Another Keynesian Voodoo Economist Wants to See Cash Abolished

We have a few more bad news and for a change also some good news with respect to the ongoing attempt to prepare the ground for a ban of cash currency. By now everybody should know how this works: Whenever another step to curtail individual liberty further is in the preparatory stage, the ruling class starts trial balloons in the mainstream media, flanked by “expert” opinion pieces, to see how people react. If there is an uproar, they will pull back and wait for a better opportunity. If there is no uproar, you simply wake up one morning with yet more of your personal freedom taken away for the “collective good”.

This is why contrary to what some people seem to think, it is not a good idea to ignore what superficially appear to be outlandish notions. After all, as current EU commission president Jean Claude “we lie if we have to” Juncker once explained, this is precisely how the EU’s centralizers go about imposing policies which they suspect might be unpopular with voters.

A cash ban would bring about even more thorough surveillance and be one step closer to total bureaucratic control

They float trial balloons and accompanying propaganda pieces in the media and then gauge the public’s reaction. If there is no major protest, they quietly implement yet more regulations, bringing us one step closer to their wet dream of a socialist superstate under complete bureaucratic control.

Peter Bofinger, a statist and Keynesian voodoo economist, who for unfathomable reasons is a member of the group of “economic wise men” advising Germany’s government.

Photo credit: imago

Recently numerous establishment economists have come out in favor of outlawing currency in order to enable the planners running the central banks to impose their destructive policies more effectively by closing down one more avenue for savers intent on holding on to their hard-earned money. A ban on cash currency is offered as a “solution” to the alleged “problem” of the interest rate zero boundary.

After Kenneth Rogoff and Willem Buiter, another prominent Keynesian voodoo economist has decided to chime in. This time it is socialist Peter Bofinger, a prominent German economist, who is among the economic “wise men” (!) advising the German government. He has already come to our attention as a statist snake oil peddler on previous occasions, but this is definitely a new low for him. As German news magazine Der Spiegel reports in its German language edition:

“More Influence for Central Banks: Government Advisor on Economics Peter Bofinger Demands the Abolition of Cash”

Coins and banknotes are outdated and only decrease the influence of central banks. This position is taken by economic “wise man” Bofinger. The federal government should pursue the abolition of cash currency.

Peter Bofinger, economic advisor to the government, is campaigning for the abolition of cash currency. “In light of today’s technological possibilities, coins and banknotes are indeed an anachronism”, Bofinger told Der Spiegel.

Should they be discontinued, the markets for undeclared labor and drugs would wither on the vine. Moreover it would be easier for central banks to enforce their monetary policies. The economist living in Wuerzburg calls on the government to pursue the abolition of cash internationally. “This would be a great topic for the agenda of the G 7 summit in Elmau”, he said.

Former US treasury secretary and economist Larry Summers has pleaded for the abolition of cash as well. He likewise argued that central bank policy rates are less effective if banks or consumer start hoarding cash instead of holding deposit money. Critics warn however that such debates only distract from the real problems of monetary policy.”