Negative Interest Rates and the War on Cash (2)
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Berenice Abbott Broad St., NYC 1936 This is part 2 of a 4-part series by Nicole Foss entitled “Negative Interest Rates and the War on Ca
[See the full post at: Negative Interest Rates and the War on Cash (2)]Low interest rates were supposed to stimulate the economy.
Does not this prohibition against cash transactions further reduce economic activity?
Oh yes, it does. It’s about control, not some imaginary fight against deflation.
BTW, Nicole has trouble logging in to TAE, we’re working on it, but she’ll get involved.
It is all about control and continued centralization. Otherwise there might be some sort of move towards debt cancellation, if they really wanted more ‘growth’. It seems almost absurd thinking of how long they have talked about lower rates being a stimulant. And yet they build a huge structure of insurance and funds and bonds and trusts predicated on good returns. Nothing like a little poison to pep you up after you have blown up your system from excess ! Put a bunch of bankers and lawyers together, and this is what you get, economics!
Yes, it is about control. Total control. As in, the Fed owns it all, including the currency in which it is all denominated. And no, there will be no deflation unless the Planners want there to be. They, after all, set the value of the medium of exchange.There is no escaping this “Brave New World.”
And soon, when emoney is the only form of transaction allowed, the loop will be closed and cinched up tight.
What an excellent read. And I agree with all of it. Thanks Nicole.
Some of it flat scares the hell out of me; the darkest of Orwellian prophesy come home to roost.
Here in Asia, a cashless society has been openly talked about (in the newspapers) starting about 2 years ago and is meeting resistance. However Asians are notorious for their love of gold, which gives them an almost cultural way to store value. Most seem to buy jewelry and the gold shops regularly act like pawn shops when gold owners need a little quick cash. The people I know almost always buy back their jewelry within the month.
Crypto currencies are far from a stable store of value at this time, IMO. I can’t see them being allowed to go unregulated for much longer, but I also cannot say I fully understand that whole process of block chain, etc..My feeling is that we all will have to be increasingly involved in a cashless and digital money world but spread our stores of wealth in numerous ways to have continued freedoms and flexibility. Stores of wood for heating and cooking, food preserved and grown etc. all buffer against exposure to financial shocks. Storing or producing things like honey or dried foods will enable people to have something of value to be exchanged for digital payment that can then be used to participate in those areas of life where digital payment is mandatory and essential like for water bills or council rates payments.
It’s about having options. Some money in the bank is useful for tax too I guess….Choosing security over growth shrinks the economy. Is this the hard path to sustainability, squeezing out the wealth effects of easy credit? Celebrating 1% growth in 2050?
Outlawing money except in a digital form is tantamount to converting the entire planet into a giant gulag.
Interestingly the (UK) Guardian just published an article by (US) economist Kenneth Rogoff advocating the abolition of cash. Sure, he has a book to sell, but that just accentuates the momentum that is building in establishment circles. The link is here https://www.theguardian.com/business/2016/sep/05/why-cash-isnt-king-any-more
(and yes, I did link to this TAE series from a comment on the Guardian)
Rogoff claims that cash creates crime. Nonsense. Not a smart man, just ‘educated’.
Nicole deals with him in Part 3 of the series Negative Interest Rates and the War on Cash that I just published here at TAE.
I tried on and off for over a year now to login and post but couldn’t get in here because I forgot my initial password, had changed email addresses (internet provider) and also confirmation emails went unknowingly to my clutter or junk email box instead of inbox. Anyway, these articles are fantastic, “red pill” reading for sure and resonate with me. IMO, the notion of credit REQUIRING exponential expansion in a finite world is the biggest lynchpin to the public’s understanding of the forthcoming collapse. I have for some time fully understood the value of holding cash, but more and more it seems that when we really need the most, the gubment will take it away in one way or another. Same with PMs I suspect. I see part III is now posted and will read it. I hope there are some tips on what, if anything, we can do other than get out of the financial markets.
David Stockman says that the current central-banking financial regime is about to go down.
It has repeatedly threatened to take all of us and our business and groceries, and so on, with it.It Won’t Be Long Now—-The End Game Of Central Banking Is Nigh
Gotta’ get rid of cash faster, so “only outlaws will have cash”.
It’s gonna’ be a rough ride.
I feel like I’m gonna’ throw up…Prof Locknload. My take is that negative interest rates are one of the mechanisms of deflation. Inflation is increasing the money supply above what is justifiable, deflation is reducing it to meet a shrinking economy.
The reason they want to be able to choose this method is that the alternative is to acknowledge that trillions in debt are not payable and will have to be written off, wrecking their nice little party.
One thing is certain, they cannot prevent deflation, that is already well under way, those who believed they were in control of the economy are being shown as delusional, basic arithmetic is taking over and there is nothing they can do about it except try to find new ways to make everyone else pay the bill.
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