THE Reserve Bank has defended the embattled $100 note, saying removing the bill from circulation would do little to stamp out crime — because criminals prefer $50s.
Earlier this week, the government flagged a review of the $100 note and cash payments over a certain value in Monday’s midyear budget update, as it seeks to recoup billions in unpaid tax lost to the cash economy.
Revenue and Financial Services Minister Kelly O’Dwyer questioned why there were so many $100 notes in circulation, and would not rule out a removal of Australia’s highest-denomination banknote.
“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” Ms O’Dwyer said.
But the RBA has backed the $100 bill, pointing out that it was “not possible to estimate the extent to which cash, or any particular banknote denomination, is used in illegal activities”.
“However, liaison with AUSTRAC (Australian Transaction Reports and Analysis Centre) and the Australian Crime Commission suggests that it is the $50 denomination — rather than the $100 — that tends to be preferred by criminal elements because of its ubiquitous use in legitimate transactions,” the RBA wrote.
I tend to agree. Even your local cash tradie will be just as happy with five $20 notes as one $100 bill.
The government won't raise a bean in extra taxation.
Take risks - if you win you will become wealthy, if you lose you will become wise
The government won't raise a bean in extra taxation.
I'm not sure the extra taxation is the primary motivator.
Rather I suspect a temporary 1.5% boost to deposits (e.g you have 48 hours to deposit your $100 notes to the bank) is what the government is aiming for. It will be the Coalitions way of boosting the economy without mailing out $900 bonuses.
Your both wrong. It's not about boosting taxation or economic activity. You can get the same level of economic activity when paper is passed around for transactions instead of digital.
It's about boosting bank liquidity and solvency when shit hits the fan.
They can bail-in digital money. They can freeze digital accounts. They can cap your ATM withdrawal with a simple reprogram. They can NIRP and ZIRP 1 and 0's stored in servers.
Your both wrong. It's not about boosting taxation or economic activity. You can get the same level of economic activity when paper is passed around for transactions instead of digital.
It's about boosting bank liquidity and solvency when shit hits the fan.
They can bail-in digital money. They can freeze digital accounts. They can cap your ATM withdrawal with a simple reprogram. They can NIRP and ZIRP 1 and 0's stored in servers.
Can't do that with paper.
The government can squeeze paper anytime they want by declaring a note no longer legal tender.
This is like your bond obsession, you just have no idea at all.
The government can squeeze paper anytime they want by declaring a note no longer legal tender.
This is like your bond obsession, you just have no idea at all.
Not "anytime". There has to be a parliamentary process, white papers written, etc like what was linked in the last few posts.
Even then, they will give several days, weeks or months notice to phase out the paper.
Plenty of time for holders to convert paper into another paper or assets.
With digital, they can literally reprogram the ATMs and servers to confiscate the 1 and zeros at short notice. Digital is "anytime". Paper is a long convoluted process.
And idiot, you can't compare bonds to paper money. Bonds are debt. Paper is money.
Not "anytime". There has to be a parliamentary process, white papers written, etc like what was linked in the last few posts.
Even then, they will give several days, weeks or months notice to phase out the paper.
Plenty of time for holders to convert paper into another paper or assets.
With digital, they can literally reprogram the ATMs and servers to confiscate the 1 and zeros at short notice. Digital is "anytime". Paper is a long convoluted process.
And idiot, you can't compare bonds to paper money. Bonds are debt. Paper is money.
Like I said, you're clueless. You don't need to take possession of the physical note to control it's use. India did it as a surprise decision.
Bullshit. Edwardian era Australia was just as good if not way better than the modern era. You're the one with the wrong notions.
You are mad in the head - It was common to lose whole families due to poor nutrition and unsanitary conditions back then, no one had washing machines etc until the 60s.
You will make up any old nonsense to try to scare kids into buying gold and away from the activities that pulled hundreds of thousands of people off the breadlines.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
You will make up any old nonsense to try to scare kids into buying gold and away from the activities that pulled hundreds of thousands of people off the breadlines.
What activities would they be Skammy?
Let me guess.
Use the "equity" in your home to get a line of credit.
Use that line of credit to buy up entry level property in direct competition with young people who were looking to buy their first home.
Rent that property to the very same young people who can no longer afford an entry level property since you priced them out.
Post on forums advising young people to borrow as much as they can to get in now or be priced out forever so that you can watch your houses go up in value.
Convince yourself that you have done the economy and the world a great favour with your enterprise.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
I'm not sure the extra taxation is the primary motivator.
Rather I suspect a temporary 1.5% boost to deposits (e.g you have 48 hours to deposit your $100 notes to the bank) is what the government is aiming for. It will be the Coalitions way of boosting the economy without mailing out $900 bonuses.
Cash is only about 5% of the money supply. It won't boost deposits, it will just get converted into smaller notes.
Some time ago I was in Bunnings and I asked the cashier how many people paid in cash expecting to hear that not many did - but the cashier said that most do. These are all normal transactions for ordinary people.
Cash isn't dead yet.
Take risks - if you win you will become wealthy, if you lose you will become wise
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