{"id":18547,"date":"2016-03-06T16:40:44","date_gmt":"2016-03-06T21:40:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18547"},"modified":"2016-03-06T16:40:44","modified_gmt":"2016-03-06T21:40:44","slug":"sweden-begins-5-year-countdown-until-it-eliminates-cash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18547","title":{"rendered":"Sweden Begins 5 Year Countdown Until It Eliminates Cash"},"content":{"rendered":"

Sweden Begins 5 Year Countdown Until It Eliminates Cash<\/a><\/h3>\n
<\/div>\n
\n
\n

How much louder can the \u201cban cash\u201d calls get?<\/p>\n

Recall it was just last year when we catalogued the growing\u00a0cacophony<\/a>\u00a0of crazies for whom banning physical currency is the only way to ensure that depositors can\u2019t simply reassert their economic autonomy under a low or zero rate regime..<\/p>\n

Put simply, if interest rates get too low, depositors will simply take their money out the bank and put it in the mattress or the safe where, to quote\u00a0WSJ from last week<\/a>, \u201cinterest rates are always low no matter what central bankers do.<\/p>\n

Most recently,\u00a0Larry Summers called<\/a>\u00a0for the abolition of the $100 bill in the US and in Europe the \u20ac500 note is to go the way of the dinosaurs.<\/p>\n

\"\"<\/p>\n

Perhaps the most telling sign that citizens are starting to panic is that in\u00a0Japan, they\u2019re selling out of safes. Literally.<\/strong><\/p>\n

\"\"<\/strong><\/p>\n

\u201cIt shows a vague sense of unease,<\/strong>\u201d one Japanese lawmaker who brought up the soaring safe sales in parliament on Monday remarked.<\/p>\n

Now, the excuse given for banning big bills is that it combats crime. And maybe it does. But in the end the rationale is simple:\u00a0if there are no more physical banknotes, people have no economic autonomy.<\/strong>\u00a0Let\u2019s say consumer spending is stagnating. No problem, take rates to -20%. We bet they\u2019ll start spending then – either that or see their deposits haircut by 20%.<\/p>\n

In short, no cash means no effective lower bound and with no lower bound, the economy can be completely centrally planned – for all intents and purposes.<\/p>\n

Consumers not spending? No problem. Just tax their excess account balance. Economy overheating? Again, no problem. Raise the interest paid on account holdings to encourage people to stop spending.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Sweden Begins 5 Year Countdown Until It Eliminates Cash How much louder can the \u201cban cash\u201d calls get? Recall it was just last year when we catalogued the growing\u00a0cacophony\u00a0of crazies for whom banning physical currency is the only way to ensure that depositors can\u2019t simply reassert their economic autonomy under a low or zero rate […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1035,4787,1034,309,452,3284,12394,771,4927,4318],"class_list":["post-18547","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cash","tag-cash-ban","tag-cashless-society","tag-fiat-currency","tag-japan","tag-larry-summers","tag-physical-currency","tag-sweden","tag-war-on-cash","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18547"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18547\/revisions"}],"predecessor-version":[{"id":18548,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18547\/revisions\/18548"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}