Oh, I still recall my time in Switzerland, where you could walk into any store and pay with a 1000 CHF bill and nobody would even look at you.
German banks are hoarding so many euros they need more vaults
281–290 of 327 posts
Re: German banks are hoarding so many euros they need more vaults
#282Earlier quoted context omitted.
Indeed it was. Even now the 200 Euro note is the best for laundering and transportation since it's the highest value bill in common circulation (per Fed employee)
Well, I am no expert but let me play the futurist here. After they killed the 200 Euro note it is going to be the 100 Euro note that is going to be used by those damn criminals! It is in essence part of the same eradicating rights movement that is fighting against anonymity in the internet. "Hey look, there are some criminals benefiting from it so let's kill it."
In the UK, £20 notes are the highest commonly used. That doesn't mean they get rid of cash. There are just very, very few cases where you need that much cash that £20 notes are impracticable.
Re: German banks are hoarding so many euros they need more vaults
#283Earlier quoted context omitted.
Germany is obsessed with keeping the value of the Euro low to maximize their exports. That's one of the reasons they've been pushing austerity after the economic crisis, as keeping countries like Greece, Portugal etc. in a rut depreciates the currency (the other reason is a weird sense that countries in debt have committed some moral failing and should be punished). Their trade surplus has been a subject of intense c…
In Germany's defense, they never asked for the Euro, it was more or less forced on them as the price for France not pitching a fit about German reunification. Essentially, the rest of the Eurozone is running on Deutschmarks, and calling it the "Euro" instead of the "Deutschmark" is just a face-saving measure. Germany, unlike most other countries in the Eurozone, could announce tomorrow that they were leaving the Euro…
The Euro is quite popular in Germany and has gained popularity in recent years. It wasn't very popular at the start but this has definitely changed.
And if Germany got rid of the Euro this would certainly cause bank runs since Germans would be afraid that the Euro quickly devalues against the new currency.
Re: German banks are hoarding so many euros they need more vaults
#284Earlier quoted context omitted.
> ... when the German Saver is who would benefit if they decided tomorrow to run deficits for the next 10 years. The German Saver knows better than most that inflation destroys savings. Inflation benefits debtors by allowing them to pay back their loans in depreciated currency. Germany isn't exactly a nation of debtors, although most of Europe is. This is a looming political issue that's only just beginning.
Running deficits is not the same as inflation. There's no place for Germans to save, and its because the German government won't borrow. A sensible policy would be for the German government to borrow and invest heavily in infrastructure. Instead Germany has opted for policies that will cause it to teeter on the edge of recession for decades.
There are places for Germans to save but they really dislike investments or any type of risk. Sure, Germany could borrow more and issue bonds but I doubt this would change yields for those bonds so much that investing in them is worth it for retail investors. The demand by institutional investors (insurances, pension funds) easily outweigh retail demand.
Also, how would Germany invest in infrastructure if order books at construction companies are filled 1-2 years in advance? If anything, they'd fuel inflation and price out private investment.
Re: German banks are hoarding so many euros they need more vaults
#285Earlier quoted context omitted.
If you mean SEPA instant credit transfers I think they are available only in some countries and they are not free in my experience.
It depends on the country. Within the EU, SEPA transfers must be no more expensive than the equivalent domestic payment. At least in Sweden, this means that SEPA transfers are free. This rule is new though, it went into effect in December: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELE... > Charges levied by a payment service provider on a payment service user in respect of cross-border payments in euro…
SEPA instant transfers do typically cost around 1 euro in Spain and France, for example. Also for domestic transfers, so I’m not sure that regulation will have an effect.
Re: German banks are hoarding so many euros they need more vaults
#286Earlier quoted context omitted.
This confuses public subsidies with private money flows.
Not confuses, just gives fuller picture - the whole deal between old and new EU members was: open up your markets, and we'll give you access to our "cohesion funds" from EU budget. Now you can see who won and who lost on this deal.
Again, it's taxes vs private money. And "the whole deal" really was about a politically unified Europe, the "purely economic union" wasn't a thing anymore when the east expansion happened. That certainly was parts of it, but let's not create alternative history.
Besides, "lost and won" is terribly weird when you just look at money flows but exclude goods. Hey, sell me your $30k car for $1000, you'll be the winner, because you get $1000 from me and we'll not look at the car. Not saying that that's an accurate description of EU-trade, just that it's weird to only look at money flows.
Another problem with that in general is that it's not just about old and new EU members. Luxembourg is an old member, is the tax oasis that works hard to help companies evade taxes in France and Germany, and is also leeching EU subsidies, not contributing to the EU funds.
Re: German banks are hoarding so many euros they need more vaults
#287Earlier quoted context omitted.
Check and cashier's check are different things. A cashier's check is like a domestic SWIFT.
The point the person you are replying to is making is that to Europeans, checks are a thing that only exist in Hollywood movies. It's difficult to imagine in a modern world, people or institutions writing or printing something on a piece of paper, and saying, "here, this is money".
Still common in the UK. I know friends in Wales who can only pay by cheque because a two-signature policy applies to their bank account.
Re: German banks are hoarding so many euros they need more vaults
#288Earlier quoted context omitted.
Why couldn't you use a cashier's check?
We don't really use checks in Europe, at least not in the Netherlands..
But in the UK we do. You can set up a bank accounts which requires two signatures, then only cheque payments are possible. Very quiant, annoying and backwards.
Re: German banks are hoarding so many euros they need more vaults
#289Earlier quoted context omitted.
It looks like the change in 2015/2016 to reduce card fees, while enabling us to buy a single bottle of milk by card with a 0.2% fee for the merchant, has made things worse for people selling cars. Instead of a small, fixed fee (e.g. £0.10) it's now also 0.2%. https://www.am-online.com/opinion/2016/12/06/opinion-debit-c... (The article does at least tell us that "many" customers pay for the full price of the car with…
0.2%? You could probably wring a greater discount from the dealer by haggling half-heartedly.
Typically the payment happens post-haggling... and by that point 1% of the price might be their entire margin on the sale. I mean, if you pay full list price, maybe they won't mind you paying with card :D
Re: German banks are hoarding so many euros they need more vaults
#290Earlier quoted context omitted.
If you mean SEPA instant credit transfers I think they are available only in some countries and they are not free in my experience.
In my country bank to bank transfers are free and instant. It's extremely convenient to be able to pay anyone any amount at any time with nothing more than your phone.
Sounds like a good way to get mugged with violence.. "Transfer me all of your bank account, right now !!" (To an account opened using fake ids of course)