Ignorant is ignorant then

India leads the way on getting rid of high denomination notes: the UK needs to get rid of the £50 note

I warmly welcome this. It is a bold and necessary step to tackle the use of high denomination notes in corruption. And the immediate effect is vital: there was no chance to launder these notes before they ceased to have use. What is more, saying they have value when deposited might assist the tackling of tax evasion if details are then supplied by banks to tax authorities.

I would welcome the same action in the UK on £50 notes, for which I can think of no economic function,

Fifty quid just about covers a decent round these days…..no economic function?

But of rather more importance India has not abolished high value notes. It has called in those extant to issue more of a different design. It is a confiscation, or at least a capture into the tax system, of currently black money, not an abolition of high value notes (and Rs 500 is what, $10 these days? High value?).

34 thoughts on “Ignorant is ignorant then”

  1. Does anyone remember his tremendous wheeze a while back of issuing money with a “use-by” date? Didn’t that involve a denomination higher than £50? I have a vague recollection of us pointing that out, amongst the usual derision for his joke of an idea.

  2. I’ve heard other, ostensibly more serious, people suggest the idea of (digital) money with a use-by date that the state can vary to force the public to save rather than spend.

    This would obviously be theft, but then so is keeping interest rates so low that savings are destroyed by inflation.

  3. Ritchie just reads headlines and bends it to fit some shit he’s said sometime.

    If he read more he’d see that Rs500 and Rs1000 notes are being replaced by new Rs500 and Rs2000 notes. So actually putting higher denominations into circulation. Up to a whole $30.

  4. The India gang seem to have caught a case of abusive verbal diarrhea.

    First dictat about migration and now advice about the tyranny that is the War on Cash.

    If May had the balls og a gnat she should point out that any state who indulges in, or allows any of its tame stooges to indulge in talk of the wicked War on Cash, is a state that is planning for a tyrannical future,

    Indeed we should promise to ensure that the pound will always be available as cash to help ensure black market cash can circulate in Sterling anywhere on Earth. Thus helping to defeat the NWO –yet again.

  5. @Ecks-

    Yeah, they’ve been a bit punchy lately, haven’t they?

    Still, the first Test will put them back in their place for a bit.

  6. I am actually in India at the moment. And, like everybody else, I only have notes of 500 & 1000. It is a real pain. I can go into a bank, crowded, and deposit it into a bank account, which I do not have, or I can exchange four thousand for lower value notes. That is about £50. There is utter chaos here at the moment, because no one is accepting the notes. Hell, in the end it might not matter that I lose £800, but for others it is a real problem.

  7. £50 notes seem to be pretty rare already. I withdraw £200 every couple of weeks from the ATM and I cant remember the last time it dispensed a £50 note.

  8. £50 notes seem to be pretty rare already.

    So rare, in fact, that when someone used one in the pub a month or so ago everyone wanted to look at it.

  9. I am actually in India at the moment. And, like everybody else, I only have notes of 500 & 1000. It is a real pain. I can go into a bank, crowded, and deposit it into a bank account, which I do not have, or I can exchange four thousand for lower value notes.

    The thing the Richies of the world haven’t noticed – you need bureaucratic approval to turn large amounts of these notes into the new currency. This means lots and lots of opportunities for graft.

    But he’ll never see that.

  10. The serious black market cash is in dollars. This is a gesture which will trap a few minnows and let the big fish go free.

  11. £50 notes are what you use to pay trademen in cash, or buy/sell second-hand items.

    Most ATMs can only hold two denominations, typically £10 and £20. (This isn’t merely a technical restriction: it also reduces the risk of human error, i.e. the risk that the bloke refilling the machine puts the notes in the wrong tray.) So the only time you get a £50 is when you withdraw large sums from the bank; and the only time you do that is when you pay a tradesman or a private seller.

    I have seen £50s in airport ATMs though. Makes sense: tourists tend to withdraw in large sums.

  12. @TW.. Fifty quid just about covers a decent round these days….

    Bloody Hell Tim, either you drink in a damned big round or you frequent a frighteningly expensive boozer!!

  13. ‘It is a bold and necessary step to tackle the use of high denomination notes in corruption.’

    Average people must be punished for corruption – of others.

    Ending the “War on Drugs” would be a better way to fight corruption.

  14. @Interested

    No.
    Nor is there anything on which his opinion is not wrong.
    Nor does he any understanding of any topic that he ever opines on …ever.

  15. Nor is there anything on which his opinion is not wrong.
    Nor does he any understanding of any topic that he ever opines on …ever.

    He is a savant of ignorance.

  16. @TW.. Fifty quid just about covers a decent round these days . .

    Or two cocktails in Raffles Hotel.

    Ritchie would have a fit if he went to Vietnam; huge denomination bills there. A million Dong is about £40.

  17. The thing the Richies of the world haven’t noticed – you need bureaucratic approval to turn large amounts of these notes into the new currency.

    Oh, I think he’s noticed and for him it’s a feature not a bug.

  18. Interested

    Ken beat me to it:

    Rarely he will admit ignorance. As on one classic exchange when challenged over the similarity in one of his proposals to the fiscal stimuli practised in Japan over two decades which had had ever more limited impact:

    ‘I know nothing about Japan’

    But it is as rare as a South China Tiger in the wild….

  19. Of course, sewer le continong, they have €500 notes – for perfectly legitimate reasons.

    I sold my late dad’s classic Bentley to a European dealer, who gave me 20 grand in €500 notes (I’ve no reason to think he was dodgy, just the simplest means of payment) – but it caused a bit of consternation paying in at my local Barclays.

  20. @Mr W

    A bit nearer home, before the Turks revalued the Lira at 1,000,000:1, the smallest bank note was 500,000.

  21. Chris Miller

    I once had a 200 Euro note nicked from my wallet by pickpockets in Frankfurt! From recollection aren’t they phasing the 500 Euro note out?

  22. There’s a huge difference between the €500, which is a real issue (in any other currency, the cash for a drugs deal or a large bribe is both bulky and heavy; a 100kg airline allowance is about €50m, but $10m and £5m) and the £50, which is a perfectly reasonable amount of money. We should be thinking about when to bring in a £100 and switch the £5 to a coin, not scrapping the £50.

  23. Reminds me of a story about Weimar inflation: a shopper had their suitcase stolen – the thieves took the suitcase and left the money it was carrying.

  24. @Richard Gadsden, November 10, 2016 at 5:19 pm
    “…the £50, which is a perfectly reasonable amount of money. We should be thinking about when to bring in a £100 [note]..”

    For many decades, Northern Ireland and Scotland banks have issued £100 notes .
    .

  25. “Fifty quid just about covers a decent round these days”

    Can anyone imagine Murphy having a drink with enough people to run up a £50 round?

  26. Bloke in Costa Rica

    Yes, £50 as the biggest note is silly. Here the biggest is ₡50000, which is about £72, and of course $100 bills are very common. The only time I get fifties is at an airport bureau de change, and I never change too much there as their rates are so diabolical (cheapest way to exchange money is a SWIFT into a mate’s account three days before you travel and then have them take it out of the cash machine).

  27. Of course he never, not for even one second, ever considers that excessive regulation and taxation are what drive the Indian black market. That maybe the long-term solution is to lessen the grip bureaucrats have and so lessen their power to command bribes large enough to make it worth going to a black market provider? That lowering taxes a tad might chane the incentive structure sufficiently that it now becomes preferable that the black marketeers keep their money in a bank (safely) rather than in the bottom of the chicken coop (not so safe)?

    Nope. Instead he hails a government intervention designed to deal with the entirely forseen consequences of earlier government interventions.

  28. BobRocket
    November 10, 2016 at 10:46 am

    Rogoff is in favour, apparently thinks it will reduce crime.

    It might do so at that. But it will reduce the incidence of the sort of crimes that shouldn’t be crimes in the first place. Things like prositution or drug use. And for stuff like that, simply making them legal would go a hell of a lot further in reducing crime. Why you could wipe out illegal drug use with just one swipe of a pen!

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