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The Curse of Cash by Kenneth S Rogoff
Andrei Shleifer, Asian financial crisis, bank run, Ben Bernanke: helicopter money, Berlin Wall, bitcoin, blockchain, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, cryptocurrency, debt deflation, distributed ledger, Edward Snowden, ethereum blockchain, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial exclusion, financial intermediation, financial repression, forward guidance, frictionless, full employment, George Akerlof, German hyperinflation, illegal immigration, inflation targeting, informal economy, interest rate swap, Isaac Newton, Johann Wolfgang von Goethe, Kenneth Rogoff, labor-force participation, large denomination, liquidity trap, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, moveable type in China, New Economic Geography, offshore financial centre, oil shock, open economy, payday loans, price stability, purchasing power parity, quantitative easing, RAND corporation, RFID, savings glut, secular stagnation, seigniorage, The Great Moderation, the payments system, transaction costs, unbanked and underbanked, unconventional monetary instruments, underbanked, unorthodox policies, Y2K, yield curve
For one thing, the government issues interest-bearing bonds and notes only in large denominations. If three-month Treasury bills paid market interest and if they came in, say, $100 denominations, they might even be preferred to cash for some transactions. (Something akin to this occurred in the United States during the War of 1812, when small Treasury bills bearing interest were sometimes used as currency.1) Second, even if the government issues bills and bonds only in large denominations, it has to be careful to prohibit private financial firms from issuing interest-bearing paper money–like substitutes that are 100% backed by government bonds. Without the second restriction, which the government exercises through its monopoly on currency creation, intermediaries might be able to step in and basically chop up large-denomination bonds into pieces that could be used as paper money, and then sell them at profit.
And this is for every man, woman and child, so a four-person family would need to be holding $13,600 just in $100 bills, and that is not counting smaller bills. Treasuries and central banks routinely make billions from printing large-denomination notes, yet no one quite knows where exactly most of it lives or what it is used for. Only a minor fraction is in cash registers or bank vaults, and surveys of consumers in the United States and Europe don’t begin to explain the rest. And it is not just the United States that has a gigantic currency supply dominated by big bills. The problem is nearly universal in advanced economies. Even central banks are starting to see their reverse money laundering operations as a mixed blessing. I use the label “reverse money laundering” to capture how central banks effectively take clean large-denomination notes, ship them out to banks where, after a series of intermediate transactions, cash—and big notes especially—often end up as dirty money in the underground economy.
Their data do not specify denomination of the notes used; presumably only a small share of these cash transactions are in large denominations, such as $50 or $100 bills. However, although cash is dominant in these low-income retail outlets, its share has been declining, and the Fed researchers estimate that it will continue to decline by another 2.5% per year in the foreseeable future. The scanner data underscore the bifurcated nature of the demand for currency, with low-income households still heavily relying on small bills for cash purchases. Many customers at these stores are unbanked or do not have credit or debit cards (8.7% of all US consumers lack bank accounts).18 This bifurcation is something we will want to take into account when designing any phaseout of cash. Yet again, it points to the fact that demand for large-denomination notes is qualitatively different from that for small-denomination notes.
The Power of Gold: The History of an Obsession by Peter L. Bernstein
Albert Einstein, Atahualpa, Bretton Woods, British Empire, California gold rush, central bank independence, double entry bookkeeping, Edward Glaeser, falling living standards, financial innovation, floating exchange rates, Francisco Pizarro, German hyperinflation, Hernando de Soto, Isaac Newton, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, large denomination, liquidity trap, long peace, money: store of value / unit of account / medium of exchange, old-boy network, Paul Samuelson, price stability, profit motive, random walk, rising living standards, Ronald Reagan, seigniorage, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade route
Gold is extraordinarily dense; a cubic foot of it weighs half a ton. In 1875, the English economist Stanley Jevons observed that the £20 million in transactions that cleared the London Bankers' Clearing House each day would weigh about 157 tons if paid in gold coin "and would require eighty horses for conveyance."5 The density of gold means that even very small amounts can function as money of large denominations. Gold is almost as soft as putty. The gold on Venetian glasses was hammered down to as little as five-millionths of an inch-a process known as gilding. In an unusually creative use of gilding, King Ptolemy II of Egypt (285-246 Bc) had a polar bear from his zoo lead festive processions in which the bear was preceded by a group of men carrying a gilded phallus 180 feet tall.*o You could draw an ounce of gold into a wire fifty miles in length, or, if you prefer, you could beat that ounce into a sheet that would cover one hundred square feet.'
It is also difficult to imagine the sheer mechanics of transferring 24 million pennies. When, in 1529, Francis I of France paid over 1.2 million escudos to Charles V of Spain to ransom his two sons, the process of counting and testing the coins took four months, during which time the Spaniards rejected forty thousand coins as below standard.14 In a later time, 1662, one hundred chests were required to handle the physical transfer of five hundred thousand large-denomination French coins!" Gold coins were so valuable in the Middle Ages that they did not circulate much among the common people.t For the most part, gold coins were used in transactions by merchants and traders involved in foreign trade, by tax collectors, by the retinue of the monarch himself, and, as we have already seen, by monarchs as a means of buying off enemies and ransoming friends and family members.
The guinea's consistent weight and fineness made such a vivid contrast with the rotten state of the silver coinage up to the Great Recoinage that people preferred to accept the guinea wherever possible. Bankers held it as reserves, tax collectors welcomed it in order to avoid the arguments about what a worn silver piece might be worth, and economic activity in England at that time had developed to a point where a large-denomination coin such as the guinea was no longer just an inconvenient curiosity. From the moment when Elizabeth I ascended to the throne in 1558 to the foundation of the Bank of England in 1694, a period of 136 years, the Mint had issued no more than £15 million in gold coinage, of which half was in guineas that appeared after 1663. During the 45 years from 1695 to 1740, the Mint produced £17 million gold coins.
9Tail Fox by John Courtenay Grimwood
Sanchez would have field glasses with him, probably Zeiss. He was a man who kept his toys exclusive. When this bit of the plan was done, Bobby was going to buy some toys of his own, starting with a bike even bigger than the one belonging to Sanchez. He grinned. SERGEANT BOBBY ZHA husband, father and officer A good man … Bobby began with the hell banknotes, large denomination, because hell banknotes were always large denomination. What was the point of burning small notes when no one knew what things cost on the other side? After the notes, Bobby picked up the car, making sure he held it so Sanchez could get a good look at what he was about to burn. The kid had done him proud. Made from rice-paper and split bamboo, the car was quite obviously an SFPD cruiser, spray-painted in regulation colours and with a uniformed driver inside.
Before Babylon, Beyond Bitcoin: From Money That We Understand to Money That Understands Us (Perspectives) by David Birch
agricultural Revolution, Airbnb, bank run, banks create money, bitcoin, blockchain, Bretton Woods, British Empire, Broken windows theory, Burning Man, capital controls, cashless society, Clayton Christensen, clockwork universe, creative destruction, credit crunch, cross-subsidies, crowdsourcing, cryptocurrency, David Graeber, dematerialisation, Diane Coyle, distributed ledger, double entry bookkeeping, ethereum blockchain, facts on the ground, fault tolerance, fiat currency, financial exclusion, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, index card, informal economy, Internet of things, invention of the printing press, invention of the telegraph, invention of the telephone, invisible hand, Irish bank strikes, Isaac Newton, Jane Jacobs, Kenneth Rogoff, knowledge economy, Kuwabatake Sanjuro: assassination market, large denomination, M-Pesa, market clearing, market fundamentalism, Marshall McLuhan, Martin Wolf, mobile money, money: store of value / unit of account / medium of exchange, new economy, Northern Rock, Pingit, prediction markets, price stability, QR code, quantitative easing, railway mania, Ralph Waldo Emerson, Real Time Gross Settlement, reserve currency, Satoshi Nakamoto, seigniorage, Silicon Valley, smart contracts, social graph, special drawing rights, technoutopianism, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, wage slave, Washington Consensus, wikimedia commons
To build up a picture of the cashless economy we need to begin by looking at all of the issues set out here to build our understanding of the cashless economy and what it means for regulators, governments and national (and supranational) institutions. Let us therefore work through those issues individually. Electronic money issues. Crime Citi’s chief economist Willem Buiter has noted the odd conspiracy between finance ministries, central banks and organized crime (Buiter 2009): Large denomination bank notes are an especially scandalous subsidy to criminal activity and to the grey and black economies. There is no economic justification for $50 and $100 bank notes, let alone for the €200 and €500 bank notes issued by the ECB. The euro example is particularly noteworthy. Two-thirds of the euros in circulation are in the form of these €100, €200 and €500 notes, which I have never seen.
Roberds, W. 1997. What’s really new about the new forms of retail payment? Economic Review, 1 January. Roberds, W. 1998. The impact of fraud on new methods of retail payments. Economic Review, Q1. Robinson, J. 2014. BitCon: the naked truth about Bitcoin. Amazon Digital Services, 26 September, p. 149. Rogoff, K. S. 2017. International dimensions and digital currencies. In The Curse of Cash: How Large Denomination Bills Aid Tax Evasion and Crime and Constrain Monetary Policy (paperback edition). Princeton University Press. Rosner, M., and A. Kang. 2016. Understanding and regulating twenty-first century payment systems: the Ripple case study. Michigan Law Review 114(4), 648–681. Rugaard, M. 2014. Money, money, money – but not in cash. Digital Values, January, p. 16. Rushkoff, D. 2016. Reimagining money.
• When changing currency, always count your money before you leave the bank or exchange counter, just in case the teller makes a mistake. In countries where black-market exchange rates are preferable, try to make your transaction at a fixed business (hotels and jewelry stores are common for this) instead of a public space. Make sure you agree on a rate, count the dealer’s cash before you hand over yours, and don’t accept sailed or torn bills. In countries with weak currency, ask for large-denomination bills, as massive piles of small bills are hard to count. If at any point your black-marketeer begins to act suspicious (for instance, by making unusual requests or acting aggressive), exercise your right to walk away. • Avoid the urge to make too many of your on-the-ground transportation arrangements at once, as this will stunt your spontaneity. Even multistop discount programs, such as the famous Eurail train pass, are only a bargain if you’re constantly moving from place to place.
Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed
Albert Einstein, anti-communist, bank run, banking crisis, Bretton Woods, British Empire, capital controls, central bank independence, centre right, credit crunch, currency manipulation / currency intervention, Etonian, full employment, German hyperinflation, index card, invisible hand, Lao Tzu, large denomination, Long Term Capital Management, margin call, market bubble, Mexican peso crisis / tequila crisis, mobile money, money market fund, moral hazard, new economy, open economy, Plutocrats, plutocrats, price stability, purchasing power parity, pushing on a string, rolodex, the market place
He began arguing that the inflation had nothing to do with him, that he was a passive bystander to the whole process, that his task was simply to make enough money available to grease the wheels of commerce, and if business required a trillion more marks, then it was his job to make sure they were run off the presses and efficiently distributed around the country. On August 17, 1923, he delivered his annual report on economic conditions before the Council of State:The Reichsbank today issues 20,000 milliard marks of new money daily, of which 5,000 milliards are in large denominations. In the next week the bank will have increased this to 46,000 milliards daily, of which 18,000 milliards will be in large denominations. The total issue at present amounts to 63,000 milliards. In a few days we shall therefore be able to issue in one day two-thirds of the total circulation. Here was the president of the Reichsbank, whose principal obligation was supposed be the preservation of the value of the currency, proudly proclaiming to a group of parliamentarians that he now had the capacity to expand the money supply by over 60 percent in a single day and flood the country with even more paper.
The Essays of Warren Buffett: Lessons for Corporate America by Warren E. Buffett, Lawrence A. Cunningham
compound rate of return, corporate governance, Dissolution of the Soviet Union, diversified portfolio, dividend-yielding stocks, fixed income, George Santayana, index fund, intangible asset, invisible hand, large denomination, low cost carrier, oil shock, passive investing, price stability, Ronald Reagan, the market place, transaction costs, Yogi Berra, zero-coupon bond
If current interest rates are, say, only 6% or 7% when these coupons come due, the holder will be unable to compound his money over the life of the bond at the advertised rate. For pension funds or other investors with long-term liabilities, "reinvestment risk" of this type can be a serious problem. Savings Bonds might have solved it, except that they are issued only to individuals and are unavailable in large denominations. What big buyers needed was huge quantities of "Savings Bond Equivalents." Enter some ingenious and, in this case, highly useful investment bankers (led, I'm happy to say, by Salomon Brothers). They created the instrument desired by "stripping" the semi-annual coupons from standard Government issues. Each coupon, once detached, takes on the essential character of a Savings Bond since it represents a single sum due sometime in the future.
The World Beyond Your Head: On Becoming an Individual in an Age of Distraction by Matthew B. Crawford
airport security, Cass Sunstein, choice architecture, collateralized debt obligation, creative destruction, David Brooks, delayed gratification, dematerialisation, deskilling, digital Maoism, Google Glasses, hive mind, index card, informal economy, Jaron Lanier, large denomination, new economy, new new economy, Norman Mailer, online collectivism, Plutocrats, plutocrats, Richard Thaler, Rodney Brooks, self-driving car, Silicon Valley, Silicon Valley ideology, the built environment, the scientific method, The Wisdom of Crowds, theory of mind, Walter Mischel, winner-take-all economy
The frequency has to keep increasing, as we develop tolerance for any given rate of reward. The speed of play has been accelerated with some fairly straightforward innovations over the years, such as replacing the mechanical pull handle of slot machines with an electronic push button (which you can rest your hand on constantly), which was followed by the mechanically spinning reels being replaced with a video screen. Once the machines accepted bills (in large denominations), one no longer had to insert coins laboriously into the machine; merely eliminating this fumbling generated a 30 percent increase in the amount of money played. Experienced video poker players (you may have seen one hunched at a terminal at a bar or gas station, waving fingers over a touch screen in a blur that rivals the best typists) can complete up to 1,200 hands per hour; the rate of play on video slots is similar, up from about 300 games per hour a couple of decades ago.
The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics by William R. Easterly
Andrei Shleifer, business climate, Carmen Reinhart, central bank independence, clean water, colonial rule, correlation does not imply causation, creative destruction, endogenous growth, financial repression, Gini coefficient, Gunnar Myrdal, Hernando de Soto, income inequality, income per capita, inflation targeting, interchangeable parts, inventory management, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, large denomination, manufacturing employment, Network effects, New Urbanism, open economy, Productivity paradox, purchasing power parity, rent-seeking, Ronald Reagan, selection bias, Silicon Valley, Simon Kuznets, The Wealth of Nations by Adam Smith, Thomas Malthus, total factor productivity, trade liberalization, urban sprawl, Watson beat the top human players on Jeopardy!, Yogi Berra, Yom Kippur War
I had the nerve to carry these in my Volkswagen Rabbit. What did I think I was? A professional moving company? This serious offense required a trip to the station house (my Mexican friends told me, ”Never let them get you to the station house”). I offered to pay the fine for my outrageous offense on the spot, and that resolved matters. (I’m embarrassedto tell you howmuchI paid for the bribe. I got caught with only large denomination notes on me.) After that I developed several techniques for evading police sting operations. I continued toact like an idiot as far as comprehensionof Spanish went whenever the policeman was on foot. The next time I encountered a motorized policeman, I simply refused to pull over and kept driving until I got to the private university I was going to. Private property was apparently safe refuge, and the policemen gave up the chase at the gates.
Pay Any Price: Greed, Power, and Endless War by James Risen
air freight, airport security, banking crisis, clean water, drone strike, Edward Snowden, greed is good, illegal immigration, income inequality, large denomination, Occupy movement, pattern recognition, pre–internet, RAND corporation, Silicon Valley, Stuxnet, too big to fail, WikiLeaks
The FBI later determined that he had made ninety-one separate deposits, carefully seeking to stay below $10,000 each time, the level at which banks are supposed to report cash transactions. He sometimes made large cash deposits at two or three banks in a single day. All told, he deposited more than $440,000 in fresh $100 bills. Fuller was a pilot, not a money laundering genius. He didn’t realize that repeatedly depositing large amounts of cash in amounts just below the $10,000 limit is considered suspicious by banks, especially when the money is all in uncirculated, large-denomination bills. Fuller was arrested. Yet there was not enough evidence for federal prosecutors to prove that Fuller had obtained his money illegally through his work in Iraq. He agreed only to plead to purposefully seeking to structure deposits in federally insured financial institutions to avoid the $10,000 limit. He agreed to pay a $300,000 fine and to spend about one year in jail. Army Capt. Michael Nguyen served as a civil affairs officer in Iraq in 2007 and 2008.
The New Jim Crow: Mass Incarceration in the Age of Colorblindness by Michelle Alexander
affirmative action, cognitive bias, Columbine, Corrections Corporation of America, deindustrialization, desegregation, ending welfare as we know it, friendly fire, Gunnar Myrdal, illegal immigration, land reform, large denomination, low skilled workers, mandatory minimum, mass incarceration, means of production, new economy, New Urbanism, pink-collar, profit motive, Ronald Reagan, Rosa Parks, trickle-down economics, upwardly mobile, War on Poverty, women in the workforce, zero-sum game
However, as legal scholar David Cole has observed, “in practice, the drug-courier profile is a scattershot hodgepodge of traits and characteristics so expansive that it potentially justifies stopping anybody and everybody.”28 The profile can include traveling with luggage, traveling without luggage, driving an expensive car, driving a car that needs repairs, driving with out-of-state license plates, driving a rental car, driving with “mismatched occupants,” acting too calm, acting too nervous, dressing casually, wearing expensive clothing or jewelry, being one of the first to deplane, being one of the last to deplane, deplaning in the middle, paying for a ticket in cash, using large-denomination currency, using small-denomination currency, traveling alone, traveling with a companion, and so on. Even striving to obey the law fits the profile! The Florida Highway Patrol Drug Courier Profile cautioned troopers to be suspicious of “scrupulous obedience to traffic laws.”29 As Cole points out, “such profiles do not so much focus an investigation as provide law enforcement officials a ready-made excuse for stopping whom-ever they please.”30 The Supreme Court has allowed use of drug-courier profiles as guides for the exercise of police discretion.
banking crisis, Bretton Woods, business climate, cuban missile crisis, Ford paid five dollars a day, Gunnar Myrdal, invention of the wheel, large denomination, margin call, Marshall McLuhan, Plutocrats, plutocrats, short selling, special drawing rights, tulip mania, upwardly mobile, very high income
There is little reason to believe that at the beginning of his buying campaign he had any intention of trying for a corner; it seems more likely that his announced motive—the unassailable one of supporting the price of the stock in order to protect his own investment and that of other Piggly Wiggly stockholders—was all he had in mind. In any case, he took on the bears with characteristic zest, supplementing his own funds with a loan of about ten million dollars from a group of bankers in Memphis, Nashville, New Orleans, Chattanooga, and St. Louis. Legend has it that he stuffed his ten million-plus, in bills of large denomination, into a suitcase, boarded a train for New York, and, his pockets bulging with currency that wouldn’t fit in the suitcase, marched on Wall Street, ready to do battle. He emphatically denied this in later years, insisting that he had remained in Memphis and masterminded his campaign by means of telegrams and long-distance telephone calls to various Wall Street brokers. Wherever he was at the time, he did round up a corps of some twenty brokers, among them Jesse L.
A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption by Steven Hiatt; John Perkins
airline deregulation, Andrei Shleifer, Asian financial crisis, Berlin Wall, big-box store, Bob Geldof, Bretton Woods, British Empire, capital controls, centre right, clean water, colonial rule, corporate governance, corporate personhood, deglobalization, deindustrialization, Doha Development Round, energy security, European colonialism, financial deregulation, financial independence, full employment, global village, high net worth, land reform, large denomination, liberal capitalism, Long Term Capital Management, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, Naomi Klein, new economy, North Sea oil, offshore financial centre, oil shock, Ponzi scheme, race to the bottom, reserve currency, Ronald Reagan, Scramble for Africa, statistical model, structural adjustment programs, too big to fail, trade liberalization, transatlantic slave trade, transfer pricing, union organizing, Washington Consensus, working-age population, Yom Kippur War
All three factors combined to encourage Third World officials and wealthy elites to move a significant share of their private wealth into offshore foreign assets, even while their own governments were borrowing more heavily abroad than ever before (see Figure 4). Figure 4 Flight Wealth versus Foreign Debt, 1975-2003 (Billions of Dollars, Low- and Middle-Income Countries) Part of the resulting flight wave took the form of large amounts of “mattress money” hoarded by residents of Third World countries in strong currencies and large denominations—especially dollars, Swiss francs, Deutschmarks, British pounds, and, after 2002, 100, 200, and 500 euro notes. By 2006, for example, the total stock of U.S. currency was $912 billion, at least two-thirds of which was held offshore, especially in developing countries with a history of devaluations. The demand is reflected in the surge of $100 bills compared to other U.S. denominations.25 An even greater amount of capital flight occurred in private elite funds that were spirited to offshore tax havens—often with the clandestine assistance of First World banks, law firms, and accounting firms.
How Asia Works by Joe Studwell
affirmative action, anti-communist, Asian financial crisis, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collective bargaining, crony capitalism, cross-subsidies, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, failed state, financial deregulation, financial repression, Gini coefficient, glass ceiling, income inequality, income per capita, industrial robot, Joseph Schumpeter, Kenneth Arrow, land reform, land tenure, large denomination, liberal capitalism, market fragmentation, non-tariff barriers, offshore financial centre, oil shock, open economy, passive investing, purchasing power parity, rent control, rent-seeking, Right to Buy, Ronald Coase, South China Sea, The Wealth of Nations by Adam Smith, urban sprawl, Washington Consensus, working-age population
The two big state institutions, Philippine National Bank and Development Bank of the Philippines, wrote down their assets (consisting mostly of loans) by 67 per cent and 86 per cent respectively after years of making ‘behest’ loans to Marcos’s cronies. In 1993, the government moved debts of USD12 billion from the balance sheet of the central bank to that of the treasury. All this was paid for, in large part, by a tripling of domestic government debt in the late 1980s. The debt was deliberately issued in large-denomination bonds, which were beyond the reach of ordinary citizens who continued to keep their funds in the banking system, usually at negative real rates of interest. Banks recovered by borrowing for free from the public and investing the money in high-yield national debt.57 It was much like Park Chung Hee’s interest moratorium in 1972, except that in the Philippines the banking system produced zero developmental upside.
algorithmic trading, asset-backed security, bank run, banking crisis, Bernie Madoff, Black Swan, Bretton Woods, BRICs, British Empire, collateralized debt obligation, computer age, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency peg, diversification, Doha Development Round, energy security, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, George Gilder, housing crisis, Hyman Minsky, imperial preference, income inequality, index arbitrage, index fund, interest rate derivative, interest rate swap, Joseph Schumpeter, Kenneth Rogoff, large denomination, Long Term Capital Management, market bubble, Martin Wolf, Menlo Park, mobile money, money market fund, Monroe Doctrine, moral hazard, mortgage debt, Myron Scholes, new economy, oil shale / tar sands, oil shock, old-boy network, peak oil, Plutocrats, plutocrats, Ponzi scheme, profit maximization, Renaissance Technologies, reserve currency, risk tolerance, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, shareholder value, short selling, sovereign wealth fund, The Chicago School, Thomas Malthus, too big to fail, trade route
On the surface, then, it is ironic that this same geography underpinned Bush’s two narrow presidential election victories. But although Bush appealed to these regions as a cultural outsider, he evoked neither economic populism nor its memories. What counted much more was culture and religion—not just his own born-again beliefs but his frequent faith-based rhetoric and his links to well-known conservative preachers, religious Right groups, and large denominations like the Southern Baptist Convention and the Pentecostal Assemblies of God. Those ties, in turn, had been reinforced by late-1990s domestic politics—the dislike for Bill Clinton and his moral values by some 70 to 80 percent of southern white churchgoers—and even more by global events. These trends accelerated with the evangelical and fundamentalist focus on the Middle East spurred by the collapse of the Soviet Union, the Gulf War of 1991, the demonization of Iraq’s Saddam Hussein, the late-decade launch of the Left Behind book series about the imminent end-time, the sense of the great biblical battleground taking center stage again with the approach of the millennium, and then the good-versus-evil confrontation framed by the events of 9/11.
The Blockchain Alternative: Rethinking Macroeconomic Policy and Economic Theory by Kariappa Bheemaiah
accounting loophole / creative accounting, Ada Lovelace, Airbnb, algorithmic trading, asset allocation, autonomous vehicles, balance sheet recession, bank run, banks create money, Basel III, basic income, Ben Bernanke: helicopter money, bitcoin, blockchain, Bretton Woods, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, cashless society, cellular automata, central bank independence, Claude Shannon: information theory, cloud computing, cognitive dissonance, collateralized debt obligation, commoditize, complexity theory, constrained optimization, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, cryptocurrency, David Graeber, deskilling, Diane Coyle, discrete time, distributed ledger, diversification, double entry bookkeeping, ethereum blockchain, fiat currency, financial innovation, financial intermediation, Flash crash, floating exchange rates, Fractional reserve banking, full employment, George Akerlof, illegal immigration, income inequality, income per capita, inflation targeting, information asymmetry, interest rate derivative, inventory management, invisible hand, John Maynard Keynes: technological unemployment, John von Neumann, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, knowledge economy, labour market flexibility, large denomination, liquidity trap, London Whale, low skilled workers, M-Pesa, Marc Andreessen, market bubble, market fundamentalism, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, natural language processing, Network effects, new economy, Nikolai Kondratiev, offshore financial centre, packet switching, Pareto efficiency, pattern recognition, peer-to-peer lending, Ponzi scheme, precariat, pre–internet, price mechanism, price stability, private sector deleveraging, profit maximization, QR code, quantitative easing, quantitative trading / quantitative ﬁnance, Ray Kurzweil, Real Time Gross Settlement, rent control, rent-seeking, Satoshi Nakamoto, Satyajit Das, savings glut, seigniorage, Silicon Valley, Skype, smart contracts, software as a service, software is eating the world, speech recognition, statistical model, Stephen Hawking, supply-chain management, technology bubble, The Chicago School, The Future of Employment, The Great Moderation, the market place, The Nature of the Firm, the payments system, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, trade liberalization, transaction costs, Turing machine, Turing test, universal basic income, Von Neumann architecture, Washington Consensus
However, this decline has not been even across all economies. Owing to mistrust in banks, financial crises, threats of negative interest rates, and illegal operations (especially terrorism), the circulation of cash has actually increased in Japan, Switzerland, the EU, and the UK (Tett, 2016). But the future seems poised to change some parts of this trend. Growing dangers of terrorism and crime are urging policy makers to remove large denomination bills. As of May 2016, the ECB has stopped the production and issuance of the €500 banknote in an attempt to address these illegal activities. 120 Chapter 3 ■ Innovating Capitalism But apart from the reasons stated by Haldane and the motivations of the ECB, there are other reasons why moving to a cashless system could be beneficial to society. First, there is the issue of cost. As per a recent report by the Imperial College and CITI, $13 trillion—almost 18% of global GDP—is withdrawn from ATMs annually.
The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King
Andrei Shleifer, Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bretton Woods, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Doha Development Round, Edmond Halley, Fall of the Berlin Wall, falling living standards, fiat currency, financial innovation, financial intermediation, floating exchange rates, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, German hyperinflation, Hyman Minsky, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, large denomination, liquidity trap, Long Term Capital Management, manufacturing employment, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Nick Leeson, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open economy, paradox of thrift, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, quantitative easing, rent-seeking, reserve currency, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Satoshi Nakamoto, savings glut, secular stagnation, seigniorage, stem cell, Steve Jobs, The Great Moderation, the payments system, Thomas Malthus, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, yield curve, Yom Kippur War, zero-sum game
But do we really need money for the two other roles – to enable us to buy ‘stuff’ and to ensure a stable unit of account, or measuring rod, to value production? Could innovations in information technology make money redundant in respect of those two roles? We no longer need cash to buy ‘stuff’ and even the use of cheques to make payments has been rapidly declining. We use electronic transfers instead. So should we stop issuing paper money? There would be some advantages. A large proportion of banknotes, especially those of large denominations, are used for illegal transactions, both to evade tax and for other criminal activities. In the United States, over $4000 in notes and coin circulate for every man, woman and child.33 In Japan, the figure is almost double that. More than 75 per cent of those holdings are in the form of notes of the largest denomination, the $100 bill and the ¥10,000 note. There is clearly a strong demand for anonymity when making payments.
A Life in Secrets by Sarah Helm
The French collaborators talked of British agents arriving at landing fields, sometimes drunk, speaking such bad French that they could have been picked up just by opening their mouths. The British used cafés openly as letterboxes and meeting places, not thinking that they would be watched, but Kieffer had made sure he had a man in every bar in Paris. Agents could be spotted wearing brogue shoes of a style rarely seen in France or carrying obviously fake ration cards. And the British agents used wads of brand-new large-denomination notes to pay small bills, immediately drawing attention. Buckmaster, after reading some of these stories, wrote sarcastically on one report: “very interesting!” Rose Cordonnier, who cleaned the fifth floor of 84 Avenue Foch, where the prisoners were held, and was the mistress of one of Kieffer's aides, had been interrogated for hours in the hope that she would identify who had been held there and when.
The system of the world by Neal Stephenson
bank run, British Empire, cellular automata, Edmond Halley, Fellow of the Royal Society, high net worth, Isaac Newton, James Watt: steam engine, joint-stock company, large denomination, place-making, the market place, trade route, transatlantic slave trade
The stupidest imaginable way of handling it would have been to gather together all of the pennies in the countryside, from millions of tributary farmsteads, and physically transport them into London; let the wagon-trains feed and water while the gentlefolk carried out their Intercourse; and then load the coins back onto the wagons and haul them back out to the country again. And perhaps that was how they did it in some countries. But England had obstinately refused to mint coins of large denominations—which was to say, gold coins—in large enough quantities to be actually useful. Anyway, such coins were too enormous for small transactions on farms. Those that were minted, tended to be snapped up by London merchants, and used for overseas trade. The true coin of England, the one ordinary folk used, had always been the silver penny. But its low value—which was precisely what made it useful in market-town and countryside—made it miserably inconvenient for gentry who wanted to live in the city.
Reamde: A Novel by Neal Stephenson
air freight, airport security, crowdsourcing, digital map, drone strike, Google Earth, industrial robot, informal economy, large denomination, megacity, new economy, pattern recognition, Ponzi scheme, pre–internet, ransomware, side project, Skype, slashdot, South China Sea, the built environment, the scientific method, young professional
Sokolov said he wanted to track along that shore, and Olivia relayed that instruction to the driver. Sokolov now moved up and sat in the seat next to the driver. He had his bag with him. He turned on his flashlight and put it in his mouth like a cigar, then shone it down into the bag, which he had zipped open. It was stuffed with a miscellany of junk, but the predominant color was the queasy red/magenta of large-denomination Chinese currency. Much of it was crumpled loose bills, but Sokolov stirred through these and then pulled out a wrapped brick about one inch thick. He let the light shine on it and glanced up at the driver to make sure that it had been noticed. Then he pulled out a plastic sack—a white laundry bag blazoned with the logo of a luxury hotel. He dropped the money stack into this and then carefully rolled it up into a neat packet.
The Defence of the Realm by Christopher Andrew
active measures, anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, Clive Stafford Smith, collective bargaining, credit crunch, cuban missile crisis, Desert Island Discs, Etonian, Fall of the Berlin Wall, glass ceiling, illegal immigration, job satisfaction, large denomination, liquidationism / Banker’s doctrine / the Treasury view, Mahatma Gandhi, Mikhail Gorbachev, Neil Kinnock, North Sea oil, Red Clydeside, Robert Hanssen: Double agent, Ronald Reagan, sexual politics, strikebreaker, Torches of Freedom, traveling salesman, union organizing, uranium enrichment, V2 rocket, Vladimir Vetrov: Farewell Dossier, Winter of Discontent
His intercepted phone calls and correspondence, combined with B6 surveillance, led MI5 to categorize him as ‘a dissolute and irresponsible young man, aged 26, of the playboy type’, who had little or no knowledge of journalism, of the Instituto de Estudios Políticos, or – it soon transpired – of espionage. Del Pozo greatly simplified MI5 surveillance by writing to GW, the double agent whom the Abwehr believed was a fanatical Welsh nationalist recruited for them by SNOW. With the agreement of the Security Service, GW met del Pozo on 10 October at his flat in Athenaeum Court, Piccadilly. To his surprise, del Pozo handed him a talcum-powder tin containing £3,500 in large-denomination banknotes, over £100,000 at current values and probably the largest sum yet handed to a twentiethcentury British agent (other than funds intended for the Communist Party and other organizations). Part of this large sum, GW was told, was for his own personal use; part was to be held in safe-keeping for del Pozo and returned to him as and when required. GW was instructed to send weekly reports on the activities of the Welsh Nationalist Party and on arms and aircraft production to the hall-porter at the Spanish embassy, who would forward them to del Pozo.103 Del Pozo revealed to GW at one of their regular meetings that he took his orders from a more senior Abwehr agent, Angel Alcázar de Velasco (a close friend of Franco’s pro-Nazi Foreign Minister, Ramón Serrano Suñer), who, despite knowing no English, was posted to the London embassy as press attache in January 1941.
Southeast Asia on a Shoestring Travel Guide by Lonely Planet
active transport: walking or cycling, airport security, Alfred Russel Wallace, anti-communist, British Empire, call centre, car-free, carbon footprint, clean water, clockwatching, colonial rule, Google Earth, haute cuisine, indoor plumbing, large denomination, low cost carrier, Mason jar, megacity, period drama, Skype, South China Sea, spice trade, superstar cities, sustainable-tourism, trade route, urban sprawl, white picket fence, women in the workforce
Make sure your ATM and credit cards are not going to expire while you are away; contact your bank at least a month ahead of time to allow enough time for replacement cards to be issued. When exchanging money, shop around for the best exchange rate. Bring cash in crisp, untorn bills and a variety of denominations. Money changers in Myanmar and Indonesia will reject old or ripped bills. Get your travellers cheques in large denominations of US dollars (US$100 or US$50) to avoid per-cheque commission fees. Record which travellers cheques you’ve cashed, and keep this information separate from your money so that you can file a claim in the case of theft of loss. Personal Belongings ❑Clothes Southeast Asia is hot, very hot, so bring a week’s worth of lightweight, light-coloured, breathable clothes that can be washed easily and match everything.