Pure propaganda, setting the table for when the oligarchs outlaw cash.
The amount of $100 bills in circulation is surging. And it’s leaving some economists scratching their heads.
The number of outstanding U.S. $100 bills has doubled since the financial crisis, with more than 12 billion of them across the world, according to the latest data from the Federal Reserve. C-notes have passed $1 bills in circulation, Deutsche Bank chief international economist Torsten Slok said in a note to clients this week.
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Generally, economists believe the surge is related to people around the world wanting to hoard cash, a similar force that’s driven the interest in cryptocurrencies. High denomination, high value currency notes have historically been a preferred form of payment for criminals, given the anonymity, lack of transaction record and relative ease with which they can be brought across borders.
Nicholas Colas, co-founder of DataTrek Research, has been down the “rabbit hole of a topic” for more than a decade. He said the growth in $100 bills in circulation is a signal the world is relying on them as a store of value — and still using them for international crime.
“It has nothing to do with the U.S. economy and nothing to do with interest rates,” said Colas. “There’s certainly enough evidence to say it is an enabler of corruption, but it is also a way for people to keep assets outside of the financial system albeit in a kind of bulky way.”
The number of hundred dollar bills abroad began surging after the Gulf War and U.S. invasion of Afghanistan, according to Colas. Part of stabilizing the region meant replacing local currencies with something, and “that something was the U.S. dollar.”
Those larger bills also have a longer shelf life than any other form of U.S. cash. Still, Deutsche Bank’s Slok said multiple factors could explain the increase in C-notes.
“It could be driven by a global fear of negative interest rates in Europe and Japan, or it could be a savings vehicle for U.S. households worried about another financial crisis, or it could be driven by more demand from the global underground economy,” Slok said.
80% overseas
A 2018 research paper from the Federal Reserve Bank of Chicago estimates that 60 percent of all U.S. bills and almost 80 percent of all $100 bills are now overseas. That’s up from 15 to 30 percent around 1980, according to research from Federal Reserve Board economist Ruth Judson. She found that economic and political instability contribute to this demand.
Projecting future demand for U.S. currency is “challenging” and depends on how quickly the economy grows, interest rates, new payments technologies, and on whether people in other countries continue to see U.S. dollar bills as a useful asset — “all factors that are, to say the least, uncertain,” according to the Chicago Fed.
A surge in digital payments may be contributing to the lessening demand for lower denomination bills. Rising smartphone use, a shift toward online shopping and improvements in network bandwidths pushed global digital commerce volume above the $3 trillion mark in 2017, according to a recent McKinsey report. That is on track to more than double by 2022, according to McKinsey.
There has been pressure to get rid of high denomination notes to curb international crime. Lawrence Summers, former Treasury secretary and director of the National Economic Council in the White House, has argued for abolishing $100 bills. Summers wrote an op-ed in The Washington Post in 2016 titled, “It’s time to kill the $100 bill.”
“A moratorium on printing new high denomination notes would make the world a better place,” Summers said, citing its potential for crime. “Here is a step that will represent a global contribution with only the tiniest impact on legitimate commerce or on government budgets. It may not be a free lunch, but it is a very cheap lunch.”
He referenced a Harvard research paper written by former Standard Chartered bank chief executive Peter Sands, who argued to eliminate high denomination, high value currency notes.
“By eliminating high denomination, high value notes we would make life harder for those pursuing tax evasion, financial crime, terrorist finance and corruption,” Sands wrote.
The global illicit money flows were “staggering” and fuel crimes from drug trafficking and human smuggling to theft and fraud, Sands said. He estimated that depending on the country, tax evasion robs the public sector of anywhere between 6 percent and 70 percent of what authorities estimate they should be collecting. And despite “huge investments in transaction surveillance systems, and intelligence, less than 1 percent of illicit financial flows are seized.
Soon after that paper was published in 2016, the European Central Bank announced it would stop producing the 500 euro note, citing concerns it could facilitate illegal activities. Despite similar pressure on the Fed, Colas isn’t optimistic it will take the same steps as long as cash distribution is still profitable.
“The Federal Reserve and Treasury make 99 dollars for every $100 dollar bill they print and sell offshore,” Colas said. “There’s a natural desire to keep printing these things — the U.S. government makes a lot of money selling them.”
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Hmm, didn’t Obamma send 12 Billion $$ to Iran? Maybe they were all Uno Ciento notes.
Why the mystery?
https://www.breitbart.com/politics/2016/08/04/obama-send-iran-pallets-cash-couldnt-send-check/
https://www.reuters.com/article/us-iraq-usa-cash-idUSN0631295120070207
https://www.cnbc.com/id/45031100
Okay, I admit it… I am raising a new type of goose out here that lays hundred dollar bills.
Last month we went to a local dealership and paid 28 thousand plus for a 2014 truck. So, there’s a bunch of them…
Perhaps I should cut the goose open and find out how it does it? It says it saved it.
“Generally, economists believe the surge is related to people around the world wanting to hoard cash, a similar force that’s driven the interest in cryptocurrencies. High denomination, high value currency notes have historically been a preferred form of payment for criminals, given the anonymity, lack of transaction record and relative ease with which they can be brought across borders.
Nicholas Colas said the growth in $100 bills in circulation is a signal the world is relying on them as a store of value — and still using them for international crime.
“It has nothing to do with the U.S. economy and nothing to do with interest rates,” said Colas. “There’s certainly enough evidence to say it is an enabler of corruption, but it is also a way for people to keep assets outside of the financial system albeit in a kind of bulky way.” ”
+++++++++++
Yeah, that’s it. C-notes are only used by smugglers, drug gangs, and criminals.
That’s the line of BS that TPTB are hyping, in the push to eliminate cash.
Infuriating, that some schmuck in front of me in line at the convenience store pays for a $10 assortment of junk food with a damn debit card. Well, because cash is dirty.
I feel naked without some level of cash on me.
What about tipping servers in restaurants?
Oh yeah, cash allows them to skirt their taxes. Can’t have that possibility.
I have 2 other theories.
-Cash lets you pay for shit anonymously. One of the last means of maintaining some semblance of privacy in financial transactions. Still, State taxes get their grubby handed cut even on cash transactions; so what?
Since every other thing we do is inspected, detected, and disrespected, escape the dragnet. Pay in cash.
THAT’S what they have a bug up their ass about. They want to know and see EVERYTHING.
Data collection. Targeted marketing. Manipulation.
-Here’s the other thing not mentioned.
Twenties don’t buy as much as they used to. Why carry (25) of them wadded up, when we can carry (5) C-notes?
The devaluation of the fiat caused this, so don’t you think the Fed and the global banksters have some of your skin in their game?
Hell, they’re even using those detection pens to screen for counterfeit on 20’s these days.
-And yeah, maybe some people are hoarding cash, in case the system crashes and the ATM’s go dark.
Anybody recently tried to go withdraw three grand or more in cash lately from a bank? 10k? Forget it.
It’s YOUR fucking money, but the bank gets nosey, asking questions for the government, on the ridiculous notion you’re up to something nefarious. Yeah, I’m looking to buy a couple bags of dope, and want to keep the payment to the supplier off the books. Bitch, please.
What if I’m taking the family to the Bahamas for a 10-day vacation? I’d piss away 3k in a heartbeat.
No, no, no…they want me to use a credit card, a debit card, or pay for it with an app on my spy worthy smartphone.
Fractional reserve banking is a scam in itself. All about control.
People are hoarding, to try and preserve and keep what’s rightfully theirs. In their own control. Privately.
Interest on savings is near zero, so why the hell should people keep their cash savings in a nosey tightwad’s vault?
It’s not even there. The banks are only obligated to keep something like 10% of cash reserves on all deposits.
i.e., YOUR money is used by them to lend out, so THEY can make interest on loans.
Plus, it’s all digital now, anyways. Traceable.
Runs on banks, when confidence in the value is gone, scares the shit out of them. See Cyprus, a few years ago.
Any MF’er calling for eliminating cash, under any justification, does not have your safety as the primary motive.
I object.
end of rant.
You have obviously been thinking along the same lines as I have!! That has to be the rant of the day!! Kudos!!!
That was a stand alone post. Great rant and you hit a lot of the truths under it, inflation playing a huge part.
Another theory is the greenback is starting to come back from unknown parts of the world.
Carry on…
2.33% on money market fund at broker, sell today, cash available tomorrow. A lot better than US Bank, Smells Fargo, Chase.
You are so right.
https://www.aol.com/article/finance/2013/08/14/new-hundred-dollar-bills-printing-defects-shred/20693917/
I remember when I first read this, just how ridiculous the claim seemed at the time. I went on a school trip to the FedResrve printing plant back in the 60’s and they showed us how they caught defective bills, destroyed them and replaced them with an identical serial number with a tiny star next to the number to indicate it was a replacement. And that was with 1960’s technology for scanning the notes.
That was for a single one dollar bill.
Then about five or six years ago I read this and said to myself, that’s not true. 30 billion dollars in hundred dollar bills represented almost 1/3 of all the $100 bills in circulation and they printed that much and every one was a bad bill and not one person caught the mistake until they’d produced that much? Does that sound even remotely possible? And if it were then approximately 1/3 of all $100 notes in circulation would feature a star in front of the serial number. When’s the last time you saw one of those? Never.
This is where the extra bills came from. That was a 30 billion dollar theft, not a loss due to badly printed bills.
Happens to all of us, Farmer… tap…tap…tap… (thanks… at least “And” doesn’t have me on the edge of the cliff any longer. The “edit” feature is wonderful for slipped fingers but those of us happening upon the first draft are often on pins and needles. Haha… you didn’t know you write thrillers, did you? Have you been to Derry?
Freezing rain again. Our well is 397 feet deep. After all this winter rain, freezing and thawing, our ground is saturated at several hundred feet above sea level, which, coincidentally, appears to be Mississippi River level as well. All the water is flat, farmer, but not the terrain. So, come the real spring thaw in about two to three weeks, that river is going to rise and rise and rise.
Do you know that the em eye ess ess eye ess ess eye pea pea eye moved across the central plain states due to a few earth shakes around New Madrid? I grew up with my feet stuck in gumbo under the shade of old cypress trees now almost extinct on farmland so flat you could see all the way to New Year’s Eve on a nice summer day.
I’ll try to get a picture here, but it’s a nice one of my elderly grandfather standing beneath one of the last giant cypress trees in the Mingo Swamp, where they managed to preserve at least some of that marvelous mess left behind by the meanderings of the waters upon the face of the earth.
http://cdm.sos.mo.gov/cdm/landingpage/collection/msalrdd
Oh, and Mary Christine and I will be fine… I studied the maps.
https://www.forbes.com/sites/jimdobson/2017/06/10/the-shocking-doomsday-maps-of-the-world-and-the-billionaire-escape-plans/#3e4632514047
Guess what I just discovered… postimage is blocked from hosting images. I refuse to pay Photobucket to use my own images, so I am out of the picture business for now. You will need to use your imagination to visualize my gentleman grandfather farmer in his suit and tie standing beside a giant cypress tree whose root was as high as his waist, perhaps.
There were indeed giants on the earth at that time, weren’t there? And I am not talking about the tree.
Teddy Roosevelt and his national parks programs were one of them.
Now, I live in the Mark Twain Forest Region.
DD, I figured out the work around by setting up a wordpress blog page and posting the images there… you don’t even need to write anything.. just insert image into blank page and copy http link into the Platform. Works Great!
Works great and I control the images, well at least until Wordspress.com changes the rules to the game..
anyways give it a try if you want to post pictures of that Goose laying c notes
Rins, your tips & tricks are appreciated by more peeps than just your target recipients.
Some of us are I.T. challenged at times. Having a friendly mentor who doesn’t insinuate our levels of ignorance is a bonus.
Hey.
If you don’t know, keep on trying until you do succeed.
Petition for help, from wiser monkeys, is my motto.
Anyway, thx bud. Cheers.
When seeking the counsel of wise monkeys, be sure to watch out for snakes.
I actually have a WordPress account… didn’t realize I could use it for images. Lemme check it out. Thanks.
And, yes, it is always about the rules of the game.
just be sure to post only stuff inside the quotes. Everything from Htttp to.jpg or .png
see below
It’s a very different country out here. Snow just starting to peter out, nice little 3-4 inches, very fluffy, sitting on the branches, pale blue hills starting to become visible through the glow of the last flurries, the big mountain hulking behind them.
America truly is the beautiful.
“…for all its sham, drudgery, and broken dreams, it’s still a beautiful world.”
-Desiderata
I caught a little of what you described, M, as I saw the beauty of winter among the hills and pine trees of a ski resort in the upper midwest last week for a few days.
Fresh northern air, far from the metropolis, sports leisure activity outside, letting gravity take a rickety man in his late 50’s downhill on a couple of boards, making S-turns, and loving it, while the sun and blue skies were overhead.
Afterwards, libations and vittles with a group of friends, with plenty of smiles and laughs to boot.
Contrast that, to having to drive in rush hour in winter, in gray / brown slush, dodging the young idiots in their new RAM pickups.
A Tale of Two Winter (perspectives).
Cheers.
And, thanks for the kudos on me rant farther above.
btw, I’ve been checking the PO box; nothing yet.
email me if it doesn’t arrive today.
done
HSF, did you get the sparkly snow? The kind that they show in the Christmas movies that hardly ever happens in real life? Last night when I took the puppy out for her bedtime walk everything around me sparkled in the light from my headlamp. I made Hubby go out and look at it. The snow is still sparkling a bit in the sun even now.
So ALL physical cash is drug money but digital cash (money as ones and zeros stored on a computer bank server), is not. Let’s examine who the real drug traffickers are. Hint: They don’t use physical cash!
Money is not laundered with suitcases full of cash in back alley deals anymore. It is laundered through the banks using DIGITAL CASH ONLY. So their claim that physical cash is for criminals is a lie. When Wachovia and HSBC got caught laundering drug money in the billions of dollars that they packed suitcases full of $100 bills? No they conducted the transactions digitally wired transfer.
Now the totalitarian government in collusion with the banks are calling for the abolition of cash in by way of comparison is chicken feed compared to the billions of dollars in laundered drug money by the banks in the form of digits on a computer screen. Can you now see that this is about control, not drug trafficking? Elsewise the banks that support the cashlessness of you and me don’t mind dealing drugs themselves, no cash needed. The REAL drug dealers are the banks through their wire transfers.
In March 2010 Wachovia cut a deal with the US government which involved the bank being given fines of $160 million under a ”deferred prosecution” agreement. This was due to Wachovia’s heavy involvement in money laundering moving up to $378.4 billion over several years. Not one banker was prosecuted for illegal involvement in the drugs trade. Meanwhile small time drug dealers and users go to prison.
U.S. Attorney Loretta Lynch added, “HSBC’s blatant failure to implement proper anti-money laundering controls facilitated the laundering of at least $881 million in drug proceeds through the U.S. financial system…”
As punishment, HSBC was assessed a fine of 1.9 billion — about four weeks’ worth of its pre-tax profits. No bank officials who were caught red-handed will be prosecuted or imprisoned.
If any member of the public is caught in possession of a few grams of coke or heroin you can bet your bottom dollar they will be going down to serve some hard time. However, if you are a bankster caught laundering billions of dollars for some of the most murderous people on the planet you get off with a slap on the wrist in the form of some puny fine and a deferred prosecution deal.
A cashless economy is just another “No Banker Left Behind” move for their Zero Interest Rate Policy agenda to bail in the banks instead of bail them out next time and to force you as a consumer to spend, spend, spend.
https://governmentslaves.news/2016/03/27/new-legislation-permits-authorities-to-freeze-accounts-and-use-them-for-bail-ins/
As gun control isn’t about controlling guns, it is about controlling people. A cashless economy is about controlling people also.
TOTALITARIAN = TOTAL CONTROL
It ought to be a reminder that as the U.S. government confiscated your grandparents gold back in the FDR era, they will have no problem confiscating your digital cash with the ease of a flick of a switch. This call for the abolishment of cash is a policy of extending Civil Asset and Forfeiture (theft) to a huge new level of advantage to the thieves.
Yep, harder to do negative interest rates on cash.
Exactly, bank runs would occur. And the central planners can’t let that happen with
your, their money.Ne d,
+100 Superb rant. Full of the truth.
I had an uncle who owned a BBQ joint that every truck driver that drove U. S. Highway 90 knew about. He carried a $500 bill in his wallet. We went fishing offshore on a head boat. He was so sea sick he was willing to give it to the Captain if he would return the boat to shore. Cash greases many palms and qualms many complaints.
I find it is possible to get a discount for cash – 10% is common. Many operators like it. I am glad I have no responsibility to know how they process it. Or any responsibility to say how I used my retained earnings for small time transactions. No doubt there is a huge underground economy of unreported cash income. Ten grand used to trigger a report. Now with digital records I imagine there are many algorithms that triggers a look see at your transactions. So easy to ferret out and focus on small time offenders that distract from the big fish that swim free from scrutiny and sanctions.
In my old days here and abroad a crisp c note opened many doors. Kaiser Söze gave one to the imam in Göreme and to a Catholic Priest in The City of Light.
While building this log home in the suburb of the sticks I hired a Mennonite family (father and four or five sons, depending upon the week’s chores at home with Mom and three daughters. Mennonites are productive peoples like their Amish ancestors like their ancestors from Hans Brinker country.)
They lived on the land in a little house on stilts we slapped a bit of paint upon and called The Treehouse during the week, while I supervised from the local area, residing in comfort with friends and family during the week. Beside the treehouse a garage covered some old junk, discarded by us in cleanup and piled there to protect it from weather. One item was an old toilet on a wooden pallet. Under that pallet was a sealed tube of PVC with many tens of thousands of dollars to pay contractors and construction labor, as necessary.
I never really worried about that cash. Who would dig under an old stained toilet?
Well, now you ALL will, but still… who woulda?
As a person who knows a person who knows another person who is a drug dealer,
the preferred denomination for 90% of deals is $20. Joe six pack does not want to carry wads of 100s or break a 100 for a slurpy. The only folks who deal in $100 are Cartels, and the CIA who works hand in hand with the Cartels, and govts. that like to start color revolutions by hiring goons to disrupt society.
Even a smart pepper has to know that storing cash in 100s is going to pose a problem when you want to do transactions, as there will not be a lot of change. 100s are not going to be accepted if there is no change in the drawer.
this is just another bogus story, written by journalist mouthpieces, pushing more propaganda, to create fear, which is part and parcel of the narrative (terrorist, drugs, hate crime, nuclear holocaust, regular holocaust, and any other items of the zietgiest the puts fear into little old ladies hooked on CNN)
Anonym,
“The only folks who deal in $100 are Cartels, and the CIA…”
Have to completely disagree with that. The C-note is the new $20 . It costs $40 for a couple to go out for a couple tacos and a beer. There are lots of transactions where $100’s are useful, and as mentioned above, you can often negotiate discounts around 10% with cash.
North Korea has been counterfeiting US currency for years.
years ago the rumor was it was the Irish doing it…
Asshole central banks drive real interest rates negative for a decade then pretend to wonder why there’s excessive cash floating around? Motherfuckers.
It’s because $20 doesn’t buy squat anymore, $50 bills aren’t hardly available, so the next one in line is the $100.
Clinton foundation closes, bonuses paid to two remaining “staff” members.