Monday 18 May 2009

Show us the cash

People are apparently reluctant to move to a cashless society:
The long-term psychological impact of the recent financial crisis will mean people will continue to rely on tangible notes and coins, according to the study which was carried out for ATM operator Bank Machine
Notes and coins may be "tangible", but what's really required is a regime of monetary choice. Not the current quaint Scottish system of three note issuers that merely give us differently designed sterling notes. We need to go back to free banking, in which each bank has its notes valued by the market.

Now, which would you prefer? A Royal Bank note that perhaps shows a picture of the chief executive's wallpaper. A Bank of Scotland note depicting one of their branches as designed by a five-year-old. A Clydesdale note that has a drawing of Robert the Bruce. Or a Freedom and Whisky note that's 100% backed by gold.

Actually, a Bank of England note depicting the Queen chopping off Michael Martin's head would be worth its weight in gold...

1 comment:

David Farrer said...

Comments made on previous template:

Denninger is suggesting another round of deleveraging before the end of the year and I think he thinks gold will be hit too. 

21 May 2009, 22:35:25 GMT+01:00
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21 May 2009, 18:50:59 GMT+01:00
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Jonny N
Did you see Buiter's post on how we need to eliminate cash so as to move to negative interest rates?

20 May 2009, 01:03:47 GMT+01:00