Dumb ideas are circulating, so here's mine:The Federal Reserve puts out a news release stating that a small but still considerable amount of US currency was printed with contaminated ink. The contaminated ink contains a chemical that is proven to be carcinogenic. The contaminated ink has been discovered in samples dating back to 1994 right up to the present day.
It is too difficult to recall individual series of currency since the contamination problem was across the board. Therefore, the Fed will issue new currency to replace all older currency printed before 2010. This older currency will become worthless in 30 days, which is plenty of time to go to your bank and exchange your old contaminated paper money. Few of us have more than a hundred bucks in cash laying around at any given time, so it's no big deal. But it needs to be done relatively quickly due to public health concerns and public safety.
The drug tycoons in Central and South America and militant islamicists in Afghanistan and Pakistan would be up a creek because they'd have to spend the money before it became worthless. The re-patriated money would create an orgy of domestic spending in the US, assuming they could smuggle the money back into the US before the expiration date. Even better, they couldn't use their dollars to buy more drugs and weapons back home because their suppliers won't take money that will be worthless very soon.
So it's a dumb idea, but central bankers are capable of dumber.
6 comments:
on a related note:
http://www.cbn.com/cbnnews/us/2010/August/Distributing-Supernotes-An-Act-of-War/
Nice
Well, that could be a legitimate way of enacting this. Just say that all paper money printed before August 2010 will become worthless in 30 days.
A nation of free individuals would have different values, risks and notions. Just like some people like small imported cars with great mileage and others American full size SUV.
So too with banking, and money creation. For example, Why should expanding economy Texas savers not now be offered 5 percent, instead they get to pay for Detroit and other no demand states with way, way less return? So, you being in Texas, it would be better for you to get more return on your savings, as opposed to joining Club Federal Reserve and get the near nothing now.
Prior to the progressive, leftist, fascist Federal Reserve act we had hundreds of bank notes, each from a bank looking at different rates of risk and philosophy. And we hand gold coins, and US ( Not Federal Reserve ) dollar notes backed on demand with gold.
Let's get rid of central planning one size fits all bank.
There is a reason the founders didn't want, and wrote against central banks and money creation/destruction power in the hands of a central government.
Naturally, large rent seeking mercantilists, order cravers, and Federal power junkies would oppose having this, or any power once in their orbit, removed. Especially to what they see as a welfarized, food stamp, elderly sick mewing population that constantly begs for every more Federal crumbs. In short, the modern American peasant.
Author Larry Niven once proposed coining money out of Nuclear Waste products. Mind you, he has made many 'Modest Proposal' tongue-in-cheek suggestions over the years.
coining money out of Nuclear Waste products
Now there ya go! That might be one way way to ensure money keeps circulating and give a nice boost to the economy.
"Yowzah! Dear, I just got this money, and I need to run down to the beer store and spend it fast instead of letting it sit in my pocket too long..."
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