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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIt's Time To Kill The $100 Bill; It's Time To Go After Big Money
By Lawrence H. Summers February 16 at 7:00 AM
Harvard's Mossavar Rahmani Center for Business and Government, which I am privileged to direct, has just issued an important paper by senior fellow Peter Sands and a group of student collaborators. The paper makes a compelling case for stopping the issuance of high denomination notes like the 500 euro note and $100 bill or even withdrawing them from circulation.
I remember that when the euro was being designed in the late 1990s, I argued with my European G7 colleagues that skirmishing over seigniorage by issuing a 500 euro note was highly irresponsible and mostly would be a boon to corruption and crime. Since the crime and corruption in significant part would happen outside European borders, I suggested that, to paraphrase John Connally, it was their currency, but would be everyones problem. And I made clear that in the context of an international agreement, the U.S. would consider policy regarding the $100 bill. But because the Germans were committed to having a high denomination note, the issue was never seriously debated in international forums.
The fact that as Sands points out in certain circles the 500 euro note is known as the Bin Laden confirms the arguments against it. Sands extensive analysis is totally convincing on the linkage between high denomination notes and crime. He is surely right that illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds as would be the case if the $20 bill was the high denomination note. And he is equally correct in arguing that technology is obviating whatever need there may ever have been for high denomination notes in legal commerce.
What should happen next? Id guess the idea of removing existing notes is a step too far. But a moratorium on printing new high denomination notes would make the world a better place. In terms of unilateral steps, the most important actor by far is the European Union. The 500 is almost six times as valuable as the $100. Some actors in Europe, notably the European Commission, have shown sympathy for the idea and European Central Bank chief Mario Draghi has shown interest as well. If Europe moved, pressure could likely be brought on others, notably Switzerland.
more...
https://www.washingtonpost.com/news/wonk/wp/2016/02/16/its-time-to-kill-the-100-bill/
PoliticAverse
(26,366 posts)when you spend it or receive it. By eliminating cash bankers can get a cut of all transactions
like they get now when people pay with credit cards instead of cash.
GoneFishin
(5,217 posts)Festivito
(13,452 posts)From a week ago:
Its Official: Cash is Now Public Enemy Number One
http://www.democraticunderground.com/?com=view_post&forum=1116&pid=76368
Shamelessly. My post:
...Me thinks, because, people could not possibly use diamonds, gold, bearer bonds, etc.
http://www.democraticunderground.com/?com=view_post&forum=1116&pid=76375
DU dual post from today:
http://www.democraticunderground.com/?com=view_post&forum=1116&pid=76517
roamer65
(36,747 posts)Every time he opens his yap, you want to slap him.
shraby
(21,946 posts)of singles, fives. tens or twenties around in their wallets? That makes for a thick wallet, that's for sure.
Wednesdays
(17,412 posts)coyote
(1,561 posts)they are introducing negative interest rates and there is no way to devalue cash unless you outlaw it. It´s a matter of time before they try to wipe it out. Its already starting the EU with the elimination of the 500 and limits on cash transactions. Negative interest rates (NIRP) are coming.
plus they want all financial transactions to be traceable.
unc70
(6,121 posts)And I think we still had larger denominations back then. I can remember when many places would not take $100 bills. Now every grocery register is full of them. Stupid idea to ban them.
ileus
(15,396 posts)8 hours of total driving and 1200 bucks later and we had a new member of the family.