Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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