Money, Money, Money...Money!

[g5000]

I thought I would throw out some fascinating facts about the almighty dollar.

Here is a Federal Reserve chart of the value of our money in circulation year by year, going back to 1997, by denomination:

Currency in Circulation: Value

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

We started out with $690 billion in cash circulating around the planet in 1997.

As of 2023, we had $2.3 trillion in circulation!

I blame DEI.


Here is a Federal Reserve chart of the volume of greenbacks in circulation for the same period, by denomination:

Currency in Circulation: Volume

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

In 2017, the volume of 100 dollar bills surpassed the volume of one dollar bills for the first time, and there has been no going back.

Why is that, you may be wondering.

It turns out that 80 percent of our hundreds are overseas, and 60 percent of all denominations. In 1980, only 30 percent of our cash was held overseas.

So much is overseas now because the almighty dollar reigns supreme and is considered the safest haven for people in unstable parts of the world.

They are hoarding for a rainy, bloody day.

A stack of twenty hundreds is easier to conceal and carry than two thousand one dollar bills. It's all about the Benjamins, baby!

Supply and demand.

U-S-A! U-S-A! U-S-A!

The Boom in Benjamins – IMF F&D

What makes the US $100 bill so popular? Melinda Weir of the IMF explains.

www.imf.org

 

[sparky]

but the more we print, the less it's worth g5.......~S~

 

[g5000]

but the more we print, the less it's worth g5.......~S~

Well, that depends on the velocity of money. But as a general principle, yes.

However...

One of the Fed's dual mandates is to grow inflation by 2 percent a year. This allows room for economic growth. The more stuff we create or import, the more cash we need to pay for it.

Every country that dropped the gold standard during the Great Depression popped right out of their depression.

The countries that were already off the gold standard didn't suffer during the Great Depression.

Economic crashes were far more frequent and longer lasting before we went off the "Cross of Gold".

 

[g5000]

Another factor in the economy is that you get far more bang for your buck even if it is technically worth less than it used to be.

But is it really true the dollar is worth less?

An example. A Coke used to be a nickel. Now it's, what, two dollars?

From that perspective, the dollar looks worth a lot less.

But consider the kind of TV or PC you got for a thousand bucks when Coke was a nickel. A real dinosaur.

Now look at the kind of TV or PC you get for a "worth less" thousand bucks today. Simply no comparison.

 

[g5000]

I'm going to throw some shade on Ben Bernanke in a second, but I first have to explain the Fed's mandates.

Congress passed legislation which directed the Fed to observe two, and only two, mandates.

The first mandate is to promote maximum employment.

The second mandate is to keep prices stable.

It may seem counterintuitive that the Fed's 2 percent inflation goal keeps prices stable. But when you consider as a consumer economy we have more and more stuff, we would suffer deflation and a recession without more cash. It would be a too little cash chasing too many goods situation.

As for employment, one of politics dirty little secrets is that inflation creates maximum employment. This is precisely why the last thing we want is to have our populist politicians to get their hands on the monetary printing press.

1920s Germany anyone? How about present day Zimbabwe? Everyone's a billionaire in Zimbabwe. I kid you not. That's why they are hungry for the world's most stable almighty US dollar.

And now Helicopter Ben.

During the Great Recession of the early Oughts, Mr. Bernanke invented a third mandate for the Fed out of thin air. This was not legislated by Congress.

The Fed Chair decided it was his job to goose the stock market. He bought trillions upon trillions of dollars worth of toxic assets from the broke-dick banks and insurance companies.

He also bought nearly $4 trillion of securities from broke-dick GSEs.

And he felt no shame about it. At all.

Did he save the world by doing this? Was there no alternative?

Maybe.

 

[Stryder50]

I'm coming across some "buzz" lately that the next evolution in computers, quantum computers and AI combined will crack the encryption "barrier" and on-line, digital currency, accounts, etc. will no longer be secure. Subject to hacking and theft.

At which point, currency~physical money will be the only way to conduct most business and purchases, etc.

 

[g5000]

I'm coming across some "buzz" lately that the next evolution in computers, quantum computers and AI combined will crack the encryption "barrier" and on-line, digital currency, accounts, etc. will no longer be secure. Subject to hacking and theft.

Promises, promises.

At which point, currency~physical money will be the only way to conduct most business and purchases, etc.

Those were good times.

A cashier could total up your groceries and make change like lighting, without the register telling them how much to return to you.

Today it's...Phone number? Would you like our credit card? You'll save ten percent on this purchase. Email? Do you have a store card for your digital coupons? Would you scan it, please? Birth date? Paper or plastic? What's this stuff you just gave me? What's "cash"? I don't think we take that here.

 

[Stryder50]

Promises, promises.



Those were good times.

A cashier could total up your groceries and make change like lighting, without the register telling them how much to return to you.

Today it's...Phone number? Would you like our credit card? You'll save ten percent on this purchase. Email? Do you have a store card for your digital coupons? Would you scan it, please? Birth date? Paper or plastic? What's this stuff you just gave me? What's "cash"? I don't think we take that here.

Try shopping at Winco.
They only take Debit Cards and cash.

 

[g5000]

Try shopping at Winco.
They only take Debit Cards and cash.

I love Winco. Love that place.

On a side note, they were way ahead of the curve with the "bring your own grocery bags" movement.

 

[ESay]

The US dollar has become a contemporary 'gold standard' for most of international trade and the way of saving 'money' around the globe. Maybe a half of world's population uses it as 'a hedge' against inflation and denomination of their national currencies.

 

[luiza]

but the more we print, the less it's worth g5.......~S~

Any supposedly good idea that takes that number of posts to "sell" is guaranteed to be snake oil scam material .
He is scamming himself .

Archive him to the end of year and ask him what the value of the US $ is -- could easily fall 50% .
And ask him whether the half empty supermarket shelves are some sort of aesthetic design invention .
imho

 

[sparky]

During the Great Recession of the early Oughts

>>

~S~

 

[luiza]

View attachment 1072840




~S~

Got to be Bewankey .

 

[sparky]

Other nations brought charges of fraud to sorts we threw $$$ at here 'Lu......~S~