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€500 notes .....

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Re: €500 notes .....

Postby Robin Hood » Mon Jun 06, 2016 6:48 pm

PaulZKTV:

IMO: I think you will find the statements are not strictly accurate?

€500 banknote remains legal tender and will always retain FACE value


That missing word makes a difference!

In view of the international role of the euro and the widespread trust in its banknotes, the €500 will remain legal tender and can therefore continue to be used as a means of payment and store of value.


Misleading! Legal tender/means of payment agreed but ‘store of value’ definitely not. The note is a currency, specifically fiat currency, which means ‘Intrinsically valueless money used as money because of government decree.’ In other words it retains its face value .... not its intrinsic value i.e. purchasing power. It is only money by decree and can be used to settle taxes i.e. it’s Legal Tender. Money has intrinsic value ..... currency does not.

The €500 banknote, like the other denominations of euro banknotes, will always retain its value.......


Again misleading! As above, it retains its face value, it will always be worth €500 but its purchasing power declines over time. The same applies to all currencies, the intrinsic value of the note (IOU) varies.
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Re: €500 notes .....

Postby GreekIslandGirl » Mon Jun 06, 2016 10:03 pm

Robin Hood wrote:Again misleading! As above, it retains its face value, it will always be worth €500 but its purchasing power declines over time. The same applies to all currencies, the intrinsic value of the note (IOU) varies.


It's not "misleading" because it's a general statement of common knowledge as it applies equally to every other note - as you then go on to say. So, you're contradicting yourself?
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Re: €500 notes .....

Postby Get Real! » Mon Jun 06, 2016 10:37 pm

You can send your €500 bills to me for safekeeping. Don’t trust the banks!
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Re: €500 notes .....

Postby Pyrpolizer » Mon Jun 06, 2016 11:21 pm

This decision will not affect money laundering one bit. Personally I only received once or twice a €500 note and I just deposited them in my account. Imo this decision is because practically the €500 is useless in everyday transactions, a very small number actually circulates, and the vast majority is re-deposited to the banks. Probably the biggest number is used for accumulating profits from illegal transactions
in gambling, prostitution, drugs, arms trade etc, but I don't see any long term problem for money launderers getting rid of them slowly and replacing them with €200 notes. If the ECB really wanted to trace those dealing with illegal activities they should have placed a time limit (say 1 year) after which the €500 note would be non exchangeable :wink: Yep that would uncover all those crooks in no time...

The matter of cashless transactions is a totally different issue Russia and China already started something like their own bitcoin.
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Re: €500 notes .....

Postby Paul ZKTV » Tue Jun 07, 2016 12:26 am

The new EUROPA notes can be sniffed by dogs and can be picked up by radios as they have a chemical smell and gernerate a fixed MHZ
the €500 note was brought in to replace the 1000DM note .
there are 611,000,000 NOTES in use worth €305,500,000,000

http://en.eurobilltracker.com/
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Re: €500 notes .....

Postby Robin Hood » Tue Jun 07, 2016 5:29 am

GreekIslandGirl wrote:
Robin Hood wrote:Again misleading! As above, it retains its face value, it will always be worth €500 but its purchasing power declines over time. The same applies to all currencies, the intrinsic value of the note (IOU) varies.


It's not "misleading" because it's a general statement of common knowledge as it applies equally to every other note - as you then go on to say. So, you're contradicting yourself?


What is a 'general' statement? Common knowledge is NOT a good yardstick because it is often wrong, as in this case. I would have thought you of all people would understand that?

Any currency note is fiat, it has no intrinsic value; what I can buy with that note today I will not be able to buy in say five years. Thus it is no store of value. The asset I buy has not increased in value it is what I am buying it with that has lost value. Until 1971, when currency was backed by the gold standard, the currency could be exchanged for gold. In 1971 the US dropped relating currency value to gold and related it to ......... well, initially US Dollars at $33 to the ounce ....... that failed and it was then related to nothing of substance.

It's a long story!!!!! :roll: :wink:
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Re: €500 notes .....

Postby Paul ZKTV » Tue Jun 07, 2016 10:23 am

up to 1931 you could walk into the Bank of england and they would change a note for Gold .
after that a note is changed for a note
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Re: €500 notes .....

Postby Robin Hood » Tue Jun 07, 2016 12:30 pm

Paul ZKTV wrote:up to 1931 you could walk into the Bank of england and they would change a note for Gold .
after that a note is changed for a note


I agree with you ........ that of course is when it is applied to you and I but, I think that between banks up until 1971 they could still get gold for £'s and US$'s as they were still genuine IOU's.

It is not commonly understood that money and currency are not the same, they are similar but money has that one quality that currency does not ....... it is a store of value over time. An ounce of gold, will still be an ounce of gold in 100 years time. whereas in 100 years time you could need say €150k or more in currency. So if you want to store your wealth buy gold/silver/platinum !

Any you have left over ..... convert it to €500 notes and send it to GR ..... he sounds as if he could do with it! :wink: :D
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Re: €500 notes .....

Postby Get Real! » Tue Jun 07, 2016 4:52 pm

Robin Hood wrote:Any you have left over ..... convert it to €500 notes and send it to GR ..... he sounds as if he could do with it! :wink: :D

Got a big mattress… there’s plenty of room for everyone’s notes! :D
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Re: €500 notes .....

Postby kurupetos » Wed Jun 08, 2016 8:06 pm

Get Real! wrote:
Robin Hood wrote:Any you have left over ..... convert it to €500 notes and send it to GR ..... he sounds as if he could do with it! :wink: :D

Got a big mattress… there’s plenty of room for everyone’s notes! :D

Is the mattress made of feathers? :mrgreen:
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