Should the $500 banknote be revived

Quote: charliepatrick

The third picture shows that the entire £1M was "dropped" as they placed it all on the wrong answer - so they've lost the lot and are now out the game.

Quote: Keyser

In the US we desperately need to revive $500 note. Right now it's a pain in the ass to travel with large sums of cash without standing out, and without looking like you have a tumor. Debit Cards and Credit Cards are now beginning to charge excessive fees for transactions, and merchants cringe at the fees that they are being charged.

Quote: Keyser

Just a few years ago, I would have said that cash was on it's way out. However, these days I see a trend back to cash. Card fees, a lack of confidence and trust in financial institutions, identity theft, and the economy have driven people back towards cash.

Quote: Keyser

Just a few years ago, convenience stores where I live would bark about being handed a $100 bill. These days, it's no big deal. Just about everyone is ready with change, except for some Subway restaurants.

Quote: EvenBob

People are less and less dependent on credit cards. I see far more people going in and paying cash for gas than I did 3 years ago.

Quote: Nareed

In Mexico the largest banknote currently is 1,000 pesos, or around US $75-80 depending on the exchange rate. They don't circulate much, and many businesses won't take them at all because they say they don't have change. Recently I tried to pay an 850 peso bill at a restaurant with a 1,000 note, and was told "We can't make change for that."

You can guess what followed: a fruitless discussion that two 500 peso notes required the same change. Funny how they did have change for that...

Quote: pacomartin

Bank of Mexico security features video makes it look like they are keeping paper for the larger bills. But I am wondering if they are going to follow Canada's lead and convert all banknotes to polymer.

Quote: Nareed

Quote: pacomartin

Bank of Mexico security features video makes it look like they are keeping paper for the larger bills. But I am wondering if they are going to follow Canada's lead and convert all banknotes to polymer.

I don't think so. They issued a polymer 100 note to commemorate the Centennial of the Revolution in 2010, but the definitive replacement for the old 100 peso note was paper. The 200 note commemorating the Bicentennial of Mexican Independence, also in 2010, was printed on paper.

That leaves only the 20 and 50 notes in polymer for the time being. BTW I've no data on how long they last, but my experience is that they tear more often than apper. Seriously, not a week goes by that I don't have to mend a 50 note or two with tape. And it's a rare month when I don't have to exchange a 50 note with a missing piece at the bank.

That in itself doens't bother me. But you should see how many Mexicans wont' take a bill that's torn or has a tiny piece missing.

Quote: pacomartin

I don't think it's the polymer, per se. It's just that the Bank of Mexico is not issuing enough notes and is not replacing them fast enough.

Quote: pacomartin

Distribution in USA is
2.9 notes per capita for $2 bill
7.6 notes per capita for $5 bill
5.4 notes per capita for $10 bill

Quote: rdw4potus

Waaaaait a second. There are 1 billion $2 bills hanging out somewhere? The $2 bill is 40% as distributed as the $5 bill?

Quote: pacomartin

This is how the BEP makes a profit. People buy the $2 bill in sheets of 32 notes. There are almost a billion notes sitting in people's collections because people think they are valuable. What else can you make for a few pennies and then sell for $2.

Quote:

But the main way is distributing billions of $100 banknotes overseas. Talk about profit! I'm not kidding when I say it is our most valuable export. I was always told it was our airplaines, but we makes more money on $100 banknotes then we make selling airplanes.

Quote: Nareed

So a $500 note should net 5 times the profit! ;)

Quote: AcesAndEights

Way to keep the thread on topic :)

Quote: Nareed

So a $500 note should net 5 times the profit! ;)

Quote: pacomartin

Absolutely.

Quote:

Switzerland doesn't even seem concerned about this idea of a cashless society. They have the equivalent of over US $51.5 billion in currency circulating for 7.6 million people. Compare that to Mexico's $56.5 billion in circulating currency for a country of 115 million.

Quote: Nareed

And I thought I was joking.

1) The Swiss Franc is a hard and stable currency. The Mexican Peso might be considered hard, but not stable.
2) Swiss banks are legendary for a reason.

Quote: pacomartin

If the USA currency supply goes up $100 billion in a year, and $75 billion goes overseas, that is pure profit.

Quote: Doc

What option would we have but to increase our debt even further, at whatever interest rate we are required to pay?

Quote: pacomartin

Well Mexico has a GDP (not PPP) of US$1 trillion, while Switzerland has a GDP of US$0.5 trillion.

Quote: P90

Pay in more colored paper.

Quote: Doc

You've been telling us this for some time, but I'm not really convinced. Rather than viewing it as profit, I consider it an account payable but not yet called due. If those folks who are holding those $100 bills overseas decide to convert their wealth to some other form, all those bills will come rushing back in, and it seems to me that the US would have to make good on them. What option would we have but to increase our debt even further, at whatever interest rate we are required to pay?

That doesn't sound quite the same to me as profit that has been recorded and banked. It's a loan to the US that is on the books and might (at least theoretically) be called due at most any time. The more currency we print and ship overseas, the greater the extent of that loan we have taken out. The only good point I see is that rather than us paying interest, the debt declines with inflationary devaluation of the dollar. That is more than counterbalanced, in my opinion, by the fact that this really is being treated as at least a net revenue if not profit, with no provision for dealing with how to cover that debt when it is called.

Quote: pacomartin

and the smallest banknote is worth more than $10.

Quote: rdw4potus

I just mentioned this post to my coworker, who occasionally reads over my shoulder. His entire unedited reply was "soooo...strippers make what??"

Quote: pacomartin

That question gets asked a lot when people talk about getting rid of the dollar bill. I believe that most countries either have other customs, or they special bills or flowers in Asia. My guess is that lap dances are more profitable, and it is easier to control the customers hands then collecting tips $1 at a time.

Quote: pacomartin

Quote: AcesAndEights

Damn it, now I want one of those CHF1000 notes in addition to a couple EUR500 notes...my wishlist grows!

Quote: Nareed

And that tells you how much more productive Switzerland is. Mexico has a population of around 100 million, maybe 90 million. I don't know what the Swiss population is, but it can't be very large.

• 26-Jan-06 "When someone is counterfeiting our money, we want them to stop doing that. We are aggressively saying to the North Koreans just that — don't counterfeit our money," Bush said in State of Union
• 3-Jul-06 Henry Paulson Becomes Secretary of Treasurer
• 1-Jan-07 Production of $100 banknotes begins (2006 series with Paulson signature) Many international banks will soon accept only this series
• 5-Feb-07 President's budget for FY 2008 plans for 817.7 million color $100 banknotes (never happens)
• 18-Nov-07 Iranian President Mahmoud Ahmadinejad has suggested an end to the trading of oil in US dollars, calling the currency "a worthless piece of paper" (not about counterfeiting)
• 4-Feb-08 President's budget for FY 2009 plans for 1321.6 million color $100 banknotes (never happens)
• 11-Jan-08 McClatchy study challenges Bush's claims of North Korean counterfeiting unlikely
• 26-Jan-09 Timothy Geithner becomes Secretary of Treasurer
• 26-Feb-09 President's budget for FY 2010 plans for 2751.2 million color $100 banknotes (will go horribly wrong)
• 31-May-10 Production of $100 banknotes ends (2006 series with Paulson signature)
• 2-Oct-10 Government acknowledges new color $100 banknotes are flawed
• 1-Jan-11 Production of $100 banknotes begins again using old design (2006A series with Paulson signature)
• 31-Jul-11 Bureau of Engraving Printing stops printing production figures
  
  Month & Production figures for 2006 $100 bill in number of pieces
  
  1. 31-Jan-07 22,400,000
  2. 28-Feb-07 41,600,000
  3. 31-Mar-07 64,000,000
  4. 30-Apr-07 64,000,000
  5. 31-May-07 64,000,000
  6. 30-Jun-07 268,800,000
  7. 31-Jul-07 35,200,000
  8. 31-Aug-07 48,000,000
  9. 30-Sep-07 57,600,000
  10. 31-Oct-07 150,400,000
  11. 30-Nov-07 118,400,000
  12. 31-Dec-07 86,400,000
  13. 31-Jan-08 121,600,000
  14. 29-Feb-08 112,000,000
  15. 31-Mar-08 115,200,000
  16. 30-Apr-08 115,200,000
  17. 31-May-08 121,600,000
  18. 30-Jun-08 128,000,000
  19. 31-Jul-08 70,400,000
  20. 31-Aug-08 70,400,000
  21. 30-Sep-08 0
  22. 31-Oct-08 115,200,000
  23. 30-Nov-08 166,400,000
  24. 31-Dec-08 131,200,000
  25. 31-Jan-09 118,400,000
      
      The cartoon has little basis in reality. While production figures do go up under Obama administration, they are not radically increased. The production of banknotes has increased under every new presidential administration.
      
  26. 28-Feb-09 166,400,000
  27. 31-Mar-09 182,400,000
  28. 30-Apr-09 156,800,000
  29. 31-May-09 150,400,000
  30. 30-Jun-09 153,600,000
  31. 31-Jul-09 150,400,000
  32. 31-Aug-09 147,200,000
  33. 30-Sep-09 147,200,000
  34. 31-Oct-09 294,400,000
  35. 30-Nov-09 214,400,000
  36. 31-Dec-09 64,000,000
  37. 31-Jan-10 89,600,000
  38. 28-Feb-10 76,800,000
  39. 31-Mar-10 64,000,000
  40. 30-Apr-10 38,400,000
  41. 31-May-10 12,800,000
      =================
      2006A series resumed since all color $100 banknotes produced are defective (still bear signature of Secretary Paulson)
      =================
  42. 31-Jan-11 12,800,000
  43. 28-Feb-11 41,600,000
  44. 31-Mar-11 99,200,000
  45. 30-Apr-11 64,000,000
  46. 31-May-11 64,000,000
  47. 30-Jun-11 99,200,000
  48. 31-Jul-11 73,600,000
      =================
      information shut down by government
      =================
      
      
      
      Total production of this series is 4.5152 billion $100 notes worth $451.52 billion dollars. By the end of 2010 there is $700 billion in $100 banknotes, so that the rest are from older series. The older series are widely rejected in the 3rd world.

Quote: pacomartin

I have suggested that a type of casino chip, worth $1000 with an RFID chip may supplement the $100 bill. The endless battle of strips, holograms, and microprinting to deter counterfeiters would be replaced with a check on the internet.

Quote: Nareed

The holograms, microprinting, security strips, raised lettering, color-shifting ink, fluorescent ink, and other htings aslo help the average person tell a real bill from a counterfit. A $1,000 chip would need to have some such features at the least.

Quote: Nareed

Suppose you get paid in such chips and later you find they are fake?

Quote: pacomartin

The government wants to know about large cash transactions, hence you have to fill out a form if you are buying or selling anything of over $10,000 in cash. You also have to fill out the form if you are on an international flight. It's not illegal to buy or sell or carry a lot of cash, but it is illegal not to fill out the form.

Quote:

There are machines that count currency, and check for counterfeits at the same time.

Quote:

A lot has to do with how serious the government is about the underground illegal economy.

Quote: Nareed

If you handle lots of cash, the best detector is a UV lamp.

You know in some countries that's the only aprt fo the economy that's actually productive?

Quote: Revelation 13

11And I beheld another beast coming up out of the earth; and he had two horns like a lamb, and he spake as a dragon.

12And he exerciseth all the power of the first beast before him, and causeth the earth and them which dwell therein to worship the first beast, whose deadly wound was healed.

13And he doeth great wonders, so that he maketh fire come down from heaven on the earth in the sight of men,

14And deceiveth them that dwell on the earth by the means of those miracles which he had power to do in the sight of the beast; saying to them that dwell on the earth, that they should make an image to the beast, which had the wound by a sword, and did live.

15And he had power to give life unto the image of the beast, that the image of the beast should both speak, and cause that as many as would not worship the image of the beast should be killed.

16And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:

17And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

18Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.

Quote: pacomartin

Well a lot of businesses simply refuse to handle cash. Apartment rental routinely will not accept cash. Some restaurants refuse, but they often get lambasted.

Quote:

There are many defenders of the underground economy in the USA.

Quote:

Many religious people believe that a cashless society is a sign of the apocalypse. A lot of religious people have interpreted credit cards as the sign of end times.

Quote: Nareed

I've heard about that, among many other things. But they can't be taken seriously. I mean, many religious people also believe in god ;P
I usually carry very little cash with me. I prefer to pay in cash with a debit card anyway. And I pay bills with checks or electronic transfers.

Quote: Revelation 13

And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Quote: buzzpaff

I would enthusiastically support this, if only I had more faith in the government protecting the database from hackers.

• 1996 The new generation of big-headed $100 banknotes is released to the public. Distribution centers are created around the world (particularly in Russia) to replace the old notes
• 26-Jan-06 "When someone is counterfeiting our money, we want them to stop doing that. We are aggressively saying to the North Koreans just that — don't counterfeit our money," Bush said in State of Union
• 3-Jul-06 Henry Paulson Becomes Secretary of Treasurer
• 1-Jan-07 Production of $100 banknotes begins (2006 series with Paulson signature) Many international banks will soon accept only this series
• 5-Feb-07 President's budget for FY 2008 plans for 817.7 million color $100 banknotes (never happens)
• 18-Nov-07 Iranian President Mahmoud Ahmadinejad has suggested an end to the trading of oil in US dollars, calling the currency "a worthless piece of paper" (not about counterfeiting)
• 4-Feb-08 President's budget for FY 2009 plans for 1321.6 million color $100 banknotes (never happens)
• 11-Jan-08 McClatchy study challenges Bush's claims of North Korean counterfeiting unlikely
• 26-Jan-09 Timothy Geithner becomes Secretary of Treasurer
• 26-Feb-09 President's budget for FY 2010 plans for 2751.2 million color $100 banknotes (will go horribly wrong)
• 31-May-10 Production of $100 banknotes ends (2006 series with Paulson signature)
• 2-Oct-10 Government acknowledges new color $100 banknotes are flawed
• 1-Jan-11 Production of $100 banknotes begins again using old design (2006A series with Paulson signature)
• 31-Jul-11 Bureau of Engraving Printing stops printing production figures
  
  -----------------------------------
  
  Problem with the new color $100 bill.
  
  The BEP has not released any pictures of the problem. Currency normally has errors that creep in. When the errors are few and far between, the bills become collector items. But the problem is that they printed roughly 1.2 billion notes, and there is an unacceptably high error rate. The errors are some variation of these old fashioned "gutter folds" which are caused by wrinkles in the paper.
  
  
  

Quote: Nareed

Back in the days of hyperinflation (which we caught in a milder form than Brazil and Argentina), the higher the note denominations got, the more despair people felt. Well, the largest note was 100,000 pesos. In 1993 the currency reform chopped off three zeros. Now the highest denomination is 1,000 pesos, which is ten times more than the old 100,000 note in "real" terms.

Quote: pacomartin

Is the word in Mexico hiperinflación?

Quote:

The tendency to use dollars in Tijuana increased dramatically after el error de diciembre in 1994.

Quote: Nareed

I was last in Tijuana in 1981. back then most shops and restaurants had their prices in dollars displayed more prominently than in pesos. I've been to other border towns, like Nuevo Laredo and Reynosa, and dollars were not so widely used there.

Quote: pacomartin

We had some discussion about that since I have always read that Texas was not colonized until the late 1600's. But I know Santa Fe was founded in 1609 (one of those historical dates that sticks in my mind), so I conceded that there may be some history I am ignorant about.

Quote: Nareed

I know the states as they are now may have had different boundaries when they were territories, but isn't Santa Fe in New Mexico?

In any case, Texas was part of Mexico until the 1840s or 1850s, wasn't it? I forget the exact dates, but it was not too long before the US Civil War.

Quote: pacomartin

Back in the early 1600's there were no states or territories. Santa Fe was the first Spanish settlement in what is present day USA.

Quote: Doc

How does it compare to St. Augustine?