Fed Nominee Marvin Goodfriend Lied to the Senate on Taxing Cash

 

Trump has done a few good things to date. On the monetary front however he has left much to be desired. To say the least.

From our friend Tho Bishop at The Mises Institute:

The government shutdown wasn’t long enough to delay the nomination hearing for an economist who could be considered to be one of the “worst Fed nominees of all time.” While most of the headlines generated from Marvin Goodfriend’s testimony before the Senate today focused on the grilling he received from Senate Dems, there is one curious part of his testimony that has been largely overlooked: he flat out lied about his past support for taxing cash.

Unfortunately this issue that would directly impact every single American wasn’t brought up until well over an hour into this testimony. It was then that Nevada Senator Catherine Cortez Masto asked Mr. Goodfriend about his past advocacy on “taxing currency” and whether he would support such a policy today.

After assuring Senator Cortez Masto that he wouldn’t, he went on to say:

I wrote a paper in 1999 for a Federal Reserve System conference which asked what would happen if interest rates went to zero, and what could the Federal Reserve do. I didn’t propose that, that was an academic paper showing what could be done….It was not a proposal. It was an emergency matter we considered as a matter of thinking about these things before anyone ever imagined anything could happen like that.

This is simply false…

…In other words, he wants the Fed to have the power to make your $10 bill now be worth $9 dollars. That certainly sounds like a tax on cash. All with the goal of eliminating Americans’ ability to protect themselves if the Fed decides to tax bank accounts.

It’s also important to point out that this isn’t an idea unique to Marvin Goodfriend. Economists and  central bankers around the world have embraced the logic of the war on cash and have taken steps to implement it. So this isn’t some interesting thought experiment – this is a very real and ongoing policy discussion, and one in which Goodfriend has made it perfectly clear where he stands.

Click here for the article.