We are entering a very dark phase in this battle to retain our liberty,” warns Armstrong Economics’ Martin Armstrong, adding that “this is the most dangerous period we are heading into for governments will respond only to their own self-interest to survive.”
The war on cash is in full swing.
First we saw India’s Modi demonetize bank-notes in the interest of fighting corruption and tax avoidance in the black economy… later admitting that this will eventually lead to a cashless society.
Then we hear of a proposal now being whispered behind the curtain in Europe is to impose a tax on withdrawing your own money from an ATM. The banks support this measure as a whole because they see this as preventing bank runs.
And now the whispers behind the curtain are starting to get louder.
Following reports of some Aussie banks refusing to accept cash, Armstrong Economics’ Martin Armstrong warns the headlines in Australia demonstrate how the press is already conspiring against the people. The new slogan rising is Cash is for Criminals. ABC of Australia ran the story:
A massive stash of cash may sound like a good thing, but according to one US economist, the vast numbers of banknotes in circulation around the world are making us poorer and less safe.
Ken Rogoff, an economics professor at Harvard, has been writing about paper money for 20 years and he says much of this cash “is used to facilitate all sorts of crime”.
Beyond the more heinous crimes of human and drug trafficking and terrorism, some earners hoard their money to avoid tax.
One way for central banks to stimulate investment during a prolonged financial crisis is to apply negative interest rates.
However, in an economy awash with large denomination bills, sharply cutting rates could create “complete chaos”, says Professor Rogoff.
Investments suddenly gone bad would spur a rush to convert capital into hard currency, decreasing the effectiveness of the interest rate drop (even leaving aside the problem of large amounts of money disappearing from the economy).
A mostly cashless society, argues Professor Rogoff, would allow central banks to dramatically cut interest rates in times of severe crisis without this chaos.