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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, Boris Johnson, Bretton Woods, business cycle, capital controls, Carmen Reinhart, cashless society, central bank independence, cryptocurrency, debt deflation, disruptive innovation, distributed ledger, Edward Snowden, Ethereum, 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, Johannes Kepler, 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, The Rise and Fall of American Growth, 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 Global Money Markets by Frank J. Fabozzi, Steven V. Mann, Moorad Choudhry
asset allocation, asset-backed security, bank run, Bretton Woods, buy and hold, collateralized debt obligation, credit crunch, discounted cash flows, discrete time, disintermediation, fixed income, high net worth, intangible asset, interest rate derivative, interest rate swap, large denomination, locking in a profit, London Interbank Offered Rate, Long Term Capital Management, margin call, market fundamentalism, money market fund, moral hazard, mortgage debt, paper trading, Right to Buy, short selling, stocks for the long run, time value of money, value at risk, Y2K, yield curve, zero-coupon bond, zero-sum game
With the advent of the negotiable CD, bank customers could buy a three-month or longer negotiable CD yielding a market interest rate and recoup all or more than their investment (depending on market conditions) by selling it in the market. This innovation was critical in helping depository institutions increase the amount of funds raised in the money market. It also ushered in a new era of competition among depository institutions. There are two types of negotiable CDs. The ﬁrst is the large-denomination CD, usually issued in denominations of $1 million or more. The second type is the small-denomination CDs (less than $100,000) which is a retail-oriented product. Our focus here is on the large-denomination negotiable CD with maturities of one year or less and we refer to them as simply CDs throughout the chapter. The largest group of CD investors is investment companies, with money market mutual funds purchasing the lion’s share. Coming in a distant second are banks/bank trust departments followed by municipal entities and corporations.
See Integrated investment banks artiﬁcial barriers, 70 group, 53 Investment grade rating, 182 Investors, ﬂexibility, 54 Invoice price, 214–215 IRSB, 254 ISDA. See International Swap Dealers Association ISSUE SIZE, 63 Issues, underwriting, 84 Jackson National Life, 99 JCPenney, 192 Junior tranches, 182–183 Kambhu, John, 43 King & Shaxson Bond Brokers Limited, 139 Knight-Ridder, 35 Kuwait, invasion, 38 Large-denomination CDs, 86 322 Large-denomination negotiable CDs, 85–90 Lazards, 139 Lee, Wanda, 76 Legal structures, 187 Lending lines, 262 Letter of credit (LOC), 96 Level I PAC bond, 178 Level II PAC bond, 178 Level III PAC bond, 179 Leveraged inverse ﬂoater, 103 Leveraging, 131 Liabilities. See Current liabilities; Long-term liabilities; Noninterest-bearing liabilities Liberty Brokerage Inc., 34 LIBID. See London Interbank Offered Rate LIBOR.
., commercial banks, thrifts, and credit unions), insurance companies, and investment banks. These institutions are simultaneously among the biggest buyers and issuers of money markets instruments. Moreover, there are certain short-term debt instruments peculiar to ﬁnancial institutions such as certiﬁcates of deposits, federal funds, bankers acceptances, and funding agreements. These instruments are the focus of this chapter. T LARGE-DENOMINATION NEGOTIABLE CDS A certiﬁcate of deposit (CD) is a ﬁnancial asset issued by a depository institution that indicates a speciﬁed sum of money that has been deposited with them. Depository institutions issue CDs to raise funds for ﬁnancing their business activities. A CD bears a maturity date and a speciﬁed interest rate or ﬂoating-rate formula. While CDs can be issued in any denomination, only CDs in amounts of $100,000 or less are insured by the Federal Deposit Insurance Corporation.
Stigum's Money Market, 4E by Marcia Stigum, Anthony Crescenzi
accounting loophole / creative accounting, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Black-Scholes formula, Brownian motion, business climate, buy and hold, capital controls, central bank independence, centralized clearinghouse, corporate governance, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, disintermediation, distributed generation, diversification, diversified portfolio, financial innovation, financial intermediation, fixed income, full employment, high net worth, implied volatility, income per capita, intangible asset, interest rate derivative, interest rate swap, large denomination, locking in a profit, London Interbank Offered Rate, margin call, market bubble, market clearing, market fundamentalism, money market fund, mortgage debt, Myron Scholes, offshore financial centre, paper trading, pension reform, Ponzi scheme, price mechanism, price stability, profit motive, Real Time Gross Settlement, reserve currency, risk tolerance, risk/return, seigniorage, shareholder value, short selling, technology bubble, the payments system, too big to fail, transaction costs, two-sided market, value at risk, volatility smile, yield curve, zero-coupon bond, zero-sum game
The maximum maturity for which commercial paper may be sold is 270 days, since paper with a longer maturity must be registered with the Securities and Exchange Commission (SEC), a timely and expensive procedure. In practice, very little 270-day paper is sold, and most paper sold is in the range of 90 days and under. The average maturity for commercial paper is 45 days. By regulation, commercial paper is sold in large denominations, which prevents investment by most individuals. However, individual investors hold large amounts of commercial paper through money market mutual funds. Proceeds received from commercial paper issuance must be used to finance “current transactions,” which include the funding of operating expenses and the funding of current assets such as receivables and inventories. Tracking commercial paper issuance is therefore a good way to track developments in the economy.
The term on CDs can also vary and is not always fixed. For example, higher-yielding CDs sometimes have “call” features that enable issuing banks to terminate the CD after a specified period of time. Callable CDs are more likely to be called when interest rates decline, because the issuing banks can then reissue the CDs at lower rates. Small denomination CDs are sold in denominations smaller than $100,000. Large denomination, or “jumbo,” CDs are sold in denominations over $100,000, though they are normally sold in $1 million units. CDs can have any maturity longer than 14 days, and some 5- and even 7-year CDs have been sold (these pay interest semiannually). Most CDs, however, have an original maturity of 1 to 12 months though some have maturities of five years or more. All CDs are guaranteed by the FDIC for up to $100,000.
The Glass-Steagall exemption did not include CDs and BAs. However, by interpretations that weren’t challenged, banks were permitted to underwrite and deal in CDs and BAs. The grounds for these interpretations were that: (1) such paper is not securities for the purposes of Glass-Steagall and (2) underwriting such paper was not the sort of bank activity that Glass-Steagall intended to prohibit. Note there were no large-denomination, negotiable CDs until 1961, decades after Glass-Steagall was written in 1933. The agency provision of Glass-Steagall enabled banks to do private placements in which they sold to a limited group of institutional investors in large minimum amounts corporate stocks, bonds, and other securities. These things were done within the bank. In fact, in the United States, banks have played a significant role in it.12 The Banks’ Fight for Expanded Powers In their long fight for expanded securities powers, the banks’ principal adversary in the courts and before Congress was the Securities Industry Association (SIA), which is the nonbank dealers’ trade group.
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, business cycle, capital controls, cashless society, Clayton Christensen, clockwork universe, creative destruction, credit crunch, cross-subsidies, crowdsourcing, cryptocurrency, David Graeber, dematerialisation, Diane Coyle, disruptive innovation, distributed ledger, double entry bookkeeping, Ethereum, 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.
The Power of Gold: The History of an Obsession by Peter L. Bernstein
Albert Einstein, Atahualpa, Bretton Woods, British Empire, business cycle, California gold rush, central bank independence, double entry bookkeeping, Edward Glaeser, Everybody Ought to Be Rich, 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 Jon 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.
Arguing With Zombies: Economics, Politics, and the Fight for a Better Future by Paul Krugman
affirmative action, Affordable Care Act / Obamacare, Andrei Shleifer, Asian financial crisis, bank run, banking crisis, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, Bonfire of the Vanities, business cycle, capital asset pricing model, carbon footprint, Carmen Reinhart, central bank independence, centre right, Climategate, cognitive dissonance, cryptocurrency, David Ricardo: comparative advantage, different worldview, Donald Trump, Edward Glaeser, employer provided health coverage, Eugene Fama: efficient market hypothesis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, frictionless, frictionless market, fudge factor, full employment, Growth in a Time of Debt, hiring and firing, illegal immigration, income inequality, index fund, indoor plumbing, invisible hand, job automation, John Snow's cholera map, Joseph Schumpeter, Kenneth Rogoff, knowledge worker, labor-force participation, large denomination, liquidity trap, London Whale, market bubble, market clearing, market fundamentalism, means of production, New Urbanism, obamacare, oil shock, open borders, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, price stability, quantitative easing, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, secular stagnation, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, universal basic income, very high income, working-age population
Yet dollar cash holdings have actually risen as a share of G.D.P. since the 1980s—a growth entirely accounted for by $50 and $100 bills. Now, large-denomination notes aren’t regularly used for payments—in fact, many stores won’t accept them. So what’s all that cash-holding about? We all know the answer: tax evasion, illicit activity, etc. And much of that is outside the U.S., with estimates suggesting that foreigners hold more than half of U.S. currency. Clearly, cryptocurrencies are in effect competing for some of the same business: very few people are using Bitcoin to pay their bills, but some people are using it to buy drugs, subvert elections, and so on. And the examples of both gold and large-denomination banknotes suggest that this kind of demand could support a lot of asset value. So does this mean that crypto, even if it isn’t the transformative technology its backers claim, may not be a bubble?
Vagabonding: An Uncommon Guide to the Art of Long-Term World Travel by Rolf Potts
• 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.
Good Money: Birmingham Button Makers, the Royal Mint, and the Beginnings of Modern Coinage, 1775-1821 by George Anthony Selgin
British Empire, correlation coefficient, George Gilder, invention of the steam engine, Isaac Newton, James Watt: steam engine, large denomination, lone genius, profit motive, RAND corporation, school choice, seigniorage, The Wealth of Nations by Adam Smith
resort to bimetallism, with low-denomination coins made from the less valuable metal, and large-denomination coins made from the more valuable one; or 3. issue avowedly fiduciary or token small-denomination coins, on government account. 21 Each option had its drawbacks. 22 Under the first option, if the standard metal was sufficiently valuable, coins of lower denominations would be too small to be practical, as happened with Great Britain's quarter guineas. A still more egregious case was that of the silver farthings the Royal Mint issued in 1464. Weighing only three troy grains each, these were "lost almost as fast as they were coined" (Snelling 1766, preface). The standard metal could, of course, be one from which convenient small-denomination coins might be made; but then large-denomination coins of the same metal would end up being too bulky.
The One-Minute Workout by Martin Gibala
The role of lactic acid formation in fatigue is actually quite a controversial topic that could be the focus of a separate chapter or an entire book. For our purposes here, suffice it to say that anaerobic glycolysis is a limited capacity system. By far, the most efficient way to supply energy is through a process called oxidative metabolism, which involves the use of oxygen to burn fuels such as sugars and fats—the large-denomination bills in your wallet. While slower than the other two processes, oxidative metabolism provides the capacity to utilize many different fuels. The other nice thing about it is that, given adequate fuel availability, the capacity is almost limitless. Oxidative metabolism really is an ingenious process. It’s pretty complex stuff, and one of the scientists who helped figure it out won a Nobel Prize.
Big Debt Crises by Ray Dalio
Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, break the buck, Bretton Woods, British Empire, business cycle, capital controls, central bank independence, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, declining real wages, European colonialism, fiat currency, financial innovation, German hyperinflation, housing crisis, implied volatility, intangible asset, Kickstarter, large denomination, manufacturing employment, margin call, market bubble, market fundamentalism, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, Northern Rock, Ponzi scheme, price stability, private sector deleveraging, purchasing power parity, pushing on a string, quantitative easing, refrigerator car, reserve currency, short selling, sovereign wealth fund, too big to fail, transaction costs, universal basic income, value at risk, yield curve
These included commercial paper, eurodollars, repurchase agreements, and large-denomination certificates of deposits.33 In 1969, the Federal Reserve attempted to address the loopholes that were enabling banks to skirt the reserve requirements. New bank borrowing from overseas branches was capped at 10%; this was done to stop banks from borrowing Eurodollars through their overseas branches (which were not subject to reserve requirements). Additionally, the Fed set a 10 percent limit on assets sales by banks to their overseas branches.34 In 1970, the limits on both borrowing from and selling assets to overseas branches were increased to 20 percent. However, in 1973, these requirements were both lowered down to 8 percent. This was the same requirement as was in place for large-denomination certificates of deposits.35 In the late 1960s, the Federal Home Loan Bank Board (FHLBB) used reserve requirements to affect mortgage lending.
The Money Machine: How the City Works by Philip Coggan
activist fund / activist shareholder / activist investor, algorithmic trading, asset-backed security, Bernie Madoff, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, call centre, capital controls, carried interest, central bank independence, collateralized debt obligation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, disintermediation, diversification, diversified portfolio, Edward Lloyd's coffeehouse, endowment effect, financial deregulation, financial independence, floating exchange rates, Hyman Minsky, index fund, intangible asset, interest rate swap, Isaac Newton, joint-stock company, labour market flexibility, large denomination, London Interbank Offered Rate, Long Term Capital Management, merger arbitrage, money market fund, moral hazard, mortgage debt, negative equity, Nick Leeson, Northern Rock, pattern recognition, purchasing power parity, quantitative easing, reserve currency, Right to Buy, Ronald Reagan, shareholder value, South Sea Bubble, sovereign wealth fund, technology bubble, time value of money, too big to fail, tulip mania, Washington Consensus, yield curve, zero-coupon bond
Premium bonds are another form of tax-free investment open to the individual investor but the chances of getting any return at all are fairly small. In early 1993, the government revamped the scheme increasing the top prize to £1 million in an attempt to compete with the National Lottery. The yield on the fund varies with the level of interest rates. The government also issues long-term bonds in large denominations, known as gilts. These can be bought through a stockbroker. Unlike most of the other investments we have so far described, gilts offer the chance of capital gain. As we saw in Chapter 2, the prices of bonds move up and down in inverse fashion to the level of interest rates. So, it is possible to buy a gilt at £80 one year and sell it the next at £100 and earn interest in the process. It is also well to remember that gilts can fall in price as well as rise, so there is a risk which is not involved in holding a building society deposit.
Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed
Albert Einstein, anti-communist, bank run, banking crisis, Bretton Woods, British Empire, business cycle, 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
buy and hold, 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 airline, 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.
One Up on Wall Street by Peter Lynch
air freight, Apple's 1984 Super Bowl advert, buy and hold, corporate raider, cuban missile crisis, Donald Trump, fixed income, index fund, Irwin Jacobs, Isaac Newton, large denomination, money market fund, prediction markets, random walk, shareholder value, Silicon Valley, Y2K, Yom Kippur War, zero-sum game
As soon as interest rates begin to fall, causing bond investors to realize they’ve struck a shrewd bargain, the deal is canceled and they get their money back in the mail. On the other hand, if interest rates go in a direction that works against the bondholders, the bondholders are stuck with the bonds. Since there’s very little in the corporate bond business that isn’t callable, you’re advised to buy Treasuries if you hope to profit from a fall in interest rates.) LIBERATING THE PASSBOOKS Traditionally bonds were sold in large denominations—too large for the small investor, who could only invest in debt via the savings account, or the boring U.S. savings bonds. Then the bond funds were invented, and regular people could invest in debt right along with tycoons. After that, the money-market fund liberated millions of former passbook savers from the captivity of banks, once and for all. There ought to be a monument to Bruce Bent and Harry Browne, who dreamed up the money-market account and dared to lead the great exodus out of the Scroogian thrifts.
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, Stanford prison experiment, 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 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, Stanford marshmallow experiment, 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 5 AM Club: Own Your Morning. Elevate Your Life. by Robin Sharma
Albert Einstein, dematerialisation, epigenetics, Grace Hopper, hedonic treadmill, impulse control, index card, invisible hand, Johann Wolfgang von Goethe, Kickstarter, Lao Tzu, large denomination, Mahatma Gandhi, Menlo Park, Nelson Mandela, New Journalism, Rosa Parks, telemarketer, white picket fence
If you don’t, sooner or later, they’ll dissolve your bigness and destroy your life. It’s just what they do. Relate peacefully, as much as possible, with everyone. Even one enemy is an enemy too many. Pass through life gracefully, taking the high road when conflict shows up. Should someone do you wrong, let karma do the dirty work. And let a world-class life be your revenge. Clipped to the sixth letter in the metal safe box was paper money of a large denomination. It had been folded into a triangle, for some cryptic reason unknown to the entrepreneur and the artist. This letter was longer than the others. It said: The Billionaire’s Maxim #6 Money Is the Fruit of Generosity, Not Scarcity. Be not misled by the dominant philosophy of the world. Poverty is the consequence of an inner condition, not an outer situation. To believe otherwise is to hand over your capacity to produce the magic of the prosperity that you want to the very things you are complaining of.
The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics by William R. Easterly
"Robert Solow", Andrei Shleifer, business climate, business cycle, Carmen Reinhart, central bank independence, clean water, colonial rule, correlation does not imply causation, creative destruction, endogenous growth, financial repression, Gini coefficient, Gunnar Myrdal, 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.
The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis by James Rickards
"Robert Solow", Affordable Care Act / Obamacare, Albert Einstein, asset allocation, asset-backed security, bank run, banking crisis, barriers to entry, Bayesian statistics, Ben Bernanke: helicopter money, Benoit Mandelbrot, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Black Swan, blockchain, Bonfire of the Vanities, Bretton Woods, British Empire, business cycle, butterfly effect, buy and hold, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, cellular automata, cognitive bias, cognitive dissonance, complexity theory, Corn Laws, corporate governance, creative destruction, Credit Default Swap, cuban missile crisis, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, debt deflation, Deng Xiaoping, disintermediation, distributed ledger, diversification, diversified portfolio, Edward Lorenz: Chaos theory, Eugene Fama: efficient market hypothesis, failed state, Fall of the Berlin Wall, fiat currency, financial repression, fixed income, Flash crash, floating exchange rates, forward guidance, Fractional reserve banking, G4S, George Akerlof, global reserve currency, high net worth, Hyman Minsky, income inequality, information asymmetry, interest rate swap, Isaac Newton, jitney, John Meriwether, John von Neumann, Joseph Schumpeter, Kenneth Rogoff, labor-force participation, large denomination, liquidity trap, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, Mexican peso crisis / tequila crisis, money market fund, mutually assured destruction, Myron Scholes, Naomi Klein, nuclear winter, obamacare, offshore financial centre, Paul Samuelson, Peace of Westphalia, Pierre-Simon Laplace, plutocrats, Plutocrats, prediction markets, price anchoring, price stability, quantitative easing, RAND corporation, random walk, reserve currency, RFID, risk-adjusted returns, Ronald Reagan, Silicon Valley, sovereign wealth fund, special drawing rights, stocks for the long run, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Bayes, Thomas Kuhn: the structure of scientific revolutions, too big to fail, transfer pricing, value at risk, Washington Consensus, Westphalian system
It was unclear if Greek banks would survive or whether depositors would be bailed in under the Brisbane rules. The banks had no choice but to shut down access to cash and credit until their status was clarified. ATMs stopped providing cash to Greek cardholders (travelers with non-Greek debit cards could get some cash at Athens International Airport). Greek credit cards were declined by merchants. Greeks drove to neighboring countries and returned with bags full of large-denomination euro notes. The Greek economy reverted to cash-and-carry and quasi-barter almost overnight. Coming so soon after the Cyprus debacle, the Greek version of ice-nine served as a cautionary tale. Depositors now realized their money in the bank was not money, and not theirs. Their so-called money was actually a bank liability and could be frozen at any time. The Brisbane G20 ice-nine plan was not limited to bank deposits.
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, different worldview, 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.
Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism by Kevin Phillips
algorithmic trading, asset-backed security, bank run, banking crisis, Bernie Madoff, Black Swan, Bretton Woods, BRICs, British Empire, business cycle, buy and hold, 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.
A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption by Steven Hiatt; John Perkins
addicted to oil, 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.
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 cycle, 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, disruptive innovation, distributed ledger, diversification, double entry bookkeeping, Ethereum, 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, large denomination, liquidity trap, London Whale, low skilled workers, M-Pesa, Marc Andreessen, market bubble, market fundamentalism, Mexican peso crisis / tequila crisis, MITM: man-in-the-middle, 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 Ten Million Dollar Getaway: The Inside Story of the Lufthansa Heist by Doug Feiden
It seems, at first glance, a raw deal for the man who does most of the work and takes most of the risks, but most thieves prefer such an arrangement. It ties them into a larger organization, which is vital. Only an idiot would try to deal jewelry and securities and canceled traveler’s checks from Bolivia by himself—what if he sold to the wrong person? For a haul of any size, he’s got to have an excellent fence. And that is where the mob has him. He’s paid in five minutes, and he’s paid in clean, untraceable, large-denomination bills, and his worries are over. It’s generally considered a smart move among thieves. A lot of them do it free-lance, but when they’re connected to a big shot, they don’t have to, and they’re crazy if they do. It’s a form of protection. If they ever need a favor, or if there’s ever a big score again, they’ll probably get it.) After the loot was divvied up, the gang split up. Sepe, the Vamp, and Gas Station Joey walked out of that Queens motel room looking for all the world like respectable businessmen, each with an attache case under his arm, who were just coming out of an all-night negotiating session.
Extreme Economies: Survival, Failure, Future – Lessons From the World’s Limits by Richard Davies
agricultural Revolution, air freight, Anton Chekhov, artificial general intelligence, autonomous vehicles, barriers to entry, big-box store, cashless society, clean water, complexity theory, deindustrialization, eurozone crisis, failed state, financial innovation, illegal immigration, income inequality, informal economy, James Hargreaves, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, large denomination, Livingstone, I presume, Malacca Straits, mandatory minimum, manufacturing employment, means of production, megacity, meta analysis, meta-analysis, new economy, off grid, oil shale / tar sands, pension reform, profit motive, randomized controlled trial, school choice, school vouchers, Scramble for Africa, side project, Silicon Valley, Simon Kuznets, Skype, spinning jenny, The Chicago School, the payments system, trade route, Travis Kalanick, uranium enrichment, urban planning, wealth creators, white picket fence, working-age population, Y Combinator, young professional
On Rossel Island, which lies 240 km south-east of Papua New Guinea, a currency based on ndap shells developed: they were light and durable, and varied sizes gave 22 different values that could be divided and combined to come up with any price. The US’s indigenous Yoruk people, based in northern California, valued woodpecker scalps highly, and used them in head-dresses. The scalps became a form of currency: the large pileated woodpecker was worth more than the small acorn woodpecker, giving the tribe a currency that had small and large denominations. Others have used any light, durable and divisible commodity: salt was used in Rome, ancient China and modern Ethiopia; the Aztec kingdom of Central America used chocolate (cacao beans). Prisons have a rich tradition of inventing informal currencies too. In London’s Cold Bath Fields prison the ‘vast illicit commerce’ of the nineteenth century was lubricated by using cigarette papers as currency.
The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King
"Robert Solow", 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, business cycle, 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, lateral thinking, 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, The Rise and Fall of American Growth, 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.
Business Adventures: Twelve Classic Tales From the World of Wall Street by John Brooks
banking crisis, Bretton Woods, business climate, cuban missile crisis, Ford paid five dollars a day, Gunnar Myrdal, invention of the wheel, large denomination, lateral thinking, 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.
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.
More: The 10,000-Year Rise of the World Economy by Philip Coggan
"Robert Solow", accounting loophole / creative accounting, Ada Lovelace, agricultural Revolution, Airbnb, airline deregulation, Andrei Shleifer, anti-communist, assortative mating, autonomous vehicles, bank run, banking crisis, banks create money, basic income, Berlin Wall, Bob Noyce, Branko Milanovic, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, Celtic Tiger, central bank independence, Charles Lindbergh, clean water, collective bargaining, Columbian Exchange, Columbine, Corn Laws, credit crunch, Credit Default Swap, crony capitalism, currency peg, debt deflation, Deng Xiaoping, discovery of the americas, Donald Trump, Erik Brynjolfsson, European colonialism, eurozone crisis, falling living standards, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, Frederick Winslow Taylor, full employment, germ theory of disease, German hyperinflation, gig economy, Gini coefficient, global supply chain, global value chain, Gordon Gekko, greed is good, Haber-Bosch Process, Hans Rosling, Hernando de Soto, hydraulic fracturing, Ignaz Semmelweis: hand washing, income inequality, income per capita, indoor plumbing, industrial robot, inflation targeting, Isaac Newton, James Watt: steam engine, job automation, John Snow's cholera map, joint-stock company, joint-stock limited liability company, Kenneth Arrow, Kula ring, labour market flexibility, land reform, land tenure, Lao Tzu, large denomination, liquidity trap, Long Term Capital Management, Louis Blériot, low cost airline, low skilled workers, lump of labour, M-Pesa, Malcom McLean invented shipping containers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Mikhail Gorbachev, mittelstand, moral hazard, Murano, Venice glass, Myron Scholes, Nelson Mandela, Network effects, Northern Rock, oil shale / tar sands, oil shock, Paul Samuelson, popular capitalism, popular electronics, price stability, principal–agent problem, profit maximization, purchasing power parity, quantitative easing, railway mania, Ralph Nader, regulatory arbitrage, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, Second Machine Age, secular stagnation, Silicon Valley, Simon Kuznets, South China Sea, South Sea Bubble, special drawing rights, spice trade, spinning jenny, Steven Pinker, TaskRabbit, Thales and the olive presses, Thales of Miletus, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, transatlantic slave trade, transcontinental railway, Triangle Shirtwaist Factory, universal basic income, Unsafe at Any Speed, Upton Sinclair, V2 rocket, Veblen good, War on Poverty, Washington Consensus, Watson beat the top human players on Jeopardy!, women in the workforce, Yom Kippur War, zero-sum game
The money came in faster than the governments could spend it, and the surpluses tended to be deposited with the US banks. And once banks receive a deposit, they must lend out the money at a higher rate if they are to make a profit. In the 1970s, the lucky recipients of much of that money were Latin American governments, at a time when they were struggling to balance their budgets. In 1970, total Latin American debt was $29bn; by 1982, it was $327bn.34 This debt was largely denominated in dollars, and thus subject to shifts in US interest rates and changes in exchange rates. As the Fed tightened policy and economies fell into recession, the debt clearly became unsustainable. In 1982, Mexico declared that it could not service its $80bn of debts. Fifteen other Latin American countries followed suit, along with 11 other developing nations. This was not just a problem for the countries concerned.
Addiction by Design: Machine Gambling in Las Vegas by Natasha Dow Schüll
airport security, Albert Einstein, Build a better mousetrap, business intelligence, capital controls, cashless society, commoditize, corporate social responsibility, deindustrialization, dematerialisation, deskilling, game design, impulse control, information asymmetry, inventory management, iterative process, jitney, large denomination, late capitalism, late fees, longitudinal study, means of production, meta analysis, meta-analysis, Nash equilibrium, Panopticon Jeremy Bentham, post-industrial society, postindustrial economy, profit motive, RFID, Silicon Valley, Slavoj Žižek, statistical model, the built environment, yield curve, zero-sum game
“This didn’t just slow down the play,” remembered slot machine pioneer Warren Nelson in 1994, “it kind of suggested a closure, an end to the game … it tempted the customer to cease the play and walk out the door with his winnings.”15 Since hoppers could dispense up to two hundred coins into the machine’s payout tray, they increased “the probability that those coins would be played back into the machine” and at the same time ensured that gamblers could gather the wagering momentum critical to the flow of their play experience. The introduction of bill acceptors to gambling machines further sped up play, allowing players to insert bills of large denomination and draw from credits displayed on a digital meter rather than stop to feed coins in one at a time (see fig. 2.1). Dematerializing money into an immediately available credit form not only disguised its actual cash value and thus encouraged wagering, it also mitigated the revenue-compromising limitations of human motor capacities by removing unwieldy coins from the gambling exchange. “Some players don’t have very good motor skills,” observed a representative from one game design company.16 “If you have a machine that takes five or six nickels, that’s time a player is spending to put in the coins and make sure they register,” a casino marketer concurred.
Fantasyland: How America Went Haywire: A 500-Year History by Kurt Andersen
affirmative action, Albert Einstein, animal electricity, anti-communist, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, back-to-the-land, Bernie Sanders, British Empire, Burning Man, California gold rush, Celebration, Florida, centre right, cognitive dissonance, Columbine, corporate governance, Credit Default Swap, David Brooks, delayed gratification, dematerialisation, disintermediation, disruptive innovation, Donald Trump, Donner party, Downton Abbey, Edward Snowden, Electric Kool-Aid Acid Test, failed state, Ferguson, Missouri, God and Mammon, Gordon Gekko, greed is good, high net worth, illegal immigration, invisible hand, Isaac Newton, John von Neumann, Kickstarter, large denomination, Mark Zuckerberg, market fundamentalism, McMansion, Mikhail Gorbachev, Minecraft, moral panic, mutually assured destruction, new economy, New Urbanism, Norman Mailer, placebo effect, pre–internet, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, Silicon Valley, smart meter, Snapchat, South Sea Bubble, Steve Jobs, Ted Kaczynski, the scientific method, Thomas Kuhn: the structure of scientific revolutions, trade route, transcontinental railway, urban renewal, Whole Earth Catalog, WikiLeaks, Y2K, young professional
Calvary Chapel services became so popular, the founder had to buy a circus tent to accommodate the crowds. Soon seven thousand charismatics a week were attending services, and the church started bursting forth spores, reproducing by the hundreds across the country. In the American Protestant way, these new churches were really franchises, sharing a brand—the name, the groovy music, and the belief that God is still granting ordinary folks magical superpowers. And because Calvary Chapel, a large denomination, was created in America during and after the 1960s, it insists it’s “nondenominational”—like American politicians who began insisting at the same time they’re antigovernment. One of those Calvary spores sprouted nearby, in a fancier Orange County town. Its minister, John Wimber, was not just targeting unchurched young SoCal baby boomers: he was their cool older brother, a bearded rock ’n’ roll keyboardist who’d played with the Righteous Brothers and been a Quaker pastor before turning evangelical and then neo-Pentecostal.
Alcohol: A History by Rod Phillips
clean water, conceptual framework, European colonialism, financial independence, invention of the printing press, Kickstarter, large denomination, Louis Pasteur, Mahatma Gandhi, Mikhail Gorbachev, moral panic, New Urbanism, profit motive, trade route, women in the workforce, working poor
Moreover, a case of spirits was a flexible unit of currency, as it could be traded intact or broken down into its constituent dozen bottles. When the British introduced money into the Nigerian economy, they found that the native population was already prepared to grasp the principle that there were 12 pennies in a shilling.13 Even so, the use of money rather than gin was resisted. Gin was so cheap that it was useful as payment for small items, while the coins initially put into circulation were of too large denomination. (The authorities eventually issued a coin worth a tenth of a penny.) Alcohol was a tangible asset with visible exchange value, not like a metal disc or a piece of flimsy paper that was merely reputed to represent some value and could be easily lost or stolen.14 In a sense, the prevalence of alcohol as currency might have been a deterrent to alcohol consumption. It is one thing to use money to purchase alcohol for drinking and thus to consume money indirectly.
Manias, Panics and Crashes: A History of Financial Crises, Sixth Edition by Kindleberger, Charles P., Robert Z., Aliber
active measures, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Bernie Madoff, Black Swan, Bonfire of the Vanities, break the buck, Bretton Woods, British Empire, business cycle, buy and hold, Carmen Reinhart, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, Corn Laws, corporate governance, corporate raider, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency peg, death of newspapers, debt deflation, Deng Xiaoping, disintermediation, diversification, diversified portfolio, edge city, financial deregulation, financial innovation, Financial Instability Hypothesis, financial repression, fixed income, floating exchange rates, George Akerlof, German hyperinflation, Honoré de Balzac, Hyman Minsky, index fund, inflation targeting, information asymmetry, invisible hand, Isaac Newton, joint-stock company, large denomination, law of one price, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, margin call, market bubble, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, new economy, Nick Leeson, Northern Rock, offshore financial centre, Ponzi scheme, price stability, railway mania, Richard Thaler, riskless arbitrage, Robert Shiller, Robert Shiller, short selling, Silicon Valley, South Sea Bubble, special drawing rights, telemarketer, The Chicago School, the market place, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, very high income, Washington Consensus, Y2K, Yogi Berra, Yom Kippur War
Stock prices and real estate prices increased sharply in three of the Nordic countries in the late 1980s; with a three-fold increase in Norway and five-fold increases in Sweden and Finland.14 The Kipper- und Wipperzeit This financial crisis occurred with metallic money; credit from banks or other lenders was not involved. Princes, abbots, bishops, even the Holy Roman Emperor debased the subsidiary coinage used in daily transactions (but not gold and silver coin of large denominations) by raising the denomination of existing coins, substituting base for good metals, and reducing the metallic content of coins to extract more seignorage to prepare for the Thirty Years’ War that broke out in 1618. Debasement was limited at first to their own territories. Some entrepreneurial spirit then found that it was more profitable to take bad coins across the borders into neighboring principalities to exchange for good coins with ignorant common people; the good coins were then brought home and debased.
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.
Crashed: How a Decade of Financial Crises Changed the World by Adam Tooze
Affordable Care Act / Obamacare, Apple's 1984 Super Bowl advert, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, Boris Johnson, break the buck, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, dark matter, deindustrialization, desegregation, Detroit bankruptcy, Dissolution of the Soviet Union, diversification, Doha Development Round, Donald Trump, Edward Glaeser, Edward Snowden, en.wikipedia.org, energy security, eurozone crisis, Fall of the Berlin Wall, family office, financial intermediation, fixed income, Flash crash, forward guidance, friendly fire, full employment, global reserve currency, global supply chain, global value chain, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, Hyman Minsky, illegal immigration, immigration reform, income inequality, interest rate derivative, interest rate swap, Kenneth Rogoff, large denomination, light touch regulation, Long Term Capital Management, margin call, Martin Wolf, McMansion, Mexican peso crisis / tequila crisis, mittelstand, money market fund, moral hazard, mortgage debt, mutually assured destruction, negative equity, new economy, Northern Rock, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, old-boy network, open economy, paradox of thrift, Peter Thiel, Ponzi scheme, predatory finance, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, reserve currency, risk tolerance, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, structural adjustment programs, The Great Moderation, Tim Cook: Apple, too big to fail, trade liberalization, upwardly mobile, Washington Consensus, We are the 99%, white flight, WikiLeaks, women in the workforce, Works Progress Administration, yield curve, éminence grise
As one German banker later put it to the investigative inquiry of the Bundestag, if Lehman’s failure had been a tsunami, then the bankruptcy of Hypo Real Estate would have been Armageddon for the German economy. Axel Weber, the head of the Bundesbank, spoke of a nuclear meltdown (Kernschmelze). Somewhat melodramatically, Germany’s bank regulator, Jochen Sanio, invoked Apocalypse Now.78 What really worried Berlin were rumors that German savers were panicking. As cash withdrawals spiked, the Bundesbank registered unprecedented demand for large-denomination euro notes. Abruptly, less than twenty-four hours after returning from Paris, Merkel decided that she must make a statement. It was all Steinbrück could do to persuade her that she should not do it entirely alone.79 On the afternoon of Sunday, October 5, Merkel and Steinbrück went before the TV cameras. They didn’t have a legislative mandate from the Bundestag. They were deliberately vague about the details.
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, MITM: man-in-the-middle, 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 by Neal Stephenson
air freight, airport security, crowdsourcing, digital map, drone strike, Google Earth, industrial robot, informal economy, Jones Act, large denomination, megacity, MITM: man-in-the-middle, 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, G4S, glass ceiling, illegal immigration, job satisfaction, large denomination, liquidationism / Banker’s doctrine / the Treasury view, Mahatma Gandhi, Mikhail Gorbachev, Neil Kinnock, North Sea oil, post-work, Red Clydeside, Robert Hanssen: Double agent, Ronald Reagan, sexual politics, strikebreaker, Torches of Freedom, traveling salesman, union organizing, uranium enrichment, 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, Kickstarter, large denomination, low cost airline, 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.
Italy by Damien Simonis
active transport: walking or cycling, airport security, bike sharing scheme, Bonfire of the Vanities, call centre, car-free, carbon footprint, centre right, clean water, congestion charging, discovery of the americas, Frank Gehry, haute couture, illegal immigration, Kickstarter, large denomination, low cost airline, low cost carrier, Murano, Venice glass, pension reform, period drama, Peter Eisenman, Skype, spice trade, starchitect, sustainable-tourism, trade route, urban planning, urban sprawl, women in the workforce
Travellers Cheques Traditionally a safe way to carry money and possibly not a bad idea as a backup, travellers cheques have been outmoded by plastic. Various readers have reported having trouble changing travellers cheques in Italy and it seems most banks apply hefty commissions, even on cheques denominated in euros. Visa, Travelex and Amex are widely accepted brands. Get most of your cheques in fairly large denominations to save on per-cheque commission charges. Amex exchange offices do not charge commission to exchange travellers cheques. It’s vital to keep your initial receipt, along with a record of your cheque numbers and the ones you have used, separate from the cheques. Take along your passport as identification when you go to cash travellers cheques. Phone numbers to report lost or stolen cheques: Amex ( 800 914912) MasterCard ( 800 872050) Visa ( 800 874155) Return to beginning of chapter POST Le Poste ( 803160; www.poste.it), Italy’s postal system, is reasonably reliable.
Spain by Lonely Planet Publications, Damien Simonis
Atahualpa, business process, call centre, centre right, Colonization of Mars, discovery of the americas, Francisco Pizarro, Frank Gehry, G4S, glass ceiling, Guggenheim Bilbao, haute couture, haute cuisine, illegal immigration, intermodal, Islamic Golden Age, land reform, large denomination, low cost airline, place-making, Skype, trade route, upwardly mobile, urban planning, urban renewal, urban sprawl, Winter of Discontent, young professional
Plastic has by now largely supplanted travellers cheques for travel in Spain but the ultra-cautious may see them as a useful back-up measure in case of something going wrong with one’s debit and/or credit cards. The advantage of travellers cheques, of course, is that they protect your money because they can be replaced if lost or stolen. Visa, Amex and Travelex are widely accepted brands with (usually) efficient replacement policies. Remember to take along your passport when you cash travellers cheques. Get most of your cheques in fairly large denominations (the equivalent of €100 or more) to save on any per-cheque commission charges. If you lose your Amex cheques, call a 24-hour freephone number (900 994426). For Visa cheques call 900 948973 and for MasterCard cheques call 900 948971. It’s vital to keep your initial receipt, and a record of your cheque numbers and the ones you have used, separate from the cheques themselves. Return to beginning of chapter POST The Spanish postal system, Correos (902 197197; www.correos.es), is generally reliable, if a little slow at times.