In the Middle Ages, no matter what ailed you, the doctor had one cure: attaching leeches to your body. Today, modern medicine has discredited leeches as a cure-all. We look back on it and laugh. “How could we have been so stupid?" Some things haven’t changed much. The average person is still willing to blindly accept conventional thinking—maybe even more so than he was in the past. Today, he hears the financial equivalent of “more leeches!” and agrees. Conventional wisdom and economic “experts” continually prescribe treatments that we will no doubt look back on and say, “How could we have been so stupid?”
According to Larry "Ban $100 Bill" Summers, Donald Trump Is The "Greatest Threat To American Democracy"Submitted by Tyler Durden on 03/01/2016 13:20 -0400
"Donald Trump’s rise goes beyond his demagogic appeal. It is a reflection of the political psychology of frustration – people see him as responding to their fears about the modern world order, an outsider fighting for those who have been left behind. If we are to move past Trumpism, it will be essential to develop convincing responses to economic slowdown."
Former Treasury secretary Larry Summers wants to get rid of the $100 bill. But I think he has it exactly backward. I think we need to restore the $500 and $1000 bills. And the reason is that people like Larry Summers have done a horrible job.
The size and scope of the political, economic and financial problems that now challenge the relative stability and tranquility of developed societies are unprecedented. Negative interest rates combined with the eradication of cash appear as a desperate attempt to control global private wealth. Should the war on cash prove unsuccessful in its early stages, banks could be closed for long periods.
“It’s a big club and you ain’t in it!”
Gold never changes; it's the world around it that does. Why is it that we see a renewed interest in gold now? And more importantly, should investors buy this precious metal? Key attributes in a 'changing world' that are relevant to the price of gold are fear and interest rates.
"Few Europeans use the 500-euro note, and most Americans rarely encounter the $100 bill. Yet hundreds of millions of these notes are in circulation around the world, where they are often used by drug cartels, corrupt politicians, terrorists and tax cheats to evade law enforcement." The New York Times editorial board has once again exposed itself as a dangerous and duplicitous organ of entrenched established interests against the public. It must be exposed.
While most advocates for phasing out large bills are not getting tired emphasizing that smaller bills would not be affected, this data shows that the largest bills of each currency account for over 2/3 of all bank notes in circulation. Hence, all the problems we think will emerge with a complete phase-out of cash would in our view already materialize by eliminating the largest bills.
I love the credit card commercials on TeeVee and how they talk about “cash back”, “cash bonus”, “cash this” and “cash that” – “what’s in your wallet?”
"Keep in mind for historical perspective the United States had negative rates in the 1930’s, OK. That was the best time to buy stocks, OK...."
Europeans don't trust financial institutions...
If the Benjamin is killed, it will “deter illicit activities” they say, apparently taking us all for complete idiots. Very organized criminals all over the world could be heard rolling on the floor laughing their heads off at this pronouncement.
That didn’t take much. After a three-day rally, the media is back into “bullish” mode suggesting the bottom is likely in and by the end of this year, it’s all going to be just fine. Unfortunately, history suggests that after such a long unabated expansion risks are substantially higher than it has been previously. Furthermore, as I have repeated often in these missives, in an economy that is driven primarily based on consumption, and such consumption is already weak, it doesn’t take much to “flip the switch.”
Brunner and Brandberg maintain that the tendency in the EU and in OECD member countries is to “weaken individual liberties” and to exercise greater control over citizens. In this context "cash is comparable to the service firearm kept by Swiss citizen soldiers," the pair argued in their motion, saying they both “guarantee freedom.” The move toward electronic payments allows governments "total surveillance" over individuals, the pair claim.
Beware politicians trying to limit the ways you can conduct private economic business. It never turns out well.