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Tuesday, June 30, 2015

Ban on Cash, Negative Rates, and Super Bubbles

http://www.debtcrash.report/entry/ban-on-cash-negative-rates-and-super-bubbles-1

Recently there has been has been a rising chorus to do away with cash, herehere, and here.  You will hear several reasons why this is necessary, but there really is only one.  The banking interests want to be able to implement significant negative interest rates and participants in the economy being able to opt out of negative rates by removing cash from the banking system makes this very difficult.
So how did we get here?  Over the past 70 plus years we have been living in a credit created bubble that has supported the economy, but as Von Mises said:
"There is no means to avoiding the final collapse of a boom brought on by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

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