Added the link for you.
Fixed.
ping
Schiff has no room to talk on this score. Sheesh.
"In addition, it reveals the diminishing prestige of the dollar and the increasing concerns others have for its reliability as a dependable store of value.
Wouldn't the fact that the €500 notes are at least 5 times as compact as the $100 bills have something to do with the switch?
The U.S. (& Canada) stopped printing these large denomination bills because of their use in crime. How long before the E.U. wises up and stops printing €500 notes?
"Bad money drives out good."
When the euro first came mainstream, I contacted one its creators, a professor at Columbia, and outlined why I believed the euro would be a tool in economic warfare.
My naive but sound argument was simply that competition for returns would create a bidding war for capital in dollars versus euros and endanger the US by leading to escalating interest rates, as the US is highly dependent on manageable interest rates to finance its budget.
I never foresaw the euro being the currency of choice for local thugs -- only government-sponsored ones.
What Gartman said is true, there will be more growth with more dollars circulating and what you said is also potentially true that it could be inflationary. Nothing wrong with his point.
The reality is that Americans receive a huge subsidy as a result of U.S. currency being stashed away in foreign suitcases. It’s like writing checks that no one cashes. Dollars circulating abroad do not bid up consumer prices at home, which results in Americans having more goods to consume at lower prices.
??? Makes no sense. Where do the 'more goods' come from? It would be better for that money to be circulating in the economy than to be sitting stagnant. You won't get more goods produced without that added economic activity. Gartman makes more sense. Another disadvantage to the Euro is if Euros are used by drug dealers, that probably means they will be counterfieted more.
Lereah is as much an "economist" as are many well known economists in MSM and Academe. They are not economists at all in that they do not study and describe what happens but rather they invent stories about how money works that support government as the engine of progress and fairness and the necessary unit for keeping workers from starving. Most practicing economists are inherently socialists, including some of our best known "conservative" ones like Milton Friedman. They think the economy only continues to work if the government is there to tinker and adjust.
Riddle me this, Batman, if foreign drug dealers suddenly put $1 billion in the bank, what American is required to pay interest on that money?
The fact that criminals increasingly prefer euros to dollars speaks volumes.
Yes, that it's easier to carry a bill worth $630 dollars than 6 bills worth $600.
Well, we don't make anything here anyway, so what are they going to buy?
May I suggest that they buy our narcotics?