GOING CASHLESS?? Someone Better Tell The Federal Reserve As Currency In Circulation Reaches New High

With all the talk about Central banks going “Cashless,”  someone needs to tell the Federal Reserve.  Why?  Because the Federal Reserve just placed another large order for newly printed 2018 Dollars.  Interestingly, the U.S. Treasury will print the largest number of $100 bills since it came out with the updated anti-counterfeit $100 bill in 2013.

Not only is the Federal Reserve ordering more bills to replace worn-out bills that will be taken out of circulation, but it will also add a percentage for the increased public demand.  And let me tell you, this demand continues to rise significantly.  For example, total U.S. currency in circulation is now $1.57 trillion, up nearly double from the $792 billion in 2007:

Not only has total U.S. currency in circulation nearly doubled since the last Market Crash (2008), the Federal Reserve plans to add a lot more “Paper Notes” this year based on even higher demand.  From the Federal Reserve website on How does the Federal Reserve Board determine how much currency to order each year?:

We use the majority of new notes printed each year to replace unfit notes that Reserve Banks have removed from circulation. For example, we estimate that in 2015, 85 percent of the new notes printed will replace destroyed currency, while the remaining 15 percent will meet increased public demand.

So, the Fed states that they replace 85% of old Notes with new ones and add 15% for increased public demand.  However, in their current 2018 Federal Reserve Print Note order, they published the following:

The nearly 7.4 billion notes included in the FY 2018 order reflect the Board’s estimate of net demand for currency from domestic and international customers. The print order is determined by denomination and is based on destruction rates and historical payments to and receipts from circulation. Historically, the majority of the notes that the Board orders each year replace unfit currency that Reserve Banks receive from circulation.  The estimated number of notes that Reserve Banks will destroy accounts for about 75 percent of the FY 2018 print order and includes both unfit currency, as well as all old-designs of some denominations received from circulation.

The expected growth of Reserve Bank net payments (payments less receipts) to circulation and inventory management adjustments account for the remainder of the notes in the FY 2018 print order.

Here the Fed is saying that due to Reserve Bank net payments (less receipts) to circulation and adjustments to inventory, it will add 25% more notes to satisfy the increased public demand.  This is quite interesting to see that the growth of new bills in 2018 will be 25% when a great deal of talk is that we are heading towards a “Cashless society.”

Now, the overwhelming rise in the value of U.S. currency in circulation is due to the increased printing of the $100 bill:

As we can see, in 1997, the $100 bill accounted for approximately 60% of currency in circulation but now represents nearly 85%.  And, if we break down the total value of the 7.4 billion notes for 2018, we have the following:

Value of 2018 Federal Reserve Notes Printed

$1 Bill = $2.17 billion

$5 Bill = $4.13 billion

$10 Bill = $5.69 billion

$20 Bill = $36.1 billion

$50 Bill = $18.2 billion

$100 Bill = $167 billion (72%)

Total bills = $233.3 billion

The U.S. Treasury will print $167 billion worth of $100 bills of the total $233 billion ordered by the Federal Reserve.  Thus, the value of the new $100 bill will account for 72% of the notes printed in 2018.  However, there is another interesting trend taking place.  While the Fed may be removing 85% (75% in 2018) of old bills each year, most of those bills are the lower denomination.

According to the Fed, the larger denomination bills have a much longer lifespan:

Because the $100 Note lasts 2-3 times longer than the other Federal Reserve Notes, the Fed must be removing a larger number of the lower denomination bills ($1, $5 & $10) and replacing them with more $100 bills.  This only makes logical sense.  Furthermore, if the Fed will be adding 25% more new bills in 2018 for “increased public demand”, then it must be expecting a great deal more inflation.

Moreover, it doesn’t make sense that the Fed is considering a cashless society if they are continuing to increase the value of Federal Reserve Notes in circulation.  Rather, you would think they would be reducing the number of bills to transition to a cashless society.

Regardless, we also must consider that a lot of illicit drug trade is funded by the $100 bill.  Also, it is no surprise that the Elite via the Central Banks is likely involved in this sort of activity.  If it is extremely profitable, then why not… ah?  So, why would the U.S. be in Afganistan if it weren’t for the $1+ trillion opium global drug trade?  After the U.S. became involved in Afganistan, opium poppy production surged and is now the highest ever.

Do we actually believe the Elite and Central Banks are going to go to a total Cashless Society?  How on earth with the huge and very profitable drug trade amongst other illicit activity continue?  With a Debit Card?  

Now, I am not saying that Central Banks will not continue to push for more digital and less physical money, but it doesn’t make sense to totally get rid of a currency that allows the drug trade to function.  Furthermore, how does the poor function in a cashless society?  Most of the poor can’t afford a checking account.  And a percentage of the poor receive cash for their work.

Lastly, while the push for a cashless society continues in the mainstream and alternative media, I highly doubt we will ever get there because of the reasons stated above and also due to the coming ENERGY BRICK WALL.  We need a highly advanced technological system to allow a digital cashless system to function.  Unfortunately, we are about to hit the Energy Brick Wall right at the time this nonsense is being suggested.

IMPORTANT NOTE:  Please stay tuned for new YouTube Videos on the COMING BULL in the Gold & Silver Markets.  Don’t believe the regurgitated knee-jerk statements that Gold and Silver are going to crash along with the markets.  That is pure BOLLOCKS.  I will explain in more detail why today is nothing like 2008 and that we are on the verge of a huge PRECIOUS METALS BULL MARKET even though most investors are totally frustrated.  Actually, this is a perfect indicator.

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32 Comments on "GOING CASHLESS?? Someone Better Tell The Federal Reserve As Currency In Circulation Reaches New High"

  1. OutLookingIn | August 21, 2018 at 11:12 am |

    What is money?

    JP Morgan said it best:
    “Gold is money. All the rest is credit”.

    Twice the amount of currency in circulation since the financial crash of 08?
    That’s because it takes twice the amount to purchase, what you bought for in 08!

    • IMHO As the copper penny becomes the new nickle (5x value). The nickel nickle will be the new quarter (5x value). Then they will 2x in “Value” regularly going forward as cash disappears.

      It’s unimaginable what the silver dime, quarter, half and constitutional silver dollar value will be compared to the others. Unfortunately, accounting practices will go out the window as fiat money circulates and the value for Constitutional Coins is obtained outside of the accounting system. The FED is deleting zero’s to reflect the actual value as the Fiat 100 note becomes Fiat 10.

      The hundred dollar BILL is just that – “an amount of money owed for goods supplied or services rendered, set out in a printed or written statement of charges”. Who wants to own a worthless Bill? It used to be a Note – “a promissory note issued by a bank payable to bearer on demand but without interest and circulating as money”.

      Confusion will abound until free markets resolve the dilemma.

    • OutLookingIn | August 22, 2018 at 1:52 pm |

      The Trffin Delemma.

      “When is Now”
      Read; JSMineset.com

  2. Michael Kohlhaas | August 21, 2018 at 11:19 am |

    Finally done good news!!!

  3. Increase in matress stuffers too I would guess.

  4. IMissLiberty | August 21, 2018 at 2:05 pm |

    Since the $100 replaced all the larger bills, and all the smaller ones keep becoming too small to buy what they used to buy, it’s no wonder the need for $100s keeps going up. The black market is by no means the most common place they are used. The regular food market also needs more of them.

    • Yep….wasn’t all that long ago the goal was to get out of Costco for under $100. These days the goal is to get out for less than $300.
      lol I guess the upside is that in 2011 I was buying ASE for $48 & yesterday I picked some up for $17……interesting, isn’t it?

      • 4 oz,

        While “Precious Metals Sentiment” is in the toilet currently, I believe we are setting up for a huge rebound when the Markets finally crack. I am putting together a new video that provides more detail why we won’t see a HUGE Gold & Silver Selloff as they did in 2008.

        Furthermore, the Gold and Silver Miners will be some of the best stocks to own over the next 3-4 years.

        steve

  5. DisappearingCulture | August 21, 2018 at 2:19 pm |

    MORE CA$H?
    I feel better now. The green poultice. Dollars to assuage the emotional wounds. Ahhhh…

  6. Hi Steve,

    I checked the Fed’s website and the info on there does not quite match what you have posted in this article. You posted:

    “The nearly 7.4 billion notes included in the FY 2018 order reflect the Board’s estimate of net demand for currency from domestic and international customers. The print order is determined by denomination and is based on destruction rates and historical payments to and receipts from circulation. Historically, the majority of the notes that the Board orders each year replace unfit currency that Reserve Banks receive from circulation. The estimated number of notes that Reserve Banks will destroy accounts for about 75 percent of the FY 2018 print order and includes both unfit currency, as well as all old-designs of some denominations received from circulation.”

    On the Fed’s site, it states:

    “The 7.0 billion notes included in the FY 2019 order reflect the Board’s estimate of net demand for currency from domestic and international customers. The print order is determined by denomination and is based on destruction rates and historical payments to and receipts from circulation. Historically, the majority of the notes that the Board orders each year replace unfit currency that Reserve Banks receive from circulation.2 The estimated number of notes that Reserve Banks will destroy accounts for nearly 90 percent of the FY 2019 print order and includes both unfit currency, operational changes, as well as old-design notes received from circulation.3 Growth in currency demand and the triennial order for $2 notes account for the remainder of the notes in the proposed order.”

    You posted 75%, but on the Fed’s site, it states 90%. A discrepancy. It might be a slight oversight, but I thought I bring it to your attention.

    Also, do you have any reliable and authoritative source regarding the involvement of central banks and elites in the illicit drug trade? It sounds somewhat conspiracy theory to me. If you do, then that’s fine. I think the inflation argument makes more sense.

    Lastly, Jim Rickards has made the argument for a “cashless society”, but this data renders his argument moot.

    • DisappearingCulture | August 21, 2018 at 5:08 pm |

      It is curious that with the U.S. involvement in Afghanistan, opium poppy production is up rather than down. The fields are not being destroyed, they are allowed. I had read that from another source. The money has to be cleared through banks. Big banks have been fined for drug money laundering before. Big fines. But the people behind it are never indicted.

      I’ve read Rickards and have read NOTHING to suggest he personally advocates for a cashless society. He has stated it is the goal of some.

      • DisappearingCulture. Can you please provide data which supports the claim that “with the U.S. involvement in Afghanistan, opium poppy production is up rather than down. The fields are not being destroyed, they are allowed. I had read that from another source. The money has to be cleared through banks. Big banks have been fined for drug money laundering before. Big fines. But the people behind it are never indicted.”

        Regarding Rickards, that’s what I meant that he said it’s the goal of some.

    • Fasali,

      It seems to me that the Fed was specific in stating that 75% of the destroyed currency in 2018 was unfit and old-designed notes. So, it made sense that they were still destroying 75% of the notes and adding 25% for new demand. Now, maybe in 2019, they are going to only add 10% for new demand and 90% for destroyed currencies.

      However, the key data point is that the $100 bill accounts for 85% of total Currency in Circulation while it only represented 60% back in 1997.

      Lastly, the EIR- Executive Intelligence Review has documented quite well the connection between the Elite and drug trade. I don’t read the EIR anymore but did so years ago. Also, it makes common sense to me that if there are big profits in Illegal Drugs, then the Elite will have a hand it in.

      Fasali, I gather you are familiar with the famous British-Chinese Opium Trade in the 19 Century… correct? We must use logic to understand when a Major Drug Kingpin is taken down, it is normally due to the fact that he is not working with the ELITE or he is taking too many profits that the Elite Masters want for themselves. This is ELITE PROFITS 101.

      Thanks for the input,

      steve

      • “It seems to me that the Fed was specific in stating that 75% of the destroyed currency in 2018 was unfit and old-designed notes.” Where does it say this on Fed’s website? I wasn’t able to locate this info.

        “Also, it makes common sense to me that if there are big profits in Illegal Drugs, then the Elite will have a hand it in.” It might make common sense to you, but not to others. In other words, some might ask for data and evidence to support this claim.

        “Fasali, I gather you are familiar with the famous British-Chinese Opium Trade in the 19 Century… correct?” Yes I am familiar with the British-Chinese opium.

        “We must use logic to understand when a Major Drug Kingpin is taken down, it is normally due to the fact that he is not working with the ELITE or he is taking too many profits that the Elite Masters want for themselves. This is ELITE PROFITS 101.” It might be true. But unless evidence is provided, it’s only conjecture.

      • Steve. How do you think the falling EROEI will affect the illicit drug trade?

  7. A large percentage of these $100 bills are outside the USA and are unlikely to ever return (at the current valuation). When I say “large”, I mean 13-20x as many hunnerts outside as inside (so many that NorK and Iranian intaglio SuperBills hardly matter). My numbers are old (mid 1990s) but the ratio seems to get large than smaller, and if it was not, there would be many more (undesirable to banks) cash transactions inside the ConUS rather than electronic/banking transactions where they get to observe/control and get a cut.
    Thanks for the frequent updates not available elsewhere!

    Gold is limited by the high amount of and specialized energy inputs it requires to make 80 tons of rock into a 31gram metal disc. Paper currency is limited only by the integrity of politicians, paper and ink availability (and transport to the edges of empire). Gold is the money of Kings, to pay for killing & dying. At some point, soldiers will demand payment in specie, not paper or digital promises. When your professional soldiers don’t believe in the ultimate victory of their government, that is the end.

  8. I hope we don’t go totally cashless! What a NIGHTMARE!! Thanks for your insightful reports!

  9. This whole thing is likely part of a psyop which will ultimately lead to the introduction of the cashless society. Let me explain…

    Of critical importance here is that it is mostly $100 bills that have increased, while almost negligible for the rest. THIS IS NOT POSSIBLE. For your everyday shopping it is NOT $100 bills that are being used. Even if the total amount exceeded $100 people would carry much more smaller notes than $100s. Buying big ticket items needing many $100s may occur once in every 100 transactions or less.

    So why are they producing only more $100s? Well, the psyop towards convincing people to go cashless involves conning people into thinking that cash is used mostly for illegal activities, tax evasion, or is being hoarded by the general populace and not being spent. So when they finally do it, they need to have “evidence” to prove their case. What you are seeing now is merely the fabrication of that so called evidence. Whether it’s entirely made up or they hold these notes in a warehouse somewhere it does not matter.

    Get ready. The information in this article will one day (soon?) come back and slap society in the face with the cashless con. Spread this information far and wide so people know how the con is being created before our very eyes. Maybe if enough people are aware we can avert it. ???

  10. Keep some cash at home. I don’t keep anything larger than a twenty.
    Most stores don’t like anything bigger, and some won’t even take them.

  11. Sounds to me they anticipate prices and inflation will run so rampant that the $1 bill will be practical useless.

  12. Went to Lowes with 500 in cash and was told any transaction over that amount in cash needed an ID and it had to be reported ( didn’t ask and they didn’t tell to whom.).

  13. Don’t let a good hyperinflation go to waste!

  14. Billy Lone Bear | August 21, 2018 at 10:55 pm |

    They do things in phases. Whether free speech, guns,cash etc. With cash it’ll be the 100 first which will solve 90% of their problem. Any time I use a $100 or even a $50 I get looks. This despite the fact that the $100 now will barely pay for a family of four at an Applebee’s.

  15. It’s that digital money the Fed is squirting out we need to worry about, haha. It can land in somebody’s pocket in the blink of an eye.

  16. I think I will stick to the smaller bills ($50 or less – and even this makes me a bit nervous). I am thinking of the recent Indian rupee where overnight, big bills were essentially outlawed. The idea of moving people to $100 would seem to indicate to (paranoid) me, that a similar situation might be in the works for the US (under the cover of outlawing those drug transactions). The drug war has been used in the past to cover a LOT of governmental sins.

  17. Excellent article.

    Thank you.

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