The Swiss Begin To Hoard Cash
- The Swiss Begin To Hoard Cash
by Tyler Durden, http://www.zerohedge.com
While subtle, the general public loss of faith in central banking has been obvious to anyone who has simply kept their eyes open: it started in Japan where in February hardware stores were reported that consumers were hoarding cash, as confirmed by the spike in demand for safes, “a place where the interest rate on cash is always zero, no matter what the central bank does.” Then, as we reported just over a week ago, Burg-Waechter KG, Germany’s biggest safe manufacturer, posted a 25% jump in sales of home safes as a result of “significantly higher demand for safes by private individuals, mainly in Germany.”
Rivals Format Tresorbau GmbH and Hartmann Tresore AG also reported double-digit-percentage German sales increases. “Safe manufacturers are operating near their limits,” said Thies Hartmann, managing director of Hamburger Stahltresor GmbH, a family-owned safe retailer in Hamburg, which he says has grown 25% since 2014. He said deliveries take longer from safe makers, some of which are running three production shifts.
And now, at long last, the revulsion to banking and the fractional reserve model has finally reached the country that according to many created modern banking as we know it: Switzerland.
Only unlike Japan and Germany, the Swiss are much more subtle about their cash hoarding than telling the neighborhood they have a stash of cash in their home by publicly buying a safe; instead, as Bloomberg reports, more and more companies are taking out insurance policies to protect their cash hoards from theft or damage.
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