ban cash , end boom and bust

[ralph]

--- http://www.telegraph.co.uk/finance/pers ... -bust.html --- not the USA but I keep hearing rumblings these last 10 - 20 years . Probably more years then that !!

[millergrovesue]

Sounds like a terrible idea and one that could only be implemented in socialist countries.

"account held at a government-run bank"
Oh yeah, because the gov. runs everything so efficiently.

How Big Brother is this? Some worrisome stuff here.
"Having everyone’s account at a single, central institution allows the authorities to either encourage or discourage people to spend. To boost spending, the bank imposes a negative interest rate on the money in everyone’s account – in effect, a tax on saving.

Faced with seeing their money slowly confiscated, people are more likely to spend it on goods and services. When this change in behaviour takes place across the country, the economy gets a significant fillip.

The recipient of cash responds in the same way, and also spends. Money circulates more quickly – or, as economists say, the “velocity of money” increases.

What about the opposite situation – when the economy is overheating? The central bank or government will certainly drop any negative interest on credit balances, but it could go further and impose a tax on transactions.

So whenever you use the money in your account to buy something, you pay a small penalty. That makes people less inclined to spend and more inclined to save, so reducing economic activity."

[planosteve]

Gordon Brown is the moron who sold most of the gold held by the Bank of England at a time when the price was only a few hundred dollars per ounce!

All booms and busts are caused by the govt. expansion of the supply of money and credit. This just makes it easier for them to do it.

[ralph]

I like cash , hope that it lasts my lifetime at least .

[planosteve]

I like cash , hope that it lasts my lifetime at least .

It wont.

[Cowman52]

Just a way to make sure the 10 bucks little johnny gets for mowing the yard across the street is out there for the IRS to get their cut of.

[planosteve]

Just a way to make sure the 10 bucks little johnny gets for mowing the yard across the street is out there for the IRS to get their cut of.

When I mowed lawns, 50 cents was the going rate. That's fiat money for you.

[GFB]

Sounds like a terrible idea and one that could only be implemented in socialist countries

You got THAT right!

[GFB]

This is silliness.

[GFB]

I like cash , hope that it lasts my lifetime at least .

Well, you have to make YOUR cash last a lifetime, that's for sure.

Besides that, cash is going nowhere.

All of the world's many trillions of reserves are in U.S. Dollars..not gold..not Euros..not any phoney baloney internet money.

[ralph]

hope that you are correct Greg !!