steviedeluxe

el economista

(link in Spanish)

How is this possible? It can't all be down to black market activities can it?

Dick Dasterdly

Its not all down to the black market economy by a long way.
Ppl. are still very concerned about the crisis getting worse,about the security of their bank accounts and the almost non-existant interest rates on savings.
This has been going on for quite a while, and most of the notes are not being put into circulation at all as the article suggests,but are being stashed away well out of sight for safe keeping, be it in mattresses,buried in the garden,under the floor or wherever they consider it safer than in the bank, not to mention also out of sight of the taxman.
For those moving or travelling to other countries they have certain other advantages.
For instance by using Bin Ladins, the equivalent of 20,000 uk sterling can be carried in a single cigarette packet.
In the UK money launderers were setting up their own exchange bureaux to turn their ill gotten gains into easily transportable 500 euro notes.
It got so bad that the UK Govt. has completely stopped or blocked the issue of any more 500 eu notes.