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License to print money... BitCoin?
| June 30th, 2017 at 7:23:59 PM permalink | |
| Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 | I heard on PBS today that China was manipulating the crap out of our currency by buying huge chunks of it with their money. We could do nothing official about it without an act of congress. So somebody had the idea that when they do that, we go and buy an equal amount of their money. It worked, China stopped doing it a few years ago. If you take a risk, you may lose. If you never take a risk, you will always lose. |
| June 30th, 2017 at 7:51:18 PM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Was this an old show?
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| June 30th, 2017 at 8:41:23 PM permalink | |
| petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | Is this not the "beggar thy neighbor policy"? The last official act of any government is to loot the treasury. GW |
| June 30th, 2017 at 9:01:27 PM permalink | |
| Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 |
It said they stopped doing it a couple years ago, the article you site says 2014, which is a couple years ago. NPR says that it stopped because we would buy just as many yuan's as they bought dollars, so it cancelled out what they were doing. If you take a risk, you may lose. If you never take a risk, you will always lose. |
| June 30th, 2017 at 10:20:37 PM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 | China's plans about currency are closely held The Bank for International Settlement (BIS) reported their cash per capita from 2006 to 2009 was as follow (contrasted with Mexico) $283.3 $341.1 $408.5 $455.6 China $396.1 $432.2 $401.5 $451.7 Mexico After 2009 they simply stopped reporting. But their biggest banknote is 100RMB ~ $14.75 . So that pretty much means the wealthy urban Chinese are using stuffed wallets of cash or credit cards. The USA is circulating 122 banknotes per capita, while Canada is circulating 63 (since they have a $1 and $2 coin). China was circulating 146 banknotes per capita in 2009. Such small denomination banknotes usually means the government is terrified of counterfeiting. Such an awkward situation may very well mean that the Chinese are considering going to an electronic currency. It is very expensive to keep printing so many small bills as well as difficult to handle. Since Sweden is now circulating roughly the tiny amount of 21 banknotes, and 40 coins per capita, the reasonable assumption is that they will be the first country to go cashless. As cashless receipts can easily be printed with equivalent value in Euros or USD , it would be a simple matter to unilaterally adopt another currency if economic conditions warrant. Sweden has stated that they believe cash is an inalienable human right, and they have no intention of stopping it's production. But commercial banks are private businesses, and if they decide that ATM limits should be $100 (1000 SEK) a day so they don't have to refill the ATMS as often, or worry about security as much, I don't think the government can stop them. If a country as large as China switches to crypto currency, then many countries will reconsider (including India). |
| July 1st, 2017 at 1:04:24 AM permalink | |
| Fleastiff Member since: Oct 27, 2012 Threads: 62 Posts: 7831 | Could ONE commercial bank stop this by seeking to be the bank with the "halo" that keeps ATMs well stocked and has very high daily limits? |
| July 1st, 2017 at 7:15:16 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Certainly there is a bank looking for an advantage. One Swedish bank still did cash transactions via bank telllers, even after all the others ended the practice. But the ATMs in Sweden are all owned by a single company that is financed by the banks. The real problem in Sweden is not so much getting cash as depositing it. Most of the ATM's do not take cash deposits, so in rural area people business owners have to drive 30 miles to find a machine that will take a deposit. There is a snowball effect as owners simply decide that taking cash is not worth the trouble. You sometimes see high end restaurants in the USA who won't take cash. As far as they are concerned, it is worth to annoy some potential customers so they don't have to worry about security. But in Sweden you see yogurt shops that won't take cash. Basically Sweden increased it's cash in circulation by 3.23% per year on average for ten years from 1997 to 2007. Then it began vanishing very slowly at first. Only 2% the first year, and another 1.5% the second year. Then it began accelerating and now over half of it is gone in a decade. |
| July 1st, 2017 at 10:35:09 AM permalink | |
| Fleastiff Member since: Oct 27, 2012 Threads: 62 Posts: 7831 | So any dissident bank aspiring to a halo would have to finance a separate network initially in urban areas. ATMs are technilogically able to accept anything but of course are not free. |
| July 1st, 2017 at 11:10:59 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 | The reduction of cash in Sweden in the last decade was driven by four major factors. It's an interesting case study as it may be repeated in other countries. 1) 15 March 2006, the Riksbank introduced a new, more secure 1,000-kronor banknote with a "Motion" strip so when the banknote is tilted, the picture in the striped band appears to move. The banknotes without the strip became invalid after 31 December 2013. But only a small fraction of the old banknotes was replaced with the strip. Cash circulation peaked in 2007. 2) For christmas 2012 the banks introduced a phone app called SWISH that was like Google Wallet, but most of the citizens in the country would download 3) In 2013 all 2220 ATMS were consolidated into one company owned by four banks. Banks stopped doing cash transactions via teller window. Depositing cash became much more difficult than withdrawing cash. 4) Starting in October 2015 the country began replacing all their banknotes and half their coins with new versions. Although the largest denomination was retained, the circulation numbers of the banknote are down by 93% from the peak. Next year the central bank is going to begin serious debate about issuing a digital currency. The stated goal is not to replace, but complement banknotes. But as circulation is down to about 21 banknotes and 40 coins per capita worth roughly US$500, it is difficult to believe that a digital currency will not effectively wipe out physical cash entirely. To give you an idea of how few 21 banknotes are, consider that the four little used denominations of US currency, the $2, $5, $10, and $50 together are circulating at over 23 banknotes per capita. The three heavily used denominations, the $1, $20, and $100 together are circulating at roughly a hundred banknotes per capita.
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| July 1st, 2017 at 2:11:00 PM permalink | |
| petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | What about the poor in the rural areas? Is there an internet signal and will the government provide some type of electronic device for those in India or China? I don't think so. Cash is much easier for the rural poor who scarcely make a few hundred dollars [equivalent] per year. The last official act of any government is to loot the treasury. GW |