Apart from the appalling Big Brother aspect of this it will produce a set of consequences which would be far more damaging than the central banks and economists admitting they don't know what the heck they're doing.



At a minimum it would drive people into bubbles in other assets such as art, gold and stamps both to attempt to protect their assets from further confiscations and to protect the few fragments of control they still have over their lives. And these would be BIG bubbles due to the constant feedback loop of avoiding putting anything in banks.



The same would happen in the underground economy which is not nearly so conveniently controlled as Professor Rogoff imagines.



There is absolutely no reason to believe any consequence would be a growth in the real economy (except perhaps the security companies and safe makers).



And for anyone who says they have no secrets from the state I would ask 'Which state ?' The one you feel is so benign but who now may want to control all your money or the malevolent one that might lurk in the future of anyone so willing to give up their rights.



Far from a solution to avoid 'a confused, mistrustful public' (a patronising description of a convenient scapegoat) it would seem a desperate attempt to push forward the day of reckoning when, perhaps, the architects of our current dilemma have long gone to pasture.

