Nothing gets around more than your average dollar bill! Here are some interesting facts brought to you by Online Finance Degree on the typical life span each one holds, and the illegal powdery substances it comes in contact with every day. What is this piece of green paper actually worth?
[Source: Online Finance Degree]
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Amazing yar :O
No modern currency has any solid backing any more; they are all fiat currencies. Even the British pound is now free-floating and has been since about the mid-70s like the US dollar. The Bretton-Woods system collapsed around the same time for everybody. Go read Wikipedia or something.
Claiming the British Pound is tied to the value of silver is pretty stupid. The United Kingdom was one of the first countries to adopt a Gold Standard in the nineteenth century, together with Portugal. The problems inherent to this are obvious – additional countries adopting a gold standard drives up the cost of gold, and, thereby, inflation – while the discovery of large amounts of gold (like in California in the middle of the nineteenth century) led to massive inflation. The economic strain caused by both world wars effectively ended use of the gold standard – seeking stability, though, the Bretton Woods system was established in 1944, in which the currencies of participating nations were pegged to the Dollar within a 1% band (although numerous currencies were revalued over time), while the Dollar itself was convertible to gold at $35 an ounce. This worked well enough until Lyndon B. Johnson tried to inflate away the costs of the Vietnam war, which led to an overvaluing of the Dollar against gold, and a run on the federal gold reserve. Nixon ended the Dollar's convertibility to gold in 1971, and giving us a system of fiat money.
So – get your facts straight.
So it costs about $12 million a month just to constantly replace old dollar bills in circulation? What a waste.
so a pound note is worth a pound of sliver? I need to move to the UK!
Ps: There's no such thing as a 1 pound note.. The smallest note we have is £5.
Again to pick up on the nonsense about the UK Bills. There is no such thing as a "UK" bill for a start – this infographic merely covers the Bank of England cash, which is not legal tender in Scotland, in the strictist sense. Scotland has 3 banks that produce paper money – the Clydesdale, the Bank of Scotland and the Royal Bank of Scotland. I could go on and on picking out flaws, but really, dgo do some research…..
According to this infographic, U.S. taxpayers spends $31 million / mo replacing worn dollar bills. We could save a lot of money by replacing them with coins, but so far the treasury hasn't done much to make that happen. They keep producing the bills. We could also save a lot of money by getting rid of pennies and nickels.
Congress would need to pass a law to end the production of the paper dollar bill and replace it with a dollar coin. Congress will never do this because it would be wildly unpopular. A coin typically lasts about 19 years, so the savings would be significant.
"…dollar bills enter the money cycle by being paid into the U.S. Federal Reserve System…" What actually happens is the Federal Gov't borrows X amount of currency from the private Federal Reserve Corporation and puts that amount plus interest on our account–the national debt. The Fed says, okay, and they have the U.S. Treasury printers make the "dollar bills" or whatever denomination requested. All that currency represents debt owed to the private bankers (Federal Reserve Corp.), so every time you spend X amount, you are creating more debt. What a racket!
Yeah, the private Bank of England issues one-pound coins, not bills.
i don't wanna die for dollar :D