Washington's Endgame: First Your Guns, Then Your Cash?
People don't even think of the American dollar much. Punch a few buttons on an ATM, and twenties appear from a drawer. We don't think much beyond what cash dollars in our pockets can buy at a particular moment. In reality, cash represents freedom – a simple freedom that millions of people around the world don't enjoy while we take it for granted.
Russian philosopher Fyodor Dostoevsky in the 1800s said, "Money is coined liberty."
Ken Rogoff, economics professor at Harvard (and previously an economist at the IMF and at the Board of Governors of the Federal Reserve System), wants to take that liberty away. He has a new book out on the wickedness of cash, calling out the usual suspects – tax evaders and other criminals – to justify doing something about it. I'm surprised he didn't claim that Ben Franklins have been known to kill small children or poison the water in Flint, Michigan. His solution is to eliminate all denominations of currency above ten dollars.
This sounds suspiciously like the argument for taking away firearms from law-abiding citizens to keep criminals from using guns. It makes no sense unless your ultimate goal is to disarm the population – or, in this case, take one more step to tracing, taxing, and then controlling the spending habits of law-abiding citizens.
The plan is quite devious. It is probably backed by credit card companies. Rogoff's answer is to create state-run banks that provide the services of a Citibank for free or a small fee.
First government got control of the health care industry. Now this economist wants to give it control of the banking industry as well?
Rogoff generously recognizes that there is something to be said for cash as a guarantor of privacy and by extension liberty, as Dostoevsky proposed so eloquently in just four words, although he is more enamored of the possibility of the Federal Reserve implementing negative interest rates as a way to "stimulate" the economy. He even matter-of-factly suggests the possibility of rates as low as negative two or three percent. Consider that as long as citizens hold cash, they can hedge against the government charging for the privilege of controlling our earnings and savings in the form of negative interest rates.
The Progressive endgame proposed by Mr. Rogoff follows the Communist plan: take away the guns. Gain control of health care. Indoctrinate the next generation through control of education curricula. Demonize Judeo-Christian beliefs. And then take away currency from the people, thus allowing government control of the flow of funds.
What Professor Rogoff isn't mentioning in his argument is that this is the same control the Castro brothers have over Cuban currency and how the Kim regime of the DPRK manipulates its citizenry with its currency policies. It is also the ultimate dream of the Federal Reserve.
In Cuba, they have two separate currencies. There is one for the government and foreigners and one for the citizens. Ordinary citizens are not allowed to hold and trade in the much more valuable convertible pesos, or Cuban dollars. They must use only the virtually useless peso for their everyday needs.
The North Korean government uses paper currency to control and eliminate the black-market free-market economy. First, it's important to note that the "black market" is not tax cheats, criminals, and drug lords. In North Korea, it's controlled by a much more nefarious foe: regular citizens growing a few extra vegetables behind their shacks, which they use to get a little extra cash at local farm markets to earn money to pay for little things like dental care for their children. These evil criminal enterprises are widespread and illegal. Instead of raiding farm markets and arresting millions of people, the government changes the currency every few years and allows the conversion of only a small amount of personally held cash. If anybody were to save up even a small amount of the old currency, it would become immediately useless.
Coincidentally, this is exactly what the learned Harvard professor wants. If we don't allow people to save money in the form of cash, it will filter through the economy, creating a recurring boost. If people want to save, they need to pay what is the equivalence of a tax on those savings to boost federal coffers. Hundreds, fifties, and twenties will become worthless under this plan.
So next time another plan is proposed to eliminate the Second Amendment, remember that should it go through, you will eventually be defenseless when they come for your cash.