Daily Archives: 10 April 2012

Governments hate cash

open quoteUS currency used to be issued in denominations running up to $10,000 (including also $500; $1,000; $5,000 notes). There was even a $100,000 note issued for transactions among Federal Reserve banks. The United States stopped printing large denomination notes in 1945 and officially discontinued their issuance in 1969, when the Fed began removing them from circulation. Since then the largest currency note available to the general public has a face value of $100. But since 1969, the inflationary monetary policy of the Fed has caused the US dollar to depreciate by over 80 percent, so that a $100 note in 2010 possessed a purchasing power of only $16.83 in 1969 dollars. That is less purchasing power than a $20 bill in 1969!

Despite this enormous depreciation, the Federal Reserve has steadfastly refused to issue notes of larger denomination. This has made large cash transactions extremely inconvenient and has forced the American public to make much greater use than is optimal of electronic-payment methods. Of course, this is precisely the intent of the US government. The purpose of its ongoing breach of long-established laws regarding financial privacy is to make it easier to monitor the economic affairs and abrogate the financial privacy of its citizens, ostensibly to secure their safety from Colombian drug lords, Al Qaeda operatives, and tax cheats and other nefarious white-collar criminals

Now the war on cash has begun to spread to other countries. As reported a few months ago, Italy lowered the legal maximum on cash transactions from €2,500 to €1,000. . . .

US currency used to be issued in denominations running up to $10,000 (including also $500; $1,000; $5,000 notes). There was even a $100,000 note issued for transactions among Federal Reserve banks. The United States stopped printing large denomination notes in 1945 and officially discontinued their issuance in 1969, when the Fed began removing them from circulation. Since then the largest currency note available to the general public has a face value of $100. But since 1969, the inflationary monetary policy of the Fed has caused the US dollar to depreciate by over 80 percent, so that a $100 note in 2010 possessed a purchasing power of only $16.83 in 1969 dollars. That is less purchasing power than a $20 bill in 1969!

Despite this enormous depreciation, the Federal Reserve has steadfastly refused to issue notes of larger denomination. This has made large cash transactions extremely inconvenient and has forced the American public to make much greater use than is optimal of electronic-payment methods. Of course, this is precisely the intent of the US government. The purpose of its ongoing breach of long-established laws regarding financial privacy is to make it easier to monitor the economic affairs and abrogate the financial privacy of its citizens, ostensibly to secure their safety from Colombian drug lords, Al Qaeda operatives, and tax cheats and other nefarious white-collar criminals

Now the war on cash has begun to spread to other countries. As reported a few months ago, Italy lowered the legal maximum on cash transactions from €2,500 to €1,000. . . .

As one “expert” on underground economies instructs us, “If people use more cards, they are less involved in shadowy economy activities,” in other words, secreting their hard-earned income in places where it cannot be plundered by the state. . . .close quote (Read more)

Iran: Hyundai Motor Ends Operations

open quote¶ The Hyundai Motor Company, the automaking subsidiary of Hyundai, the South Korean conglomerate, has quietly ended its business dealings with Iran, where it had extensive operations, including a joint venture to make cars. United Against Nuclear Iran, an American group that has advocated economic sanctions to pressure Iran over its disputed nuclear program, has reclassified Hyundai Motor, putting it in the “withdrawn” category on a list the group has compiled of foreign businesses that deal with Iran. Hyundai Motor officials did not respond to requests for comment. A strict new American law is putting pressure on foreign companies to reduce or eliminate their operations in Iran or risk penalties in the United States market. Hyundai is the second big foreign automaker in a week to pull back from Iran. Last week, General Motors said its French partner, PSA Peugeot Citroën, had suspended shipments of components to the Iran Khodro Industrial Group, an Iranian vehicle maker, to comply with American restraints on Iran trade. close quote (Read more)

F-35 Cost Continues to rise

Military acquisitions is the stinkiest pile of all the reeking heaps in Washington. This is from Airforce Magazine:

open quoteF-35 Costs Rise in Latest Pentagon Estimate: The estimated cost of the F-35 strike fighter program has grown by some $17 billion from $379 billion to $396 billion, according to the Pentagon’s latest reporting figures provided to Congress. According to the newly released selected acquisition reports, which reflect the period through December 2011, F-35 aircraft costs have increased by some $10.7 billion to $332 billion compared to the previous SARs that ran through December 2010. Among the reasons for the cost hike were the impacts of slowing the ramp-up of aircraft production, state the SARs. For example, the Air Force has extended its 1,763-aircraft production run by two years out to 2037, they state. F-35 engine costs went up by roughly $5.6 billion to $63.9 billion through December 2011, state the SARs. That was primarily due to an increase in initial engine spares and the cost impacts of the slower production ramp-up, they state.close quote