Sir, It seems to me Kenneth Rogoff’s commentary, “Paper money is unfit for a world of high crime and low inflation” (May 28), is less about deterring crime and the problems of “low” inflation – food consumers in the US know double-digit inflation – than it is about eliminating the zero bound on interest rates and preventing people from bailing into cash.
In other words, Mr Rogoff proposes to machinegun one of the lifeboats by eliminating paper currency as an alternative to unlimited digital currency.
But of course.
Machine-gunning the lifeboats is what these folks do.
The simple fact of the matter is that banks have been repeatedly caught laundering money for drug gangs and similar unsavory acts. Wachovia anyone? And note that the particular allegations in question there were over $400 billion in gross amount, which is approximately half of the total amount of currency that was in circulation at the time!
But every penny of that was electronic currency, not paper.
Nobody went to prison for those acts.
Gee, I wonder why……
It’s none of the government’s damn business how I spend my money, until and unless they can demonstrate probable causeto a judge that I have committed a crime. This sort of march toward “currency-less” economies is nothing more than an attempt to allow the government to decide, without review or consequence, that it simply doesn’t “like” what you do with your funds.
You have to be a certain special brand of stupid to allow that to happen.
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