Zero Hedge: “Professor Rogoff, you are proposing to get rid of cash. Why?
I actually favor a less cash society over a cashless society. Currency has a lot of important uses which are not so readily replaced in the foreseeable future. The use of cash in the legal economy is very concentrated in small purchases where I guess it’s convenient. It’s also used in poor communities. But it’s different with big bills. Their importance for large legal and tax compliant transactions is rapidly diminishing.
In most of the advanced countries cash is used and held by people who are engaged in crime and tax evasion. Also, cash plays a huge role in black labor and illegal immigration.”
Opinion: Kenneth Rogoff is a professor of Public Policy at Harvard University. On one hand he says he is not a Keynesian economist, while on the other hand he said “a less-cash society would be a fairer and safer place”.
Translation: You can keep your piggy bank for now, but get rid of big bills so that central banks can gain more control.
The main reason is compelling – help the global economy by stopping organized crime/drug trafficking thereby giving government the ability to collect taxes from black market activities.
And here is the Keynesian in Rogoff, his idea will give way to gigantic rates of central bank monetary expansion as cash is done away with completely:
“Cash currency should be banned altogether. Central banks could impose negative interest rates more easily that way, he explained. Tax evaders and criminals would also find life more difficult. From this perspective, banknotes and coins appear superfluous, he said at a presentation at the IFO institute in Munich. Measures to spur the economy could be implemented more easily that way.”
Negative interest rates, according to Rogoff and his ilk, will discourage saving and cause economic growth by spending. Don’t worry about emergencies or retirement, government will take care of you.
Once central banks have total control of every transaction, the prophecy of Revelation 13:16-17 becomes very real.