Stores Must Take Cash by Law


QUESTION: Dear Mr Armstrong,

Here is a softball question for the holiday weekend.

If US currency is legal tender, aren’t retail stores obligated to accept it?

This would seem to restrict the ability of retail stores to 1) demand electronic payment and 2) reject payment using $100 bills.

Happy 4th to you.

MB

ANSWER: You are correct. Stores MUST accept cash – that is what LEGAL TENDER means! Congress would have to pass an Act and the President MUST sign it to eliminate paper money.

Trading is the Only School to Learn Real Economics


QUESTION: I noticed that all the economists who are not academics are the people who actually discovered something. The academics always advocate for manipulating society like Keynes and Marx. Why is that?

PD

ANSWER: If you look at the first analyst to establish supply and demand, it was John Law. Even Adam Smith used his examples in “Wealth of Nations.” Adam Smith actually investigated his work to come up with his invisible hand. There was David Ricardo, who also made a fortune as a trader. Those are the three greats and NONE of them has a formal economics degree, which was first taught as a separate course in 1902 at Cambridge.

Those of us who come from the real world of trading, do not have the luxury to come up with Utopian theories that sound nice. Unless you have traded, you will never understand that the market is always right. If you do not listen to the market, you will lose everything.