Money is the heart of all and new money is the heart of more.
Why do we need new money? The reason behind it is simple. Not because it’s easy to counterfeit or because they are well used.
Governments and tax. People pay taxes to the government so they can operate the country.
It works exactly the same as any household. Husband, Wife and perhaps some of the older kids with jobs put some of their money into the household pot to cover the expenses such as electricity, heat, water, etc.
Those services they use are operated by different companies who in turn pay tax to the government out of their net income. Also, their employees pay tax out of their income, called income tax.
In turn the government build roads and other conveniences using that money.
Now some people and companies don’t like to pay taxes at all and the government decided to screw them up big time. First they have called them money launderers and implemented laws against money laundering.
Then told the banks their guidelines of what is considered money laundering (like for example if someone deposits in more then 10 thousand a month) and now the banks have to notify the government if a person or business deposits over that amount.
But, because some people don’t trust banks they keep their money at home in the safe or dig it underground or stuffing it in their mattress and the government would love to have their hands on that money or at least a portion of it, but if they can’t, at least they make it worthless so the cheat can’t have either.
By designing new money and releasing it into the circulation they replace the old money with the new one.
All those money herders that have dealt in cash and have the money in their safe or under the mattress not paying taxes on, are up deep between the rock and the hard place now as their millions of physical money at home is worthless, unless they take it to the bank to exchange it for the new money.
If they take in large amounts, the bank want to know it’s origin and they’ll report it to the government who in turn will investigate their tax returns for the past to see if the amount warrant their legit income or if it was simply sacked away before paying tax on it.
If they take in just under 10 thousand a month it’ll take them a lifetime to do it and during that time there might be 3-4 more new money releases. Or they can sell it on the secondary market for 50 cents or what ever on the dollar or even lower in order to avoid government investigation and still retain some of that money.
So there you have it. New money is designed to block major tax cheats.