What is money anyways?

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March 6th, 2017 at 12:33:33 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 704
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https://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis
20082011 Icelandic financial crisis
Relative to the size of its economy, Iceland's systemic banking collapse was the largest experienced by any country in economic history.


In the two decades before 2008, Iceland had cash at about 1% of GDP (a rate which Sweden is just now achieving). After all the banks when belly up at once cash made a big comeback.
March 6th, 2017 at 3:29:01 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 48
Posts: 4571
At least Iceland held the bankers responsible, not the depositors. Iceland economy described as a klan-based system. And I think it was the UK that decided there would be no more arbitrage in Iceland.
March 9th, 2017 at 1:10:12 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 704
Posts: 8124


in Japan home safes are selling at record rates as fear of negative interest rates is driving people to keep home based store of value (mostly currency).

In Sweden only 30 million of the new 500-kronor banknotes are now circulating 5 months after introduction. The previous series peaked at 120 million notes.


http://observer.com/2016/07/the-de-cashing-of-sweden-points-to-much-bigger-problems/
OPINION: The De-Cashing of Sweden Points to Much Bigger Problems - World's oldest central bank, the Sveriges Riksbank, attempts to go totally digital
By Derek Monroe 07/15/16
June 28th, 2017 at 5:08:27 PM permalink
Pacomartin
Member since: Oct 24, 2012
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Posts: 8124
Quote: Pacomartin
I think more and more countries will try and emulate South Korea (possibly even Mexico). South Korea has declared that all coins will no longer be legal tender as of 2020. I think a natural consequence will be that the use of the smallest banknote will also diminish radically. Almost all cash transactions will consist of two denominations only.

Circulation per capita in number of notes or coins (31 December 2015)
BANKNOTES
25.4 KRW 50,000
34.0 KRW 10,000 ---- US$8.68
5.2 KRW 5,000
29.4 KRW 1,000
COINS
45 KRW 500
185 KRW 100
41 KRW 50
165 KRW 10

South Korean Won↔Mexican Peso
1 MXN = 59 KRW


http://www.riksbank.se/en/Press-and-published/Press-Releases/2017/Riksbank-calls-on-banks-and-retailers-to-take-greater-responsibility-for-coin-changeover/

Although Sweden is not eliminating coins, they are producing new coins in denominations of roughly 10, 20 and 50 cents. These new coins are about half the size of the old coins.

New coins


Old coins



Three of the major banks,are not supplying their corporate customers with new coins, but referring them to the cash-in-transit companies.

With 30 days left there are eight 10 cent new coins, five 20 cent new coins, and four 50 cent new coins in circulation per capita. The old coins are invalid in two days, so there will be an extreme shortage of coins. The inability to get change for a dollar will further increase the need to do small transactions electronically because most people don't want to give up the cash.

The effect seems to be snowballing, and it seems that most of the population will support a digital currency when it comes up for review next year.
June 28th, 2017 at 6:01:30 PM permalink
Ayecarumba
Member since: Oct 24, 2012
Threads: 82
Posts: 1344
So if I fly to Älmhult and visit IKEA to buy a 199 krona Frodig:

and all I have is a 1,000 krona note, they might give me change that is worthless, or a cash card that I can't use anywhere outside of Sweden?
June 28th, 2017 at 6:38:22 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 107
Posts: 11115
Coins seem old fashioned and silly now. To think
they were once the only currency we had. I used
them a lot as a kid, it's all I ever had. I never use
them now or even get them. I wouldn't know
what to do with them. The only place I use
currency is in the casino because all the
table accepts is cash.
If you take a risk, you may lose. If you never take a risk, you will always lose.
June 28th, 2017 at 7:13:37 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 704
Posts: 8124


Coins are a bulky, germ-smeared, carbon-intensive, expensive medium of exchange. The cost of handling them is horrific.

Sweden will currently have coins down to about 40 coins per capita and banknotes down to roughly 20-22 notes per capita. If they release a crypto currency next year they should be able to reduce that even further. Sweden essentially ended cheques (checks) about two decades ago.

They seem reluctant to completely ban cash altogether, but at some point it will essentially become inconsequential.
June 29th, 2017 at 10:04:45 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 48
Posts: 4571
>What is money?
Alas, I can't remember.
June 29th, 2017 at 10:57:20 AM permalink
kenarman
Member since: Oct 24, 2012
Threads: 3
Posts: 841
Quote: Fleastiff
>What is money?
Alas, I can't remember.


Something we had when we were younger flea. Gone the way of many things we used to have ;-)
"There is no sin but ignorance" Christopher Marlow
June 29th, 2017 at 11:46:25 AM permalink
petroglyph
Member since: Aug 3, 2014
Threads: 12
Posts: 1935
Quote: kenarman
Something we had when we were younger flea. Gone the way of many things we used to have ;-)
It went away with my sex appeal
Everyone gets thrown from the plane to maintain altitude
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