The Federal Reserve has agreed with Harvard “scholar” and former Standard Chartered CEO Peter Sands who just last week said the US should ban the $100 note as it would “deter tax evasion, financial crime, terrorism and corruption.”
Well, not even 24 hours later, and another Harvard “scholar” and Fed chairman wannabe, Larry Summers, the former Director of the White House United States National Economic Council for President Barack Obama, has just released an oped in the left-leaning Washington Com-Post, titled “It’s time to kill the $100 bill” in which he makes it clear that the pursuit of paper money is only just starting. Not surprisingly, just like in Europe, the argument is that killing the Benjamins would somehow eradicate crime, saying that “a moratorium on printing new high denomination notes would make the world a better place.”
Yes, for central bankers, as all this modest proposal will do is make it that much easier to unleash negative interest rates, because of the $1.4 trillion in total U.S. currency in circulation, $1.1 trillion is in the form of $100 bills. Eliminate those, and suddenly there is nowhere to hide from those trillions in negative interest rate “yielding” bank deposits. Do you really want to stuff your mattress with 20 dollar bills?
So with one swipe of the pen, one regulation, the Fed – if it listens to this Harvard charlatan, and it surely will as more and more “academics” get on board with the idea to scrap paper money – could eliminate the value of 78% of all currency in circulation, which in effect would achieve practically the entire goal of destroying the one paper alternative to digital NIRP rates, in the form of paper currency.
That said, it would still leave gold as an alternative to collapsing monetary system, but by then there will surely be a redux of Executive Order 6102 banning the possession of physical gold and demanding its return to the US government at half of its value.
Here is Summers’ first shot across the bow in the upcoming war against U.S. paper currency, first posted in the WaPo:
It’s time to kill the $100 bill