- The Simple Reason Why the Global War on Cash Will Continue
by Phoenix Capital, http://www.zerohedge.com/
India’s cash ban continues to create problems… Here are a few of the headlines regarding this issue:
In Its Third Month, India’s Cash Shortage Begins to Bite (NY Times)
Cash-ban distress leaves scant room for India budget giveaways (Times of India)
Indian Bank’s World-Beating Profit Growth at Risk on Cash Ban (Bloomberg)
A normal would see these developments and think “the cash ban will probably be reversed… after all, it’s having a negative impact on the economy.”
The only problem is that the political class is not comprised of normal people. And they don’t care about the economy. All they care about is remaining in power.
Put another way, unless a policy results in getting kicked out of office, it’s not considered a problem.
Just look at India, despite the clear evidence that banning some 86% of cash in circulation has been an economic disaster, the country is pushing forward by… banning more cash.