Abolishing money will create a freer market and allow 3% negative interest rates. What!
This is what Narayana Kocherlakota from Bloomberg wrote on 1st September:
“…two government mechanisms prevent real interest rates from getting too negative. The first is cash… 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.
“…The right answer is to abolish currency and move completely to electronic cash… Because electronic cash can have any yield, interest rates would be able go as far into negative territory as the market required.”
[ Kocherlakota is a Bloomberg View columnist, professor of economics at the University of Rochester, and was president of the Federal Reserve Bank of Minneapolis, 2009 to 2015.]
Charles Hugh Smith (in oftwominds.com):
“Central banks can only do one thing, and that’s provide monetary welfare for the wealthy. Now that the central bank has enriched the obscenely wealthy, distorted markets globally and addicted the economy to cheap credit, the servile toadies and lackeys in the mainstream media and the Cargo Cult of economic “professionals” is finally admitting that it was all a fraud, a racket that favored the rich.”
It seems they are trying to keep the system going at all costs.
Greg Buck on lower interest rates.
Lisa Haven’s video commentary on “Bankers To Abolish Cash and Issue Negative Interest Rates.”