The Mark of the Beast Draweth Nigh…

Despite recent reports to the contrary, the Federal Reserve is actively engaged in bringing negative interest rates to the United States. By doing so, the Fed will bring its own monetary policy in line with central banks in Japan and most of Europe.

Why go negative on rates?

Well, current Keynesian models suggest that going negative will boost aggregate demand. And, we’re told by these folks that what this economy needs is a kick start to demand.

Of course, they care not to be reminded of their previous failures to drive demand with several years of zero interest rate policy (ZIRP) and three attempts at quantitative easing (QE). For all their efforts at driving aggregate demand, the only results are inflated stock prices and another growing bubble in real estate. That doesn’t include the trillions in additional debt!

As for the economy, it continues to be the weakest recovery in American history. And any further efforts at driving aggregate demand with negative interest rates will fail miserably.

You see, with a global economy on the verge of recession, very few banks are able to find credit worthy customers. This includes major U.S. companies that have loaded up on trillions of low yield debt in recent years to increase dividends and share buybacks. They’re simply tapped out.

Now, central banks are getting ever more desperate to increase demand. But as central banks around the world are learning, negative rates don’t work either.

Here’s why…

Interest rates are subject to the same forces of supply and demand as any other commodity. And any economic theory that presupposes investors would buy a one-year T-Bill for $1,000 only to get $995 a year later falls short of being a financial genius!

You see, investors are smarter than the average Keynesian economist who believes that people will pay the government or bank to hold their money. After all, an investor would be better of putting their money under a mattress. A year later, the investor still has $1,000.

And herein lies the problem…

Global governments cannot allow investors to take their money out of the economy by placing it under a mattress or in a safe deposit box. That defeats the purpose of negative interest rates, which is to force individuals to do something… or anything.

And there is only one way to prevent individuals from hoarding cash…

Ban it! Force everyone to convert their paper money into bank deposits by eliminating the use of cash for any and all transactions.

Think this is a far-fetched idea?

Norway’s biggest bank is demanding a ban on all cash transactions in that country, as is the Bank of England’s chief economist. Other countries such as Japan, China, Sweden, Switzerland, and Germany are also considering banning the use of cash in their countries.

The Danish Parliament leads everyone and has proposed a law allowing stores to refuse cash payments for goods and services. A vote authorizing such a ban is expected to pass.

Don’t think for a minute that calls to ban cash stop at our shoreline. Harvard economist, Kenneth Rogoff, made a case last year to eliminate cash transactions in the United States. Almost immediately, Citibank joined the cause when their chief economist seconded Rogoff’s idea.

The writing is on the wall…

The elimination of cash in the United States is inevitable. Eliminating cash gives the government greater control over the money supply and the ability to “guide” the economy toward the goals of the state.

For those old enough to remember the old Soviet Union, it’s reminiscent of the politburo’s infamous five-year plans that never seemed to materialize. But each failure brought promises of a new five year plan – similar to the claims of central banks now.

Would a cashless society be a bad thing?

Many Americans like the idea of a cashless society. Of course, many Americans think Bernie Sanders’ ideas about socialism are valid, too.

Still, the idea of using a debit card or smartphone for making all your purchases sounds like a good idea. After all, the U.S. government could save billions by not printing bills and minting coins.

Crime rates for robbery and theft of cash would disappear, as businesses would no longer have cash on hand. Banks could get rid of their bullet-proof partitions that annoy so many people.

The government could improve its efforts to calculate the correct inflation rate and gross domestic product (GDP). Best of all, the government could theoretically eliminate the black market – including illegal markets for drugs and other illicit products and services like prostitution.

I mean how many crack heads are going to buy drugs on their debit cards, right? And I’m sure whore houses across the country would see far fewer politicians, too.

But at the end of the day, the move to a cashless society is nothing more than a power grab by elite politicians and the ruling class to regulate every area of American life.

Every transaction you make will leave a paper trail that can (and will) be tracked. Your every move will can be ascertained within seconds every time you buy gas or pass a McDonald’s drive-thru window.

The IRS will know instantly whether you filed tax returns – and whether you declared all of your income. They would also have instant electronic access to your bank records – including the ability to block or limit access to said funds.

Chapter 13 of the Book of Revelation references the ‘mark of the beast.’ Whether you give weight to the Bible or not, the world is fast approaching a point where liberty is subordinated to the goals of the state.

And only a true believer in the altruistic benevolence of the state would be foolish enough to fall for such a unworthy goal. But foolish is the new tolerant in America.


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