So the Obama administration wants to do away with the $100 bill. They would dearly love to do away with cash altogether, and they certainly would if they could. They say it is to hurt drug dealers. That does indeed sound noble–drug dealers are not exactly a sympathetic group. But this explanation is a total lie. The Obama lackeys are simply trying to make it very inconvenient for anyone to use cash. Why?
Simple. Cash is anonymous. Cash is virtually untraceable. And that means it is un-taxable. And Lefties just hate that. And if you need a briefcase full of $20s instead of a pocket roll of $100s, so much the better for the Lefties. THAT is far less convenient and therefore it will be far less common. Maybe they can’t totally get rid of cash, but they can make using it as onerous as possible.
Let’s say you are an independent handyman. This is your own small business. A little old widow pays you $200 to come do some repairs at her house. Instead of giving you 10 $20 bills, she gives you two $100s. MUCH easier and more convenient.
See, if she had paid with a check you would have deposited it in your bank and the gov’t could easily trace it. Banks are required to report to the gov’t. And the gov’t takes about half when Federal, State, Sales, Property, and other taxes are included.
But she paid you in cash, so there is no reporting unless you deposit it. So you take that $200 and go buy a pair of jeans, go to the movie, and take your spouse out to dinner. Maybe you pay down the balance to the Orthodontist that your kid goes to. In any case, that money is never taxed for you, at least on the Federal and state level (you can’t get around sales tax without going “under the table”). The gov’t does not get as much of a bite out of it. You get nearly 100% of what you earned. (N.B. that’s why the gov’t also hates bartering)
Now giving you two $100 bills is convenient. Giving you 10 $20 bills is really not. Hence the Obama push to get rid of the $100 bill. It really has nothing to do with drug deals. But it sounds good and fools the rubes. But don’t YOU be fooled. The whole “drug dealer” thing is a Trojan Horse.
Understand that the war on cash is a war on you. It is merely a ploy for increased gov’t power. This maneuver has a long tradition. FDR made it illegal to own gold! Just let that sink in for a moment. Illegal. He did that because gold is fundamentally liquid–it is untraceable. THAT is the real reason for the war on cash. It is not about drug dealers at all. It is about gov’t taking your money, plain and simple.