Article that gives $200, $500 and $1,000 FRNs new hope

This article is a perfect example of why we should have large denomination currency. People are starting to show more interest in CASH.

http://www.cleveland.com/business/index.ssf/2011/10/consumers_starting_to_shy_away.html

Let the revival of the $500 and $1,000 bills begin, and give birth to the $200 bill. :devil:

 

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Yeah, umm... I dunno. The other day I was at a Dollar Tree and a woman in front of me used a hundred dollar bill on a $7 purchase. Long delays ensued. The cashier had to call someone to bring change from a backroom and the cashier checked the bill for its authenticity multiple times. I felt that the woman was stupid, why carry a hundred dollar bill around for such a small purchase? It would have been considerate of her to break the bill at a bank such as at either of the two which were open at the time in the same shopping center. Imagine if this was a $500 or $1,000 bill...alot of stores would cringe at the thought of having to provide change and would find it easier to refuse them.

Also, the counterfeiting concerns would be great. I worry enough that the hundreds I get from the bank are legitimate and check them as much as is reasonable before leaving with them. The stress of potentially getting burned by a bad $1,000 bill would be too much for alot of people to bear. If the government would change their draconian stance in refusing to reimburse for getting stuck with a bad bill I might open up to this idea and would be more supportive but until then...

 

When do we use a $100 bill in an everyday purchase (grocery store, restaurant, etc)?

The ONLY use for a $500, and a $1000 bill would be for expensive items..........don't we have credit cards!

 

We have credit cards so we can feel richer than we actually are, and buy junk that we wouldn't if we were just using cash.

 

You have no idea, I have people come in to my store to buy $2-20 worth of stuff with $100's daily. People think gas stations are banks.

 

Why on earth would you want to even begin to consider carrying around $1k bills on you, when you can have a VISA that no one can EVER rip off from you? You loose it, you call a toll-free # and have it stopped and replaced immediately. When you loose a $1k bill, theres no calling the BEP, and reporting lost or stolen to get it replaced, lol. The only thing I could imagine these huge bills being useful, would be between major corporations and the banks, maybe even Federal Reserve Banks too. It sounds like a mistake to me. Thats just making it a whole lot easier for people to steal even LARGER amounts of cash, and have more room for more. Also, this can in the long run cause major US dollar deflation!! Keeping our bills to lower denominations, is something we all don't appreciate, but IMO, it helps to slow down deflation. Now the $200 bill, sounds like a good idea! But we shoudln't over-do it. A big mistake.

 

Maybe so... But it wouldn't surprise me to find out that your wallet is full of them and your garage is full of the results. We are all guilty of it.. Thats whats makes us Americans... Remember that! I think credit companies just need to start being a little more smart about who they give credit to... I've heard about friends that have never worked a day in their life just turning 18 and walking into the bank and taking a line of credit. You can BS your way into getting as much credit as you want from the banks, these days. It's rediculous. Instead of the government bailing them all out, they should pull their own trousers up and start thinking more responsibly, but why would they, when Obama will just bail them out of their debt? Hmmm, I hope thats not too policitcal for this forum...?

 

I agree with this, for the most part. The large denom notes of days gone by are cool, but there is really no need for them these days, with many methods of payment going electronic.

I get uncomfortable on those rare occasions when I have over $200 in cash on me, and I really don't see the need to carry any more than that on your person, at any given time.

 

You would be correct that my wallet is full of credit cards, but they all have specific uses-- one is strictly for gasoline (because I get the equivalent of 8 cents/gallon discount if I use it at a certain station), one is for recurring monthly charges that require payment by credit card (but it also gives me points that can be exchanged for store vouchers), one is strictly for US dollar-based purchases made through the Internet. However, most of my daily purchases are made with cash, since it helps me to keep better tabs on my money (and I am living in what is still largely a cash-based society).

On the other hand, you would not be correct in assuming that I have a garage full of junk. I don't even have a garage, and my house is so small, not a whole lot of stuff can fit into it.

 

I always wonder exactly WHO it is that uses $100 bills. I'm in IT, and never have anything other than $1, $5, $10 or $20 bills. To get $50 or $100 I'd have to go to the bank.

From what I can ascertain, the only ones that do are 'contractors' (who for some reason tend to be paid in cash?) and the obviously wealthy.

Other than that, how DOES one come by them? No ATM that I know of dispenses bills over $20. Just wondering ...

 

Why would anyone use easy-to-lose, easy-to-steal cash for large transactions, rather than secure electronic transfers? Perhaps it's that cash transactions are easier to conceal. Many people would like to use cash to keep the IRS in the dark.

Now, tell me again why the US government is likely to consider making large cash transactions more convenient...?

 

Whenever I exchange Japanese money for American money here in Japan, I usually get $100 bills. It's a lot more convenient than getting a bunch of small bills, and a $100 bill doesn't seem like so much right now because the yen is so high (about twice as high as it was when I first came to Japan), and it is extremely commonplace here to use the Japanese equivalent of $100 bills in daily commerce. And when I go to a US coin shop, they aren't going to take my check, and they usually don't want my credit card either because of the extra charges.

 

The only time I would use a 500 or 1000 dollar bills is when I transfer money between my bank and credit union, which I can't do electronically. Cash would be more convenient than a check as there would be no waiting period before it's available. Other than that, I just don't carry that much cash for anything. I don't use credit cards because I don't need to, but I do use debit cards. If you carry around a wad of 500's in your wallet to try to impress people, you're going to deserve that mugging thats sure to follow.
Guy

 

As a roll searcher, I would probably regularly use a $500 bill, but larger would be pushing it.

 

My wife typically spends over $100 on a grocery trip for our family of four. That's not the least bit unusual for someone who shops weekly.

And, indeed, the last time I took said family to a nearby restaurant, I paid with a $100 bill. The check was $78, and the exceptional service (which I have learned to expect there) was worth leaving the remainder as a tip.

Last trip to the LHS for a new airplane ran me about $800. Having a $500 bill would have been handy

I have no idea what "we" have. My family and I do not, however.

I'm neither a contractor, nor "obviously wealthy". (At least, it's not obvious to me...:scratch In fact, I'm also in IT...have been for over 2 decades. I use them all the time.

As for coming by them, you're right. The bank is where I obtain mine.

I know dozens of families who use cash...and not one of them is trying to conceal anything. In fact, among those I know personally, we're all rather obsessive about keeping documentation, receipts, etc. Admittedly, small anecdotal sample, so you're point may well be valid.

Now, I can't speak for "everyone", but I do it because it hurts. Spending cash for "extras" (airplanes, coins, restaurants, toys) causes pain. It reminds me that I'm NOT "obviously wealthy", and that I have a finite pile of resources.

I do indeed prefer electronic means for monthly bills, like utilities or what have you.

YMMV, of course.

 

Thats odd. Just about every atm where I live dispenses $100 bills, unless you specify other. It's a great annoyance, as many businesses won't take anything higher than a $20 because they don't generally keep thousands of dollars in change to give out to everyone paying with hundreds.
Guy

 

Well, I did get half of it. Not bad haha. Plus, thats just my point being; the credit card companies need to loan to smart responsible people as yourself vs. any Tom, Dick, or Harry that applies.

 

What?! I've been to many parts of this country, and I've never seen or heard of an ATM machine that dispenses $100's to its customers. Excuse me, but thats retarted! "Yes, I'd like to get a fast cash out of $40 for my upcoming vacation". "NO, you must enter in incriments of $100". Thats insane! Well, I guess if I was to pick a single ATM in the country to tie to the back of my truck and take off with, it'd surely be that one, no doubt about it:devil:.

 

I've heard of ATM's that offer the option for amounts > $100, but have never encountered one.

Then again, I'm an extremely rare user of ATMs, so they may be more common than I realize.

 

Well, here's what makes your above simple statement a little more complicated. My friends mom used to work at a restraunt, and she once noticed this as someone left it on the table to cover their balance. The person has boughten almost $100 worth of food:


Anything seem wrong there? But hey, next time that guy can get $200 worth of food, rather than just a $100. Maybe even $500? How about a $1,000? I guess that does get him a good deal, doesn't it? Start printing a way!!