Economist Marvin Goodfriend doesn’t like the green paper rectangles in your wallet, which are formally known as “Federal Reserve notes.” His opinion matters, because President Trump has nominated him to the Board of Governors of the Federal Reserve. If confirmed by the Senate to a 14-year term, Goodfriend may take the opportunity to pursue his academic interest in abolishing—or at least demoting—paper money.
Goodfriend’s dislike for cash could become an issue in his confirmation hearings, which are not yet scheduled. Senators could soon be getting an earful from constituents who fear that taking away paper money is a step toward socialism or totalitarianism. Those voices are already being heard. “Is Marvin Goodfriend the Worst Fed Nominee of All Time?” asks a Dec. 1 post on the website of the Mises Institute, a think tank for the Austrian school of economics. An earlier Mises post in which Goodfriend’s name was first raised said, “Given his radical views on monetary policy, it’s not hyperbole to suggest that Goodfriend’s nomination would represent a genuine danger to the economic wellbeing of every American citizen—or at least those outside of the financial services industry.”
It’s not just the Mises people who want to hang onto paper money. “Cash Means Freedom, Which Is Why So Many Officials Hate It” was the headline on a post by the libertarian Reason Institute last year. Last year, in the , financial commentator James Grant attacked a book called by Harvard’s Kenneth Rogoff, writing, “The author wants the government to control your money. It’s as simple as that.”
Goodfriend is concerned that the existence of cash makes it harder for the Fed to lower interest rates below zero. In the next crisis, he says, the Fed might want to push interest rates into negative territory to prod people to stop sitting on their money and do something with it, such as consumption or investment, that would get growth going again. But today, the Fed would not be able to push interest rates on checking or savings accounts very far below zero because as soon as it did, people would simply withdraw cash from the banks and store it in the mattress or a vault. The European Central Bank and Swiss National Bank have managed to push rates only slightly negative.
Trump’s nominee hasn’t tried to hush-hush his views on this controversial topic. Far from it. Goodfriend presented a paper on it in 2016 in Jackson Hole, Wyo., at a high-profile annual conclave of central bankers. His title: “The Case for Unencumbering Interest Rate Policy at the Zero Bound.”
To make it less convenient for people to hoard cash, he says in the paper, the government could phase out high-denomination bills or charge banks and the public whenever paper money is paid out or received. But even those steps might not be enough to suppress the use of cash, Goodfriend surmises. So he weighs three stronger measures.
One is simple: Abolish paper currency, which means that to pay for anything, you’d have to use money kept in a bank. The Fed could cause banks to charge negative rates on your deposit so you’d have a strong incentive to use it or lose it.
The second option: Break the one-for-one link between the value of a dollar bill and the value of money deposited in a bank. If the use of negative interest rates lowered the amount of your deposit in the bank from $1 to 90 cents, then your paper dollar bill would also become worth only 90 cents.
The third option: currency cards, which would look like credit or debit cards but would represent real money, straight from the Fed. The Fed could control its value electronically. Goodfriend argues in the paper that “the public would likely find electronic currency an acceptable alternative to paper currency.” His main concern is that “electronic currency would require investment in banking, central banking and payment system infrastructure before it could be made available.”
I asked Harvard’s Rogoff, the author, what he thinks about Goodfriend’s nomination. He wrote back, “Thank goodness there will be someone at the Fed with the foresight to realize that world needs to start thinking about how central banks can best deal with the inevitable next deep financial crisis. And negative interest rate policy is the best idea out there by a wide margin; hopefully we won’t need it anytime soon. Still, I believe that within a decade, all the world’s major central banks and treasuries are likely to have taken the simple steps necessary to create the foundations for effective negative interest rate policy in deep recessions or financial crises.”
Could Goodfriend just be ahead of his time? The Senate is bound to have some questions.
If you like our content help us with a share… or two …
Also - I have some free stuff for you .......
Nr 1. In This FREE Report you can Discover:
Secrets to acquiring the freshest, hottest leads via YouTube In-Stream ads quickly and easily! Best secret tips for the most effective targeting for your ads! Totally legal, but little-known method for literally stealing traffic from your competitors! Get more traffic to your videos and landing pages without spending a fortune! And much more - all within this special FREE report!
Nr 2. Did you know you can Absolutely EXPLODE YOUR EMAIL LIST FOR FREE with UNTOUCHED offline sources?
Nr 3. The #1 secret to becoming an affiliate superstar - Earn your first $100 online – without a dime to invest.
If you’re still looking to “make it online – I have just the thing for you. It’s a video series that shows how to make your first $100 online – even if you don’t have a dime to invest. Yes – nothing. Free. Nada. Is this possible? You bet. It’s the most powerful system used by those “in the know”. Good things don’t have to be difficult. And they don’t only come to those who wait. Have A Look
Nr 4. Top 10 Email Marketing Mistakes. Which of these mistakes do you make?
Nr 5. You can learn about : The hottest social networking site that will send an unlimited stampede of traffic to your site - for FREE! How to quickly locate a swarm of hungry buyers using "information portals"! The fast and easy way to use simple images to siphon targeted traffic, on command! Learn how to get the most possible traffic from Instagram, and make sure that traffic converts! And much more ...
Nr 6. It’s no secret… Facebook is an incredible place to get tons of free, viral traffic. But… most people are going about it all wrong. How many of these mistakes are you making? Download the free report to find out.
Nr 7. Special free report . It's called "Operation Midas Touch" and you can download it here...
The report features a surefire method for generating at least $1000 per week online,without a website or product of your own!
Nr 8. Instagram is still one of the hottest ways to get a LOT of traffic fast. All by sharing images. Sounds easy enough, yeah? Well, yes and no. If you want to really start driving a lot of traffic and making sales using Instagram then you should download this report.
Nr 9. When it comes to creating a product online there are so many ways to approach it. Wouldn’t it be great to just get the meat of it all so you can get started faster? Well, the good news is, today you can download a guide called the Product Creation Formula Quickstart Guide. It’s as the title suggests - a Quickstart guide. You’ll get a list of action steps to take right away. Download your copy today !
Nr 10. Would you like to finally USE all of that dusty PLR you have sitting around on your harddrive? Or maybe find the resources for the best PLR available - at the best prices? What about how to use that PLR to make you money with just a few minutes of work. Well, you’re not going to want to miss this!
Nr 11. Buzzfeed’s top post has more than 21 million views. Think about that for a sec… ONE of their articles has had over 21 million people who have read it! And they have thousands of articles... what would you do with that kind of traffic? A friend of mine hacked their method and was able to use it to get 11,592 targeted new subscribers in 2 weeks on their very first attempt!
Nr 12. Push notifications are one of today's hottest trends in website traffic and conversions, and for good reason. Studies have shown that as many as 40% of people will opt-in for push notifications, which is about TEN TIMES the rate of people who opt-in for emails! That’s huge! Not only that, but they're also highly effective at pulling clicks, as well. Some studies have shown CTR at an average of around 40%, with highs of as much as 80%! Again, that’s huge!
Nr 13. Would you like to know how to get more money from the exact same number of website visitors you’re currently getting? Even if you’re website is getting as few as 1-2 visitors a day, this report will show you how to increase your profits using these few handy hacks.
Nr 14. People have now realised that it's not the size of the list which matters, it's the quality. ... and the only way to create a quality list is by launching your own products. Let it be $7 ebooks, $17 info products, $27 video training product or software's... all of these work. My good friend Kevin Fahey has is revealing how he's launched over 20 products in the past 4 years, many of them top sellers. Needless to say he's banked a handsome amount in this time.
Nr 15. Do you ever feel that the man you like or even love, just doesn't see you or desire you in way you want him to? Or... maybe you're able to get a man's attention though not the right kind of attention? Or... maybe you're still single because you wait and wait for men to approach you first? What you may not know is that the way we flirt will either attract the "wrong" man for us or the "right" man.
Nr 16. When it comes to getting sales and leads online, there is ONE thing that 95% of marketers use... it's called a LIST. My friend Jimmy just released a free book that explains WHY a list is important and how YOU can build your own list. It's available right here (and it won't cost you a penny)
Nr 17. If you have tried everything, and still aren't able to get your Ex back, then you need to pay attention.
Nr 18. What if I told you that you could make ANY woman WANT to do ANYTHING for you? Would you think I'm crazy? Well... what If I told you that you could also make her LOVE every minute of it and come back for more?
Nr 19. I have a special free plugin for you today. It's called "Covert Hover Mini"
This plugin will triple your blog traffic by compelling your visitors to share your images on social media. This is some really clever stuff and it works like a charm. After you grab your free plugin, don't forget to read the free bonus report as it will show exactly how and why this strategy works like crazy.
Nr 20. The days of being able to get away with a basic WP theme and a pic or two are gone, your site needs to look good. Even Google are looking for you to have engaging graphics on your site. But getting good quality graphics made for your site is a pain, AND it will cost you both time and money (if you outsource it). But I have a special free download for you today. A virtual treasure chest of over 21K profit pulling graphics you can start sing today to generate more traffic & sales!
Nr 21. 20 professional full HD background videos. These background videos are perfect for giving your videos that extra kick they need to stand out from the crowd Oh yeah they are in full 1080p HD too, I hope you'll enjoy them.
Nr 23. No doubt, you've seen all of the video launches lately! There is a reason for it... Video marketing is a GREAT way to make money, and with the recent creation tools making it super accessable for anyone to get started... It's no surprise that more people are making videos. However... there is a missing element to most video marketing products...
Nr 24. For the first time ever... You can get the straight scoop on how someone is selling over $1,000,000/year of t-shirts on Facebook!Use them .... and have fun !