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HKrandom
HKrandom
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June 17th, 2011 at 3:49:57 AM permalink
Quote: pacomartin

But no government in the world prints a banknote as worthless as the American $1 bill.


China's smallest bank notes are worth slightly less than 2 pennies.


The smallest denomination that is still in print today is the 1 RMB note, worth 16 cents and the biggest note available, 100 RMB, is worth roughly $15. Most shops in China use portable bill counting machines that can count stacks of bills and detect counterfeit notes. It is not uncommon to see people bring bags full of cash to buy a car or an apartment there.



However given all the quantitative easing done in the US and China's reluctance to keep supporting it I wouldn't be surprised if the RMB's value exceeds the dollar's in the near future. That million dollar stack won't look nearly as impressive if America goes through hyperinflation.
pacomartin
pacomartin
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June 17th, 2011 at 4:42:38 AM permalink
I'm sorry, I should have said almost no country with a highly developed economy still prints currency that is worth so little.
Mexico's smallest banknotes currently used is 20 pesos worth $1.67 .
Brazil's smallest banknote currently used is 2 rials and is worth $1.25 .
Japan's smallest banknote currently used is 1000 yen worth $12.38 .

As near as I can guess, both China and South Korea are extremely afraid of counterfeit operations and refuse to issue large notes. It is ridiculous burden on the economy to be using satchels full of cash.

The British government can get away with it because they have a highly developed system for electronic exchange. Exchange is 100 reminibi = £ 10. The bulk of their cash transactions are with the £20 note. They do have a £50 banknote, but they are only circulating three of them per capita. That's just enough to handle the used car business or the cheating husband's hotel bills.
DJTeddyBear
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June 17th, 2011 at 5:04:13 AM permalink
Quote: Wizard

Personally, I wish the US would:

1. Circulate $500 bills
2. Eliminate the $1 bill, in favor of a $1 coin, the same size as the Canadian Loony.
3. Eliminate the penny.

Why is it unconscionable for the European Union to print a 500 Euro note? I tend to doubt that is a major consideration in the illegal drug business.

I agree that it's time for the $500 bill to return. The lack of one isn't really making it any more difficult for the drug dealers, but it is making life more difficult for ordinary people that prefer cash.


The mint/bureau has had a fight trying to eliminate the $1 bill. The SBA dollar was a flop because it looked too much like a quarter. That flop is partly to blame for the resistance to the new golden dollar coin.

>> the same size as the Canadian Loony.

The golden coin is the same size as the SBA dollar, so any vending systems that accept SBA will accept the gold coin. What size is a Loony?

Personally, I love the new coin. Then again, I nicknamed them "Parkway tokens" because the toll on the Garden State Parkway is $1. They used to have a token when the toll was less, but that was in the days before EZPass.


Inflation has to creep up a bit more before the penny gets eliminated.
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁 Note that the same could be said for Religion. I.E. Religion is nothing more than organized superstition. 🤗
Nareed
Nareed
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June 17th, 2011 at 5:09:39 AM permalink
Quote: Wizard

It is just a matter of time. Already it costs more than a penny to make a penny.



You'd think then the government would love it more, yes?

But cost is only one issue. There are other ways to make a cheaper coin, up to making it out of plastic. The reason for the persistence of the penny is that enough people will want exact change

Quote:

By the way, I put "paper" in quotes because they are not made of paper, but rather a mix of cotton and linen. That is why they don't get ruined when they go through the washer and dryer. Dang, that would have made for a good trivia question in the WoV trivia challenge yesterday.



Lately plastic bills are all the rage. In mexico the 20 and 50 peso notes are made of plastic now. Allegedly they last longer and resist abuse better. In practice I see a lot more torn plastic than paper notes.

An even better medium for printing bank notes would be silk. But the cost would be too high and counterfeiting would be easier. you can get silk easily, you can't get cotton-linen paper at all.
Donald Trump is a fucking criminal
DJTeddyBear
DJTeddyBear
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June 17th, 2011 at 5:16:54 AM permalink
Quote: Wizard

It is just a matter of time. Already it costs more than a penny to make a penny. However, according to John Stossal at least, the zinc lobby squashes any talk of eliminating the penny every time it comes up.

Still, eventually they will be worth so little it will just be absurd to keep making them. I set the over/under for the date the Mint quits making pennies at 2026.

2026?

I'd put it closer to 2015.
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁 Note that the same could be said for Religion. I.E. Religion is nothing more than organized superstition. 🤗
Wizard
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Wizard
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June 17th, 2011 at 8:02:16 AM permalink
Quote: HKrandom

China's smallest bank notes are worth slightly less than 2 pennies.
.[/q

The smallest denomination that is still in print today is the 1 RMB note, worth 16 cents and the biggest note available, 100 RMB, is worth roughly $15.



My last trip to China I think the smallest note I saw was 5 RMB. I'm not saying you're wrong, but everyone gave me 1 RMB coins. I've seen 1 fen (cent) notes my first trip in 1992. That would be worth about 1/6 of one penny. It was a tiny thing, about the size of two sticks of gum.

In China I don't fuss carrying anything less than 1 RMB coins. Once I passed a beggar with a hat for donations. I dropped a few jiao coins into it and they all bounced out and landed a few feet away. The beggar didn't even bother to retrieve them.
It's not whether you win or lose; it's whether or not you had a good bet.
s2dbaker
s2dbaker
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June 17th, 2011 at 8:39:50 AM permalink
Quote:

you can't get cotton-linen paper at all.

Sure you can, it costs one dollar for each pre-cut sample :)
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thecesspit
thecesspit
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June 17th, 2011 at 9:03:29 AM permalink
Quote: pacomartin

The British government can get away with it because they have a highly developed system for electronic exchange. Exchange is 100 reminibi = £ 10. The bulk of their cash transactions are with the £20 note. They do have a £50 banknote, but they are only circulating three of them per capita. That's just enough to handle the used car business or the cheating husband's hotel bills.



50 quid notes get used for bookmakers at the race track and cash-in-hand builders. Only two times I've ever seen 'em. Except the currency exchanges, when I always hand them back and ask for notes that are actually acceptable in the pub (sometimes I have to take them anyways and then get them changed in the first bank I see in the UK).
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
pacomartin
pacomartin
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June 17th, 2011 at 3:31:41 PM permalink
Quote: thecesspit

50 quid notes get used for bookmakers at the race track and cash-in-hand builders. Only two times I've ever seen 'em. Except the currency exchanges, when I always hand them back and ask for notes that are actually acceptable in the pub (sometimes I have to take them anyways and then get them changed in the first bank I see in the UK).



The UK introduced the modern £50 banknote in 1981, ten years after decimalization. At the time a production of US $100 banknotes was about 4 per capita. Now after three decades the UK is still circulating roughly 3 £50 banknotes per capita, while the USA is doing production runs of over sixty $100 banknotes per capita.

I assume a cash-in-hand builder is someone who is trying to avoid income tax.
Nareed
Nareed
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June 17th, 2011 at 3:34:08 PM permalink
Quote: pacomartin

I assume a cash-in-hand builder is someone who is trying to avoid income tax.



You say that as though it were a bad thing.
Donald Trump is a fucking criminal

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