U.S. FIAT MONETARY SCAM: $100 Bill vs Gold

The biggest scam in history continues as the U.S. Department of Treasury Bureau of Printing and Engraving floods the world with worthless fiat currency.  Of course, all countries now have fiat currencies, however the U.S. Federal Reserve Note is still the world’s reserve currency.

The growth of U.S. currency in circulation has been considerable over the past twenty years.  According to the Federal Reserve Statistical Release, the total value of Federal Reserve Notes in circulation jumped from $423 billion in 1996 to $1.38 trillion as of October 8th, 2015.  This was a staggering 228% increase even though the population of the United States only increased 21% during the same time period.

The huge increase of U.S. currency in circulation over this twenty-year period was due to two reasons:

  1. Under reporting inflation, thus leading to a larger amount of currency in circulation
  2. the exporting of U.S. Dollar’s (and U.S. inflation) overseas where a larger percentage is held in foreign hands.

To get an idea of the breakdown in U.S. currency in circulation, let’s look at the following chart from Statista 2015:

Federal-Reserve-Notes-In-Circulation

As we can see, the $100 bill accounts for $1,014 billion (78%) of the total $1,341 billion of Federal Reserve Notes in circulation.  The data in this chart was complied on Dec 31st, 2014.  Over the past eight months, total U.S. currency in circulation grew an additional $47 billion to $1,388 billion ($1.38 trillion).

Looks like business is doing very well for the folks at the U.S. Department of Treasury Bureau of Engraving and Printing.  Why would the world need an extra $47 billion of Federal Reserve Notes if economic activity has been declining??  Maybe Americans and especially foreigners prefer real cash in hand, or it could be due to the continued debasement of the almighty Dollar.

U.S. $100 Dollar Printing vs Gold Production

To get an idea just how worthless U.S. currency is compared to gold, let’s focus on the $100 bill.  Again, the $100 billion represents 78% of all outstanding Federal Reserve Notes in circulation.

Total world gold production during the first six months of the year was 48.7 million oz (Moz)–World Gold Council Q2 2015 Gold Demand Trends.  Compare this to the total 562 million $100 bills printed by U.S. Treasury during the same time period.  Thus, the total value of $100 bills printed JAN-JUN 2015 was $56.2 billion versus the total market value of gold production of $58.7 billion.

So, here we can see that the face value (market value) of these two currencies were about same.  However, the cost of production were drastically different:

$100-Dollar-Printing-vs-Gold-Production-Jan-Jun-2015

If we assume the U.S. gold industry’s average cost of production is $1,050 an ounce, total cost to produce the 48.7 Moz was $51.2 billion.  Now, according to the Federal Reserve, the cost to produce a new $100 bill is 12.3 cents a note.  Thus, the total $56.2 billion face value of $100 bills cost a lousy $69.1 million to print.

While it’s true that the Federal Reserve collects older worn-out bills and exchanges them with freshly minted bills, total U.S. currency in circulation grew $47 billion in the first eight months of the year… with the majority being $100 bills.

Furthermore, the Federal Reserve stated this about its 2015 Fiscal Year currency print order for the U.S. Treasury:

The estimated number of notes that Reserve Banks will destroy accounts for nearly 85 percent of the proposed FY 2015 print order and includes both unfit currency, as well as all old-design $100 notes received from circulation.

The Federal Reserve will receive $188.5 billion (nearly 70% as $100 bills) in new U.S. bills from the Treasury Fiscal Year 2015.  If the Federal Reserve will only destroy 85% of old notes, this leaves an extra $28 billion notes left over.  However, total currency in circulation has already grown by $47 billion JAN-SEP 2015.

For some strange reason, the numbers don’t jive.  Either way, the Federal Reserve continues to add increasing worthless fiat currency at a cost of 12.3 cents each $100 note.  Thus, the $56.2 billion of $100 bills printed in the first six months of 2015 cost the Federal Reserve $69.1 million compared to the estimated $51.2 billion to produce total world gold production.

Which means, (12) $100 bills (12.3 cents each) cost the Federal Reserve a total of $1.48, compared to an ounce of gold at $1,050.  An individual can take those (12) $100 bills and purchase an ounce of gold now valued at $1,160.  As we can see, the Federal Reserve is the clear winner as cheapest producer of currency by a wide margin compared to gold.

In addition, the Federal Reserve won’t have to exchange as many $100 bills in the future as the estimated lifespan of the $100 note is 15 years:

U.S.-Federal-Reserve-Notes-Lifespan

The double asterisk on the new $100 bills states the Federal Reserve does not yet have an estimated lifespan due to the new anti-counterfeit bill that was released on Oct, 2013.   That being said, I would imagine the new $100 bill was designed to last similar to the 15 year lifespan of the old bill.

Regardless, the Federal Reserve continues to add more fiat currency into the world at a fraction of the cost compared to new gold supply–which has a 2,000 year history as real money.  Knowing this, Chinese and Russian Central Banks continue to purchase and add gold to their official reserves.

When the BRICS countries (Brazil, Russia, India, China & South Africa) complete their new trade settlement system, this will put a serious hurt on the perceived value of the U.S. Dollar.  This is precisely why it is wise to own physical gold and silver assets outside the banking system.  If you own paper gold or silver located at a bank vault, chances are the metal may not be there when you finally ask for it.

Time to make sure you own the REAL MONEY.

——————-

If you haven’t checked out THE SILVER CHART REPORT, there’s a great deal of information on the Silver Industry & Market not found in any single publication on the internet.  There is one chart in this report (Chart #19) that I can guarantee that 99.9% of precious metal investors haven’t seen before.

I use this bird’s-eye approach when I create my easy to understand charts.  The Silver Chart Report is a collection of my top silver charts from articles published over the past six years, and includes in-depth, never-before-seen charts and content that indicate that silver is on the rise. There are 48 charts in the report, broken down in five sections.

Please check back for new articles and updates at the SRSrocco Report.  You can also follow us at Twitter, Facebook and Youtube below:

Enter your email address to receive updates each time we publish new content.

I hope that you find SRSroccoReport.com useful. Please, consider contributing to help the site remain public. All donations are processed 100% securely by PayPal. Thank you, Steve

27 Comments on "U.S. FIAT MONETARY SCAM: $100 Bill vs Gold"

    • How do we know if these outfits are giving us the right amount of gold or silver for our dollars. The name of America now is Greed from the top down has made everybody dishonest.You just cant trust anyone especially if the government is involved, The banks are already stealing our money by not paying interest on our savings but they charge a fortune when they loan it out, I also hear thr getting ready to start charging us to keep our savings in thr banks.One reason i dont buy gold or silver is i guess you keep it at home, what in your mattress or a hole in the yard and if some one hears your keeping stuff like that at home your dead. Or a swat team comes in and takes it from you for no reason in the name of the government.This is one of the reasons they dont want the public to be armed. This is what happens when you let a bunch of thugs high jack the government.Even worse when thr Black and Muslim, Nothing is safe anymore and we would be fools not to be armed.

      • Robert Belzer | October 21, 2015 at 11:33 am |

        There are some good psychiatric PhD’s that can help calm you down. Look up some that specialize in paranoia.

  1. As long as wages become inflation adjusted too, to compensate for rising prices that are needed to pay for the interest of ever growing debt, there’s no problem; bringing forth consumption is the game.

    However, greed in big finance circles and their frontrunners, multinationals with a ‘ticker’, undermines fundamentals in this game of infinite growth…

    The new game was financial engineering; infinite growth to continue. Until 90% debt/gdp became 300% debt/gdp.

    They invented a new game; the $555 trillion derivatives ‘portfolio’; always nice to have some backup in paper promises, isn’t it? Pushed down your throat by hft algo’s and spoofing crime acts.

    Now what. We buy our own stocks back with interest free ZIRP frn’s to satisfy said frontrunners and currency launderers, good idea!

    The pendulum of good intensions always swings back as soon as the good times are over. Especially when the real stuff runs out of milking options.

    Rehypothecated energy is a bitch.

  2. “As long as wages become inflation adjusted too, to compensate for rising prices that are needed to pay for the interest of ever growing debt, there’s no problem”

    If that were true then Zimbabwe would have been just fine.

    1) it is hard to move in and out of the currency on a small scale. Most Americans using the currency as a savings vehicle. As insane as that may be it is often the only choice. The overhead of moving between dollars and real assets with each paycheck is too high.

    2) As prices rise faster people become aware and spend money quicker. The velocity of money increases. Zimbabwe and Weimar spun out of control due to a rapid increase in the velocity of money, Remember that when the velocity of money is higher you need fewer currency units to maintain the same retail prices.

    • Pasted wrong link 🙁

      Steve how do I get a user in your site so I can fix when i post the wrong link????

  3. Don’t forget about the digital / electronic money created on a computer with no cash being printed. That is 10 billion a week or more from the last article I read.

  4. I don’t believe the “total $1,341 billion of Federal Reserve Notes in circulation” number. If only 100 million Americans had any dollars at all this would average out to $13 per person. Really?

    • No, it would be $13,410 per person. But remember that slightly more than half those notes are held overseas.

      Mike

  5. silverfreaky | October 10, 2015 at 7:37 am |

    For Money we do anything.The dance around the golden calf.
    Here an example what happens behind the scenes.This happens not only here:

    Fission Uranium dissidents look to stop Denison merger

    Fission Uranium dissidents look to stop Denison merger

    2015-10-07 11:56 ET – News Release

    An anonymous member of FCU Oversight reports

    FCU OVERSIGHT CONCERNED SHAREHOLDERS OF FISSION URANIUM CORP.

    FCU Oversight comprises a growing number of Fission Uranium Corp. shareholders, who are thoughtfully and intelligently engaged in the company’s business. FCU Oversight is recommending that you vote no to the proposed transaction announced July 6, 2015, between Fission Uranium and Denison Mines Corp.

    Background

    Fission Uranium owns Patterson Lake South (PLS) — a significant uranium deposit located in Saskatchewan. PLS by all accounts is tremendous in scope and grade, and, further, is both shallow and open pittable. Many persons within the industry, along with many analysts covering the sector, consider it the premier undeveloped uranium exploration project in the world.

    On July 6, 2015, Fission issued a press release announcing the proposed combination of the company with Denison Mines.

    FCU Oversight strongly recommends that you vote against the special resolution for many reasons, including the following fundamentals:

    ## PLS, together with Fission’s other assets, is severely undervalued in this transaction, valuing uranium at approximately $2.00 per pound, when the historical rate has been $8.00 to $10.00 per pound.
    ## Fission, as a whole, is severely undervalued. While the initial value on July 3, 2015, of $390-million did not accurately reflect the value of Fission, its value as of Oct. 4, 2015, had fallen to approximately $275-million. Denison has declined even more, from approximately $465-million to $295-million. The exchange ratios now even further penalize Fission shareholders.
    ## The value that shareholders will receive if this transaction proceeds does not take into account any increase in the value of the assets since the deal was disclosed. This includes no value for the recent preliminary economic assessment (PEA) and the increase in the resource estimates determined since that date.
    ## The fairness opinion that was previously rendered is materially outdated if for no other reason that it fails to take into account the PEA.
    ## FCU Oversight sees no tangible operational synergies nor does it see any benefit for Fission shareholders. Fission, and PLS in particular, is a pure play on one of the best uranium deposits there is, located in the west end of the Athabasca basin, while Denison’s Athabasca projects are located on the eastern side of the basin and are not considered as robust, or as readily minable. The balance of Dennison’s international assets is simply not synergistic to Fission.
    ## Certain directors and officers of Fission are being paid approximately $1.2-million to transition to executive positions in the new company. Those directors and officers may have interests in the transaction that are, or may be, different from, or in addition to, the interests of other Fission shareholders. Query whether this transaction was accordingly negotiated at arm’s length and whether the obvious conflict of interest that these gentlemen find themselves in was properly managed.

    Vote against today

    All proxy votes must be received as instructed in Fission’s information circular by 10 a.m. PT on Friday, Oct. 9, 2015, or your vote may not be included.

    If you have already voted in support of the special resolution and wish to change your vote to vote against the special resolution, simply submit a later dated proxy. Due to essence of time, shareholders may vote or recast their vote over the Internet or by telephone by following the instructions found on their form of proxy or voting instruction form.

    Shareholders are encouraged to submit their against votes at least 24 hours prior to the deadline on Oct. 9, 2015, at 10 a.m. PT.

    Any questions that you may have in connection with FCU Oversight or your ability to vote your shares can be directed to info@fcuoversight.com.

    Information in support of public broadcast solicitation

    G5 Inc. is relying on the exemption under Section 9.2(4) of National Instrument 52-102 to make this public broadcast solicitation. The following information is provided in accordance with corporate and securities laws applicable to public broadcast solicitations, including Section 150(1.2) of the Canada Business Corporations Act.

    This solicitation by public broadcast is being made with respect to the special meeting of shareholders of Fission Uranium to be held at 10 a.m. PT on Oct. 14, 2015, by G5 and certain other registered and beneficial shareholders of Fission, and not by or on behalf of the management of Fission. This solicitation by public broadcast is not presently being made with the assistance of specially engaged employees or soliciting agents, but FCU Oversight may seek to engage such parties in the future and will provide the required disclosure, if any, regarding such parties, as applicable.

    Management of Fission filed a notice of special meeting and management information circular dated Sept. 15, 2015, on SEDAR on Sept. 17, 2015. The address of Fission is Suite 700, 1620 Dickson Ave., Kelowna, B.C., V1Y 9Y2.

    All costs incurred for the solicitation will be borne by G5 and certain other members of FCU Oversight.

    A registered holder of common shares of Fission that gives a proxy may revoke it by: attending the meeting and voting in person (if you were a registered holder of common shares of Fission at the record date of Sept. 4, 2015); signing a proxy bearing a later date; signing a written statement which indicates, clearly, that you want to revoke your proxy and delivering this signed written statement to the registered office of Fission at 700, 1620 Dickson Ave., Kelowna, B.C., V1Y 9Y2; or in any other manner permitted by law.

    A non-registered holder of common shares of Fission will be entitled to revoke a form of proxy or voting instruction form given to an intermediary at any time by written notice to the intermediary in accordance with the instructions given to the non-registered holder by its intermediary. It should be noted that revocation of proxies or voting instructions by a non-registered holder can take several days or even longer to complete and, accordingly, any such revocation should be completed well in advance of the deadline prescribed in the form of proxy or voting instruction form to ensure it is given effect in respect of the meeting.

    Neither G5, the other members of FCU Oversight, nor any of their managing members, directors or officers, or any associates or affiliates of the foregoing, have any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter currently known to be acted on at the meeting.

    Read more at http://www.stockhouse.com/companies/bullboard/t.fcu/fission-uranium-corp#DOKtqcWP0u8kDhJx.99

  6. What is this constant attack against our “worthless fiat currency”? You are getting more and more
    like those useless gurus i.e. Morgan, Schiff, Butler etc. What currency is better; the Yen, Yuan, Peso or pound? 99% of the US population doesn’t have any gold or silver. If the so called “fiat useless” currency fails what is left? A country in chaotic riots. I’d like to see you going to buy a loaf of bread
    when the currency collapses to zero as you keep saying with one silver ounce. The riots alone will destroy everything. The true perspective is the currency will be significantly devalued in a shorter period of time. In 1954 I bought 5 gallons of gasoline for $1. Last year it was close to $4. That’s a 16 fold devaluation. I needed $16 today and $1 in 1954. What muist occur for silver investors is an increase in consumer demand and/ or a few mines going belly up to reduce production, if in fact the numbers printed regarding mining production costs are valid. And why is the US dollar up in value instead of being worthless? It is because every other country is worse off. I heard this stuff years ago in Argentina, Venezuela and Mexico on the Peso. It is all hot air.

    • Joe,

      Wake up. Look at what is happening in Syria. We have Russia and China both in Syria destroying ISIS that the U.S. couldn’t do anything about for the past year. Furthermore, after the U.S. has totally disrupted the Middle East over the past 20+ years, China and Russia will stabilize it, forcing Saudi Arabia to side with the new 2 Sheriffs in town.

      This will be the end of the PETRODOLLAR.

      Joe, stop thinking in the mindset that the U.S. Dollar will remain the world’s reserve currency forever.

      steve

      • Steve: Even if it is not the reserve currency, it will still be the currency in the USA. If it collapses to zero then 99% of all americans are doomed. Greece currency floundered. Italy years ago. United Kingdom 20 years ago. Peso about 10 years ago. Venezuela and Argentina about 20 years ago. Russian Ruble last year. AND ALL THESE COUNTRIES
        ARE STILL USING THEIR OWN FIAT WORTHLESS CURRENCY. Some were devalued
        immensely but they all survived. Without a national currency we have nothing. What
        will be the currency of 99% of Americans if the dollar collapses? Imagine the reality!
        99% of Americans DON’T HAVE SILVER OR GOLD. Those who do will have many more
        dollars than those who had only cash in a money market account.

        • “Steve: Even if it is not the reserve currency, it will still be the currency in the USA. If it collapses to zero then 99% of all americans are doomed. Greece currency floundered. Italy years ago. United Kingdom 20 years ago. Peso about 10 years ago. Venezuela and Argentina about 20 years ago. Russian Ruble last year. AND ALL THESE COUNTRIES
          ARE STILL USING THEIR OWN FIAT WORTHLESS CURRENCY. Some were devalued
          immensely but they all survived. Without a national currency we have nothing.”

          I’m no expert in this but all the while these currencies floundered there was always the bedrock or cornerstone currency, the one that was the world’s reserve currency. Flawed as it was it was there and I’ll bet there was a black market in the dollar in some or all of those countries. If there is a collapse in confidence in the dollar what would Americans turn to? In Argentina one could get paid and rapidly [try to] change pesos into dollars or euros to preserve buying power. In a similar scenario in the U.S. would Americans look to rapidly change their dollars into yuan?

    • Go show your silver to a riot, see how long you live…

  7. OutLookingIn | October 10, 2015 at 6:34 pm |

    WHY THE WAR ON CASH?

    Governments and the financial banking sector hate physical notes – cash. Why?

    Actual physical cash in use (globally) = $1.38 Trillion

    Bank accounts (digits) = $ 10.0 Trillion
    Stocks = $ 20.0 Trillion
    Bonds = $ 38.0 Trillion
    Derivatives = $ 220.0 Trillion

    If just 10% of the population were to liquidate into cash, there would not be enough to satisfy demand.
    This is what occurred in September of 2008, when +500 Billion dollars were withdrawn from the money market in a matter of a few hours. This frightened TPTB and horrified them when thinking of the end result. Their ultimate demise.
    Greece has had capital controls in place for some time now, with a limit on cash withdrawals. France has just instituted a maximum withdrawal limit of 1,000 Euros. It is now against the law in Louisiana to use cash to purchase second hand items.

    Eventually TPTB want to outlaw the use of cash and force everyone onto an EBT type of government card as a further tool of population control. The use of ANY type of monetary instrument (including gold and/or silver coins) will be against the law and punishable by stiff sentences.

    Welcome to the New World Order slave.

    • Silvrwillwin | October 11, 2015 at 8:30 pm |

      A stiff penalty indeed , OutLookingin ! Thanks for the insightful play that the NeoCons are licking their lips over.

  8. APMEX dropped their silver eagle premium again, just days after the last price drop and their marketing email said, “only while they last!” Well, not only did supplies last but they must have piled up.

    APMEX premium history since we heard people predicting these premiums may be here to stay: 5.49, 5.19, 4.99, 4.59, 3.99, 3.79.

    Each price change has only been DOWN and I have been able to predict the direction each and every time. How? Because they have done it exactly this way for years!

    Next prediction: you will see premiums on silver Eagles go DOWN. Anyone care to bet against me? 🙂

    If you have not yet figured it out, you are being made into a fool with these premium price hikes, ALL of the additional premium goes to the authorized purchasers and retailers. The coins still cost $2 over spot to make and can be retailed at just $2.25 over spot.

    Mike

    • Mike,

      Always appreciate you added comments. Again, APMEX is one of the 11 Authorized Dealers. They get to purchase directly from the U.S. Mint, while most dealers have to purchase from the other 10 Authorized Dealers. Furthermore, the U.S. Mint increased their allocation from 750,000 a week to 1,075,000.

      So, the added supply helped supplement to Authorized Dealers inventory. In addition, some dealers are still paying higher premiums because their wait times are still 4-6 weeks. Again, AMPEX is not the only Authorized Dealer and is not the only dealer out there.

      Lastly, I or any of the other websites never said INVESTORS HAD TO PURCHASE SILVER EAGLES. Matter-a-fact, most dealers recommended the other Official Coins. But, many of their customers rather have the Silver Eagles and pay the higher premium.

      Mike, the one thing you don’t understand is that from the conversations I have with some dealers, their wealthy clients don’t care about the premiums. They are dropping 6 figures on Official Coins, and many don’t care about the premiums.

      steve

      T

  9. The fiat world will perish … the dollar will drop it cannot rise any higher than where it is now … theres is NOTHING that can get it higher at this time period in history …. our economy cannot grow any further unless there is more QE…

    The dollar only has value because of the economy that backs it up …. we now have a debt ceiling crises again in DC , Unemployment participation rate lowest , our deficit spending highest with other nations …we do not produce , we consume … so you tell me …what backs up the dollar … it is on last threads ….

    GOLD DOES NOT NEED ANY ECONOMY …IT IS ITS OWN ECONOMY CONTAINED ….( JUST FROM BEING MINED ) …

    PICTURE GREECE … THEY JUST GOT BENT OVER AND RAMMED IN THE …. WITH THE SAME PAPER FROM THE SAME TREE THE DRACHMA IS PRINTED FROM …. BUT IF THEY HAD HOARDS OF GOLD EURO WOULD RUN AWAY ..NO BAILOUT NEEDED

    • “GOLD DOES NOT NEED ANY ECONOMY”.

      For gold to have value there must be a functioning economy. Gold absolutely does need an economy and it is not its own economy.

      If the economy crashes and production drops significantly, then you will likely see your gold lose purchasing power. You cannot purchase things that are not produced. As the same amount of gold chases fewer and fewer products you will see it takes more gold to by the same product.

      Mike

  10. Silvrwillwin | October 13, 2015 at 8:15 am |

    “our economy cannot grow any further unless there is more QE…”

    I believe that it’s debt that grows , not the economy.

    Without a strong GDP showing as a result of strong manufacturing results , the economy only
    keeps going down .

    • It is ironic that he is saying QE is required for the economy to grow. We have had six years of QE, yet percentage of employed Americans has dropped. Energy consumption has dropped. Manufacturing has dropped. Prices are rising yet wages are stagnant. Exactly why will more QE work??

      Mike

  11. The reason I say gold is its own economy contained is….. lets say you live in brazil , argintina right now for example and you want to travel someone with your fiat ….. you will have a hard time beacsue the values have plummeted …. they have plummeted because of the economy backing them …. the same will go with the dollar at some point…. but with gold you can travel the globe !!! and will always have purchasing power because it does NOT need an economy to back it up

  12. gold will and always has held its value i wish i had bought more when it was 600.00 an ounce just 6 years ago gold will continue to soar because the federal reserve and government doesnt have enough gold anymore to back up the us dollar they paid china alot of our debt with us gold thats why the us dollar continues to lose purchasing power its weak and also other factors like manufacturing the economy etc

    • china right now is the worlds leader in gold consumpsion they have more gold than anyone in the world thanks to the us govenment the chinese dont want to get paid in us dollars the money we owe them they take our gold for payment also noone can inspect fort knox where most us gold is stored because the us keeps it a secret not for security reasons but they dont want the public to know how much they gave to china for part of the 18 trillion dollar debt and growing every second

Comments are closed.