The Decline of Cash

The NYT has an article on the declining use of low-value notes in the US (and the global rise in $100 dollar notes):  you can read it here.

8 thoughts on “The Decline of Cash”

  1. So the Fed earning loadsa ‘fake’ money on seigniorage. Does anyone know how seigniorage works in the Euro ? Perhaps Sandyford should go touting for business in lawless countries 😉

  2. A dirty little piece – it never really explained the core differences between govermental cash & private credit.
    I guess this is the reason why we are in this leverage crisis to beat all leverage crisis.
    As far as I am aware the treasury still produces coin while the FED produces the cash – earning a very nice seigniorage return I gather , the treasury not so much.
    This very sophisticated investor is gaming the seigniorage system – calling their bluff in a very unsophisticated but effective manner.
    http://www.youtube.com/user/wepfinance

  3. @Dork

    Interesting link! I wonder if there are “equally valuable ” Euro coin metals that may be worth collecting?

  4. @Livonian
    – 10 to 50 cent coin is made of a alloy called Nordic Gold (89% copper , 5% aluminum , 5 % zinc and 1% Tin.
    I am not sad enough yet to see if the metal / weight ratio beats the face value but I doubt it.
    If you are in fact more scrooge like then even me and calculate this give me a buzz.
    Here is a interesting vid of the more complex manufacture of the 2 euro coin.
    http://www.youtube.com/watch?v=rFDsSMDeV3w

  5. @Dork

    Thanks! You are probably right to doubt it and I am too lazy to try. I think I will watch your video link instead.:)

    PS. I liked the one about the NASA Mars programme by (Dr Zourini?) especially his remarks about intellectual capital being the real capital of a nation. Now if only I could “find the boy” in me (perhaps it is behind the couch with a few Euro coins) I could “call in sick” tomorrow.

  6. @Dork et al

    I appreciate this is “miscellany” but I just remembered a driving holiday, through Europe ,as a kid in the late 70`s when I discovered that the old five pence coin was accepted in some games machines. I dont know what the equivalent was in local currency or whether I (or to be precise the “ATM” effectionately known as Dad) was gaining or losing in the process.

  7. @Livonian
    Well when you are exposed to such a dramatic poverty of ambition that is the ECB press conferences the only logical action is to hoard what little you can while you can.
    The ECBs doctrine is a dramatic economic depletion dogma that only sees waste rather then creativity.
    This becomes a self fulfilling prophecy after a few generations.
    The Nixon administration was the beginning of this and now their goal is almost complete.
    Its such a shame that we should find ourselfs in this swamp given our potential.
    The Germans even forgot to remember their own modern fairy tales – always a dangerous & foolish mistake.
    THE ECB IS THE SERVENT OF THE POWER BEHIND THE NOTHING…………………
    http://www.youtube.com/watch?v=bjW30BiJ5gw

  8. Irish cash usage remains the highest in Europe. We take more from ATMs in a month than a dane does in a year. We are also very intensive cheque users, second only to our French friends. While card acceptance is widespread, gaps remain, notably with taxis. The national payments implementation programme is set to kick off shortly which hopefully will set the reform ambition high.

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