The Latest Crazy Idea From Economic Experts: Abolish Cash (But Don't Tell The People)
Content adapted from this Zerohedge.com article : Source
In a recent paper - The Macroeconomics of De-Cashing, Alexei Kireyev of the International Monetary Fund advises abolishing cash without having the citizens aware of the process.
First, large banknotes are to be withdrawn from circulation, next limits on cash transactions are to be imposed, then computerization of the world's financial system and control of international cash transactions are to be enforced and, finally, private companies are to be encouraged to avoid cash transactions.
Kireyev draws on the ideas of former IMF chief Kenneth Rogoff.
In his 2016 book "The Curse of Money", he advocated the abolition of cash. In his opinion, it would contribute to the fight against crime, tax evasion and the reduction of the grey area.
The ECB obliged him and promised not to print the 500 euro note after 2018.
The government of India did the same thing: on November 9,2016, it unexpectedly devaluated all 500 and 1000 rupee banknotes over the night – a severe blow against the black economy and corruption. The next day, chaos reigned on India's streets – crowds of people in front of banks, empty ATMs – everyone wanted to withdraw his money, exchange the old rupees for new, valid ones, and there were even casualties.
The other governments eagerly followed this ideas of great economic gurus, not worrying about what was happening in the Indian streets:
Australia wants to withdraw its 100 notes from circulation,and Venezuela has already abolished the 100 bolivar note.
France, Italy, Spain and Greece already have ceilings for cash withdrawals, and a ceiling of EUR €5000 is currently being discussed in Germany.
In some countries, the renunciation of cash is becoming a means of political struggle.
In Poland, Prime Minister Mateusz Morawiecki introduced cashless payments to the state postal service. Soon it will also be possible to pay his tickets directly on the patrol car. Not all Polish politicians probably like the idea that officials will not come into contact with cash – for example, the head of the Polish National Bank Adam Glapi?ski, who introduced the new 500 zloty note at the same time.
The abolition of cash is only one step on the road to even greater insanity: Kenneth Rogoff has other crazy ideas behind him.
The craziest: he demanded negative interest from European politicians, on the grounds that they are necessary anyway when the next crisis comes. We remind the reader that negative interest rate is limited by cash. If interest becomes too negative, people will hoard cash.
What consequences would his idea have if it were implemented? What if the negative interest rates were introduced? The money from accounts would flow into tangible assets, especially jewellery, gold bars and other precious metals. Their prices would rise to unprecedented levels, as would inflation driven by speculation. This would be boosted by rising real estate prices, as people would invest in houses rather than in worthless plastic money. The barter trade and black market would flourish as it did in times of war – the opposite of what is desired would be achieved. And the criminals and corrupt politicians would certainly find another means of exchange to conduct their business – it is well known that arms dealers and terrorist groups pay with diamonds. The abolition of cash and introduction of negative interest rate would dispossess ordinary citizens, making them transparent to the authorities at any time – after all, it would be easier to control and influence the transparent people whose lives can be traced by account statements.
The renowned economists, bankers and governments forget that cash cannot be abolished, only money printed by central banks can be abolished. They do the calculation in their ivory towers without considering the host, without ordinary citizens. **The citizens will be outraged by this and take to the streets, as they did after the devaluation of banknotes in India. **In the end they will find alternative currencies to do their business without the government's interference.
The economic gurus don't care – the experiment on the living organism is important, even if it kills them.
I work in a bookmakers and have seen over the years a decline in people coming in and placing bets, it's all being done online with many enticements so people do all their betting online, those that do come into the shop can pay with their money in the online account and winnings go back into the account so no money actually changes hands at all.
Most days there is more money put into the machines via debit cards than there is in cash - again with any winnings going back to their cards.
As a business we are cash poor, something not many people realise, and I am sure if you look at other leisure companies you will see the same story over and over
everyone can be their own banker and create their own currency. however entirely eliminate the banker from the process of credit creation. abolish the central banks and the cash problem takes care of itself. Black markets and underground Economies are a symptom, not a cause.Except that the economsts of the time and the vast majority still today, are unaware that banks create our money.recessions and depressions are entirely related to the paying off of loans and so the extinguishing of money.They want to be able to control and authorise
I love the attack on crypto that it is used for illegal activities. Hell, the USD conducts more illegal activities than all of crypto does combined...legal and illegal.
I agree with you...crypto offers people freedom from the banking system and the banksters hate that. Once people realize what happens when owning crypto, people are amazed....this is going to be a revolutionary move we see over the next few years.
The news on Friday about Bitshares and AriseBank was huge. The first in the line of many such moves.
Those sneaky economists...an arm of banksters and always putting a con on like them too.
Cash is almost gone anyway. How many cash transactions still take place?
On Steem, we have 700K+ transactions a day that do not use one single cash payment. This is only going to grow around the world. Ultimately, crypto will eliminate cash while also severely reducing the amount of fiat that is used. Government money (well central bank anyway) might only be used when dealing with the government.
Cash has already been abolished, we just don't know it yet. People still accept cash, but it's gaining a nefarious reputation. If you deal with cash, you must be doing something illegal. Right? Oh yeah and just try to take your cash out o fthe bank. You think it's yours for the taking? Think again. @ironshield
I heard this news that In Poland, Prime Minister Mateusz Morawiecki introduced cashless payments to the state postal service. Soon it will also be possible to pay his tickets directly on the patrol car. Not all Polish politicians probably like the idea that officials will not come into contact with cash – for example, the head of the Polish National Bank Adam Glapi?ski, who introduced the new 500 zloty note at the same time.
Meanwhile the blockchain crypto people are all for keeping your assets on your phone. I think diversification is key - starting with food storage.
At such moments, you understand how good that the government has no influence on most of the Crypto-currency. Thank you for the article. Good luck to you and good.
This is a good idea. @zer0hedge and will be in favor of business
The countries that will adopt them benefit first
the century of cash passes. soon everything will change. but there are countries with a financially illiterate population who can not even use the ATM. so the transition will be smooth, but it will be on any
this was a great response. maybe you can write a post about reggaemuffin, and i will resteem it. I have worked with him in spaminator and he is great person, deserves to be in top 20.