A knowledgeable reader outlines the ins and outs of U.S. paper money…
“Once upon a time, the Federal Reserve only issued currency in $5 and higher denominations. At that time, all one dollar bills were issued by the U.S. Treasury as Silver Certificates that were, more or less, exchangeable for one dollar in silver.
“There were also $5 Silver Certificates which were less common than Federal Reserve Notes and also $10 Silver Certificates which were not common at all (at least by 1960 they were not common). In 1963, plus or minus, the U.S. stopped issuing Silver Certificates.
“There were also United States Notes. They were issued by the Treasury in $1, $2, $5 and $10 denominations — maybe higher but I do not recall ever seeing one (note: before the 1995 printing of $2 Federal Reserve Notes, the last series of $2 bills was the 1953 U.S. notes).
“[U.S. Notes] did not have the explicit exchangeability statement but said it was legal tender for all debts public and private (more or less). Which meant if all else failed, you could pay your taxes with them. Basically they were promissory notes (i.e. the U.S.A. will pay the bearer $1 upon presentation of this paper).”
We’ll share the second half of our contributor’s missive tomorrow.
Your Rundown for Thursday, July 11, 2019:
Healthcare Looks Alive
Looking at stocks making the biggest moves this morning (in the right direction), they all have something in common:
- Cigna up 14.5%
- CVS up 7.6%
- Humana up 5.6%
- UnitedHealth up 5%
- Anthem up 4.7%
So what’s up with healthcare stocks?
CNBC says: “The Trump administration has withdrawn its proposal to eliminate rebates from government drug plans.” The rebates in question come from pharmaceutical companies that provide discounts on drugs to pharmacy benefit managers — essentially middlemen — who work under Medicare.
Trump wanted to do away with what he called “backdoor rebates” that allowed Big Pharma to “artificially” inflate the price of drugs.
But the administration had second thoughts, particularly when the Congressional Budget Office said the ban would cost $177 billion through the end of 2029.
Not only that. “Insurers opposed the proposal, saying it would not accomplish its goal of lowering prescription drug prices.” Of course they did.
So back to the drawing board.
And if you’re not going to get a break on prescriptions, maybe you can offset that by investing in this nice healthcare sector pop.
Market Rundown for Thurs. July 11, 2019
S&P 500 futures are up 5.25 points to 3,002.75.
Oil is up 21 cents to $60.64 for a barrel of WTI.
Gold’s up $5.70 to $1,418.20 per ounce.
Bitcoin is down this morning by $404.61 to $11,694.14.
Have a good day. We’ll catch up tomorrow.
For the Rundown,