Bloomberg: Abolish Cash to Create a Freer Market

TDB's picture
Via TheDailyBell.com 

Want a Free Market? Abolish Cash … If you believe that government meddling in financial markets was responsible for the last recession and the lackluster recovery, you might be right. But probably not in the way you think.  – Bloomberg

Some Bloomberg editorials are stranger than others. This one is especially strange because it argues that banning cash will create a stronger, freer market.

How does a government ban on certain items make anything freer? We don’t understand.

Here’s Bloomberg’s logic:

Two government mechanisms prevent real interest rates from getting too negative. The first is cash: As long as people can hold currency, which loses its value only at the rate of inflation, they won’t buy safe assets that yield even less.

The second is the central bank’s promise to keep the inflation rate low and stable — at about 2 percent in most developed nations. As a result, people have little reason to hold any asset that yields less than negative 2 percent (perhaps negative 3 percent, considering that cash is bulky and hard to store).

In other words, governments — by issuing cash and managing inflation — put a floor on how low interest rates can go and how high asset prices can rise. That’s hardly a free market.

Say what? The reason rates are so low in the first place is because of monopoly central banking, which exists in the US only because Congress voted to create the Federal Reserve.

The Fed is a monopoly money facility. It is not a free-market creation.

So the logic of this editorial is that because the Fed has irrationally damped rates – as part of a larger move to ruin economies and bring in a global central bank – the US government should ban cash and unleash negative rates.

The result of all this government and central bank price fixing will allow a “free-market” to operate more powerfully and efficiently. Wow.

The right answer is to abolish currency and move completely to electronic cash, an idea suggested at various times by Marvin Goodfriend of Carnegie-Mellon University, Miles Kimball of the University of Colorado and Andrew Haldane of the Bank of England.

Without cash, interest rates “would be able go as far into negative territory as the market required.”

The corollary here is that some people, like retirees and seniors, might get very angry about negative rates. But there’s a solution to that too: “If a government wants to redistribute resources to the elderly or the poor, it’s much better off just giving them money.”

So now we have a third, comprehensive government program. First, ban cash. Second release negative rates. Third, give money to retirees to compensate for the lack of interest.

Then a fourth necessity. Government needs to provide people with an alternative to cash that preserves anonymity. “In its absence, governments would have to allow the private sector to offer alternatives with the same attractive features.”

So government will create a new facility that ensures the same privacy as cash transactions. Why do we have a hard time believing this? ….

The way to get rid of monetary distortions is to do away with monopoly central banking. But this editorial does not recognize that alternative. Instead it postulates four separate ways that government must compensate for the irrational and ruinous outcomes of monopoly central banking.

The larger issue here is that government “laws” – any type of government actions actually – fix prices; this inevitably distorts the market and creates unexpected, negative results. Over time these negative results can turn a recession into a depression. Many would argue we’re already living through one.

Conclusion: The way to compensate for government ruin is to do away with its ruinous policies. Instead, mainstream media and those who support activist government area always suggesting other things government needs to do that will counteract what it has done before. This is nonsense. The only “solution” to government problems is LESS government. And maybe someday, somehow, somewhere, no government at all.

See TheDailyBell.com for "Bloomberg Explains Why Trump’s Anti-NAFTA Approach Is Incorrect"

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East Indian's picture

perfect doublespeak. He says essentially that people should be compelled to switch over to privately issued cryptocurrencies. 

slavery is freedom.

In a free market, anyone should be able to issue currency. Let the best currency win! 

roxyNL's picture

title should be :

((( Bloombergs ))) want to better screw the world

or

((( bloomberg ))) wants to help ((( FED )))  and ((( globalists ))) achieve total monetary domination

Al Bendova's picture

Please, Mr. Bloomberg, tell us more about freedom.

DownWithYogaPants's picture

Who is free?  Oh he wasn't talking about us.  He was talking about the government being freer! 

Sort of a misleading Bloomy title but ok I understand now.  Fuck that!

moneybots's picture

Without cash, interest rates “would be able go as far into negative territory as the market required.”

 

The market does not require negative rates. The market requires clearing. A reset.

moneybots's picture

"Here’s Bloomberg’s logic:"

 

The word logic, should be replaced with the word fraud.

moneybots's picture

"Want a Free Market? Abolish Cash …"

 

Cash is a free market. Bloomberg is peddling fiction.

Jack Daniels Esq's picture

BBG runs a betting parlour - how much to bet on which Wall St Ponzi stock tomorrow

He is no smarter than that daft, fat cunt Yellen, or Tesla Twinkletoes

iAmerican2's picture

The Knight of Malta-led Roman Catholic CIA's murder of JFK ('Hunt v. Marchetti') to restore Rome's Talmud FedScam he had ended and reverse his VN withdrawal order, NSAM263, ending our role after 120 American deaths as papal catspaw in support of the five percent Roman Catholic colonial ruling false-elite which owned 95% of Vietnam's wealth, and fabrication of the Gulf of Tonkin Hoax, were performed as the Vatican's "action branch" in America.

The ZioTalmuds' "Synagogue of Satan" is in collusion with the Anti-Christ today just as their Khazar cult impaler ancestors were on Golgotha and as false-Jews at Rome's "Wall Street of slavery" for over 2,000 years. No mystery why dozens of Mossad mechanics in possession of explosives were arrested on 9/11 near the WTC and deported.

Bloomberg's attempt to disarm we sovereign People, and to end cash here in God's True Israel now under attack by Gog and Babylon is more of the same.

Trump 2016

Death for Treason

RabbitOne's picture

People have short memories. Especially with government brain washing. Go back to 1916 and most of your parents and grand parents in that day would say to you “...if it ain’t backed by gold or silver it ain’t worth $hit...” These people in 1916 heard nothing but horror stories about paper fiat failing in the prior 200 years. Fiat will soon fail again and the screams of “...why did no one tell us this will start again...”  

oldguyonBMXbike's picture

I like the idea of time-banking and bartering...  Why is your hour worth more than mine?  Because, you followed a bunch of government BS and went 6 figures in debt, that's why.  

messystateofaffairs's picture

Yes please, thank you sir, and may I have another? Always enthused to receive another Jewish horseshit enema of sterling advice. But just in case I'll stick with bitcoin and underground economy to preserve some freedom in whats left of real world markets. Also for good measure I'll BDS their ass as much as possible, starting with Bloomturd.

rphb's picture

Banning cash will just force people to run to gold and silver, or if that is gone or made illigal too, people will run to any hard asset that can maintain its value.

Banning cash and gold and silver, will lead to a society where canned beans, bottles of wiskey and packs of bullets becomes the new currency. Not unlike what happened in the later days of the Romen empire after they had destroyed their currency with rackless government spending on welfare and warfare.

East Indian's picture

currencies will emerge spontaneously out of every commodity - tobacco, grain, playing cards, plywood...

Our villagers had a very vibrant rice curency till about fifty years ago! Petty traders would accept a unit of paddy (unhusked rice) instead of money. It was pretty standardized too. All the services has a specific quantities of paddy; this much for washing clothes, this much for cleaning the roof. Even local movie halls ('touring talkies') would accept two units for one ticket of the lowest class. 

Those who dream of binding the whole mankind in their web will be sorely disappointed.

Dwain Dibley's picture

 

Here you go: 

The Ban on Cash - Part II

The only ones who benefit from the conflation of money and credit are the issuers of credit with no money.

Neither the Fed or the banks possess the legal authority to create the nation's legal tender money, and they don't. What they do create is asset backed, debt based PRIVATE credit denominated in dollars, an obligation to pay in the nation's money (all bank generated credit is bank debt) and it is not part of the actual money supply even though the Fed counts it as being such. The U.S.G. has absolutely no legal obligation to make good on any of the Fed and bankster's promises to pay. They proved that point in the 1930's and again in 2008.

jfb's picture

Abolishing cash and setting a negative interest rateof 10% one month after, what can be the outcome?

-High inflation on electronic payments as the business owner wants to offset his loses 

-Strong deflation on cash payments for small stores (not supermarkets) as those small shop owners seek to avoid the taxes

-An increase of bartering between companies, suppliers/buyers who will create their swap system without any money.

-Small business proposing to their employees an alternative form of payments, exchangeable coupons to get shoes, food, depending on what the cie produce (as in Germany in 1923)

-Social unrest when the employees of big corporations realize not only that they are penalized with a tax on capital, but that their "electronic money" is refused in many places

-A gradual metdown and a collapse of government revenues

Now, if you have a capital that you want to protect and the jewerly stores are out of business or accept only cash you could still travel abroad and purchase gold/diamonds with your debit card...

koan's picture

The Protocols of the Elders of Harvard.

xavi1951's picture

Remember, no matter where you go, there you are.  Negative interest rates = money/credit confiscation.  Thank you liberal retard professors for another reduculous idea, like socialism.

Antifaschistische's picture

we all know why they propose eliminating cash.  However, will the Washington Insiders and all the .001%ers who launder their billions through international banks really allow this?  Their routine suit case full of cash on the private jet bound for The Caymans, etc...will be shut down.  So, how are TPTB going to pull it off then?   This is the ONLY reasons we still have cash around in my opinion.  It's certainly not because they want to make sure the lower 10%ers can still complete their yard sale transactions.

Vendetta's picture

So they are proposing murdering all the homeless people.... 

messystateofaffairs's picture

Absolutely not, just poisoning the garbage they eat from. Its for rodent control, enlightened elites don't put too fine a distinction on lifeforms below their level.

JailBanksters's picture

All the existing monetary problems were all caused by NON Cash means,

just moving binary numbers from one computer to another one.

zagzigga's picture

So, no more cash under the mattress?

Golden Phoenix's picture

When Bloomberg pondered running for president he was at least wise enough to take a poll first.

85% of Americans didn't want him to be president. 15% did. 15% didn't know who he was.

I'm making the numbers up because I don't remember them but they're not far off.

Kone Wone's picture

Does that mean that 15% of people, even though they didn't know who he was, would have voted either for or against him? (Maybe in the ratio of 5.67:1 for vs against)

That does indeed suggest a really confused or intellectually derelict public.

newworldorder's picture

Something alwsy happens when individuals and families become infinately wealthy. They believe that they become secular gods.

cheech_wizard's picture

I tried to get a priest to bless my secular bullets. He wasn't buying it.

 

dumbhandle's picture

Good luck banning Monero.  It is what bitcoin should have been.  The online drug bazaars have just adopted it due to Sandia National Laboratory gearing up a chainalysis team for DHS.  Monero should be immune from that.

Jane Sheppard's picture

Abolish psychopathic banksters to free the market.

iAmerican2's picture

The day after (((their))) Sandy Hook Hoax Bloomberg, with (((Feinstein, Schumer, and Boxer))) also "announced" the time to end the right to private ownership by Americans of semi-automatic weapons had come.

Rather the time has come to purge God's actual prophesied "Promised Land," the biblically foretold "New Israel," of Satan's Christ-killers and Beast Fifth Column.

jfb's picture

People are not all docile Greeks. The policemen, the soldiers, they will see also their economies being confiscated. In addition to turn those people angry, this measure will also push small entrepreneurs to adopt a bartering system between them and with their customers. They (elite) are not so wise, the sole cells left in their brains are the cells of cupidity. On the other hand, such measure is likely to cause a fast implosion of the system, so it has some good...

jfb's picture

Ya, steal openly 80% of the population and draft their sons/girls to wage disastrous wars abroad against huge nations at the same time, it will work like a charm... 

Stormtrooper's picture

Ban cash.  Bring back (real) money.

thefinn's picture

Gold/Silver would be great.

Colonel Klink's picture

Eat a bag of cut dicks Bloomturd and die of AIDS.  Just another tribe member toeing the filthy line.

MFL8240's picture

Yes abolish cash and make all you gentiles slaves!  FU Bloomberg!

Fisherman Blue's picture

No wonder this ass hole wants to take away all guns from the people. I say ban credit and mover to gold and silver.

lincolnsteffens's picture

Bloomberg hates the Bill of Rights and anything else that stands in the way of government control of every aspect of our existence. He is not just a traitor to the land he lives in, but a traitor to to the human spirit everywhere. He belongs in prison.

Transformer's picture

"considering that cash is bulky and hard to store)."

I guess it is bulky, say if you want to store 100's of million of $.  However, you can easily put well over a $million in 100's in a briefcase.

I guess cash is just too bulky for the 0.1%.

Citxmech's picture

Nickels are bulky.  If you have so much f'n cash that hundreds are falling out of your ass like El Chapo, go to 1,000.00s.