Interesting charts on FRN production: the demise of small bills, the rise of the $100

[AndreaGail]

We Don't Want Your Steenkin' $1, $5, And $10 Dollar Bills
Submitted by Tyler Durden on 10/20/2012 11:12 -0400

Federal Reserve


Everyone knows that when it comes to US currency in circulation, the $2 and the $50 bills are rapidly approaching numismatic status due to either the government's unwillingness to print them in sufficient amounts or the general public's unwillingness to accept them as legal Federal Reserve Note tender. What people may not know is how other currency denominations have fared over the years. And as the charts below indicate, the historical government production of various currency denominations may tell us something about actual supply-driven intentions of the Fed and/or upcoming price levels. Because one thing is certain: judging by recent production patterns, the $1, $5 and $10 bills (aka Federal Reserve Notes), all of which saw their lowest production in 30 years in 2010, will soon suffer the fate of the dodo!



$1 bill production 1980-2010:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10/%241%20bills_0.jpg

$5 bill production 1980-2010:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10/%245%20bills_0.jpg

$10 bill production 1980-2010:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10/%2410%20bills_0.jpg

Why the collapse in production? Is it simply due to the increasing (forced?) migration to electronic, and other, forms of payment? Perhaps. We leave it up to readers to decide on their own.

One thing we do know is that the plunge in small-denomination bills is not uniform. In fact, when it comes to $100 bills, production has never been higher. Is the Fed hinting at something?

$100 bill production 1980-2010:
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10/%24100%20bills_0.jpg


So, how long until we start seeing the face of Grover Cleveland much more often again?
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10/%241000%20bill_0.jpg


http://www.zerohedge.com/news/2012-10-20/we-dont-want-your-steenkin-1-5-and-10-dollar-bills

[Ponce]

Like in Rhosesia?...........soon to be seen .......$100000000 notes.

[Shami-Amourae]

The new bills are color coordinated...
http://www.informationliberation.com/files/FXsIZ.jpg

Here's the updated $100:
http://pagestat.com/blog/wp-content/uploads/2010/04/100-dollar-bill-new.jpg

[Sparky]

Interesting to speculate on this. I don't think it's related to anticipation of inflation. Two things:

First, I think the decrease in smaller currency is almost entirely related to the acceptance of small-amount credit card charges. People didn't used to use credit to buy coffee or fast food. Now they do. So the existing bills change hands less frequency, so they need to get replaced less frequently.

Second, the tremendous increase in $100's, and the new design, are an attempt to solidify the USD as the world's reserve currency. $100 FRNs aren't primarily for spending, they are for holding. Especially internationally. It's what kings and criminals fill their suitcases with. The U.S. has successfully convinced the world over the last 50 years that the USD is the "new gold", and they would like to keep it that way. Is it a coincidence that the new 100 uses the color gold? These gold FRNs can be held in reserve, and exchanged with "currency FRNs" (1's, 5's, 10's, 20's) at any bank at any time, in the same way that gold and silver could be exchanged for FRNs. That's what's going on here, and it's an incredibly effective marketing campaign. This is why the USD will not be going away any time soon, even as it loses its purchasing power. It appears increasingly desirable compared to other fiat. That's why I think the idea of a "new currency" is way off. They have created the greatest illusion in the world. You think they're going to voluntarily forfeit that? I say no way.

Furthermore, FRNs should be part of your preps, especially those increasingly rare smaller denominations. If there's a breakdown in electronic currency, either due to lack of faith, or a software hack, or an EMP event, FRNs will be king.

[Hatha Sunahara]

I would suspect that when we enter a hyperinflationary monetary condition, all printing will stop, and all money will be digital--existing only in your credit card account, or in some other account with a bank. I'm not sure what the implications of this are, but I suspect that whatever we know about the 'mark of the beast' will become fact then.


Hatha

[madfranks]

I think Sparky is right, in the short term after any financial apocalypse, cash (FRNs) will be king. Holding some cash in small bills, $1s and $5s, is probably not a bad idea.

[Horn]

They don't use the smaller currency outside the U.S., and why there is less of it inside now.

These charts are really only showing the waves of repatriated dollars.

[Uncle Salty]

I want $500 bills.

My wad of $100's is getting a bit bulky to carry around every day.

[Twisted Titan]

I think Sparky is right, in the short term after any financial apocalypse, cash (FRNs) will be king. Holding some cash in small bills, $1s and $5s, is probably not a bad idea.


those bills will command a premium because when the grid is down everything is getting rounded up to the nearest whole number

The bread is 10 dollars but you only have a 20? you had best to find a way to make that bread last twice as long


its wise to have 500 singles 400 fives 300 tens 500 twentys

you can do a nice business for yourself as a exchanger if you are so inclined if not at least you have the means not to get raped in the free market

[madfranks]

its wise to have 500 singles 400 fives 300 tens 500 twentys

you can do a nice business for yourself as a exchanger if you are so inclined if not at least you have the means not to get raped in the free market

You're talking almost $14,000 in small denomination cash. I'd love to be able to stash away that much cash, but I'd rather have maybe $4k in cash and the other $10k in real preps.

[Horn]

Think you'd be better off with Sacagawea coins.

[gunDriller]

$175 in US currency - a $100, a $50, a $20, and a $5 - i bet that weighs more than 3.11 grams.

but 1/10 ounce of gold - worth about $175 at today's prices (well, actually, worth a lot more than that, but anyway) - only weighs 3.11 grams.

OK so i'll weight 1 bill just to see.

i'll be darned, each bill weighs 1.01 grams.

so the paper money to buy 3.11 grams of gold weighs 4.04 grams.


not sure what that means.

i'm just fascinated by the valuelessness of fiat currencies. plus all those pretty colors, fancy printing techniques, and strange Masonic symbols.


OH, i know what it means. Gold, in addition to having intrinsic value, actually is lighter to carry around. it doesn't weigh your pants down as much.

so, if you don't like wearing suspenders - Carry Gold.