In 2001 the Federal Reserve estimated that 90 percent of the $100 bills ordered by the Federal Reserve (which accounts for the overwhelming majority of C-notes ordered nationwide) were paid out to foreign banks[From Hundred-dollar bills are for criminals and sociopaths. Why do we still print them? – By Timothy Noah – Slate Magazine]
Around two-thirds of all of the US dollars in “circulation” are not in the US at all and are unlikely to be repatriated. This represents a tremendous interest-free loan from the rest of the world to Uncle Sam. But is this income sufficient to outweigh the negative effects of cash?
So why do we keep printing $100 bills? As with any valuable export, we worry that if the C-note ceased to be available to foreign criminals and dictators, another paper currency would take its place. The leading candidate would be the 500 euro note,[From Hundred-dollar bills are for criminals and sociopaths. Why do we still print them? – By Timothy Noah – Slate Magazine]
Well, that’s true, and the conspiracy theory that the European Central Bank (ECB) only had the 500 euro note printed in order to replace the $100 bill in the stashes of drug dealers and tax evaders is widely recirculated. But that’s a reason to scrap 500 euro notes, not to print more $100 bills, especially when the $100 bills have to be completely re-designed anyway.
But the biggest upgrade is a blue “3D Security Ribbon”… The strip contains a series of images of bells and digits; tip the note, and the images come into 3D relief. “It only takes a few seconds to check the new $100 note and know it’s real,” says Larry R. Felix, Director of the Treasury’s Bureau of Engraving and Printing.[From US Treasury: New 100 dollar bill needs 3D tech – CSMonitor.com]
Sounds exciting. But why bother? Why not just forget about the $100 (and, for that matter, the $50 bill)? After all, high-denomination notes have been withdrawn before, and for much the same reason. We have to weigh up the overall impact on society and try to make the right decision, and sometimes that decision might mean a radical change.
In 1969, the Treasury stopped issuing $500, $1,000, $5,000 and $10,000 bills specifically to impede crime syndicates — the only entities that were still using such large bills after the introduction of electronic money transfers.[From Turn In Your Bin Ladens – NYTimes.com]
And before I get deluged with e-mails calling me a New World Order stooge intent on introducing the Mark of the Beast across the USA, let me merely point out that if the public were to desire anonymity for payments (they don’t, by the way) then it’s possible to create anonymous electronic money: this is an implementation choice, not any sort of technological constraint. Of course, the fact that the US government stops producing high-denomination notes doesn’t necessarily mean that they will disappear…
Malaysian police have arrested a Lebanese man allegedly carrying fake currency with a face value of $66 million after he tipped a hotel staff with a $500 note, an official said Friday.
The largest U.S. note currently in wide circulation is a $100 bill. But police found bundles of $1 million, $100,000 and $500 notes in the man’s hotel room in Kuala Lumpur on Sunday, said Izany Abdul Ghany, head of the city’s commercial crime unit.[From $500 Tip Leads Police to $66 Million in Fake Bills – ABC News]
If only all counterfeiters were that good!
These opinions are my own (I think) and presented solely in my capacity as an interested member of the general public [posted with ecto]