Posted on 04/17/2015 2:48:36 PM PDT by Jan_Sobieski
The world's central banks have a problem. When economic conditions worsen, they react by reducing interest rates in order to stimulate the economy. But, as has happened across the world in recent years, there comes a point where those central banks run out of room to cut — they can bring interest rates to zero, but reducing them further below that is fraught with problems, the biggest of which is cash in the economy.
In a new piece, Citi's Willem Buiter looks at this problem, which is known as the effective lower bound (ELB) on nominal interest rates. Fundamentally, the ELB problem comes down to cash. According to Buiter, the ELB only exists at all due to the existence of cash, which is a bearer instrument that pays zero nominal rates. Why have your money on deposit at a negative rate that reduces your wealth when you can have it in cash and suffer no reduction?
Cash therefore gives people an easy and effective way of avoiding negative nominal rates. Buiter's note suggests three ways to address this problem:
1. Abolish currency.
2. Tax currency.
3. Remove the fixed exchange rate between currency and central bank reserves/deposits.
...
(Excerpt) Read more at yalibnan.com ...
The apocalyptic book of Zechariah in the Bible foretells of a last days world wide currency, or medium of exchange, that we be established in Babylon. The currency will not be gold or silver based, but rather lead based which may mean that it is not based on any limited material, making it worthless.
In the last apocalyptic book of the Bible, Revelation, it goes on to say that individuals around the world will not be able to buy or sell without receiving special mark to distinguish friend from foe, follower from infidel, proponent from opponent. The mark will be the same for all, so it will not be a unique number for individuals ruling out credit card numbers or bank numbers.
It seems to be a mark of citizenship, or fidelity of the members of this new world wide movement. The only problem is that whoever receives this mark, rejects Jesus Christ. Whoever goes along and receives this mark will spend eternity in hell.
Revelation 13:15 And he had power to give life unto the image of the beast, that the image of the beast should both speak , and cause that as many as would * not worship the image of the beast should be killed * . 16 And he causeth all, both small and great *, rich and poor *, free and bond, to receive a mark in their right hand *, or in their foreheads: 17 And that no man might buy or sell , save he that had the mark, or the name of the beast, or the number of his name. 18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.
Revelation 19:20 And the beast was taken , and with him the false prophet that wrought miracles before him, with which he deceived them that had received the mark of the beast, and them that worshipped his image. These both were cast alive into a lake of fire burning with brimstone.
Revelation 14:9 And the third angel followed them, saying with a loud voice, If any man worship the beast and his image, and receive his mark in his forehead, or in his hand, 10 The same shall drink of the wine of the wrath of God, which is poured out without mixture into the cup of his indignation; and he shall be tormented with fire and brimstone in the presence of the holy angels, and in the presence of the Lamb: 11 And the smoke of their torment ascendeth up for ever and ever: and they have no rest day nor night, who worship the beast and his image, and whosoever receiveth the mark of his name.
NO
WAY.
By the way —
Asking people to provide an ID when they vote? Racist! Some people don’t carry little pieces of plastic which identify their place in society!!!!
Getting rid of cash? Oh, no problem. I gots my card from the gubmint for all the stuff I needs.
yeah that pretty sums up my thoughts on the matter.
And yet people can’t understand when I tell them the Federal Reserve and its unlimited printing of unbacked currency and debt creation is the foundation of Progressive government.
Conservatives will continue to lose every economic and yes, also social, battle they fight while the present financial system exists.
Precious metals: gold, silver, lead, copper, steel, etc.
Abolish cash? Sure. Gold coins only.
People who claim to be economic Conservatives and social Liberals do not understand this.
If you add a small amount of water to a large amount of sewage -- you have sewage.
If you add a small amount of sewage to a large amount of water -- you have sewage.
Social Liberals kill the economics. Progressive government, with loads of magically funded charity for all, because everyone should live life as they wish -- this is what kills economies.
Not at all. I fully believe that. It pays for Democrat vote farming efforts and it also pays for Crony Capitalism kickbacks, not to mention supporting a massive army of Liberal government Employees and Academicians and such.
Our current libertine party is being paid for by unfunded debt. This is why our currency is going into the toilet.
The question is, what to do about it?
Conservatives will continue to lose every economic and yes, also social, battle they fight while the present financial system exists.
Or as that punchline goes:
Wife: "The doctor says you are gonna die!"
It's all about herding about 99% of the world's population. And I'm not sure the "conservatives" would be on our side. Most of them are bought and paid for by the big banks.
Makes it more difficult for the “banksters” to steal your money if it is not accessible by their computers.
Yes. And after 2 or 3 generations of debt-ridden people waiting for the next Fed.gov handout, and subject to the social policy of Fed.gov funded educators and community organizers, what kind of electorate will you have?
So panhandlers will now swipe your debit card onto their smartphone?
Or the gov to determine what you can buy.
I think that the elitists would face a dilemma. One set of elitists wants all digitized transactions so that they can control the public and make people into slaves.
However, there is another sector of elitists that feed off of criminal activities. The drug trade is worth by some estimates to be worth just short of a half a trillion. Government agencies need drug dealers to stay in business, no mission, no margin. Many of the agents and whole sections are corrupt and they take their cut in cash. Then you have money laundering banks that take in cash. Ultimately, all this activity depends on the end user, and you can’t expect a heroin junkie to pull out a credit card to pay for his fix.
The elitists also need cash to keep the sex slave trade going.
What about bribery, big and small, you need cash for that. Election fraud, sweetheart deals, hush money, the uses are legion.
Local police departments also depend on cash- civil assets forfieture, a cut in prostitution and illegal gambling rings.
It will be interesting to see how this plays out. Evil control freaks vs corrupt greedy types.
Yep.
Oooo, that's a 2012 dollar bill. It's only worth 80 cents of modern money. You should have deposited it and you would have only lost 10 cents of value in the intervening time.
A while ago someone from the Fed wrote a paper about this topic - how to handle a low interest environment with deflation - and one of the solutions was money with expiration dates. This was before the internet was common so he sent me a paper copy when I asked about it. I can't imagine having thrown it out, but I just cannot find it any more.
Revelation 13 is definitely what I would have put into the title.
I am sure we’re on the same page though.
Abolish cash and watch the black market flourish like never before.
You can trade for almost anything.
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