The secret world of banknote printing. A wonderful book, enjoyable for its coverage of what currency is and how it came to be
there is detailed coverage of the creation of the Euro currency.Preface, pg 11Paper money was invented by the Chinese. One thousand years later American colonists were the first ones in the Western world to systematically use it, even financing their revolution by issuing large amounts of dollar bills.Private banknote printing is controlled by a few European high-tech companies.Chrometophobia, fear of moneyBanknote printing often involves massive use – and often waste – of public funds.War finance is the driving force behind paper money.John law of Lauriston created the term millionaire around 1717.Congress in 1863 enacted the national banking act. A uniform national dollar was born issued exclusively by the Treasury department.1971 – last hurdle to fiat money cleared by Nixon taking dollar off gold standard (essentially already happened but this removed the requirement from central banks). Paper money offers authorities a cheaper way to cheat the people than had already been the case with coinage, stated liberal national economist and Nobel Laureate Friedrich A. von Hayek in essays. The best thing is to abandon it again.Pg 27
Even the health of banknotes, their hygienic condition, is tested continually and in strict secrecy at laboratories. Out of concern about carcinogenic substances, for example, the central banks had the usual animal gelatin for the surface coating of banknotes replaced with synthetic products. This prolonged the longevity of the banknotes – and raised the bacterial contamination of paper money.Pg 28
The manufacture of money consumes money – the money of the taxpayer.Pg 260
Of the 173 million dollars worth of bogus dollar notes replaced by the Fed for the year 2001, only 60 million dollars worth were traced to the U.S. homeland.Pg 261
Supernote, an illegal parallel print. A government had to be behind it because the technical and financial outlays to produce it were not affordable.Sixty percent of the 629 billion dollars worth of notes issued by the Fed are held in the 100-dollar denomination.