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Leading German Keynesian Economist Calls For Cash Ban
It’s official: the world has gone central-planner crazy.
Monetary policy, whether in the form of “conventional” methods such as the micromanagement of policy rates or so-called “unconventional” measures such as QE, has proven utterly ineffective when it comes to both “smoothing out” the business cycle and reigniting economic growth in the wake of severe downturns. If anything, recent history has shown the exact opposite to be true. That is, the Fed helped to engineer the housing bubble and has now succeeded in inflating a similar bubble in stocks and fixed income. Meanwhile, the Japanese experience with QE has plunged the country into what we have affectionately dubbed “The Kuroda Zone”, wherein the BoJ has cornered both the stock and bond markets while failing to promote wage growth or meaningfully raise inflation expectations. In China, the PBoC has taken to cutting policy rates at the first sign of weakness in the stock market, helping to sustain what will perhaps go down in history as the second coming of the tulip bulb mania, while the ECB has taken the insane step of adopting a trillion euro bond buying program while simultaneously demanding fiscal discipline, meaning the central bank’s bond monetization efforts are set against a backdrop of meager supply.
In sum, the collective actions of the world’s most influential central banks have done wonders when it comes to inflating asset bubbles but have done very little to revive robust economic growth. In fact, far from smoothing out the business cycle and resuscitating DM demand, post-crisis monetary policy has actually had the exact opposite effect: it has set the stage for an even more spectacular collapse while simultaneously creating a worldwide deflationary supply glut.
At this stage, a sane person might be tempted to call it a day on the monetary experiments, especially considering that at this point, the limits have been reached. That is, there are literally no more assets to buy and rates have hit the effective lower bound where rational actors will eschew bank deposits in favor of the mattress. But not so fast, say folks like Citi’s Willem Buiter and economist Ken Rogoff: the world could always ban cash because if you eliminate physical currency and force people to use a debit card linked to a government controlled bank account for all transactions, you can effectively centrally plan everything. Consumers not spending? No problem. Just tax their excess account balance. Economy overheating? Again, no problem. Raise the interest paid on account holdings to encourage people to stop spending. So with Citi, Harvard, and Denmark all onboard, we bring you the latest call for a cashless society, this time from German economist and member of the German Council Of Economic Experts Peter Bofinger.
Via Spiegel (Google translated):
Coins and bills are obsolete and only reduce the influence of central banks. This position represents the economy Peter Bofinger. The federal government should stand up for the abolition of cash, he calls in the mirror…
The economy Peter Bofinger campaigns for the abolition of cash. "With today's technical possibilities coins and notes are in fact an anachronism," Bofinger told SPIEGEL.
If these away, the markets for undeclared work and drugs could be dried out. In addition, it would have the central banks easier to enforce its monetary policy.The teaching in Würzburg economics professor called on the federal government to promote at the international level for the abolition of cash. "That would certainly be a good topic for the agenda of the G-7 summit in Elmau," he said. (Click here to read the full interview in the new mirror .)
Even the former US Treasury Secretary Larry Summers and economist pleaded for an end to the already cash . Likewise, the US economist Kenneth Rogoff . He also argued that the interest rates of central banks have less clout when banks or consumer credit rather than hoard cash.
Critics warn, however , such debates would only distract from the real problems of the current monetary policy.
Yes, the “real problems” with current monetary policy. Like the fact that by design it can't possibly work (but it can and will push stocks to unprecedented highs). Paging Mr. Weidmann, your countrymen are going Keynesian crazy.
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No. Those are getting banned too. See the pattern?
????? what are getting banned?
Shits getting way out of hand. If not outright fucking scary. Ice cream social days are over.
Its scary if you believe this bullshit LOL
Dutchboy, just because you're old as fuck Boomer (give me, give me, give me Generation) and stupid as shit, that doesn't mean you have to have diarrhea of the mouth. You must have taken too many meds today. I've been to the Netherlands and Europe recently. What about all those fucking brown people you call immigrants? The Dutch have let in hundreds of thousands of non-assimilating, non-working muslims. You don't see a problem? Open your fucking eyes old man. Your pension is fucked. Many problems with inflation coming soon. Wait for the muslims to go terroristic on your naive asses when the government attempts to take them off the dole.
First off, I live in the Rhine Valley and never go to Amsterdam . All I see are blonde haired blue eyed kids and the farmers here ain't selling their land. Muslims are not terrorists. Jews are terrorists. Zionist Jews.
BTW, I bet all you did was go to Amsterdam and smoke dope and fuck a few hookers.
Oh and 911 was CIA/Mossad job to get fools like you to hate Muslims. It worked.
There are nutters out there that say the world is coming to an end. They have been around for decades. Nothing ever happens. They need to put down their fucking Buybull and start using their brains.
The world ends everyday for some folks. See death, generally.
"The world ends everyday for some folks. See death, generally."
With the advance of PC, we no longer die, we Pass away, or expire, like a magazine subscription!
The quicker JH15 comes and we get this 'Dollar Collapse' the better, I'm sick of listening to excuses now.
What will come first, Jade Helm or Grexit? Both will have very profound effect!
dutchboy, at your age and still stupid? my world has ended, America is not the America of 1950- it is gone..
the scales have fallen off..quality of every day life, such as unlocked doors, social interactions - are rare, everyone lives in the ether of the internet with "smart" phones and Face book, the milk man left years ago and main street is dead and empty.
The world has ended..just nobody bothered to tell you.
Coins and bills are obsolete and only reduce the influence of central banks
scary scary statement on so many levels.
And one thing the dumb goy shouldn't want is to reduce the influence of central banking criminal Jews.
Central Banks.......want the control. They want their Bonuses, for non productive work. The Government want to be able to control your accounts in case you step out of the line (Rank and File) they will create. If anyone on mainstreet is not scared of this proposed system.........well...........Were Fucked.
Media conditions everyone.
A great start would be to make the News tell the truth. Or have a box on the sreen that states that these may not be factual. Like that would ever happen...............It should be demanded.
The recent (manufactured) economic collapse seems by design when you look at this sort of thing.
1: Collapse economies,
2: Make money going up and going down
3: Then convince everyone we need a cashless society.
A cashless society is one that will be total control in a few hands, oppression unlike that ever seen in history.
I guess it is possible to rule the World.
The financial system is poorly designed and benefits a subset of people. When it breaks every 100 years or so, the private sector banks always force the goverment to blame a component like gold and now cash. Gold. Was outlawed in the 30s and confiscated for bonds. Now cash is the "problem." The real problem is, of course, private money creation in the form of debt overwhelms the CBs attempts to control it. Dark pools, hidden accounts, derivatives and the like. The private banking sector is desparate now to fix their golden goose...which is destined to fail and will need a valuation reset which of course piss off enough citizens to hopefully force government to reset the banks and create some real laws. Idiots
Where I live we are nudging into a barter economy. The Mennonite farmers nearby are much further along. When the balloon goes up I don't think the "economists" will have much to bring to the table.
So how is the community bartering large items like cars, computers, fertilizers, rent, tanks of gasoline and propane?
The " how does it handle this..." Must be discarded.
The whole thing we are at odds with is Central Planning.
The point is Everything Doesn't Work Everywhere.
What works there, works there for things that it works for.
Increase That percentage, The better off They are.
Adapt.
"I'll swap you 2 gold eagles for your Camry"
And down the slope we go...
Fuck you, you sociopathic asshole .
I call for a ban on tyrants. Kings and queens are obsolete.
unfortunately I lost all my. cash in a boating accident.
I left all mine on the hood of my car and drove off before I remembered I left it there.
Hmm, Only Electronic money....
That means that the currency could be devalued over night and everything would cost what they said it cost when ever they said.
"St. Peter don't ya call me cause I can't go,
I owe my soul to the company store..."
The War on Cash started long ago but it is certainly making headlines these days.
http://www.globaldeflationnews.com/governments-are-secretly-preparing-to...
Not only a keynesian but moreover a socialist - what often is the same. Bofi is not very serios and you should not hear to what he says.
The idea is not new - and some americans also follow this rubbish. But it only must destroy freedom which cash is part of.
It was invented in cash for making safe exchange. Nobody ever thought it as an account - and not only an account.
Peter Bofinger and his fellow travellers should do us all a favor and kill themselves yesterday.
This is why the Austrian School supports competing monies from anyone who wishes to issue it, and frowns on the monopoly of currency in the hands of the State. The market will sort the disreputable, instead of enshrining them as the State enforced monetary system does.
It's not what backs government/State money that should be argued, or whether debt is good or bad. The central issue has always been:
Who prints the money?
So, the bills and coins reduce the influence of the central bank? I thought the bills and coins comprised the economy. So, is this a choice then, an economy or a central bank? Because, if it's someone other than the .001% making the choice, I think the answer to that choice would always be an economy, TYVM.
When we end up having the central bank, we'll have yet one more piece of blatant evidence of who is actually making the choices.
IF YOU WISH TO SEE POLS HEADS AND BANKERS HEADS ON POLES and SAME BEING DRAWN AND QUARTERED or STRUNG UP ON LIGHTPOSTS AND LIT AFIRE...... ELIMINATE CASH AND EXECUTE THE DEBT CARD SCHEME
now would be a good time for someone to provide a list with names addresses pictures of politicians and bankers considering this folly.... can run but not hide