 pm

BTW did you know that your smartphone records everything you do?

Oops
I let the secret out

#190 Penny Henny on 03.27.19 at 12:28 pm

What is all this talk about banks? and gold?
When did we get off the topic of cookies?

#191 DON on 03.27.19 at 12:35 pm

#165 Dolce Vita on 03.27.19 at 4:11 am

I subscribe to Twitter with enough sources from the Left, Center and Right with the idea being that somewhere in there lies the truth; thus, I seek balance in informing ones self
********************

I take the same approach to gathering info.

I have noticed the same constant negativity.

#192 bill on 03.27.19 at 12:42 pm

#111 will on 03.26.19 at 8:30 pm
got a fair collection of old coin and bills myself. my real favourite is tokens like the ‘habitat money’ ,bus tokens and similar coinage. and a stack of crummy tire money as well…actually the CT money is probably going to buy more camping stuff at some point..

#193 Remembrancer on 03.27.19 at 1:03 pm

#185 Gordon on 03.27.19 at 11:34 am

Good afternoon, its Day 298 of the Trump Tariffs on Canadian Steel and Aluminum. Have a bright and shiny, national security risk-free day today citizen…

#194 OH BOY on 03.27.19 at 1:04 pm

conspiracy theory nutters are out in full force for this one Garth. Probably your plan all along right. Thx for the entertainment.

#195 Old Bills on 03.27.19 at 1:31 pm

Some of those old bills are worth a lot of money depending on the condition and dates. I sold a few to collectors, so better check them out.

#196 Abcourt m on 03.27.19 at 1:39 pm

silver is also money and a currency and an industrial metal.

it and gold are the only two currencies that trade on forex crosses.

think of both as alternatives to the canadian or us dollars, like if they belonged to another country. to use in canada, you must convert to cad.

Neither are money. – Garth

#197 Classical Liberal Millennial on 03.27.19 at 1:47 pm

#113 JuliaS

How many Millennials have you actually met in your life to come up with that generalization? Maybe it’s an urban thing? Because where I live in small town Ontario, nobody in my demographic lives like that. Nobody.

#198 Lobster Man on 03.27.19 at 2:12 pm

#142 Blacksheep,

I can lend you my pedals, so you can start pedalling forward.

Yours can only go backwards.

LM

#199 I'm A Believer on 03.27.19 at 2:19 pm

#5 Susan M
They want cash because they’re not declaring retail income and/or collecting HST. Same with many Nail spa places.

#200 DON on 03.27.19 at 2:32 pm

#173 crowdedelevatorfartz on 03.27.19 at 8:35 am

Hmmmm
Possibly
10% of Lower Brain Land real estate foreign owned?
Maybe even higher?
And in some communities like Richmond 25% of real estate foreign owned?

One wonders why the local, Provincial and Federal politicians turned a blind eye to what residents were screaming about for years and years and years.
Political correctness or financial subservience?
Empty condos, sky high prices and sky high rents.
Nothing to see, move along….
Real Estate cartel Lobbyists contributing millions to election campaigns, advertising, on and on and on……?

***************

Good question.

Limited journalists left in BC?

#201 SoggyShorts on 03.27.19 at 2:55 pm

#169 NoName on 03.27.19 at 7:51 am
@short shorts and violent crime and few deep thoughts

Obviously, the point is that going cashless prevents almost all violent chrime

Is this a joke?
———-
Sorry, was unclear
“In a cashless society there would be almost no violent muggings” obviously crime that isn’t money related would be unaffected by a change in money(I didn’t think I needed to say that)
Phones and even smart watches require pins and/or fingerprints. They can be completely disabled remotely and simply won’t be worth stealing. Let’s face it, those with the know-how to get around such technology aren’t stabbing people for a cellphone.

#202 positive lesson on 03.27.19 at 2:55 pm

On our way from WV going to Toronto we had a problem at the Buffalo crossing into Canada back in 1986. The immigration officer asked me if I had anything to declare. I said yes because I purchased a few novelty items. My associate who was 80 years old groaned. The officer asked me what they were, and told him, but said let’s go and see. I flipped the back trunk, and opened my suitcase displaying 6 packages wrapped in white paper, and was prepared to show him one. He said you guys are clean and can leave. I replied you have got to see one, and unwrapped it displaying a train made from pressed coal dust. We all stood around and chatted like old friends for about 15 minutes. Never go defensive in a negative situation or show fear, but go offensive to clear the air.

#203 SoggyShorts on 03.27.19 at 3:05 pm

#162 Gordon on 03.27.19 at 1:35 am
Cashless is a panacea for those of you who are so poor you can’t afford to leave the country and have no need to exchange….Want to meet a pretty girl in a Sky Bar, lays a few Benjamins down for a Signature Scotch or Napolean. she’ll notice. A Visa card, nothing.
***********************
LOL spoken like a true internet cool person.
Have you even ever traveled? How much Vietnamese Dong or Japanese Yen does your local TD keep on hand?
You just use an ATM in the country you are visiting if it’s a cash country.
Also, do you seriously think that “a wad of cash at the bar” works on women other than hookers? If hookers are what you’re after, I bet the good ones take plastic…

#204 entropy on 03.27.19 at 3:07 pm

Been cashless since I could.
Its just easier.

#205 Blacksheep on 03.27.19 at 3:08 pm

Lobster Man,

“Normally, commercial banks borrow short to lend long.”
————————–
Blacksheep,

“This is an inaccurate statement”.

“Prove me wrong, if you can”
—————————
Lobster Man,

“I can lend you my pedals, so you can start pedalling forward. Yours can only go backwards.”
—————————
Bla..bla…bla…pedals…

If you can’t support your statement with facts, just man up and admit it, I mean were all human, right?

https://www.youtube.com/watch?v=_-c6aJoQVzo

#206 Ustabe on 03.27.19 at 3:32 pm

#179 Islanddave on 03.27.19 at 10:16 am

Gold..in my younger years I did a bit of gold panning up zeballos way, found a tiny little nugget not much bigger than the head of a pin.. got so excited I promptly lost the damn thing.. good thing gold isn’t money, I’m pretty sure I would be doing without cookies lol

The Nimkish Valley is my back yard, I’ve been hiking and camping it for three decades plus.

The trick if you can call it that is to find the tailing mounds left by the old timers when the equipment wasn’t all that good at pulling every last bit of gold.

Better still are old mounds that the stream or creek has been diverted away from either by logging road construction or natural causes. You have to haul water back to them but less likely to have visitors.

The mounds are gold rich, really concentrated as opposed to panning a stream.

I’m too old now…can’t comfortably do the hike in, the carry water, the shovel work but between me and the kids, over almost 30 years with them and my solo trips I have 7 Gerber baby food jars each at least half full and some at 3/4 with mostly dust but some flake. The nuggets I usually gave away.

Zero idea on the value of that except to say the time spent in the bush, camping with my kids was priceless.

#207 dan on 03.27.19 at 3:36 pm

90% of transactions with credit card, rest is cash. always keep $500-$800 at home in $20 bills for bad days or when my cc gets hacked like last week. Cash is king for privacy.

#208 Ydnew on 03.27.19 at 3:39 pm

We’re old. We use cash for most day to day transactions. We find it’s easier to budget that way – if it means that a purchase would leave us short on our cash allowance for the week, we don’t buy it. Besides, when we do use credit or debit cards, in our own small way we feel that we mess with Big Brother’s algorithms.

#209 SquareNinja on 03.27.19 at 3:50 pm

A lot of luddites in the comments section! What else should we fight to keep around, despite the fact that the advantages far outweight the disadvantages? Keep human cashiers employed at low-wage, meaningless jobs? Keep fossil-fuel burning, crash-prone human driven cars on the road? Bring back the days where you had to spend a few hours going to the store for a box of tissues?!

Only the rich and the brainwashed non-rich think keeping cash around is a good idea. As Garth pointed out, cash money is the preferred choice of low-level criminals, it is friction in the economy due to all the labour it requires; you’re not offered any type of purchase or theft insurance when you use cash; and if you have some on you, you have some on you, but if you don’t, you don’t (have fun spending hours getting to a bank)!

The preppers on the blog (of which there are many), of course think that cash is the only way to go. Paper money is going to become useless during the apocalypse anyway! You’ll be able to trade your pennies for some bottled water, but only because they’re made of copper.

Lastly, if there’s a power outage, good luck taking your cash to a store and exchanging it for food! All but the smallest mom-and-pop shops will refuse your business, because their computer systems can’t be used for check out purposes. In other words, if electronic money isn’t working… the rest of society won’t be working, either.

#210 TalkingPie on 03.27.19 at 3:52 pm

#113 JuliaS on 03.26.19 at 8:37 pm
“Millenials don’t know what cash is because they are broke. They don’t know what ownership is, because they rent everything. They don’t know how to interact with living people, because they are dopamine junkies, spending their lives staring at their pocket zombie boxes. They don’t know how to drive manual, and soon won’t know how to drive, period. All they will know is that they are in debt forever, and the net balance is always negative. They won’t marry, won’t reproduce, won’t rid boomers of their houses so that old geezers could cover their medical bills, and they won’t buy appliances.”

********************************************

It must suck to be so filled with contempt for a group of people based on the year they were born.

For the record, both my cars are paid-for, manual transmission, and maintained by myself – I have about a dozen hours on the race track in one of them – and I’m currently learning to fly a plane. I wonder, though, why someone would judge a person’s character based on their ability and willingness to change gears. I suppose someone somewhere is judging you and me for letting a computer control spark timing and fuel mixture, and letting an electric motor crank our engines. Should I judge the older people who don’t have the aptitude or willingness to get their hands dirty changing their own oil and suspension?

The only debt I have is on the 2,700 sq ft house on 25,000 sq ft of land that my 28 year-old girlfriend and I bought last summer (20% down, no money contributed by our parents, as it should be, and the mortgage approval was based solely on my income, since the girlfriend is newly self-employed). Despite that purchase and two recent cars, we still both have cash on hand.

Maybe you need to look harder at the people around you, or associate with better people. That may go a long way in reducing your bitterness in the future.

By the way, it’s spelled “Millennial.”

#211 n1tro on 03.27.19 at 4:10 pm

#201 SoggyShorts on 03.27.19 at 2:55 pm
#169 NoName on 03.27.19 at 7:51 am
@short shorts and violent crime and few deep thoughts

Obviously, the point is that going cashless prevents almost all violent chrime

Is this a joke?
———-
Sorry, was unclear
“In a cashless society there would be almost no violent muggings” obviously crime that isn’t money related would be unaffected by a change in money(I didn’t think I needed to say that)
Phones and even smart watches require pins and/or fingerprints. They can be completely disabled remotely and simply won’t be worth stealing. Let’s face it, those with the know-how to get around such technology aren’t stabbing people for a cellphone.
—————————-
How about I stab you for a bit after forcing you to unlock your phone where I would go on my shopping spree as you lay there bleeding out? Screen auto turns off or each purchase requires verification? No problem, I have your severed finger in my pocket!

#212 Lobster Man on 03.27.19 at 4:24 pm

#205 Blacksheep,

Have a look at the following link, from about 1 minute onwards. She is with RBC, and I am sure she knows what she was talking about…

https://business.financialpost.com/investing/why-everybody-is-talking-about-the-inverted-yield-curve-and-what-it-means-to-canada?video_autoplay=true

And with that, I bid you good-bye,
LM

#213 Islanddave on 03.27.19 at 5:51 pm

Ustabe, yes I’m not young anymore either and I imagine said little nugget is still out there in the bush but.. that being said.. we are lucky to live here in gods country, regardless of what you can or can’t buy with what is not money.
But, over the hill or not, there is a whiff of spring in the air lately, lol
Best
Dave

#214 Reed Marx on 03.27.19 at 10:29 pm

I really hope the government makes it illegal to use cash. I believe, not being able to “hide” a little “scratch” from the corrupted system, would ignite a long and drawn out tax revolt that would finally wake up the 95% to the current inequalities of our tax system. Maybe then, would citizens be politically ready to tackle the “elephant in the room” which is offshoring capital; the cancer that is eating away at all Western democracies.

#215 Bison on 03.28.19 at 6:17 pm

I barely carry cash but still don’t see that happening any time soon. Sounds only convinient for CRA and all those payment gateway companies who keep a significant amount of what’s being paid for services/products forcing the business to raise prices in order to stay in the game. I’d love to hear what small business owners have to say about that! Or maybe waitresses and barbers and those who sell their not anymore needed items on Kijiji and Facebook market place. If that is the case, lots of reusable items will be converted into garbage for the city, creating another problem. Oh wait… Maybe we’ll be forced to carry a “square” (payment gateway) connected to our phones to charge other’s card by swiping or tapping and pay taxes na fon top of that spare the proceeds with the gateway provider huh