Answers Quote by Michael Hudson
“This is not really currency that circulates. It's like the old joke about expensive vintage wine. Wine prices will go up and once in a while somebody will buy a 50-year-old bottle of wine and say, "Wait a minute. This has gone bad." The answer is, "Well, that wine isn't for drinking; that's for trading." These $100 bills aren't meant to circulate. They're not to spend on goods and services. They're a store of value. They're a form of saving.”
About This Quote
The quote argues that certain high-denomination notes function primarily as investment assets rather than everyday cash, likening them to collectible wine that appreciates in value but isn’t consumed.
In simple terms: High-value notes as investment, not spendable cash.
Key Takeaway
Some money is a store of value, not a medium of exchange.
Themes
Monetary theory
Store of value
Liquidity
Financial speculation
Historical analogy
Economic behavior
Mood
Analytical
Cautious
Reflective
Type
Analytical
Economic
Observational
When to use this quote
- Central bank policy decisions
- Investors holding cash reserves
- Retail pricing strategies
- Government debt issuance
- Wealth management planning
Key Concepts
Currency function
Asset vs. medium
Inflation expectations
Wealth preservation
Practical Applications
- Policy analysis on cash circulation
- Financial education on money roles
Questions to Reflect On
- How does treating cash as an investment affect monetary policy?
- What are the implications for low‑income users when high‑value notes are hoarded?
A Different Perspective
Some argue that even high-denomination notes circulate in economies, especially in cash‑dependent markets, challenging the strict store‑of‑value view.
