2002-09-05 Credit Cards are both a blessing and a curse. Many businesses like credit cards, even if they have to pay a fee. They feel that it helps bring in customers who normally would not be able to purchase their products due to lack of funds. They feel the 2-3 % surcharge is worth it. It doesn't cut into their profits as they add that cost into the price of the product. The bank that the shop does business with pays the shop keeper right away as soon as he/she turns the receipts into the bank for processing. Even if the customer may not pay the bank for months, or possibly never.
Due to the status of the US dollar and the huge investment into the US banking system by foreign investors, the banks never had to worry about loss of funds due to the outflow of money to the shops and the delay of the inflow from consumers. Foreign investors kept the banks assets solvent and stable. As a result, credit card usage was encouraged as a stimulus to business and the economy. But, those days have ended. Since the scandals of the past year have soured foreign confidence in the US economy, billions of dollars (milliards of euros) have been removed from the US economy. The banks have not yet felt the effect of the loss, but in time they will. Delay in payments is not as bad as not paying at all due to the ease of personal bankruptcy. However, the US congress is presently working on reform to the bankruptcy laws which will make it harder for those that claim bankruptcy to be completely excused of all of their debts. They will have to pay back their debts in one form or another. Such a reform will end the free abuse of credit cards as a means to obtaining goods without intent to pay back. Some consumers will stop using them all-together as they will fear that if they get into too much debt they will lose something as valuable as their home. As a result, the free spending US economy will have to be more conservative and as a result the economy will be sluggish and weak for decades to come. This may have a positive appeal to go metric. As local businesses that depended solely on US customers finds that the US customer base isn't there as it once was, will have no choice but to at least approach the metric issue with an open mind if it chooses to export into markets where not being metric is an automatic no-way. Even if we can't hope for government action, we can at least hope that those companies that do convert for their own survival create enough of a demand for metric products that it drives the cost of the FFU equivalents up high enough to be pushed out of the market. Somehow the concept of not being metric as being part of the reason for a weak economy has to be realised or no effort to convert will ever occur. The myth of metric costing more or conversion costing an arm and leg has to be dispelled. How do we get the point across that the two are somehow related? John ----- Original Message ----- From: "Wizard of OS" <[EMAIL PROTECTED]> To: "U.S. Metric Association" <[EMAIL PROTECTED]> Sent: Thursday, 2002-09-05 16:09 Subject: [USMA:22088] Re: Fwd: RE: Spanish dollar > > > > The only advantage of 1 � (euro) bill is for the > > companies which sell paper/ink for making the bill. > > Since a bill wears out every 1 1/2 years, they will > > get regular order, whereas a coin lasts for 30 years. > > I had some Pfennige from 1949!!! > > > > By the way, I wonder why euro has denominations of > > 5, 10, 20, 50, 100, 200 & 500 > > when US $ has denominations of > > $1, $2, $5, $10, $20, $50 and $100 > > easy explanation, electronic payment isn't welcome in europe, people prefer > cash. > almost all shops accept EC Card but virtually no one Credit Cards, no shop > wants to pay for the fees! > > > http://treasury.gov/education/faq/currency/denominations.html > > > > Bigger denominations help only smugglers and black > > marketers. I hope the World gets rid of these bad > > guys. > > > > Madan > > > > --- Han Maenen <[EMAIL PROTECTED]> wrote: > > > From: "Han Maenen" <[EMAIL PROTECTED]> > > > To: "U.S. Metric Association" <[EMAIL PROTECTED]> > > > Subject: [USMA:22078] RE: Spanish dollar > > > Date: Wed, 4 Sep 2002 08:35:14 +0200 > > > > > > Too bad that I have to report that there is a > > > backlash against the euro here > > > as it is blamed for price rises and most people > > > continue to convert > > > everything back to guilders. I hope that this stupid > > > backlash will ebb off > > > soon. > > > And there is the folly of an Italian proposal to > > > introduce a 1 euro > > > banknote. Two reasons are given, and I reject both. > > > They claim that a bank > > > note will give a better insight of inflation to the > > > people. I do not know > > > how. The second reason is, that as the US ha a one > > > dollar note, we should > > > have a 1 euro note. Let's go develop that notion a > > > bit further: as the USA > > > uses ifp, the EU should also use it. > > > > > > BTW: that stuff about a price of .25 cents was > > > hilarious! > > > > > > Han > > > > > > > > > > > > __________________________________________________ > > Do You Yahoo!? > > Yahoo! Finance - Get real-time stock quotes > > http://finance.yahoo.com > > > >
