Ever stop to think what a dollar won’t buy anymore? I can remember when having $20 in my wallet meant I had some walking around money. Now it’s enough for about one decision, maybe two.
Americans haven’t noticed inflation (properly defined as currency debasement) because it’s been controlled to sneak up on them. But the pace of the footsteps is rapidly increasing:
Everyone knows that when it comes to US currency in circulation, the $2 and the $50 bills are rapidly approaching numismatic status due to either the government’s unwillingness to print them in sufficient amounts or the general public’s unwillingness to accept them as legal Federal Reserve Note tender. What people may not know is how other currency denominations have fared over the years. And as the charts below indicate, the historical government production of various currency denominations may tell us something about actual supply-driven intentions of the Fed and/or upcoming price levels.
Before long, the Fed will be dusting off older designs… maybe even introducing new ones…