Is the $100 Bill on its way out?

April 11th, 2016 by Ken

When was the last time you saw a $500 American Bill.    Probably never.   And that’s just the way the United States Government wanted it.

In 1969, the federal government stopped making and issuing $500 bills and started taking them all out of circulation.   The reason for the move was to make illegal transactions more difficult.  It didn’t seem to have much impact – as international criminal agencies resorted to the $100 bill.   In the last two decades, illegal crime also moved to on-line and digital transactions, helped by off-shore accounts that are not traceable.

Recently, the U.S. Treasury Department floated a trial balloon.   It was considering eliminating the $100 bill.

Government officials say that nothing good comes from transactions involving the $100 dollar bill.

I most often see the $100 bill at local casinos where it seems to be the currency of gambling.   There’s a black market economy that involves the $100 bill.   Many transactions over services – house cleaning  – window washing – – lawn maintenance – car repairs and hundreds of other business activities deal in cash.   It’s not illegal providing the recipient declares the income. But it lends itself to abuse.

The federal government estimates that the black market economy makes up about 20 percent of the country’s total economic activity and is money that it doesn’t collect taxes on.   That’s estimated at $365 billion each year.

It’s estimated that more than 10 Trillion $100 Dollar American Bills are currently in circulation – – much of them outside of the United States.

Those who believe in conspiracies think the federal government’s move to do away with the $100 bill is just the next step in government’s move to do away with all currency – – thus enabling it to keep a better track on individual income and spending by forcing everyone to move to digital transactions.

I find the $100 bill a convenient means of making my financial transactions.   I would hate to see it go by the wayside in the government’s efforts to collect more taxes.  And, I still don’t trust the security of  on-line banking.  So please, keep the $100 Bill – – at least for a few more years.

Posted in Business, Government, The Real News

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