The Dutch are Making QR-Coded Coins. Seriously.

From: http://gizmodo.com/

Max Behrman —When did you last scan a QR code? Was it during last week's Republican debate? Or maybe that ad for a free Coke at Wendy's. It probably wasn't on a coin. But the Dutch are changing that with QR-coded currency.

The Royal Dutch Mint is celebrating its 100th anniversary, so they're producing these 5 and 10 euro QR coins in both silver and gold. Scanning the code directs you to this website (though as of now, it's not formatted for mobile devices). At the moment it's unclear what will be on the site when the coins are released June 22nd. Maybe it'll be information about how the coin was made or the person whose face is printed on it. Maybe it'll just be an ad for a free Coke from Wendy's. Whatever it is, coin collectors will probably be overjoyed to get their hands on these shiny 21st century doubloons. Assuming their love for Wendy's doesn't outdo their love for collecting currencies. [2d code and The Rich Times via DVICE]

A Ton of Money, All in One Place

• by Jordan Breindel
• from http://www.urlesque.com/
  

Dollar bills aren't very thick: .0043 inches per bill according to the U.S. Treasury. Stacked vertically, a million dollars in hundred dollar bills would be less than four feet high. That's shorter than the average seven year old. That might not sound like much, but trust us, it is.

Take a look at these pictures of a ton of money, all in one place.

• $205 million seized from a Mexican drug dealer's house
  

• Yep, those are pennies. 100 million of them, as part of Common Cents' Penny Harvest.
  

• A million Euros.

• Shredded Money, by artist Jan Henderikse. It hurts just looking at it.
  

• $41 million seized in Columbia

• Seized on a bus in Laredo, Texas. No one claimed it, so if you're looking for a couple extra bucks...

German kids hand out lost 15,000 euros in playground

AFP/File – Children in a school in Germany had a day to remember this week when four pupils found around 15,000 …

BERLIN (AFP) – Children in a school in Germany had a day to remember this week when four pupils found around 15,000 euros (22,000 dollars) and then handed it out to their friends in the playground, police said Friday.

The four, two boys and two girls aged between 10 and 13, found the bundle of cash stuffed in a dirty brown envelope on the way into their school in Frankfurt on Tuesday morning.

One worried child went to the teaching staff following the excited playground handout that followed, however, and the children were told to return the money.

"But since some were quite pleased by their new-found wealth, with many already making plans for what they would spend it on, collecting the money proved to be harder than handing it out," police said in a statement.

By the time a patrol car arrived at the scene, around 12,000 euros had been collected, rising to 14,040 euros after teachers made a final appeal to their pupils' consciences.

With the possible owner of the money, identified later as a 33-year-old Afghan man, unable to say exactly how much was in the envelope, it was unclear how much was still missing, police spokesman Karlheinz Wagner told AFP.

The possible owner, identified using passport copies and documents for a Chinese visa application also in the envelope, will only get his money back once he has provided documents proving it was his, Wagner added.

The man from Offenbach, a town south of Frankfurt, told police that the money was for a trip to China to pay school fees there and to pay off debts. His name was not made public.

Will the US dollar remain king?

By Katie Hunt
Business reporter, BBC News

The dollar's popularity is fading

The dollar's role as the world's dominant currency is coming under intense scrutiny.

This week, China added its voice to demands for a new global currency as an alternative to the dollar in international trade and finance.

It is worried that the dollar's value is being eroded by the steps the US is taking to rescue its economy from the worst financial crisis since the 1930s.

The US currency recorded its biggest weekly slide since 1985 last week, after the Federal Reserve said it would begin buying government debt to try to boost the economy, underscoring concerns.

"Calls for a new global currency come at a time when the US dollar is probably at its most vulnerable in many years," says Mitul Kotecha, global head of foreign exchange strategy at French financial services firm Calyon.

Dangers

China's central bank governor Zhou Xiaochuan called for a new reserve currency run by the International Monetary Fund.

CURRENCY RESERVES Foreign currency held by a government or a central bank Used to pay foreign debt obligations or influence exchange rates The dollar is viewed as the world's reserve currency as the vast majority of reserves are held in the US currency China suggests switch from dollar US defends dollar as key currency

He said the recent crisis revealed the dangers of relying on one currency.

He echoed similar calls made by Russia, which said it would bring up the topic at next week's G20 meeting.

The US response to China's unusually frank comments confused many investors.

US Treasury Secretary Timothy Geithner said he was "quite open" to China's idea, triggering a plunge in the dollar.

But he then added that the dollar was likely to remain the world's reserve currency for a long time, helping the currency to recover.

"The machinations of currency policy between the US and China are becoming increasingly intriguing," says Neil Mellor, currency strategist at Bank of New York Mellon.

China has almost $2 trillion in foreign exchange reserves, of which 65% is believed to be in dollars.

Popularity wanes

It is not unheard of for currencies to fall from grace in the global currency league.

Rapper Jay-Z shunned the dollar in favour of euros in a recent video

Sterling was the dominant reserve currency of much of the world in the 18th and 19th Centuries.

The cost of fighting World Wars I and II, as well as the primacy of the US in the world economy, resulted in the pound losing its status.

And there have been anecdotal signs that the dollar's popularity as the world's currency of choice is fading.

In 2007, Indian tourist authorities said they would no longer accept dollars for entrance to the Taj Mahal.

And at home, rapper Jay-Z waved a wad of euros in a music video.

Stable reserves

To be clear, China is not calling for the US to replace the dollar as its own currency.

It is worried that the value of its reserves, which are predominantly held in dollars, is subject to the volatility of the dollar on foreign exchanges.

It has suggested that the International Monetary Fund's Special Drawing Rights (SDR) could be used as a reserve currency.

The SDR, which as created in 1969 as a unit of account, was initially pegged to the dollar, but is now based on dollars, euros, sterling and yen.

China's proposal would broaden the basket of currencies forming the SDR to include all large economies. Its use would be expanded and the IMF itself would manage some of the reserves.

The goal is to make currency reserves more stable.

Unrealistic

It is not a new idea. Economist John Maynard Keynes made a similar proposal.

But many analysts say such a move is unrealistic, even in the long term.

The dollar's appeal as a reserve currency is the depth and liquidity of US financial markets, says Mark Williams, international economist at Capital Economics.

This is something which the little-used SDR cannot compete with.

Even the world's next most traded currency, the euro, has not emerged as a true competitor to the dollar.

According to the IMF, the dollar accounts for 65% of declared currency reserves. This is down from 73% in 2001, but the decline also reflects the euro's higher value.

"If the euro falls short, it is hard to see markets for assets denominated in a new currency ever becoming developed enough for it to have a chance of dislodging the dollar, " Mr Williams says.

Furthermore, if China were to ditch the dollar, it would have to tread carefully.

Any suggestion that it is diversifying away from the dollar would dramatically undermine the value of its own reserves.

'Massive impact'

But as the world's largest holder of dollars, China's comments cannot easily be dismissed.

Should reserve managers begin to shift away from the dollar, it would have a "massive impact" on US markets, says Mr Kotecha at Calyon.

The huge appetite for dollars from countries such as China helped keep US mortgage rates low - in part causing the crisis the US economy currently faces.

If foreign investors shy away from buying US debt, it could lead to problems financing the Obama administration's stimulus spending plans.

As such, the US is likely to keep China and other large reserve holders on side and pay lip service to China's demands, even if they are unrealistic.

"It's a pointed reminder that China holds some key cards in its game of diplomatic poker with the US," says Mr Mellor at Bank of New York Mellon.

Why the Dollar Has Once Again Emerged As Currency of Choice

Weak economy ... strong dollar

The bad news for the U.S. never seems to end. But despite all the doom and gloom, the dollar has emerged as the currency of choice once again. Here's why.

By Paul R. La Monica, CNNMoney.com editor at large

About the author

...and also against the yen. (Click either chart to see the dollar versus other currencies.)

NEW YORK (CNNMoney.com) -- Stocks are at their lowest levels in about 12 years. The economy shrunk by more than 6% in the fourth quarter. Companies are laying off people left and right.

And oh yeah, the government has essentially nationalized Citigroup (C, Fortune 500) and AIG (AIG, Fortune 500).

There's no denying that the U.S. economy is in tatters. But how about that dollar? Yup, despite the unrelenting stream of bad news about the economy and markets, the greenback has stood out as one of the top performing currencies this year.

Talkback: Will the U.S. economy recover before the rest of the world?

The dollar is up about 9% against the euro and 7% versus the Japanese yen so far in 2009. It's also edged slightly higher against the British pound. What gives?

Well, as strange as it may sound, investors may be betting that the U.S., which arguably led the rest of the world into the global recession, will also be the first to emerge from the downturn.

"The U.S. was one of the first nations to respond to the weakness with aggressive monetary policy measures. So it could be one of the first countries out while Japan and Europe might be the last ones out," said Kathy Lien, director of currency research at GFT, a foreign exchange and futures brokerage firm.

Along those lines, even though most of the financial bailout packages have so far been greeted with almost universal disdain by investors in stocks, currency strategists are encouraged that the U.S. is taking more an active role in trying to fix the banking system.

"There a belief that the U.S. is doing more than any other nation to correct their problems. That stems from the different investments by the Fed and the Treasury in the financial sector," said Andrew Busch, global FX market strategist with BMO Capital Markets in Chicago.

Mind you, this does not mean a recovery is around the corner. Lien thinks the U.S. economy is likely to deteriorate further before things finally improve.

Still, as bad as the U.S. economy is faring, it's much worse in other parts of the world. So the dollar is being viewed as a relative pocket of stability.

"The only reason the dollar is rallying is because it is a safe haven play. The problems in Europe are much deeper," Lien said. "Investors are focusing on a prolonged downturn in the U.S. economy and the ramifications for the rest of the world. If the U.S. doesn't recover soon, nobody else will recover."

Busch agreed that the dollar now seems to be the only safe haven among currencies. He pointed out that with interest rates at practically zero, investors are flocking to U.S. Treasurys, despite concerns about what he referred to as a "zeppelin-ing" -- as opposed to merely "ballooning" -- increase in the federal budget deficit this year.

Of course, the dollar rally could quickly come to an end if nations like China, a big buyer of Treasurys, suddenly lose faith in the U.S. But there are no signs of that happening just yet.

To that end, Jacob Oubina, currency strategist at online currency trading site Forex.com, pointed out that last week's U.S. Treasury auctions were oversubscribed.

Meanwhile, he noted that demand was weak for a federal bond auction in Germany earlier this year, a sign that not all countries are going to find it easy to raise new funds to pay for bailouts or other fiscal stimulus.

What that means is that the rest of the world still appears to be confident in the financial solvency of the U.S., even as many Americans seem to doubt that this recession will end anytime soon.

"The global investor still thinks the U.S. can pay off their debts -- no matter how big they are at the moment," Oubina said.

Is the Euro the New Dollar?

By Leo Cendrowicz / Brussels Thursday, Jan. 01, 2009

A handful of euro notes

Leon Neal / AFP / Getty

Europe's single currency has come of age early. The euro turns 10 on Jan. 1, a milestone for one of the most powerful symbols of European identity. It has already endured a rite of passage over the past few months, as the global financial crisis battered European markets yet failed to fluster the euro. And, like any debutante, it has its suitors: a string of countries lining up to dump their national currencies and join the euro zone.

It's a remarkable achievement for a currency whose only global rival is the U.S. dollar. The greenback has more than two centuries of history behind it. But it wasn't until Jan. 1, 1999 that 11 E.U. countries locked their national currencies together into a fixed exchange rate. Three years later, physical coins and notes became available, replacing national cash in a massive changeover operation. (See the top 10 business deals of 2008.)

The euro zone is now 15 members large and has a combined population of about 320 million. However, many more people are directly affected by the currency, from would-be members whose money is already pegged to it, to countries like Montenegro and Kosovo, whose effective national currency is the euro. France's former African colonies also peg their common currency to Europe's. That means about 500 million people rely on the euro or euro-pegged currencies.

European Commission president José Manuel Barroso credits the euro for delivering lower inflation, lower interest rates and greater price stability, and helping to create 16 million jobs. More immediately, the euro is shielding member states in this time of economic turmoil, preventing a currency crisis in addition to the credit crunch. "The euro is sheltering businesses from the exchange rate volatility, which has battered them in previous downturns," Barroso said on Monday. "To put it simply, the euro works."

Before the euro, a financial crisis in Europe went hand in hand with currency woes: a run on weaker currencies, heavy intervention by central banks and finally a collapse of the parity system. "I've lived through currency devaluations, and they are fraught with anxieties," says Hans Martens, chief executive of the European Policy Centre. "But the way the euro coped with the financial crisis was absolutely great. You have a big island of stability, with small nations protected when the big waves became rough."

The euro's 10th anniversary will see the euro zone take on a 16th member, Slovakia. Eight other central and East European countries have set the goal of joining within the next six years, including Poland, whose political establishment dropped its longtime opposition after a recent run on the Polish zloty. The euro has found some other unexpected converts too, thanks to the financial crisis. The Danes voted against joining the euro zone in 2000, but they are set to hold another referendum in March. Iceland — not even an E.U. member — is pondering "unilateral euroization" after seeing its krona plunge nearly 80% against the euro in September and October.

And the biggest prize of all, Britain, is said to be warming to the euro. Barroso recently claimed that London is "closer than ever before" to euro-zone entry and that "the people who matter in Britain" think it should join. That may be overstating things a bit, but a report by research group Chatham House warns that as the euro zone grows, the U.K. risks being excluded from "deeper intra-E.U. economic consultation and coordination, including in areas of significant national interest, such as financial market regulation." (See pictures of the financial crisis in London.)

It doesn't help that the pound is wilting. Two years ago, one euro was worth just £0.65. Now, humbled by bank crashes, government bailouts and a collapsing housing market that has forced massive interest rate cuts, Europe's currency is within a pence or two of parity with the pound. "The debate has changed from a total fantasy in the U.K.," says Jean Pisani-Ferry, director of Brussels-based think tank Bruegel. "The political obstacles still remain strong, but it has changed the perception of the U.K. as the perfect system."

Pisani-Ferry says the financial crisis has been a defining moment for the euro, but he cautions against too much praise. The euro is still some way from dethroning the dollar as a global currency; just 27% of global foreign exchange reserves are held in euros compared with 62% in dollars.

And, he says, the euro's first decade has been characterized by budget rows and debates about the European Central Bank's monetary policy, when the focus should be on correcting big macroeconomic divergences, like Spain's and Ireland's recent (and ultimately doomed) property bubbles. "The euro zone needs more ability to act in times of real crises, or to prevent them," Pisani-Ferry says. "It is a slow process." But one that has come a long way in 10 years.

Spend: 10 Years of the Euro

By: Theunis Bates

A look at the national pride engraved into the 1-euro coins of 15 nations of the European Union.

When 11 E.U. nations swapped francs and lire for euros on New Year's Day 1999, traders called the new money a "toilet currency." Nope! The euro -- now the coin of 15 E.U. realms -- has proved so strong that Alan Greenspan said it could become the world's main reserve currency. Not that all national identity was lost: Each country customizes one side of euro coinage. here are the 1-euro coins of the original eurozone.

AUSTRIA
Mozart was born and reared in Salzburg.

BELGIUM
Albert II has been king of the Belgians since 1993.

FINLAND
The national bird of Finland is the whooper swan.

FRANCE
The French chose the motto "liberté, égalité, fraternité."

GERMANY
The eagle is an ancient symbol of the German state.

IRELAND
The harp has been an Irish icon since medieval times.

ITALY
Da Vinci used his Vitruvian Man to map proportion.

LUXEMBOURG
Henri rules the world's last grand duchy.

NETHERLANDS
Queen Beatrix succeeded her mother in 1980.

PORTUGAL
Portugal's first king used this royal seal in 1144.

SPAIN
King Juan Carlos was Franco's chosen successor.

Photographs courtesy of European Commission

From Issue 131 | December 2008