The push toward a "cashless" society started in Europe some years back, and indeed in many countries it's getting difficult to use physical cash for transactions in stores and restaurants.
As you might well expect, this idea is being pushed hard by many in the "Davos crowd." You know, the elitist of the elite who meet in Europe for "climate crisis" confabs and the like. (And who each fly over there in their own G700, of course.)
Ken Rogoff wrote a book called "The Curse of Cash" about five years ago. His argument isn't so much that all currency should be eliminated; only large bills. (100s and 50s.)
His (and others') main argument is twofold:
First, large bills are widely used for illicit purposes and eliminating them would suppress criminal activity, at least to some extent.
Second, a cashless payments system would be needed in order to impose negative short-term interest rates on consumer accounts as central bank policy to "stimulate" the economy in case of a severe downturn. In other words, impose the outright seizure of a small portion of a working person's hard-earned savings in order to disincentivize saving and boost consumption.
My take: The first would be ideal for a draconian surveillance state (think China). Thankfully, I don't think the idea is coming here, at least not anytime soon. Our betters in the "Davos crowd" have lamented that such efforts would encounter quite a bit of pushback from the public. (Ya think!??)
The second (negative rates) is simply a terrible idea, for what should be obvious reasons.
Quote:
Originally Posted by texassapper
Heh... Russia is back on the gold standard... The only people being fcuked by the US Government is the US citizens.
I'm going to buy some rubles... it at least has a value.
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No, it isn't. The Russian ruble is not on the "gold standard" -- or anything remotely resembling any researcher's idea of the classical gold standard, the Bretton Woods "gold-exchange" standard, or anything else along similar lines.
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