Texsox 1,693 Posted February 4, 2008 I was just watching a show on the History channel that quoted a figure that two thirds of US currency is in circulation overseas. Is all that foreigners working here and sending money back home? Anyone know? I know there is a huge demand for "greenbacks" and many are in private vaults and foreign banks, but how do they all get there? Share this post Link to post Share on other sites
southsider2k5 11,627 Posted February 4, 2008 The dollar is the closest thing to a "universal currency" that exists in the world today. The utility of the dollar has a lot to do with it. You can spend them anywhere. The trade deficit is probably the biggest mover of dollars overseas. Share this post Link to post Share on other sites
Texsox 1,693 Posted February 4, 2008 QUOTE(southsider2k5 @ Feb 4, 2008 -> 09:06 AM) The dollar is the closest thing to a "universal currency" that exists in the world today. The utility of the dollar has a lot to do with it. You can spend them anywhere. The trade deficit is probably the biggest mover of dollars overseas. Right, and as long as they stay overseas and are not presented back, that's good for us, right? IIRC I believe that was Milton Friedman's theory? What I was wondering was how/why the actual physical bills get overseas. When one company pays another, it's typically a wire transfer, or in some cases paying their US subsidiary. Why would the physical notes be moved? Share this post Link to post Share on other sites
southsider2k5 11,627 Posted February 4, 2008 QUOTE(Texsox @ Feb 4, 2008 -> 09:13 AM) Right, and as long as they stay overseas and are not presented back, that's good for us, right? IIRC I believe that was Milton Friedman's theory? What I was wondering was how/why the actual physical bills get overseas. When one company pays another, it's typically a wire transfer, or in some cases paying their US subsidiary. Why would the physical notes be moved? Sure, its like the gift card that never gets used. It sends up being a profit to the Treasury Dept. Physical notes have a demand, because of the stability of the dollar. People know that there will always be value in their dollars and that they will be able to use them anywhere they want to. That isn't the case with most of the worlds currencies, especially in countries who are in political strife, undergoing hyperinflation, or other unstabilities.. Share this post Link to post Share on other sites
Texsox 1,693 Posted February 4, 2008 But how/why do the actual dollars themselves move to overseas banks? Do we really have plane loads of geenbacks travelling? Share this post Link to post Share on other sites
Rex Kickass 0 Posted February 4, 2008 South America is all about cash. Dollars. So has Russia been. Although, the Dollar's dominance is starting to draw to a close and will soon be secondary to the Euro, IMHO. Share this post Link to post Share on other sites
Disco72 0 Posted February 5, 2008 QUOTE(Texsox @ Feb 4, 2008 -> 10:34 AM) But how/why do the actual dollars themselves move to overseas banks? Do we really have plane loads of geenbacks travelling? Did the show say that the actual, physical bills (or coins) were overseas? Or just a broad statement about the 'currency' in general, because while that could be possible for the reasons discussed above (plus 'dollarized' economies), 2/3 does seem high given the size of our economy. Share this post Link to post Share on other sites
Texsox 1,693 Posted February 5, 2008 QUOTE(Disco72 @ Feb 5, 2008 -> 04:42 PM) Did the show say that the actual, physical bills (or coins) were overseas? Or just a broad statement about the 'currency' in general, because while that could be possible for the reasons discussed above (plus 'dollarized' economies), 2/3 does seem high given the size of our economy. The show was on counterfeiting bills and yes, they mentioned the actual physical dollars are over seas in circulation. Share this post Link to post Share on other sites
Disco72 0 Posted February 5, 2008 QUOTE(Texsox @ Feb 5, 2008 -> 05:45 PM) The show was on counterfeiting bills and yes, they mentioned the actual physical dollars are over seas in circulation. Given that our economy is mostly electronic with credit cards, debit cards, online, etc., maybe the reasons posted above are enough for the 2/3...but wowsa, that still seems like alot. Share this post Link to post Share on other sites
sox4lifeinPA 0 Posted February 5, 2008 I remember hearing on NPR recently that a country wasn't accepting dollars anymore...anyone remember which? Share this post Link to post Share on other sites
Texsox 1,693 Posted February 5, 2008 QUOTE(Disco72 @ Feb 5, 2008 -> 04:59 PM) Given that our economy is mostly electronic with credit cards, debit cards, online, etc., maybe the reasons posted above are enough for the 2/3...but wowsa, that still seems like alot. I was surprised to learn that we are continuing to print more new bills then we retire. Share this post Link to post Share on other sites
sox4lifeinPA 0 Posted February 5, 2008 QUOTE(Texsox @ Feb 5, 2008 -> 06:23 PM) I was surprised to learn that we are continuing to print more new bills then we retire. the stuff I've seen in 8+ years of banking...amazing. They should retire a whole lot more. Share this post Link to post Share on other sites
Texsox 1,693 Posted February 5, 2008 QUOTE(sox4lifeinPA @ Feb 5, 2008 -> 04:59 PM) I remember hearing on NPR recently that a country wasn't accepting dollars anymore...anyone remember which? Texas, aceptamos sí Pesos Share this post Link to post Share on other sites
sox4lifeinPA 0 Posted February 5, 2008 QUOTE(Texsox @ Feb 5, 2008 -> 06:24 PM) Texas, aceptamos sí Pesos no hay un equis en Tejas. Share this post Link to post Share on other sites
Rex Kickass 0 Posted February 6, 2008 QUOTE(sox4lifeinPA @ Feb 5, 2008 -> 05:59 PM) I remember hearing on NPR recently that a country wasn't accepting dollars anymore...anyone remember which? It was India. You used to be able to pay in Dollars to get into the Taj Mahal. They now only accept Rupees. Share this post Link to post Share on other sites
sox4lifeinPA 0 Posted February 6, 2008 QUOTE(Rex Kicka** @ Feb 5, 2008 -> 07:51 PM) It was India. You used to be able to pay in Dollars to get into the Taj Mahal. They now only accept Rupees. I was going to say India, but I was waiting for one of my more lefty comrades to chime in. Share this post Link to post Share on other sites
knightni 396 Posted February 6, 2008 Read the wikipedia entry here: http://en.wikipedia.org/wiki/United_States_dollar International Use It's enough to get you thinking about a new Depression within the next 20 years. Share this post Link to post Share on other sites
Texsox 1,693 Posted February 6, 2008 QUOTE(knightni @ Feb 6, 2008 -> 01:11 AM) Read the wikipedia entry here: http://en.wikipedia.org/wiki/United_States_dollar International Use It's enough to get you thinking about a new Depression within the next 20 years. Thanks for the link Share this post Link to post Share on other sites
iamshack 316 Posted February 6, 2008 QUOTE(Texsox @ Feb 4, 2008 -> 09:34 AM) But how/why do the actual dollars themselves move to overseas banks? Do we really have plane loads of geenbacks travelling? I have two words for some of it, that's for sure... Drug Money Share this post Link to post Share on other sites
