TIME Money

If Women Had Their Own Currency, Here’s What It Would Be Worth

Alexander Ho for TIME

Don't spend your $0.77 all at once

After a little girl asked President Obama why there aren’t any women on U.S. Currency, he said Wednesday that adding some female faces to our cash sounded like a “pretty good idea.” Almost immediately, all of our fantasies came alive on the web. What would, let’s say, Ruth Bader Ginsberg look like on a $20 bill? Where would we spend our Beyonce $10 dollar bill first? Will our grandmas give us a Susan B. Anthony $5 bill on our birthdays and tell us not to spend it all at once?

But then we remembered: because of the wage gap, a dollar for a woman is not the same as a dollar for a man. Although the true extent of the gender pay gap is widely disputed even among feminists, President Obama said in the 2014 State of the Union that women make only 77 cents for every dollar a man makes.

So here’s what U.S. Currency would really look like, with women’s faces and women’s wages:

A Harriet Tubman $20 would only be worth $15.40.

Alexander Ho for TIME

A Sandra Day O’Connor $10 would only be worth $7.70.

Alexander Ho for TIME

A Rosa Parks $5 would only be worth $3.85.

Alexander Ho for TIME

A Gloria Steinem $1 would only be worth $0.77.

Alexander Ho for TIME

That just shrunk your 401K.

TIME Argentina

Argentina Slides Into Default as Debt Talks Fail

Argentina Debt
Axel Kicillof, Argentina's Economy Minister, addresses the media after a negotiation session in New York on July 30, 2014 Craig Ruttle—Associated Press

Argentina slipped into its second debt default in 13 years after Argentine Economy Minister Axel Kicillof and U.S. creditors failed to come to an agreement by the deadline on Wednesday at midnight

(NEW YORK) — The collapse of talks with U.S. creditors sent Argentina into its second debt default in 13 years and raised questions about what comes next for financial markets and the South American nation’s staggering economy.

A midnight Wednesday deadline to reach a deal with holdout bondholders came and went with Argentine Economy Minister Axel Kicillof holding firm to his government’s position that it could not accept a deal with U.S. hedge fund creditors it dismisses as “vultures.” Kicillof said the funds refused a compromise offer in talks that ended several hours earlier, although he gave no details of that proposal.

“We’re not going to sign an agreement that jeopardizes the future of all Argentines,” Kicillof said after he emerged from the meeting with creditors and a mediator in New York City. “Argentines can remain calm because tomorrow will just be another day and the world will keep on spinning.”

But court-appointed mediator Daniel Pollack said a default could hurt bondholders who were not part of the dispute as well as the Argentine economy, which is suffering through a recession, a shortage of dollars and one of the world’s highest inflation rates.

“The full consequences of default are not predictable, but they are certainly not positive,” Pollack said.

An earlier U.S. court ruling had blocked Argentina from making $539 million in interest payments due by midnight Wednesday to other bondholders who separately agreed to restructuring plans with the country in 2005 and 2010.

There was no immediate comment from the hedge funds, which refused to participate in the debt restructurings and won a U.S. court judgment that they be paid the full value of their bonds plus interest — now estimated at roughly $1.5 billion.

Kicillof dismissed a decision by ratings agency Standard & Poor’s to downgrade Argentina’s foreign currency credit rating to “selective default” because of the missed interest payments.

“Who believes in the ratings agencies? Who thinks they are impartial referees of the financial system?” he said.

Argentine President Cristina Fernandez had long refused to negotiate with the hedge fund creditors, often calling them “vultures” for picking on the carcass of the country’s record $100 billion default in 2001.

The holdouts, led by New York billionaire Paul Singer’s NML Capital Ltd., spent more than a decade litigating for payment in full rather than agreeing to provide Argentina with debt relief. They also sent lawyers around the globe trying to force Argentina to pay its defaulted debts and were able to get a court in Ghana to temporarily seize an Argentine naval training ship. The threat of seizures forced Fernandez to stop using her presidential plane and instead fly on private jets.

Restoring Argentina’s sense of pride and sovereignty after the 2001-2002 economic collapse has been a central goal of Fernandez and her predecessor and late husband, Nestor Kirchner.

Argentina has made efforts to return to global credit markets that have shunned it since the default. The government paid its debt to the International Monetary Fund and agreed in May with the Paris Club of creditor nations on a plan to begin repaying $9.7 billion in debts unpaid since 2001. It also agreed to a $5 billion settlement with Grupo Repsol after seizing the Spanish company’s controlling stake in Argentina’s YPF oil company.

Analysts say a new default undermines all of these efforts.

“This is unexpected; an agreement seemed imminent,” said Ramiro Castineira of Buenos Aires-based consultancy Econometrica.

“Argentina would have benefited more from complying with the court order in order to get financing for Vaca Muerta,” he added, referring to an Argentine region that has one of the world’s largest deposits of shale oil and gas.

Only a few international companies have made commitments to help develop the fields as many fear the government’s interventionist energy policies. The government has also struggled to get investors because it can’t borrow on the global credit market.

Prices for Argentine bonds had surged to their highest level in more than three years on the possibility that Argentina would reach a deal with the holdout creditors. Argentina’s Merval stock index also climbed more than 6.5 percent in midday trade on a likely deal.

Optimism had been buoyed by reports Wednesday that representatives of Argentina’s private banks association, ADEBA, were set to offer to buy out the debt owed to the hedge funds. In return, the reports said, the U.S. court would let Argentina make the interest payments due before midnight Wednesday and avoid default.

The deal failed to materialize.

“It is an unfortunate situation which is pushing the country into another default. As defaults go, we all know when we get into one but it is very unclear when and how to get out of it,” said Alberto Ramos, Latin America analyst at Goldman Sachs.

“We just added another layer of risk and uncertainty to a macro economy that was already struggling,” Ramos said.

___

Associated Press writers Almudena Calatrava, Ben Fox and Debora Rey in Buenos Aires, Argentina, and Luis Andres Henao in Santiago, Chile, contributed to this report.

MONEY women

VOTE: Who Should Be the First Woman On a Modern Dollar Bill?

140618_money_gen_6
iStock

Eleanor Roosevelt? Harriet Tubman? Beyoncé? Cast your vote in the poll below.

Is it time to put a woman on our paper currency? President Obama went on record today saying it’s a “pretty good idea.” During a speech in Kansas City, Obama said he received a letter from a young girl asking why there aren’t any women on American paper money. (Dollar coins with Susan B. Anthony and Sacagawea are still in circulation, but they are no longer being minted, and Martha Washington appeared on a paper note in the 19th century.)

Well, if Congress is taking suggestions… who do you think should get the honor? Take our poll:

 

Here are nominations from our readers — some silly, and some serious. (Some answers were lightly edited for length and clarity.)

Sojourner Truth

Loretta Lynn

“Loretta Lynn is Appalachian royalty – the last area of the continent that is truly American with its own unique culture that hasn’t been watered down and corrupted by political correctness, big city immorality, and liberalism. Loretta wrote and sang songs from the heart and did a lot to bring women’s rights to areas of the country that otherwise would not have gotten on board. Make this southern, West Virginian white boy proud. Ayn Rand, although a semi-good author, ain’t even American.”
– James

Rosa Parks

“She set the wheels of justice in motion.”
– Jebediah

A close call

Sarah Palin

“One would be hard pressed to find a better representative of a modern American: ignorant, short sighted, narrow-minded, with an unabashed persistent goal of increasing personal wealth.”
– David

Janet Yellen

“The first female Chair at the Fed, quite possibly one of the most powerful people on the planet.”
– Daniel

Susan B. Anthony

“They gave her that stupid dollar coin that never took off! They need to make it up to her! If a woman is willing to get thrown to the ground, arrested, and abused when fighting for women’s rights, she deserves to be on a bill.”
– Michelle

Hattie Caraway

“The first woman elected to the U.S. Senate.”
– Adena

Sandra Day O’Connor

“The first woman on the Supreme Court. She did a lot more for this nation than at least half, if not more, of the people on your list.”
– David

Oprah

Katharine Hepburn

“She was the greatest actress in U.S. history. She won four Academy Awards, and she always fight for civil rights.”
– Victor

Lady Gaga

“Lady Gaga is the Queen, and if you don’t put her on the dollar bill, it might as well be blank.”
– Derek

Marie Curie

Minnie Mouse

“She has brought more tourism and money into the United States than any other female figure! Much more than any politician!”
– Maria

C.J. Walker

“Her story is the epitome of the American Dream. Born of poor sharecroppers in Louisiana, she became the first self-made millionaire woman – a huge feat for any woman of that time, but for a black woman of that time in the South, it is an amazing story.”
– Michelle

Jane Scott

Jacqueline Kennedy Onassis

“Jackie helped create what is now the JFK Library, and she helped save Grand Central Terminal. During her time in the White House she completely restored it and did a TV special on all her hard work, for which she won an Emmy. And Jackie raised two amazing children, Caroline, who is now ambassador to Japan, and the late John F. Kennedy Jr.”
– Kaitlyn

Dolly Madison

“She risked her life to save important items from the White House when the British invaded Washington and burned the White House. She was a beloved figure in Washington, D.C.”
– Margaret

Madeleine Albright

Betsy Ross

“She created our flag, the symbol of our freedom.”
– Lynn

It’s a tie

 

Have another nomination? Tweet us at @Money with #WOMENonMONEY to tell us who you support, or tell us in the form below, and we might publish your response:

 

TIME celebrities

How I Made My First Million: Richard Branson

The tycoon's journey to a million started from an unlikely source: The Exorcist

+ READ ARTICLE

British business tycoon Richard Branson is living proof that with enough money, the sky’s the limit. And sometimes not even the sky: his Virgin Group launched a business called Virgin Galactic, which plans to carry wealthy “space tourists” all the way into orbit.

Worth an estimated $5 billion, Branson has used his fortune not just to indulge in expensive hobbies but also to fund a host of humanitarian initiatives.

So how did he make his first million way back when? Believe it or not, there’s a connection to the 1973 horror film The Exorcist.

TIME How-To

5 Cash-Saving Tech Tools

Saving money is gratifying—plain and simple. And technology can make lining your pockets even easier.

These five apps and websites help you put more dollars where they belong: in your wallet or bank account.

Find the Best Price: InvisibleHand

invisible hand
Invisible Hand

This free browser extension for Firefox, Chrome and Safari tells you if the flight, hotel, rental car or product you’re looking at is available for less money on another site. When the tool finds a cheaper deal, it shows you a narrow yellow band at the top of the screen with a drop-down list of competing prices.

For instance, in this screenshot from Amazon, InvisibleHand found the same new TV on eBay for less money—and with free shipping. The service also includes a feature that will alert you to any available coupons for wherever you happen to be shopping.

Also appreciated: You’ll never see InvisibleHand unless it’s working.

Price: Free at getinvisiblehand.com

Save On In-Home Health Care: CareLinx

carelinx
CareLinx

Hiring in-home care for a loved one can be expensive, so this online marketplace promises to save families up to 50% over traditional agencies. It connects you directly with nursing assistants, medical assistants, nurses and the like.

The service charges a 15% fee, which covers the cost of time tracking, secure online ACH payment processing, payroll tax services and a dedicated family advisor that helps families navigate the process of hiring a caregiver. The company also runs background checks on caregivers and provides professional liability insurance that covers property damage and injuries.

Price: Hourly wages plus a 15% service fee; available at carelinx.com

Get Free Off-Airport Parking: FlightCar

If you live in Los Angeles, Boston, or San Francisco, the FlightCar service will let you park for free in a special lot—and earn you some extra cash while you’re away.

FlightCar rents out your car to other vetted FlightCar members while you’re away. Your take is anywhere from $0.05 to $0.40 per mile, depending on the make and year of your car and how many miles a renter drives it. Included with the service: A free car wash, $1 million in insurance, and a black-car chauffeur to the airport.

If you’re traveling to any other FlightCar city, a web app will text you information about nearby cars available for rental. The service will be expanding to Seattle next, with other cities to follow.

Price: Free, with the opportunity to make money while you travel; available at flightcar.com

Get Free Stuff: Yerdle

yerdle
Yerdle

This iOS app and website is a store where people barter for free stuff using virtual currency. If you have stuff lying around the house that you don’t use or no longer enjoy, you can offer it on the site for a certain number of “credits”—everyone gets 250 to start. A coffee mug typically goes for around 25 credits, while a Patagonia jacket might run around 650.

It’s similar to eBay in that you can set it up as an auction or set a price for buyers to “get it now.” Once someone accepts your offer, Yerdle sets you up with a UPS label. Credits will appear in your account as soon as you drop the package off at a UPS store. Shipping payments are facilitated through Amazon Payments.

Price: Free, except for shipping in the event you can’t do local pickup.

Reduce Your Interest Rates: Credit Karma

People with high credit scores get lower interest rates on their loans and credit cards, but boosting your score takes time and know-how. Credit Karma is a free web-based service that gives you insight into your TransUnion credit score, the factors that affect it and tips on how to improve it.

If you have a low score, for example, it will suggest products that can help raise your score, such as low-limit credit cards that will increase your limit as a reward for a good payment history. You can also connect your bank and credit card accounts to track your spending.

The platform includes several helpful calculators, such as one to help you determine if you can afford a home and one that figures out how long it will take to repay a debt. Companion apps are available for iOS and Android.

Price: Free at creditkarma.com

This article was written by Christina DesMarais and originally appeared on Techlicious.

More from Techlicious:

TIME digital currency

You Can Now Donate to Wikipedia in Bitcoin

Bitcoin
Thomas Trutschel—Photothek/Getty Images

"We accept 13 different payment methods enabling donations from nearly every country in the world, and today, we’re adding one more."

The Wikimedia Foundation, the non-profit responsible for Wikipedia, said Wednesday that it will accept donations of the digital currency Bitcoin.

“It has always been important to the Foundation to make sure donating is as simple and inclusive as possible,” Lisa Seitz Gruwell, the chief revenue officer, said in a statement. “Currently, we accept 13 different payment methods enabling donations from nearly every country in the world, and today, we’re adding one more: Bitcoin.”

The foundation, which runs one of the most visited websites on the Internet, depends almost exclusively on user donations to cover its annual budget of roughly $50 million. Its decision to accept the digital currency comes as a growing list of corporations, including satellite television operator Dish Network, add Bitcoin as a payment method.

Seitz Gruwell said the foundation will use the Bitcoin exchange Coinbase to accept Bitcoin and will convert the currency into U.S. dollars.

“Since we now also have guidance on how to account for Bitcoin, there is a clear understanding of how to legally manage it,” she said.

 

MONEY How to Get to $1 Million

WATCH: How to Make a Million

People in New York tell Mannes on the Street the best way to make a million dollars.

TIME Spain

Lionel Messi Faces Messy Tax-Fraud Allegations

The soccer star and his father allegedly owe $5.3 million in unpaid taxes to Spain

+ READ ARTICLE

Lionel Messi, the highest-paid soccer player in the world, might be in some serious financial trouble.

Messi and his father have been accused of tax fraud in Spain, and if they — in an unlikely case — are convicted, the pair could face up to six years in prison and nearly $32 million in fines.

TIME Money

Study: 35% of Americans Facing Debt Collectors

The word "Bankruptcy" is painted on the side of a building in Detroit on Oct. 25, 2013.
The word "Bankruptcy" is painted on the side of a building in Detroit on Oct. 25, 2013. Joshua Lott—Reuters

The delinquent debt is overwhelmingly concentrated in Southern and western states

(WASHINGTON) — More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute.

These consumers fall behind on credit cards or hospital bills. Their mortgages, auto loans or student debt pile up, unpaid. Even past-due gym membership fees or cellphone contracts can end up with a collection agency, potentially hurting credit scores and job prospects, said Caroline Ratcliffe, a senior fellow at the Washington-based think tank.

“Roughly, every third person you pass on the street is going to have debt in collections,” Ratcliffe said. “It can tip employers’ hiring decisions, or whether or not you get that apartment.”

The study found that 35.1 percent of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The study points to a disturbing trend: The share of Americans in collections has remained relatively constant, even as the country as a whole has whittled down the size of its credit card debt since the official end of the Great Recession in the middle of 2009.

As a share of people’s income, credit card debt has reached its lowest level in more than a decade, according to the American Bankers Association. People increasingly pay off balances each month. Just 2.44 percent of card accounts are overdue by 30 days or more, versus the 15-year average of 3.82 percent.

Yet roughly the same percentage of people are still getting reported for unpaid bills, according to the Urban Institute study performed in conjunction with researchers from the Consumer Credit Research Institute. Their figures nearly match the 36.5 percent of people in collections reported by a 2004 Federal Reserve analysis.

All of this has reshaped the economy. The collections industry employs 140,000 workers who recover $50 billion each year, according to a separate study published this year by the Federal Reserve’s Philadelphia bank branch.

The delinquent debt is overwhelmingly concentrated in Southern and Western states. Texas cities have a large share of their populations being reported to collection agencies: Dallas (44.3 percent); El Paso (44.4 percent), Houston (43.7 percent), McAllen (51.7 percent) and San Antonio (44.5 percent).

Almost half of Las Vegas residents— many of whom bore the brunt of the housing bust that sparked the recession— have debt in collections. Other Southern cities have a disproportionate number of their people facing debt collectors, including Orlando and Jacksonville, Florida; Memphis, Tennessee; Columbia, South Carolina; and Jackson, Mississippi.

Other cities have populations that have largely managed to repay their bills on time. Just 20.1 percent of Minneapolis residents have debts in collection. Boston, Honolulu and San Jose, California, are similarly low.

Only about 20 percent of Americans with credit records have any debt at all. Yet high debt levels don’t always lead to more delinquencies, since the debt largely comes from mortgages.

An average San Jose resident has $97,150 in total debt, with 84 percent of it tied to a mortgage. But because incomes and real estate values are higher in the technology hub, those residents are less likely to be delinquent.

By contrast, the average person in the Texas city of McAllen has only $23,546 in debt, yet more than half of the population has debt in collections, more than anywhere else in the United States.

The Urban Institute’s Ratcliffe said that stagnant incomes are key to why some parts of the country are struggling to repay their debt.

Wages have barely kept up with inflation during the five-year recovery, according to Labor Department figures. And a separate measure by Wells Fargo found that after-tax income fell for the bottom 20 percent of earners during the same period.

MONEY alternative assets

New York Proposes Bitcoin Regulations

Bitcoin (virtual currency) coins
Benoit Tessier—Reuters

New regulations may make Bitcoin safer. But some people think they will also ruin what made virtual currencies attractive.

Bitcoin may have just taken a huge step toward entering the financial mainstream.

On Thursday, Benjamin Lawsky, superintendent for New York’s Department of Financial Services, proposed new rules for virtual currency businesses. The “BitLicense” plan, which if approved would apply to all companies that store, control, buy, sell, transfer, or exchange Bitcoins (or other cryptocurrency), makes New York the first state to attempt virtual currency regulation.

“In developing this regulatory framework, we have sought to strike an appropriate balance that helps protect consumers and root out illegal activity—without stifling beneficial innovation,” wrote Lawsky in a post on Reddit.com’s Bitcoin discussion board, a popular gathering places for the currency’s advocates.

“These regulations include provisions to help safeguard customer assets, protect against cyber hacking, and prevent the abuse of virtual currencies for illegal activity, such as money laundering.”

The proposed rules won’t take effect yet. First is a public comment period of 45 days, starting on July 23rd. After that, the department will revise the proposal and release it for another round of review.

Regulation represents a turning point in Bitcoin’s history. The currency is perhaps best known for not being subject to government oversight and has been championed (and vilified) for its freedom from official scrutiny. Bitcoin transactions are anonymous, providing a new level of privacy to online commerce. Unfortunately, this feature has also proven attractive to criminals. Detractors frequently cite the currency’s widely publicized use as a means to sell drugs, launder money, and allegedly fund murder-for-hire.

The failure of Mt. Gox, one of Bitcoin’s largest exchanges, following the theft of more than $450 million in virtual currency, also drew attention to Bitcoin’s lack of consumer protections. In his Reddit post, Lawsky specifically referenced Mt. Gox as a reason why “setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets.”

New York’s proposed regulations require digital currency companies operating within the state to record the identity of their customers, including their name and physical address. All Bitcoin transactions must be recorded, and companies would be required to inform regulators if they observe any activity involving Bitcoins worth $10,000 or more.

The proposal also places a strong emphasis on protecting legitimate users of virtual currency. New York is seeking to require that Bitcoin businesses explain “all material risks” associated with Bitcoin use to their customers, as well as provide strong cybersecurity to shield their virtual vaults from hackers. In order to ensure companies remain solvent, Bitcoin licensees would have to hold as much Bitcoin as they owe in some combination of virtual currency and actual dollars.

Cameron and Tyler Winklevoss, two of Bitcoin’s largest investors, endorsed the new proposal. “We are pleased that Superintendent Lawsky and the Department of Financial Services have embraced bitcoin and digital assets and created a regulatory framework that protects consumers,” Cameron Winklevoss said in an email to the Wall Street Journal. “We look forward to New York State becoming the hub of this exciting new technology.”

Gil Luria, an analyst at Wedbush Securities, also saw the regulations as beneficial for companies built around virtual currency. “Bitcoin businesses in the U.S. have been looking forward to being regulated,” Luria told the New York Times. “This is a very big important first step, but it’s not the ultimate step.”

However, this excitement was not universally shared by the internet Bitcoin community. Soon after posting a statement on Reddit, Lawsky was inundated with comments calling his proposal everything from misguided to fascist. “These rules and regulations are so totalitarian it’s almost hilarious,” wrote one user. Others suggested New York’s proposal would increase the value of Bitcoins not tied to a known identity or push major Bitcoin operations outside the United States.

One particularly controversial aspect of the law appears to ban the creation of any new cryptocurrency by an unlicensed entity. This would not only put a stop to virtual currency innovation (other Bitcoin-like monies include Litecoin, Peercoin, and the mostly satirical Dogecoin) but could theoretically put Bitcoin’s anonymous creator, known by the name Satoshi Nakamoto, in danger of prosecution if he failed to apply for a BitLicense.

One major issue not yet settled is whether other states, or the federal government, will use this proposal as a model for their own regulations. Until some form of regulation is widely adopted, New York’s effort will have a limited effect on Bitcoin business. “I think ultimately, these rules are going to be good for the industry,” Lawsky told the Times. “The question is if this will spread further.”

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