Big Brother's Cashless Scheme

The Wall Street Journal recently ran pro and con articles on the idea of abolishing cash -- that is, paper currency. If that were done, all transactions would have to be carried out electronically via means such as credit and debit cards or other electronic payment means. The supposed advantage is that it would make it difficult for criminals and the underground economy to carry on their business, because the government would know exactly what they are up to. Another supposed advantage is that it would make it easier for the government to impose negative interest rates to fight deflation. Negative interest rates means that the government steals some percentage of your bank balance each year. Negative interest rates are difficult to impose if people can hide their money as anonymous currency. A Puerto Rican commentator on the Wall Street Journal article pointed out that Puerto Ricans without cash were in difficult straits because the failure of the electric grid due to...(Read Full Article)