Inflation And Banknotes: The War on Money
By Paul-Martin Foss
Carl Menger Center
January 28, 2016
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In practice, however, the Treasury has not printed notes above $100 since 1945, and the Federal Reserve has not issued notes above $100 since 1969. The ostensible discontinuation of those notes was due to lack of use. However, now that inflation has eroded the value of Federal Reserve notes it makes more sense than ever to issue larger denomination notes. The $20 Federal Reserve Notes that we receive at ATMs today buys the equivalent of what $3 would have purchased in 1969. And the $100 bill in 1969 would buy the equivalent of $646 today. It would make a lot of sense to begin printing $500 and $1000 bills again.
But due to the war on drugs and the war on cash, US authorities don’t want to issue bills larger than $100, as they claim it would only facilitate money laundering. By maintaining its policy of not printing notes larger than $100 and by increasing the reporting requirements on cash transactions, the Treasury has pushed more and more financial transactions into the electronic arena, where they are easier to monitor and control. The desire for control is ultimately driving factor behind the war on cash in the United States and in Europe. That’s why it’s so refreshing to see Argentina’s new government immediately enacting policies that respond to consumer demands for cash. Let’s hope that President Macri is able to bring the central bank under control so that Argentina won’t need to issue any larger banknotes in the future.
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Note the effect of inflation on your wealth.
You can’t “save” in cash!
See if you use your “card”, then everything you do can be tracked.
And, it’s not just the porn buyers who have to worry. Make a contribution to the “wrong” candidate or cause and your name is on a list somewhere.
When do “they” come to load you on the train to the “reeducation camp”?
Hell, you send your children to the Gooferment Skrules everyday which is nothing more than a “reeducation camp”!
Oh yeah, it can’t happen here. Tell that to the American Citizens of Japanese Ancestry!
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