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To: grumpygresh

Higher denomination bills aren’t going to happen.

The reason is that the US has only two currency printing offices (Fort Worth and D.C.), and they work around the clock producing mostly $1 bills, and proportionately fewer higher denomination bills. Because other countries *have* to have dollars, most of our $100 bills are sent to them.

Yet with all that work, only about 4% of US daily retail is backed by paper. And this may create a “currency split” in which virtual money can be inflated or hyperinflated with the touch of a computer key, but not only *can’t* more paper money be printed, but neither can higher denomination bills, for the simple reason that nobody could make change for them.

And if there is a currency split, paper money is instantly *deflated* by 25 times. At the same time virtual money inflates. This can happen practically because only paper money and coin are legal tender, virtual money is not.

The government and banks have total control over virtual money and any instrument used to convey it, like credit and debit cards, bank checks, etc. And if paper money is in a bank, they can control that, too.

But “mattress money” is out of their control, and its value is dictated by sellers and buyers.


75 posted on 09/22/2014 7:03:54 PM PDT by yefragetuwrabrumuy ("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
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To: yefragetuwrabrumuy
Interesting.

I've bought $500 bills and $1000 bills for "collectors value", but the understanding is that they are STILL legal tender.

Even if the government collapses.

BTW, my grandpa told me how when he bought his house in 1946, that he made the down payment in $500 bills.

He was so "awed" by that, it struck him.

Because in 1946, a single $500 bill was the result of untold hours of labor.

He guarded them like they were gold.

And his mortgage in 1946? $8000

77 posted on 09/22/2014 7:28:38 PM PDT by boop (I was unaware that beating up people is wrong. Until the NFL seminar told me.)
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