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IMF Working Paper: The Macroeconomics of De-Cashing
International Monetary Fund ^ | March 2017 | Alexei Kireyev

Posted on 04/08/2017 7:43:04 AM PDT by oblomov

I. INTRODUCTION

1. De-cashing is defined as the gradual phasing out of currency from circulation and its replacement with convertible deposits. This initiative does not in any way target the abolition of money as an institution, but is, rather, a sweeping reduction of the role of currency, its cash component, in favor of transferrable deposits, its non-cash component. The monetary authorities in many countries have already taken steps towards de-cashing. These steps include abolishing large denomination bills, imposing ceilings on cash transactions, introducing declaration requirements on the carriage of cash in and out of the country, reporting requirements for cash payments exceeding a specified amount, and even taxing cash transactions.

2. The purpose of this paper is to suggest a simple framework for the analysis of the macroeconomic implications of de-cashing. Starting from a traditional saving-investment balance, the paper develops a four-sector macroeconomics framework, which allows for the tracing of key implications of de-cashing for any country. The macroeconomic framework is then disaggregated into the real, fiscal, monetary,and external sectors of the national economy and the rest of the world. This analytical presentation allows for the study of sector-specific implications of de-cashing and the ability to highlight possible positive and negative effects of de-cashing in the sectors of particular importance for a specific country.

3. The paper is not meant to take a view in favor of or against de-cashing in the ongoing debate. A recent and detailed overview of the positions on both sides of this heated debate is included, among others, in Sands (2016) and Rogoff (2016). The starting premise of this paper is to examine effects of de-cashing from a macroeconomic perspective. Also, the paper does not review recent money reforms (demonetization in India and some other countries). Neither does it take a view on the role of de-cashing in reducing illegally cash-financed activities, nor on the ethical, legal and political aspects of de-cashing.

4. The rest of the paper is organized as follows. Section II briefly reviews the use of cash in the world and highlights some of the recent trends of de-cashing, including a few case studies of individual countries. Section III analyzes the statistical treatment of cash in the macroeconomics accounts, and, on this basis, proposes a traceable accounting model of de-cashing. Finally, Section IV includes conclusions and policy recommendations.


TOPICS: Editorial; Government; News/Current Events; Philosophy
KEYWORDS: banking; cash; finance; globalist; imf; tyranny; waroncash
The war on economic liberty continues. More at the link: https://www.imf.org/~/media/Files/Publications/WP/2017/wp1771.ashx
1 posted on 04/08/2017 7:43:04 AM PDT by oblomov
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To: oblomov

No No No this is a terrible idea and they “progressive globalist bankers” are sowing the the seeds now. Somethings need to be at least in some part physically tangible objects like paper and coins or transferable to such.


2 posted on 04/08/2017 7:46:16 AM PDT by datricker (Democratic Party - aborting their voter base since 1973)
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To: oblomov

These idiot globalists, in their quest fr control, are going to destroy the world.


3 posted on 04/08/2017 7:47:50 AM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: oblomov

The whole concept of “cashless” is a big, authoritarian power play. Absolute control by institutions and government. Removal of INDIVIDUAL POWER and control.

Commies everywhere.


4 posted on 04/08/2017 7:47:57 AM PDT by EagleUSA
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To: oblomov

My money is on gold and silver when it comes to “de-cashing” (with lead, brass, and blued steel as a backup). Metals give us privacy and real security, while the electronic option offers far less.


5 posted on 04/08/2017 7:51:18 AM PDT by Pollster1 ("Governments derive their just powers from the consent of the governed")
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To: oblomov

Straight out of the Bible, the number of the Beast.

The Liberal utopia is a cruise on the river Stix.


6 posted on 04/08/2017 7:51:28 AM PDT by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: datricker

Right, stop this in its tracks. I’ve begun paying for as many things as I can with cash. First of all it really makes you think of how much you are spending. Second, I don’t want some record of where or on what I spend money.

Of course they have made it impossible to buy large ticket items for cash ostensibly due to “drug dealers” hiding their profits. The removal of all larger than C notes from circulation also was a move in this direction. No gold or silver backed currency, just federal reserve IOUs was the first step.


7 posted on 04/08/2017 7:53:03 AM PDT by Mouton (There is a new sheriff in town.)
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To: oblomov

What they don’t say is that the purpose of this is to make it devilishly easy for governments to take what they want from your money and give it to those who keep them in power.

Tax on transactions. Tax on the principal in your account, not just the interest. Confiscation in case of government crisis.
(All these things have already been done.)

What they want is communism, but they shy away from the name. So it’s gradual communism without mentioning the name. Fools the public every time.


8 posted on 04/08/2017 8:02:42 AM PDT by I want the USA back (Islam mandates warfare against unbelievers and is absolutely incompatible with Western society.)
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To: datricker

Liberal elitist utopian alert. Be. Prepared. They are serious, why aren’t we?


9 posted on 04/08/2017 8:20:23 AM PDT by momincombatboots (pathway to citizenship... Amnesty history repeats. Walling Illegals In wasn't the idea moron!)
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To: oblomov

We’re going to have to kill them if we want to remain relatively free. That’s what this is coming down to. Cashless society is a way for the few to gain absolute power over the many. We’re already half enslaved through fiat money, but taking away the ability hold the fruits of one’s labor without permission or assistance from another is the last straw. It’s the end of the individual. It might not happen in our lifetimes, but eventually “we” are going to have to kill them.


10 posted on 04/08/2017 8:53:26 AM PDT by Trod Upon (Government employees and welfare recipients are both net tax consumers. Often for life.)
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To: oblomov

Control by the oligarchs is what is driving this.
Squashing of freedom.


11 posted on 04/08/2017 9:12:28 AM PDT by Lurkinanloomin (Natural Born Citizen Means Born Here Of Citizen Parents - Know Islam, No Peace -No Islam, Know Peace)
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To: Trod Upon

It is the control system where the globalist NWO bankers can tax, monitor and surveillance everything we do in this world and once they have it installed it will be forever,

I was laughed at many years ago in college for saying this was coming, that we would one day use computers/numbers to buy and sell and that cash would be all but phased out, I didn’t know how it would be done mechanically, but once the internet appeared (mainstream) in the early 90s I knew right then exactly how,

Now I would be laughed at for suggesting that this isn’t whats coming,

It is the economic system of the coming anti-Christ, its rising up, they are preparing the highway for it,


12 posted on 04/08/2017 9:21:51 AM PDT by captmar-vell
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To: captmar-vell

“And now I have told you before it come to pass, that, when it is come to pass, ye might believe.” John 14:29


13 posted on 04/08/2017 9:39:33 AM PDT by captmar-vell
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To: Lurkinanloomin
Control by the oligarchs is what is driving this.
Squashing of freedom.


Control is one reason. And one worth fighting over because when cash goes, freedom is GONE.

There is a second reason though that is built in to the debt-based currency system we've been enslaved with. The paper we use as currency is actually brought into existence by creating a debt. Same for the electronic bits used for currency. They are created by debt and they are extinguished when the debt is paid off. People have a hard time believing it, but when you get a loan to buy a house the bank doesn't take money out of its pile and move it into your account in return for the mortgage on the house. They simply CREATE the money in your account with a bookkeeping entry in return for the mortgage and cash is magically created. It's the magical fake-money machine (fake-money 'cuz it's actually currency not money - though they have invested a lot of time, money and effort in conflating those two terms. Money has intrinsic value - currency does not have this requirement.) It is the debt and it's attached interest that cause the problem here and actually REQUIRE that the magically money makers remove cash from our society.

Every time a currency is created from a debt it has to be paid back which extinguishes the debt (which will then be rolled over to recreate a like amount of currency) but the paid back debt had an interest charge attached to it and when this interest is also paid back it also extinguishes a debt - so when the original debt it rolled over to keep the money supply constant a LARGER debt actually has to be created to cover the attached interest - OTHERWISE THE MONEY SUPPLY WILL SHRINK AND THE ECONOMY WILL FALL INTO A DEFLATIONARY DEATH SPIRAL. It's built into the debt-based currency system - the debt has to be constantly expanded or the system will die. And a constantly (exponentially) expanding debt is mathematically doomed. It's what positive exponents in mathematical equations do.

Note the positive? The fix to the mathematically inevitable runaway of the required debt is to change the exponent (the interest rate) to a negative interest rate. Voila. Every time a debt is paid back it will be rolled over into a smaller debt and the system doesn't go into runaway mode. Our assets (at least the ones kept in their banks) will have to be charged an interest fee - not paid an interest but charged an interest. This fixes the fatal flaw in their system and allows it to go on forever. Their assets, of course, will not be charged at this negative rate of interest and will, of course, continue to be paid at a positive rate of interest. It's good to be the king - or at least the owner of the magical money machine.

And that is why cash has to go away. Nobody would leave their cash in the bank if it was going to sit there losing value every day. We'd take it out and keep it at home under the bed or buried in the back yard. Taking our cash out of their banks would also crash their system - just like the requirement of an ever expanding debt would - but this one not being built into the system as a mathematical certainty can be fixed with a simple law: NO MORE CASH FOR THE PEASANTS. So, when they finally come and tell you no more cash see it for what it is and shoot them in the head because when cash goes, freedom is gone.
14 posted on 04/08/2017 10:35:54 AM PDT by Garth Tater (End the Fed. Return to sound money and Constitutional governance.)
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To: I want the USA back

Yes, yes, and yes. What they want is total control. Fear them.


15 posted on 04/08/2017 10:39:29 AM PDT by rcofdayton (.)
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To: oblomov

Does anyone here ever paid by check?

Or pay a bill by check?

last time I bothered to notice a check isn’t cash


16 posted on 04/08/2017 4:40:28 PM PDT by Pelham (Liberate California. Deport Mexico Now)
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To: oblomov
I have already de-cashed.

I spend less than $100 a year in cash.

And checks? The only checks I have written in the last five years were to government agencies for my Driver's License and my Passport, because they accept checks or money orders only.

Everything else in my life is on my Visa credit card, either auto-pay, or point of purchase.

I pay my Visa bill once a month, via auto-pay from my checking account, which I still need to receive direct deposits.

17 posted on 04/08/2017 6:34:31 PM PDT by zeestephen
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To: oblomov
de-cashing = CONTROL
18 posted on 04/09/2017 4:32:19 PM PDT by Paine in the Neck ( Socialism consumes EVERYTHING!)
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