Makes No Sense

No, it doesn't make no sense.....Or as one headline on the story wrote it, " It makes no cents?"

There are now more $100 dollar bills than there are $1 dollar bill.

And this just has occurred. I thought perhaps during the cocaine "heyday" of the 80s and 90s, the drug dealers would have the $100.

No, the first time that the $100 was larger in number than the $1?

2017.

The Federal Reserve, who issues Federal Reserve Notes(paper money) does so, on demand for the particular bill.

I know that the former Sec. of the Treasury Lawrence Summers has called for the end of the $100 bill. To try and slow down the drug trade, and people avoiding taxes.

But why all of a sudden in the last couple of years the influx of the $100.

By the way, the average $100 bill is in circulation over 17 years, the next largest denomination, the $50 only 8 years. ( They LOVE the $50 in Europe. They had rather have it than the $100. I am not sure why, but when we travel now, rather than carry the $100 to exchange, we carry $50s. Who am I fooling, everyone takes a credit card now....)

There are a couple of other reasons for the need for $100.

People are using it as a means to save. Still don't trust banks, there was a huge jump in the demand for $100s after the financial crisis of 2008. ( I know people who read this blog who keep cash on hand, just in case......More than you know. )

The Europeans are doing away with their €500 bill and money is worldwide is causing the demand for the $100. Some people think it could be negative interest rates in Japan and Europe....There is no real answer why there is a sudden demand for $100......Just something to keep an eye on in the coming months.