Monday, September 19, 2016

Central Banks Are Spinning Plates
To Keep The System Going
"I wonder how Mr. Rogoff would feel if it was his 'cash' that was suddenly misappropriated when it came time for him to use his ATM card only to find 'insufficient funds' displayed when he knew he made a deposit days prior?  .. Now Mr. Rogoff and his ilk could careless what a person like myself has to say about their ideas. After all, we’re nothing but a bunch on illiterate, economically challenged plebes that need to be herded into doing what 'they' believe is 'best for us.' Whether it’s in our best interest – or not .. So to that I would like to remind this Ivory Tower set of exactly what transpires when the banking system that issues all those digitized ones and zeros goes into free fall because of the reckless nature of those within that system created. e.g., The Great Financial Crisis .. You know, the one that’s not even a few years past and is requiring central banks around the world to continue 'spinning plates' that would make a circus performer blush as to keep it all from crashing .. During the heat of the crisis with the markets gyrating widely, none other than Mohamed El-Erian then at Pimco™ (someone I have great respect for) said in a televised interview on one of the financial shows I was watching (I’m paraphrasing): 'My wife called me and asked me what she should do. I told her to go the nearest ATM and withdraw as much money as possible. For we both had no idea of just how bad things were going to get.' .. I just wonder how well Mr. Rogoff’s argument about 'cashless' would have stood had he needed to argue that position to Mr. El-Erian during that period? i.e., “Hey Mohamed, tell her not too worry .. She or you don’t need no stinkin’ cash! Have faith, faith in the system, faith in the banks!'"
- Mark St. Cyr
link here to the essay

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