Coin Community Family of Web Sites
Like us on Facebook! Subscribe to our Youtube Channel! Check out our Twitter! Check out our Pinterest!
Username:
Password:
Save Password
Forgot your Password?


Welcome Guest! Need help? Got a question? Inherit some coins?
Our coin forum is completely free! Register Now!

The Elimination Of High-Denomination Bills

Next Page | Last 15 Replies
 
To participate in the forum you must log in or register.
Author Previous TopicReplies: 108 / Views: 12,490Next Topic
Page: of 8
Pillar of the Community
United States
653 Posts
 Posted 02/18/2016  6:00 pm Show Profile   Bookmark this topic Add cashhound to your friends list Get a Link to this Message
If they stop making $100 bills how would that affect, if at all, the value of existing $100 bills? link loads slowly

http://time.com/money/4226174/kill-...o-phase-out/
Edited by cashhound
02/18/2016 6:06 pm
Moderator
Learn More...
United States
95896 Posts
Pillar of the Community
United States
2585 Posts
 Posted 02/18/2016  6:16 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
The arguement that high denominated bills should be eliminated to prevent crime are nonesense, when they elimated the $500 and $1000, did that stop criminal enterprises from taking place? Not at all. In actuality most illegal activity takes place using singles and $20 bills as these are what generally are present in the stream of commerce. If the hundred dollar bill and 500 euro are elminated, nefarious types will simply switch to using $50 bills and 200 euro bills.
Eliminate of high denomination bills hurts no one but the government issuing that currency itself, as it makes it less attractive to be used as a reserve currency, since it now takes much more space to store those physical reserves without the high denomination bills present.
I would fully support the return of the $500 to US currency, not only would it make it easier for the dollar to compete against the Swiss Franc and the Euro in the reserve currency market, but the rational behind its elimination is no longer valid under the original law revoking its use. A $100 bill in the 1960s would have more purchasing power than a $500 bill would in today's dollar.
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
Rest in Peace
United States
7075 Posts
 Posted 02/18/2016  6:19 pm  Show Profile   Bookmark this reply Add Buddy to your friends list Get a Link to this Reply


I think the true motivation for eliminating any currency is so that the banking industry can collect a transaction fee from every single transaction.
Pillar of the Community
Learn More...
Canada
3750 Posts
 Posted 02/18/2016  7:59 pm  Show Profile   Check Pacificoin's eBay Listings Bookmark this reply Add Pacificoin to your friends list Get a Link to this Reply
What a stupid article from that Money mag. Must have been a rather slow news day.
Pillar of the Community
United States
653 Posts
 Posted 02/18/2016  8:03 pm  Show Profile   Bookmark this reply Add cashhound to your friends list Get a Link to this Reply
Moderator: If original post and link are unacceptable removal is ok with me.
Pillar of the Community
United States
2585 Posts
 Posted 02/18/2016  8:10 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
OP, no worries with that link, its relevant to the topic. To answer your original question, the 'numismatic' value of $100's would increase if they were removed from circulation, just as the $500 and $1000 have. Though I imagine it would not be nearly as dramatic as an increase, as there are a massive numbers of $100's in circulation all over the world compared to the number of $500 and $1000 notes in circulation at the time they were withdrawn.
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
Pillar of the Community
United States
703 Posts
 Posted 02/18/2016  8:14 pm  Show Profile   Bookmark this reply Add BuckeyeCoinGuy to your friends list Get a Link to this Reply
This is just the fabian socialist way of gradualism. You can't get rid of all cash and coin at once, so do it for terrorism and for the children and just get rid of the large denomination notes that fat cats use.

It is one of a few steps needed to implement negative interest rates with no out for consumers. How this isn't taxation without representation I have no idea, but that is another matter for another day.


Certainly a part of it is getting a fee on every transaction.

Part of it is a spying thing too. No private transactions anymore when there is no private cash.

Part of it is eliminating bank runs. Tough to do a bank run when your cash must be contained in the system. At that point though, would we really need a lender of last resort like the Fed?


Not a good sign at all.
Edited by BuckeyeCoinGuy
02/18/2016 8:14 pm
Pillar of the Community
United States
2585 Posts
 Posted 02/18/2016  8:25 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
The concept that cash can be held electronically has always fascinated me, what would happen if the nation's electrical system suffered massive sustained blackouts, would billions of dollars suddenly be destroyed? With no maintenance of paper records in the banking system, a massive data loss would literally mean millions of people losing all they have 'in the system' with no way to prove they ever had it (unless they get paper bank statements each month and save them).
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
Pillar of the Community
United States
703 Posts
 Posted 02/18/2016  8:31 pm  Show Profile   Bookmark this reply Add BuckeyeCoinGuy to your friends list Get a Link to this Reply
Here is a decent article from the Wall Street Journal on the topic.

http://www.wsj.com/articles/the-pol...h-1455754850

Quote:
These are strange monetary times, with negative interest rates and central bankers deemed to be masters of the universe. So maybe we shouldn't be surprised that politicians and central bankers are now waging a war on cash. That's right, policy makers in Europe and the U.S. want to make it harder for the hoi polloi to hold actual currency.

Mario Draghi fired the latest salvo on Monday when he said the European Central Bank would like to ban €500 notes. A day later Harvard economist and Democratic Party favorite Larry Summers declared that it's time to kill the $100 bill, which would mean goodbye to Ben Franklin. Alexander Hamilton may soon—and shamefully—be replaced on the $10 bill, but at least the 10-spots would exist for a while longer. Ol' Ben would be banished from the currency the way dead white males like him are banned from the history books.

Limits on cash transactions have been spreading in Europe since the 2008 financial panic, ostensibly to crack down on crime and tax avoidance. Italy has made it illegal to pay cash for anything worth more than €1,000 ($1,116), while France cut its limit to €1,000 from €3,000 last year. British merchants accepting more than €15,000 in cash per transaction must first register with the tax authorities. Fines for violators can run into the thousands of euros. Germany's Deputy Finance Minister Michael Meister recently proposed a €5,000 cap on cash transactions. Deutsche Bank CEO John Cryan predicted last month that cash won't survive another decade.

The enemies of cash claim that only crooks and cranks need large-denomination bills. They want large transactions to be made electronically so government can follow them. Yet these are some of the same European politicians who blew a gasket when they learned that U.S. counterterrorist officials were monitoring money through the Swift global system. Criminals will find a way, large bills or not.

The real reason the war on cash is gearing up now is political: Politicians and central bankers fear that holders of currency could undermine their brave new monetary world of negative interest rates. Japan and Europe are already deep into negative territory, and U.S. Federal Reserve Chair Janet Yellen said last week the U.S. should be prepared for the possibility. Translation: That's where the Fed is going in the next recession.

Negative rates are a tax on deposits with banks, with the goal of prodding depositors to remove their cash and spend it to increase economic demand. But that goal will be undermined if citizens hoard cash. And hoarding cash is easier if you can take your deposits out in large-denomination bills you can stick in a safe. It's harder to keep cash if you can only hold small bills.

So, presto, ban cash. This theme has been pushed by the likes of Bank of England chief economist Andrew Haldane and Harvard's Kenneth Rogoff, who wrote in the Financial Times that eliminating paper currency would be "by far the simplest" way to "get around" the zero interest-rate bound "that has handcuffed central banks since the financial crisis." If the benighted peasants won't spend on their own, well, make it that much harder for them to save money even in their own mattresses.

All of which ignores the virtues of cash for law-abiding citizens. Cash allows legitimate transactions to be executed quickly, without either party paying fees to a bank or credit-card processor. Cash also lets millions of low-income people participate in the economy without maintaining a bank account, the costs of which are mounting as post-2008 regulations drop the ax on fee-free retail banking. While there's always a risk of being mugged on the way to the store, digital transactions are subject to hacking and computer theft.

Cash is also the currency of gray markets—amounting to 20% or more of gross domestic product in some European countries—that governments would love to tax. But the reason gray markets exist is because high taxes and regulatory costs drive otherwise honest businesses off the books. Politicians may want to think twice about cracking down on the cash economy in a way that might destroy businesses and add millions to the jobless rolls. The Italian economy might shut down without cash.

By all means people should be able to go cashless if they like. But it's hard to avoid the conclusion that the politicians want to bar cash as one more infringement on economic liberty. They may go after the big bills now, but does anyone think they'd stop there? Why wouldn't they eventually ban all cash transactions much as they banned gold and silver as mediums of exchange?

Beware politicians trying to limit the ways you can conduct private economic business. It never turns out well.
Pillar of the Community
Learn More...
United States
9395 Posts
 Posted 02/18/2016  8:32 pm  Show Profile   Bookmark this reply Add pepactonius to your friends list Get a Link to this Reply

Quote:
I think the true motivation for eliminating any currency is so that the banking industry can collect a transaction fee from every single transaction.



Another advantage to eliminating all currency and coins would be to allow the Fed and banks to charge strong negative interest rates (-20% per year, for example). You'd have no choice but to pay the rates on any deposits, since currency would be illegal. The purpose of these rates is to force people to spend down their savings in order to boost the economy at least for a short while ("uses it or lose it").
Bedrock of the Community
United States
17900 Posts
 Posted 02/18/2016  8:42 pm  Show Profile   Bookmark this reply Add moxking to your friends list Get a Link to this Reply
Make it more and more difficult to make transactions in and with cash, and the obvious winner are the credit and debit card companies. They are collecting their percentage from the seller every time you use your card.

The less convenient cash transactions become, the more people use their cards instead.

Plus, there is the evidence of what you spent and where you spent it. Great for anyone looking in to your personal life. They see where you go, where you stay, what you buy, how you travel, and can customize their selling to you alone. In addition to any government agency that wants to know what day you trim your fingernails on.
Pillar of the Community
United States
2585 Posts
 Posted 02/18/2016  8:46 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
I would suspect that individuals wishing to store large quantities of monetary value outside the electronic system would revert to gold if large denomination bills are withdrawn.
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
Pillar of the Community
United States
3817 Posts
 Posted 02/19/2016  12:52 pm  Show Profile   Bookmark this reply Add Joe2007 to your friends list Get a Link to this Reply
Man I bet the credit card lobby is pushing very hard to get this idea into law. Make cash so cumbersome to use that people have no choice to give their 3% on every transaction to the credit card industry.

Could have a chilling effect on political dissent too, I bet third world dictators would love this. Say anything negative about the government and your entire life savings gets confiscated or the investment information conveniently is corrupted, gets hacked, or goes missing.
Edited by Joe2007
02/19/2016 12:57 pm
Moderator
Learn More...
United States
95896 Posts
 Posted 02/20/2016  12:40 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
... what would happen if the nation's electrical system suffered massive sustained blackouts...
If this ever happened, money is is going to be the least of your concerns.
Bedrock of the Community
Learn More...
United States
54686 Posts
 Posted 02/20/2016  6:44 pm  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
Buckeye - thanks for posting this!
Page: of 8 Previous TopicReplies: 108 / Views: 12,490Next Topic  
 
To participate in the forum you must log in or register.





Disclaimer: While a tremendous amount of effort goes into ensuring the accuracy of the information contained in this site, Coin Community assumes no liability for errors. Copyright 2005 - 2021 Coin Community Family- all rights reserved worldwide. Use of any images or content on this website without prior written permission of Coin Community or the original lender is strictly prohibited.
Contact Us  |  Advertise Here  |  Privacy Policy / Terms of Use

Coin Community Forum © 2005 - 2021 Coin Community Forums
It took 1.03 seconds to rattle this change. Powered By: Snitz Forums 2000 Version 3.4.05