tag:blogger.com,1999:blog-5713178645208582139.post3174935799916209623..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Where is the U.S. Currency?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-79209469378005858572010-05-14T09:44:50.936-05:002010-05-14T09:44:50.936-05:00Yams, the idea is that the United States traded a ...Yams, the idea is that the United States traded a piece of paper (dollars) for some real good or service to a foreigner. In turn, the piece of paper entitles the holder to some U.S. good or service. The holder of the dollar, however, only gets the face value amount. Thus, no interest.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-32007013199210432922010-05-14T00:52:25.149-05:002010-05-14T00:52:25.149-05:00Hi- I've heard the claim before that dollars h...Hi- I've heard the claim before that dollars held outside the US amount to an "interest free loan" for the US, but I'm not sure exactly _how_ that would work. HOW does it become a loan?<br /><br />Can someone explain that to me?Yamsnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-23152149098423778672010-04-22T21:40:19.888-05:002010-04-22T21:40:19.888-05:00One price that the US DOES pay is a smallish debas...One price that the US DOES pay is a smallish debasement of the currency through counterfeiting. Of course, this was the stated reason for the new design, rather uglier to my, any many others', eyes. While new counterfeits must be a much smaller amount than the interest-free loan or even loss/destruction of notes, it's still something worth a bit of effort.<br /><br />I'm surprised Walt Frenchhttps://www.blogger.com/profile/00873789914522579055noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-14160131416064237432010-04-21T13:54:07.178-05:002010-04-21T13:54:07.178-05:00Good point Anonymous.Good point Anonymous.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-85046508231546205762010-04-21T13:09:10.732-05:002010-04-21T13:09:10.732-05:00And maybe the 100s are being used as a medium of e...And maybe the 100s are being used as a medium of exchange for illicit/black market transactions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-64913993781064456322010-04-20T20:05:52.806-05:002010-04-20T20:05:52.806-05:00Nobody claims that the US gets an interest-free lo...Nobody claims that the US gets an interest-free loan when foreigners send us goods in exchange for shares of IBM stock. That's because IBM shares are a liability of a US firm. The trouble with this interest-free loan claim is that green paper dollars are a liability of the Federal Reserve. <br /><br />On a related note, nineteenth-century banks that issued paper dollars generally claimed thatMike Sproulhttp://www.csun.edu/~hceco008/realbills.htmnoreply@blogger.com