I confess – I did NOT see this coming. Earlier this month the buzzword on all the financial websites was “doom spending”. People spending their paychecks immediately, before prices go any higher. This new "cash under mattresses" claim is a complete pivot. The US government wants people to stop hoarding physical cash (printed banknotes). In fact, the Federal Reserve has begun printing 756 MILLION new $50 bills. See link below.
Before someone with poor reading comprehension complains, let's do the math. $50 times 756,000,000 new banknotes is . . $3.8 Billion in cash. Yes that IS an enormous amount - stop claiming otherwise. 756 million physical banknotes is 55,000 miles. Enough to circle planet earth twice. And each is worth 50 bucks . . .
Either you accept the “hoarding” cover story, or you don't. I'm on the fence here. Last week everyone was complaining about Doom Spending. This week it's hoarding. It seems rather unlikely that they both can be true at the same time. Have you gone to an ATM lately and found it was out of cash? Me neither.
Why the hell would people even WANT to hoard paper currency in the first place? That stuff earns no interest, and goes down in value every month due to inflation. Paper money can get stolen, lost, go through the wash, burned up in a fire. For decades we've been told that (physical) cash is disappearing. If anyone is hoarding physical money, I'd expect it to be gold coins like Krugerrands or the less popular gold American Eagle. I would believe people actually ARE hoarding those. To be specific, the 1/10th ounce versions – worth about $200 each – appear to be in vogue. Gold bullion hit an all time high last week. SOMEBODY is hoarding it. This isn't due to an epidemic of wedding ring purchases.
So without calling the US Treasury Department a bunch of liars, let me just say that flooding the nation with 756 million $50 bills isn't going to solve anything. It's not going to make housing more affordable. It's not going to reduce inflation. It's not going to bring down interest rates. It's not going to address Fentanyl addiction. It's not going to solve some “ATM out of order” problem. If you can give us a REAL explanation (for example, you personally are hoarding vast quantities of cash), please post street address so we can break in while you're at work. (Just kidding).
55,000 miles of $50 bills is a distraction from the nation's real problems. It doesn't solve a thing. It's the latest in a series of endless government eff-ups which have made things worse.
- Pandemic shutdowns, throwing millions of people out of work, and pretending kids who watch 1 hour of internet instruction a day were learning anything.
- Flooding the nation with Trillions in pandemic relief stimulus, to make up for the unnecessary shutdowns.
- Tripling the Fed Funds rates, after that pandemic stimulus ignited near double-digit inflation.
- Amassing $33 Trillion in federal debt, without making a dent in homelessness, housing affordability, improved student performance, or replacing our 17,000 rusty, unsafe bridges.
I can't see how printing 55,000 miles of $50 bills is going to fix anything. And It has huge potential to make things worse. If you told me that this was another underhand attempt at deficit spending, I'd believe it. Even if people WERE hoarding dollar bills, printing an endless supply of them is like buying 55,000 miles of band-aids after terrorist attack.
I'm just sayin' . . .
US Government Prints 756,096,000 $50 Bills As Americans Begin Hoarding Physical Cash: Report - The Daily Hodl