posted
I've seen this concept a few times most notably in fiction.
In the event of WWIII the US govt has prepared vast stocks of 'Emergency Currency' notes. These have a similar design to the currently circulating notes but use different presidents and have an overprinting that specifically identifies them as being not valid unless certain conditions are fulfilled.
One novel I have read (the title escapes me) had thieves breaking into a fictional version of Mt Weather to steal this money only to discover that it is worthless.
Obviously this is highly unlikely, though some countries have changed their currencies in the past (mostly in South America), but does anyone have any idea where the story got started or if there is any truth in it?
Posts: 27 | From: Perth, Western Australia | Registered: Jan 2006
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posted
An easy google search pulls up many references, including this one from our friend Wikipedia.
quote:The Aldrich-Vreeland Act of May 30, 1908 established a National Monetary Commission which recommended the Federal Reserve Act of 1913. It also provided for the issuance of emergency currency.
Googleing "Aldrich-Vreeland Act" brings up 614 (or so) entries.
Some information about fractional currency issued as emegency currency during the civil war.
You will also find refernces to Fiji, Hawaii, North Africa, Philipines, Germany, and many more about the U.S. The idea, in various forms has been around for a long time.
-------------------- "20 years of boredom" Posts: 242 | From: Niagara Falls, Ontario | Registered: May 2005
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posted
In a market-based economy, the availability of additional greenbacks in a crisis would serve a limited purpose, such as providing a stockpile of bills if a mint were to fall out of operation for a long period.
Realistically, in an extreme shortage of bills, the value of the dollar would rise considerably, but the market would adjust over time on it own. Introducing more bills into the mix would only create chaos. Some people would hoard the old money in case of a sudden rebound while others would race to trade all thier old money for new just in case things don't get better. Some merchants would not take the new money, so buying power would drop even more. Vending machines would have to be retrofitted. If the emergency money does not incorporate the latest anticounterfirting methods, forgers will have a field day.
All the while, the poor people, who carry more greenbacks, would suffer while the wealthy, who deal almost exclusively with non-paper transactions (credit cards, automated deposits, stocks, etc) would leverage the situation to their advantage.
As far as fiction where thieves steal all the emergency currency, if I were such a thief, I would keep all the worthless money because, if an emergency happened, I would be fabulously wealthy with the benefit of having control of the economy of an entire country. (Goooooldfiiiinger, wa WAHHHH wah).
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"Are you pondering what I'm pondering?" - The Brain Posts: 587 | From: Colorado | Registered: Jul 2000
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