Friday, November 25, 2016

The 'Great' Cashless Society Closer Than People Realize

The hunt for cash and fears of bank runs has countries eliminating and preparing to eliminate cash (1,2). Elimination of money, a move made possible by the whims of the public rather than private sector, would be a tragic loss of property, wealth, and liberty for millions. Unfortunately, the close proximity of the global debt crisis, a threat to large banks that influence governments (often at the expense of the people), means the days of cashless society is likely a lot closer than people realize. As long as the economy stagnates and the number of people in poverty rises to intolerable levels, policies of "fairness", the redistribution of wealth rather than physical or intellectual production, remains the real threat. Tax and spend must be replaced by reduce and invest.

Headline: India's reform architect trashes PM Modi's cash crackdown

Former Indian Prime Minister Manmohan Singh on Thursday tore into his successor Narendra Modi's clampdown on the cash economy, calling it an "organized loot and legalized plunder" of the country.

Singh - the architect of economic reforms that led to years of rapid growth - dubbed Modi's shock move to scrap 500 and 1,000 rupee banknotes a "monumental mismanagement" that could shave at least 2 percentage points off economic growth.



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