I live and spend money in Australia. Rarely do I get a $100 note in change. Indeed, the economy seems to be flooded with $50 bills. Most people carry a wallet full of them. Despite being completely ruined if folded (they keep the crease for ever), the government keeps destroying the old and releasing new $50 notes.
Now, for someone like a former Reserve Bank official to make the absurd claim that pensioners are hoarding their savings in $100 bills in order to keep their pensions, really takes the cake. What fox hole does he live in? It is just as easy to hoard in fifties as it is in one hundreds, particularly when they come brand spanking new from ATM machines.
Peter Mair is so sure he is right that he is writing to Reserve Bank governor Glenn Stevens. He wants pensioner discounted car registrations, council rates and discount phone rentals stopped forthwith. Ask for a pensioner discount on your telephone line rental and you'll get a belly laugh back. It just does not happen. You can put down you have broadband, but Social Security wants to see a copy of the actual account before you to get a few dollars extra from them.
Make it harder to hoard, Mr Mair says. Print dollar bills again and don't circulate large denomination notes. The result would be people pushing wheel barrow loads of cash around to do their weekly shopping. It would take a bold Australian government to adopt the "cashless" society system of Singapore. Though Australians use cards for most transactions many still like the idea of cash in their pockets. Peter Mair thinks the feel of cash can be met by leaving metal coins in circulation. If he would just look around the shops he would find people at checkouts trying to dump the heavy pocket loads of valueless coins for notes.