dtilque said:
: Sheepish grin: Hey, I’m an engineer, what do I need to know about history? 
I almost said that. I think the point is that there could be some political motivation to create a new world currency under the auspices of the UN or World Bank or some other agency, choosing not to use U.S. currency specifically because of nationalist issues.
Hey man, first of all, at least I admitted I knew nothing about her, okay? So don’t make it sound like I’m FLAUNTING anything, because it’s not like I made up things about her. The point of the whole question is will this thing float or not? I DON’T think it will. Secondly, it’s pretty obvious in my mind that the U.S. Government IS trying to be more PC with their new currency. Thirdly, I was implying a SINGLE WORLD GOVERNMENT when I talked about the new World Economy. But most of what I said was tongue-in-cheek, as the original question invites opinion, so don’t think I’m some kind of conspiracy nut or anything. I, like a great many other people, just feel that anytime the Government does ANYTHING to change, there is probably an ulterior motive to it. That said, I did read the article on Lewis and Clark. I come from the area of The Battle of Fallen Timbers. I bet Clark’s older brother blew off some Shawnee heads in his day. Now I get to live comfortably in a middle-class suburban home. Isn’t America wonderful? Thanks for the link.
It’s too early to tell. But I think the only real hope is if they withdraw the one dollar bill. But it’s too soon to do that. Many of the Sackies are still being collected as souvenirs.
Lately, when I go to the bank to get money, I get some Sackies to spend. They still limit me to 10 at a time (another sign it’s too soon to withdraw the georgies) and then I spend them when I make small purchases. Tonight, I spent two of them, and the cashier said that she’d gotten a couple others earlier (a good sign). I asked if she gave them out as change, but no. One she kept for herself (more collecting) and the other she turned in for some pennies (probably end up back at the bank). But maybe she’ll give the two I gave her out.
Don’t worry, we still have plenty of DWEMs inhabiting our money.
Someone pointed out another problem with dollar coins over bills - how do you tip the stripper? Drop it in her G-string?
Tip her with a TWO dollar bill.
Visit a club in Canada sometime for your answer. I was in Calgary on business a couple of years ago and wondered the same thing since $5Can is the smallest bill. In the interest of, ahem, science, I visited a sampling of clubs (like I said, science) and found that our Canadian neighbors have turned the lack of $1 bills into something that has to be seen to be believed (Just imagine the drinking game “Quarters” and let your mind wander a bit; direct hits are occasionally rewarded with signed posters, keychains, etc). Believe me, the entertainers have no issue whatsoever with $1 and $2 coins. Just don’t consume too many wheat sodas and mistake a quarter for a dollar (not hard to do in that condition, believe me). Your error will be noticed immediately and you will be quite publicly chided.
The things I’m willing to endure in the name of Science…
I realize that this part of the thread died some time ago, but I thought I’d relate my $2 bill story.
I used to be the Network Administrator for a car dealer in a small city. Every other Friday, each employee received a check for wages due, minus $100. The balance was paid in two sheafs of $2 bills. This meant two things. First, you could hit the town on Friday night without having to visit the Bank or an ATM since the boss was nice enough to give you $100 in cash. Second, any tyro in town that you saw those first few days after payday would inevitably ask “Where did you get all those $2 bills?” Shazam! Free word-of-mouth advertising.
Anyone who had lived there more than a year or so would inevitably comment “You must work for ‘John Doe’ Motors.” (S(n)ide Note: The dealer is a real ***hole and I will not benefit him by repeating his name in a public forum.) Many merchants would grumble about the flood of $2 bills twice a month.
One coworker always gave his $2’s to his wife on payday, along with his check, to take to the bank. After 3 years, she surprised him with a 1968 Porsche 912 (basically an emasculated 911) for his birthday. She had literally paid cash for it, including over $3500 in $2 bills.
I can tell you with absolute certainty that $2 bills hold no special signifigance in my money clip. To me they are twice as nice as $1 bills and less than half as nice as $5 bills. In the year (almost to the day) I worked at that dealership, I spent 1100 of the things around town (I’d say 90% were crisp, sharp, previously uncirculated bills). You can walk into nearly any bank in the US and exchange for them to your heart’s content if you ever get an itch to hold one.
Just to genuflect in the direction of staying “on-thread”: Love the Sackies, think they’re the most beautiful U.S. coin since the “Walking Liberty” half-dollar from the 20s. I suspect that eventually the 1$ bill will, indeed, be eliminated; no one wants to admit it yet because we’ve become so stuck in our ways in our money. If they were sensible (like, say, the Japanese were) they’d get rid of the fin at the same time. (Both the 100 – roughly $1 – and 500 yen bills were replaced with coins in the 70s.) Certainly would beat that awful, plug-ugly redesign BPE’s inflicted on us. The $10 is the worst, poor Alexander Hamilton’s hair looks borrowed from Geraldine Ferraro.
Now, on to smart cards: I’m not holding my breath. I’m a New Yorker, and a pilot program was tried in 1998 on the Upper West Side, one of the better-off, technologically-savvier parts of the city. It bombed. The problem is chicken-and-egg; no one really wants to fuss with it until EVERYONE takes it. The litmus test here in NYC is cabs: until the system is mobile and simple enough for cabdrivers to use, it won’t get many takers.
It will be interesting to see the economic effect of all-electronic transactions. Think of how many businesses function only because of the profits hidden in mounds of cash (and I don’t mean just drugs and prostitution).
The dollar coin will allow things to cost more. I noticed that small things in Europe (candy, soda, etc.) cost what would be outrageous amounts in the US.
Since $1.75 or $2.00 will no longer mean a gigantic fistful of change or struggling with bill slots, expect lots of things to start costing that much.
Bus rides = 2 bucks two coins, simple.
Dollar gumball machines, video games (the exrta cool ones, no doubt) $3 tolls (no need for a cash only lane!)
Those with bills will be ineffecient fumblers. (Out of my way!)
As for dispensing with cash entirely, that won’t happen any time soon, but it will have ominous consequences:
• Plastic is issued by banks, not by governments. That cramps the ability of governments to control the money supply which could lead to inflation.
• Banks charge you to use plastic, naturally. If cash is gone, it will be like being charged to use money. Hardest hit by this will be the poor who, unable to keep large accounts, if any, will be charged exhorbitant fees to turn cash into credit. (If you don’t believe this, go into one of those “Check Cashing stores” where people are charged 8-9% of your spent taxes to give poeple their welfare money.) People’s money is also sapped by shady credit card banks who trap poorer people into 20%+ interest credit accounts, damage their credit so they can’t get other cards. I imagine bank/credit accounts where a person starts with a deposit and ends up, after a few bad transactions, paying 20% of their income to be able to hold accounts with double digit interest accruing on any debts.
• In a post-cash world, your net worth is really nothing but an integer floating in the aether. Of course, this is prretty much the case now. There will be nothing to stuff in the matress. Your integer can be hacked into, posted world wide. Anyone with enough computer smarts could screw up everyone’s finances in the country.
• The lack of cash makes money less real. In fact, it’s almost like not having money at all. Why stop at plastic? How about voice/fingerprint recognition? The cash register recognizes you and subtracts what you want from your integer.
That is, if you have money, if not your credit rating is appropriately damaged until you are forbidden to buy more and more things until you are forced to be a ward of the state.
This reflects a fundamental lack of understanding of economics. Fortunately Cecil has given us a lesson here.