http://online.wsj.com/article/SB100...43634034112.html?mod=WSJ_hpp_MIDDLETopStories I have not been in Europe since the introduction of the "Euro". This raises the obvious question for Americans: Why isn't our treasury printing $200 and $500 notes to compete with the Euro?
Because it would be for the benefit of organized crime and drug dealers. Did you read the article? Large denomination notes have less use in legitimate economies as counterfeiting makes them unattractive to retailers and access to credit provides better alternatives.
I believe that, to sucessfully compete with the Euro, we need $200, $500, AND $1,000 U.S. Federal Reserve notes. The $200 FRN just to cut down on printing costs of $100 FRNs needed to make change for larger denominations. The $500 FRN to compete with the 200 Euro. And the $1,000 FRN to compete with the 500 Euro, which is already worth close to $1,000 US$ already. And if the 500 Euro is still worth about $880 U.S. or more, that justifies a U.S. $1,000 note.
500 Euro Note The counterfeiting is only significant in non-US countries. Plus counterfeiting is only a tiny percentage of the problem. Ultimately, the issue is a government control matter. Cash is hard to track, to tax, and to know basis on transactions. Often the IRS revenue officer throws up his hands when the legitimate business is doing many cash transactions, with sufficient records to establish basis for profits netted. A 500 or 1000 dollar note would not be any more of a problem to establish legitimacy with. Governments try to discourage cash transactions, they will always use the argument about illegality, which is partly true, but in actuality a smoke screen for other issues mainly that they do not trust business people to do substantial business and pay all their taxes. Try to go up to Canada with a bunch of cash and no credit/debit card sometime and see how the border guards feel about that. They want to be able to track you from one town to another.
