A meeting devoted to the potential cash abolition occurred at the luxurious Mandarin Oriental Hyde Park hotel in London, and Kenneth Rogoff of Harvard University and Willem Buiter, the Chief Economist at Citigroup, gave their speeches during the event.
Economist Martin Armstrong points out that this event wasn’t meant to attract the attention of the media, because the financial elite didn’t want to cause chaos among masses and lead people to start massively withdrawing their cash, like it happened in October 2013, when a bank run happened because the U.S. banks indicated potential default and started stocking cash machines with extra funds.
Armstrong explains that eliminating cash and using organized crime, tax evasion and the drug trade as an excuse for that, is a bad move, which is why he doesn’t support the plan and devotion of Buiter and Rogoff to abolish cash and cause economic totalitarianism.
Armstrong, who predicted the 1987 Black Monday crash and the 1998 Russian financial collapse, adds that if the cash gets banned, people will be forced to keep their credit in the banks and their privacy will be violated.
The idea of the financial elite is not just to bring interest rates to zero, but to reduce them further below. According to them, in the case of a cashless society, nations could keep a zero inflation rate, while getting needed monetary stimulus. However, Armstrong believes that their reasoning is the consequence of living outside the real world where is not possible to see honest reaction of people.
Former Bank of England economist Jim Leaviss is one of those who support and stand for cash elimination. He even explained in his article for the London Telegraph that this idea could be accomplished only if everyone switched to electronic methods of payment and accounts held in a government-run bank. This is how the government would be able to take total control over every possible transaction.
Banks in the United States and United Kingdom have already defined the new rules, and everyone’s attempt of depositing and withdrawing relatively large amounts of cash is considered to be a mistrustful activity.
According to the available information, France will start restricting its citizens from making cash payments over 1,000 euros from September.