I originally read this article on Forbes from my phone but could not post it using my phone. When I got home many hours later to post the article it had been removed from Forbes. I thought that was interesting but tried not to read into it too much.
http://beforeitsnews.com/economics-and-politics/2014/01/china-halts-bank-cash-transfers-forbes-2461052.html(Before It's News)
According to this breaking story from Forbes.com, China has halted all bank cash transfers as shared in the story below. WHY would Chinas central bank ORDER commercial banks to put an end to cash transfers? Is this the next step in the global currency war? Could this lead to WW3 as is now being argued by some? With America already practically owned by China and getting more in debt every year, this cant be a good thing. Video reports on Chinas money problems also below.
The Peoples Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.
In short, there will be a three-day suspension of domestic renminbi transfers. There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.
The specific reason givensystem maintenance at the central bankis preposterous. It is not credible that during the highest usage period in the yearthe weeklong Lunar New Year holiday beginning January 31the central bank would schedule an upgrade and shut down cash transfers.
A better explanation is that the countrys banking system is running dry. Yes, there is an increased need for money in the run-up to and during the Lunar New Year holiday, but that is only a small factor. After all, central bank officials knew this spike in demand was comingit occurs every year at this timeand a core function of central banks is to manage seasonal liquidity fluctuations. Moreover, the holiday has not started yet, and the PBOC, as that institution is known, could have added more liquidity to meet cash needs.