Despite Dollar Drubbing, Demand For Physical U.S. Cash Surges In 2010

The first $100 bill was release in 1860.  In current dollars it would be worth approximately $2,350.

• Wikipedia - History of the $100 Bill

• Learn about the new $100 Bill at Newmoney.gov

As you know, there have been production problems already.

• Bernanke's Bad Benjamin's

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Demand for U.S. Cash Surges

Source - WSJ

The drubbing delivered to the dollar on foreign exchange markets over recent months obscures the fact that global demand for U.S. currency, in its elemental form of cash, has been growing at a strong rate.

According to data from Wrightson ICAP, the most recent four-week moving average for currency in circulation grew at a robust 10.3% annualized pace.

That figure was no doubt boosted by holiday shoppers withdrawing money from cash machines, but it’s still well above the 2% growth rate posted in the same period a year ago. And average monthly currency growth year-to-date stands at around 5%, according to data from the Federal Reserve, well above the 0.1% pace that persisted before the financial crisis. Latest data reported some $978 billion in circulation at the start of the month, up from $750 billion at the end of 2007.

The world-wide interest in holding cold, hard dollars is driven substantially by fear. The surging demand for cash has happened despite broad worries about the dollar’s value at a time of U.S. economic malaise and radical monetary-easing measures by the Fed. The cash surge is largely separate from the central bank’s liquidity providing market interventions. Demand for cash has increased even as the dollar has had a rough few months relative to other major currencies, and as some investors have flooded into gold out of fear that the greenback will lose its value.

Continue reading at the WSJ...

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• New $100 bill: Why the high-tech redesign?

• FED's $100 Billion Problem - Bernanke's Bad Benjamins

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