Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

U.S. Treasury Ramps Up The Zimbabwe Style Money Printing Press

Interest-Rates / Quantitative Easing Nov 12, 2013 - 06:34 PM GMT

By: Steve_St_Angelo

Interest-Rates

It looks like the U.S. Treasury is learning a few tricks from the Reserve Bank of Zimbabwe as it ramps up its printing press.  In just a few years, the U.S. Department of Treasury Bureau of Engraving & Printing has substantially increased the printing of its largest valued Federal Reserve Note -- the $100 bill.


Ironically, the U.S. Department of the Treasury calls its Bureau of Engraving & Printing's website, the MoneyFactory.gov.  Who says government officials don't have a sense of humor?

Why on earth should gold and silver miners spend $100's of billions of dollars exploring, mining, extracting and refining to produce real money, when you can go to the U.S Money Factory and get all the money you need?  And for pennies on the dollar.

According to the U.S. Treasury's website:

During Fiscal Year (FY) 2013, the Bureau of Engraving and Printing delivered approximately 26 million notes a day with a face value of approximately $1.3 billion.

During Fiscal Year (FY) 2013, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes at an average cost of 10 cents per note.

Over 90 percent of the notes that the BEP delivers each year are used to replace notes already in, or taken out of circulation.

The Bureau of Engraving & Printing releases annual data on the Federal Reserve Note production figures and the table below shows the changes from 1992-2012:

Federal Reserve Note Production Table

Now, if we concentrate on the most used Federal Reserve Notes, the $1, $10, $20 and $100, we can clearly see the change in annual production figures below:

Federal Reserve Notes Annual Production Figures

You will notice that the two biggest changes are the large drop in production of $1 bills and the huge increase in the $100 note.  In 1992, the Treasury printed a little more than $4 billion in $1 bills, but this fell in half to $2 billion in 2012.  Now if we look at the change in the printing of the $100 bill, we have a much different story.

In 1992, the U.S. Treasury printed $103 billion worth of Federal Reserve notes and the $100 bill accounted for 21% of this total.  Then in 2002, the total currency printed that year increased modestly to $112 billion, but the $100 bill was now 54% of this total amount.   However, by 2012 a significant change took place.

Not only did the total value of currency printed in 2012 triple compared to 2002, but the majority of the increase was solely due to the printing of our famous American -- Benjamin Franklin.  In 2012 of the total $358 billion printed in Federal Reserve Notes, the $100 bill accounted for $303 billion, or 84% of this amount.

As you can see from the figures on the chart, the printing of the $100 has increased more than 10 fold from 218 million $100 bills in 1992 to 3,027 million printed in 2012.

While it's true that the use of debt cards has reduced the need for the smaller bills such as the $1, $5 and $10, this doesn't change the fact that amount of actual physical currency in circulation (in dollar amount) is now overwhelmingly the $100 bill.  No wonder the U.S. Treasury had to redesign a new $100 bill to fight against the increased counterfeit threat.

To get ready for the "New Release" of its redesigned $100, the U.S. Department of Treasury, printed 563 million of the new bills just in the month of September (48 million of the $100 notes at its eastern facility and 515 million at its western branch).

The huge increase in the printing of the $100 bill this past decade coincides nicely with the massive increase of U.S. Govt debt and Federal Reserve policy of QE monetization.  I would imagine if the new Federal Reserve Chairman, Janet Yellen keeps to her promise of increasing QE to infinity, they may have to bring back some of their old larger notes out of retirement.

$10,000 Federal Reserve Note

$100,000 Gold Note

Even though the $100,000 note is a gold certificate, it gives the reader a good idea of what a Federal Reserve Note would look like with all those extra zeros.

The United States is heading for a hyperinflationary collapse.  This will not be an economic event, but rather a loss of faith in the Dollar -- a statement repeated by Jim Sinclair.

Lastly, the world is facing two different collapses.  One is a financial-paper collapse and the other is an energy-physical collapse.  In the history of world, mankind has been able to pull itself out of all financial collapses whether they be hyperinflations, deflations or world-wide depressions.

However, we always had a growing energy supply to do so.  This time will be different... indeed.  We are heading into a new paradigm that I call, "COLLAPSE ECONOMICS."  I will explore this in more detail at the SRSrocco Report in several future articles, the first to come out shortly.

The world will wake up abruptly one day to the forgotten monetary religion of Gold & Silver.

© 2013 Copyright Steve St .Angelo - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules