Rumor Verification - New $1000 bill coming?

[ehidle]

There is a rumor floating around my office this morning that the government will begin circulating pictures of Grover Cleveland again starting next year.

If true, this is scary to me - that we'd need a $1000 bill in circulation again. If true, are they preparing for mega-inflation? Will people actually NEED $1000 bills to conduct regular day-to-day business?

Wouldn't the government releasing a new $1000 bill send shock waves around the world, basically as an admission that inflation is going to be a huge problem?

Do we really NEED anything that big in a largely paper-free currency system?

Just curious if anyone has heard of it. My google-fu isn't turning anything up, so it is probably false, but I thought I'd throw it out there.

[adymond]

I would think they would re-release the $500 bill first.

[Paradigm]

I only want a $1000 bill if it has Obama's picture on it. Michelle Obama.

[RocketFoot]

Who has a $1000 in the first place? LOL

If I had a $1000 bill, The first place I would go is to McDonald's for a burger and some change!

[GuyMontag]

are they preparing for mega-inflation?

So, you haven't watched the news in the past year? You've never taken an Economics class?

[Strapped]

Who has a $1000 in the first place? LOL

If I had a $1000 bill, The first place I would go is to McDonald's for a burger and some change!

I remember back in the good ole days when I had money....

[mrjam2jab]

A new one?...i've never even seen an old one...

[ehidle]

So, you haven't watched the news in the past year? You've never taken an Economics class?

Of course I have. We all know there must be bad inflation ahead, but what would be significant if this rumor were true would be that the government is anticipating a run on cash and that they anticipate much worse inflation than they are letting on. You don't need to increase your top denomination an order of magnitude unless you're expecting monumental inflation (i.e. what costs $100 today costs $1000 tomorrow).

A new one?...i've never even seen an old one...

They were in circulation way back in the early 20th century. They looked like the picture below. Notice the low serial number. There have also been $5000, $10000, and even $100000 bills in the past when there really was no other way to represent such a large amount of money. Today there are other ways, so paper money is really only necessary for FTF cash transactions, like, say, buying an $80Billion loaf of bread in Zimbabwe.

[GunLawyer001]

The government doesn't want us to do more cash deals, that will make it harder for them to tax everything we do. So that's a reason not to issue larger denominations.

Counterfeiting is rampant. Clerks already use that magic pen to check every $20 bill I use, I can't imagine the body cavity search that they'd impose if I used a $1,000 bill. I expect they'd treat it like a check, and require 2 forms of ID and a fingerprint.

Read Mark Twain's story about the million-pound note:
http://www.eastoftheweb.com/short-st...s/MilPou.shtml

[Hawk]

IIRC, the demise of bills larger than $100 was to make it more difficult for illegal transportation of large amounts of cash. There are 454 - $100 dollar bills to a pound = $45,400. If they were $1,000 dollar bills, a pound would add up to $454,000. There are 100 bills to a Bank Strap (bound stack) so instead of being a stack worth $10,000 ($100 dollar bills) it would be a stack of $100,000 ($1,000 bills). A typical suit case can hold in excess of $1,000,000 in $100 bills (@ 22lbs), the same suitcase could hold $10,000,000 in $1,000 bills.

I was curious about this a few month's ago and just happened to make a note of it.