Cash withdrawal limits

Quote: Face

I'm one of those morons.

At least you realize it. That's a step in the
right direction.

Quote: petroglyph

Your average Joe doesn't understand money is loaned into existence.

Or doesn't want to understand is more like
it. Money is an idea, like stop signs and
traffic lights. Those objects work because
we give them meaning and then obey the
meaning. Money works because we all
agree it has value. Not very complicated.

Quote: Evenbob

At least you realize it. That's a step in the
right direction.

It's not, though. I was just having this conversation a few hours ago. I used to be so ignorant and happy. Ever since I made it a point to "take control of finances", my anger has gone from an interesting part of my personality to a crippling trait that's gonna wind me up in the clink. Every time AZD talks, petro talks, someone gets into big picture financials, my urge to conduct aggravated assault jumps exponentially.

Quote: petroglyph

Somewhere near you, there is available a 50 peso silver coin.

There is? I don't think I've ever seen one.

Quote:

Other metals will work as well, say pure copper, nickel, or silver. The point is that the medium being used has intrinsic value and can't be faked.

That's really not true. I mean, gold can't be faked (no element in elemental form can be). But gold has no intrinsic value, other than people find it desirable. There are metals rarer and more durable that no one desires, like Uranium.

Various metals have various uses, but they're valuable only so long as these uses are useful. For example, Uranium is quite valuable now. Back in the 1500s it would have been utterly worthless.

Quote:

The .gov couldn't afford all these wars if they had to be paid for with real money. They would find some other means of diplomacy.

Arguably money represents the unconsumed goods and services produced by people, as well as capital goods in use or available (real estate, buildings, vehicles, machines, tools, etc.) Gold isn't magically money any more than a $100 note is.

And you can inflate a money supply base don precious metals (or any other metals for that matter). The Romans did this in spades in the infamous Crisis of the III Century.

What you need to do is separate money and government.

Good luck with that.

Quote: Evenbob

Or doesn't want to understand is more like
it.

Why would they want to, everything is freeeeee.

Quote:

Money is an idea, like stop signs and
traffic lights.

But there is no shadow traffic meaning authority that goes around changing the meaning of stop and "one way". When stop means go and speed limits are merely a suggestion with no penalty, then traffic signs will be more similar to fiat money. There are inescapable penalty's for running stop lights, just as there are for debasing the currency.

Quote:

Not very complicated.

It's simple but not easy.

Quote: petroglyph

Your average Joe doesn't understand money is loaned into existence.

Quote: Deputy Governor Cecilia Skingsley : FinTech Stockholm 2016

Commercial bank money. This is the holdings in accounts with the commercial banks. Such money is by definition a claim on these banks.

Commercial bank money is a claim on the bank and therefore a part of the financing of the bank. They are therefore transient, that is, the bank's customers can often move the money at short notice, either to another bank or withdraw it in the form of cash. The bank's assets, such as household mortgages, are not in general as transient. It is this that may create financial stability problems in the banking sector if the general public wants to withdraw their money and the bank cannot quickly sell assets to raise the needed liquidity.

The capital requirements and liquidity requirements the state makes of the banks are aimed at making them safe by requiring they hold buffers so they can cope with loan losses and an outflow of liquidity. The capital requirements also set a limit as to how much commercial bank money the banks can create.

The above comments were part of Skingsley's presentation: Should the Riksbank issue e-krona? She goes on to ask the central question.

Quote: Deputy Governor Cecilia Skingsley : FinTech Stockholm 2016

The central question is thus whether the Swedish payment system will continue to be safe and efficient even without cash. Will all those who wish to make payments be able to do so smoothly and safely and at a reasonable cost? Even those who do not want to, may not or cannot have access to the banks’ services should be able to manage their payments.

She argues that the depletion of physical banknotes and coins in Sweden is a function of the open market, and that "the less those of us living in Sweden use banknotes and coins, the clearer it becomes that the Riksbank needs to investigate whether we should issue electronic money as a complement to the money we have today.”

Quote: Face

It's not, though. I was just having this conversation a few hours ago. I used to be so ignorant and happy. Ever since I made it a point to "take control of finances", my anger has gone from an interesting part of my personality to a crippling trait that's gonna wind me up in the clink. Every time AZD talks, petro talks, someone gets into big picture financials, my urge to conduct aggravated assault jumps exponentially.

Face, I recommend a 50 page booklet by William Bernstein called "If You Can ". You can download it from Amazon for a dollar.
https://www.amazon.com/If-You-Can-Millennials-Slowly-ebook/dp/B00JCC5JKI
From a personal finance perspective most of what's in the financial press is irrelevant and much of it is bulls**t. Bernstein's booklet is just a start but it can focus your thinking, so you can ignore the noise.

Quote: Evenbob

In Ford's day, probably. Not anymore, we
understand all too well how money works
and what it is.

I think at best 30% really understand how money works. Even people who understand how to manage their own finances usually don't really get it. I'm talking there are genius level people who do not get it.

Quote: JimRockford

Face, I recommend a 50 page booklet by William Bernstein called "If You Can ". You can download it from Amazon for a dollar.
https://www.amazon.com/If-You-Can-Millennials-Slowly-ebook/dp/B00JCC5JKI
From a personal finance perspective most of what's in the financial press is irrelevant and much of it is bulls**t. Bernstein's booklet is just a start but it can focus your thinking, so you can ignore the noise.

Appreciate that, Mr Ford. That doom and gloom bulls#$t definitely works on the ignorant, and when it comes to this stuff, that's me in a nutshell.

Quote: John C. Calhoun, speech, U.S. Senate, Dec. 29, 1841

It had been justly stated by a British writer that the power to make a small piece of paper, not worth one cent, by the inscribing of a few names, to be worth a thousand dollars, was a power too high to be entrusted to the hands of mortal man.

Andrew Jackson president from (March 4, 1829–March 4, 1837) was dead set against paper cash. He is the most admired previous President of Donald Trump

The Second Bank of the United States, located in Philadelphia, Pennsylvania, was the second federally authorized Hamiltonian national bank[ in the United States during its 20-year charter from February 1816 to January 1836. President Jackson ran on a campaign promise not to renew the bank's charter and eliminate federal power to create paper money. The Second Bank of the United States became a private corporation in 1836, and underwent liquidation in 1841.



A shortage of hard currency ensued when the charter was not renewed, causing the Panic of 1837 and lasting approximately seven years. That lull was followed by the Panic of 1857.

Congress passed the Legal Tender Act of 1862 in February of that year, issuing United States Notes, which were not redeemable on demand and bore no interest, but were legal tender, meaning that creditors had to accept them at face value for any payment except for public debts and import tariffs. United States Notes peaked at $328 million, but were replaced by federal reserve notes in 1915.


The present banknotes of the small current size were first issued in 1928 and backed by gold
For the first 10 years (1928-1938) banknotes increased in circulation by 9.73% per year on average.

For the wartime 7 years (1938-1945) banknotes increased in circulation by 27.77% per year on average.

For the next 24 years (1945-1969) banknotes increased in circulation by 2.82% per year on average as general fiscal prudence was the order of the day.

Then came the anti money laundering laws, the pledge to destroy all banknotes of denomination $500, $1000, $5000 and $10000 and the end of gold standard. See video of Richard Nixon August 15, 1971.

The year 1976 was the first major magazine article calling for the end of the $100 banknote to help curb tax evasion and illegal payoffs. At the time circulation was less than 1 c-note per capita.

For the next 24 years (1969-1993) banknotes increased in circulation by 8.41% per year on average as no longer requirement to even pretend backed by gold or silver.

For the next 22 years (1993-2015) banknotes increased in circulation by 6.71% per year on average. This is the era of massive trade deficits, much of which is paid by exporting c-notes.