Personal Finance

Who is using all this cash?

  • Last Updated:
  • Apr 21st, 2017 6:40 am
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Deal Guru
Mar 23, 2009
13776 posts
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Toronto
Yes, the population has been gradually increasing during that period.

BTW, have you ever been to Home Depot and paid for stuff in the Pro section? Everyone uses cash there. It's common to see guys in paint and dirt and drywall dust covered clothing pull out wads of 50 and 20 dollar bills. I suspect a lot of that is for under-the-table contractor work.
Deal Addict
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Dec 4, 2007
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What? Construction worker do contract under table? Never ear that before.
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Aug 8, 2012
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apnayloags wrote:
Apr 15th, 2017 1:42 pm
Cash is king, its needed for everything.
do u pay bus fare with CC/debit? lol
If I took the bus I'd pay like this (which indirectly comes from my CC, yes):

Image
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foreigncontent wrote:
Apr 16th, 2017 11:12 am
i know quite a few older people who refer cash, so aging of population might also have impact
Aging population should not increase preference for cash. If anything it should reduce it as old cash-preferring people die and are replaced by new "old" people who don't have a cash preference.

Or are you suggesting that becoming old makes you switch back to cash from plastic??
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Deal Expert
Feb 29, 2008
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Montreal
apnayloags wrote:
Apr 15th, 2017 1:42 pm
Cash is king
Every Indian, Bengali or Pakistani has an old senile uncle who repeats this phrase regularly as if it was divinely ordained. Usually while stuffing their face with food.
[OP]
Sr. Member
Jan 9, 2011
618 posts
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Vancouver
ElliottGalt wrote:
Apr 18th, 2017 11:00 am
True... because the were silver. That is how they held their value. A dime from then still buys a dollar of goods
Nope. Coins were switched from silver to nickel precisely because they didn't hold their value. Silver prices went up so high that coins had more bullion value than face value. If left unchecked it would have resulted in coin hoarding and no functional coinage system.

Silver and other precious metals are publicly traded commodities that go up and down in value. Producing coins out of them only works when the price of those metals is fixed by government. Good luck trying to get that to happen.
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Oct 3, 2006
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Kiraly wrote:
Apr 16th, 2017 5:20 pm
According to Wikipedia, the CAD as an international reserve currency is ranked 5th in the world, behind the USD (64.0%), EUR (19.7%), GBP (4.4%), and JPY (4%). We may be a small player but not insignificant; and our share of that pie grew by 33% (1.5% to 2.0%) since 2012. Foreign reserves may be where the bulk of the increase in bank notes has ended up.
No. Bank notes held by foreign governments are not considered to be "in circulation". Here is BoC's definition of notes in circulation:
Notes in circulation include notes held by the chartered banks and by the general
public. The total includes a small amount of notes issued by governments and banks
before the Bank of Canada became the sole issuer of notes in circulation in Canada and
took over the liability for these early notes from their original issuers.
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Jan 9, 2011
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Aznsilvrboy wrote:
Apr 19th, 2017 4:56 pm
No. Bank notes held by foreign governments are not considered to be "in circulation". Here is BoC's definition of notes in circulation:
That is incorrect. The whereabouts of bank notes is not tracked. Once a bank note is issued, the Bank of Canada has no idea where it goes until it is returned for destruction. All notes issued and not yet returned are considered to be in circulation, no matter where on earth they are located nor whomever may be in possession of them at any given time.

The "small amount of notes issued by governments and banks before the Bank of Canada became the sole issuer of notes in circulation in Canada" you quoted refers to notes issued between 70 and 150 years ago that have never been returned for destruction, and are now in collections or lost. Even they are considered, by the BoC's own definition, to be in circulation.
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Oct 3, 2006
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Kiraly wrote:
Apr 19th, 2017 6:37 pm
That is incorrect. The whereabouts of bank notes is not tracked. Once a bank note is issued, the Bank of Canada has no idea where it goes until it is returned for destruction. All notes issued and not yet returned are considered to be in circulation, no matter where on earth they are located nor whomever may be in possession of them at any given time.

The "small amount of notes issued by governments and banks before the Bank of Canada became the sole issuer of notes in circulation in Canada" you quoted refers to notes issued between 70 and 150 years ago that have never been returned for destruction, and are now in collections or lost. Even they are considered, by the BoC's own definition, to be in circulation.
Do you have reading comprehension issues? Can you not read:
Notes in circulation include notes held by the chartered banks and by the general
public.
The total includes a small amount of notes issued by governments and banks
before the Bank of Canada became the sole issuer of notes in circulation in Canada and
took over the liability for these early notes from their original issuers.
Does foreign governments fall into the chartered banks category or the general public?
[OP]
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Jan 9, 2011
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Vancouver
Aznsilvrboy wrote:
Apr 19th, 2017 8:00 pm
Do you have reading comprehension issues?
Does foreign governments fall into the chartered banks category or the general public?
Do you have reading comprehension issues? Does it say "Notes in circulation only include notes held by the chartered banks and by the general public"?

Try this if you still don't get it: Canada includes Ontario and Quebec. That is a factual statement. Does it mean that those are the only two provinces? Of course not.

How is it even possible for the Bank of Canada to not count notes held by foreign governments? Once notes leave the bank's possession it DOES NOT KNOW who has them. You think if the notes fall into the hands of a foreign government that the Bank of Canada gets some sort of notification of that? How? Some secret embedded RFID chip in every bank note that calls home when someone with a foreign diplomatic passport holds it?
Member
Jul 22, 2015
229 posts
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Kitchener, ON
That's a good question. I rarely have cash on me and when I do it's maybe $20. I use my credit card for everything ... and I mean everything!
Deal Fanatic
Jul 10, 2003
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apnayloags wrote:
Apr 15th, 2017 1:42 pm
Cash is king, its needed for everything.
do u pay bus fare with CC/debit? lol
Yes, I use my Presto card which is connected to my credit card.
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Nov 23, 2008
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Jungle wrote:
Apr 15th, 2017 5:47 pm
Underground economy would be my guess.
bingo.
I've heard of people who pay for renovations in cash (or at least partly) . For both parties its a win-win. (well....its a lose-lose for the government tho)
We're talking easily thousands, if not tens of thousands of $$$
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Oct 25, 2016
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Kiraly wrote:
Apr 19th, 2017 3:27 pm
Nope. Coins were switched from silver to nickel precisely because they didn't hold their value. Silver prices went up so high that coins had more bullion value than face value. If left unchecked it would have resulted in coin hoarding and no functional coinage system.

Silver and other precious metals are publicly traded commodities that go up and down in value. Producing coins out of them only works when the price of those metals is fixed by government. Good luck trying to get that to happen.
Silver money did and does hold it's value, even today. That is why a dime with silver is able to purchase a dollar worth of goods today. Where a dime without silver is worth a dime. The silver dime kept with inflation where the other did not--thus one held it's value (purchasing power) and the other did not.

If left on check it causes deflation, where the coin buys more (i.e. prices move down in relation to the face value). It is not that the metals are moving up and down in value... it is the dollar that moves up and down in value--primarily it moves down which is why it has lost over 90% of it's value in the last 100 years

As for the idea of fixing the price of the metal by government... that was tried--note the 10 cents face value. As you stated "good like trying to get that to happen" which is why the silver was removed.
Member since Feb 19, 2008
Deal Addict
Nov 2, 2013
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Edmonton, AB
SomeOtherDude wrote:
Apr 19th, 2017 11:25 pm
bingo.
I've heard of people who pay for renovations in cash (or at least partly) . For both parties its a win-win. (well....its a lose-lose for the government tho)
We're talking easily thousands, if not tens of thousands of $$$
Actually, it's a well known secret for lots of trades work in the residential sector. A lot of carpenters, electricians, plumbers, etc. do extra work on the side for cash. Those paying for it like saving money so they often pay cash.

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