Economist Martin Armstrong warns that the financial elite are plotting to abolish cash but are wary of the public becoming aware of the plan because it could cause bank runs.
A meeting to discuss the move towards eliminating physical currency took place at the luxury Mandarin Oriental Hyde Park hotel in London recently during which Kenneth Rogoff of Harvard University and Willem Buiter, the Chief Economist at Citigroup, gave presentations.
According to Armstrong, “The lack of press coverage was deliberate, and intended to avoid sending panic to the people, which would lead to a massive bank run if people understood what these guys are discussing.”
The last time the issue of bank runs really hit the headlines was back in October 2013, when U.S. banks began, “Stocking cash machines with extra funds to satisfy any consumer panic in the days before a possible default.”
Armstrong, who is known for successfully predicting the 1987 Black Monday crash as well as the 1998 Russian financial collapse, accuses the likes of Buiter and Rogoff of planning to usher in a new era of “economic totalitarianism” by banning cash under the justification of eliminating organized crime, tax evasion and the drug trade.
However, the move, which is designed to force people to keep credit in banks, will also end “all privacy for individuals,” says Armstrong.
“They see the zero lower boundary on interest rates as the point at which people will withdraw their money from banks and hoard it in a shoe box,” writes Armstrong. “Therefore, they still believe that lowering interest rates is the only direction. They propose that if currency were eliminated, nations could retain a zero inflation rate, and still get all the monetary stimulus it needs. This is truly an astonishing bit of reasoning, but that is why they are academics and not in the real world where they would be forced to watch how people react and move with trends.”
As we previously documented, influential voices across the spectrum have repeatedly invoked the need to ban cash in recent weeks, including former Bank of England economist Jim Leaviss, who penned an article for the London Telegraph last month in which he said a cashless society would only be achieved by “forcing everyone to spend only by electronic means from an account held at a government-run bank,” which would be, “monitored, or even directly controlled by the government.”
In France, new measures are also set to come into force in September which will restrict French citizens from making cash payments over €1,000 euros.
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