Wednesday, August 31, 2016

Germans Hoarding Cash

"Don't look now, but there's something funny going on over there at the bank, George. I've never really seen one, but that's got all the earmarks of being a run."
--Ernie Bishop (It's a Wonderful Life)

Interesting article on the increased tendency of German citizens to hoard cash. Particularly as banks begin charging fees on deposits, Germans are yanking cash out of banks and keeping it at home or in deposit boxes. Sales of safes are soaring.

This is a predictable consequence of NIRP.

Also some interesting tidbits on German tendencies related to cash. Roughly 80% of German retail transactions are in cash, nearly double the US rate. Cash is preferred to plastic. "Only cash is real" goes the saying.

Germans keep more cash in their wallets and visit ATMs more often. They withdraw about $250/visit compared to about $100 here in the US.

Cash is favored for its anonymity. Because Nazi and Cold War regimes featured secret police and government snooping, today's Germans have inherited a healthy mistrust of EU proposals to ban cash transactions in favor of digital (and more traceable) monetary transactions.

Activists are demanding that the existence of cash is guaranteed by the German constitution.

Coming soon to a shore near you...

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