New Note Circulation Tuesday 8th October

On Tuesday, the new redesigned $100 note will start circulating, at least according to the press release from last April, which I presume is not affected by the shutdown.

It's not just the $100, the other denominations are also getting a makeover; albeit with less security features than this big boy. The site explains that you guys in America might not see the notes right away (they take time to circulate).

Why am I interested? Good question. Bix Weir made a big deal out of the note when it was first announced, pointing out the heavy (unmistakeable) gold references. Nothing more was seen in the blogosphere, presumably because the release date was delayed several times (various mishaps - with the 'can't even print money' aspect sent up by Conan O'Brien), now being released during a US Government shutdown.

Because there has been so much forward planning involved, I venture this shows the US planners do not expect hyperinflation to occur, unless they figure the new layout can easily accommodate a few extra zeroes with minimum effort. Doing my best conflation and conspiratorial effort, I came up with the following theory:
  1. Shut down the government (in name) once it became evident a failed bond auction was on the horizon, due to debt ceiling (or whatever).
  2. Use political gridlock as the reason for things falling apart, socialize the idea of default through media, in all countries (evidence of this in Australian media - now you know why they need the Pentagon employees back at their desks).
  3. At any crescendo, announce the USG has plenty of gold, and much more than the 8,000 tonnes (where do you think the GLD gold has been going? ;p), they will value it at market price to address any concerns on their debt. **
  4. Resume as normal, only this time Triffen's dilemma is solved. If gold is revalued higher then this time it only boosts the US economic position. Everyone has a nice new currency with golden references to remind them how cool the government is.
Okay, not a serious theory (many, many holes) but if anyone has any thoughts about the new 'greenback' you'll have in your hands soon, please do comment - especially if you see one. p.s. I don't mean to distract from Costata's new gold series, this is just a quick post on something I've been following for a while now.

** If the US has more gold than expected, it's my understanding this would help arrest any devaluation of the USD. I'm sort of hoping Vincent Cate is reading and might have a better explanation than me.

Updated 8th October: It's still on, like Donkey Kong, according to the email blast (the link goes to the youtube pages series of videos about the new note).

Be sure to check out this great rebuttal of my idea, from Paper Money Shield (who apparently has successfully negotiated the fallout from the Reserve Bank of Australia and the Federal Police, but is still evidently involved in Securency, based on the clever defense in the article comments). p.s. In fairness to King World News, I think their theory about Obama halting the shutdown crisis by seizing emergency powers is a decent one - he'll need that arrangement if he is to steer the nation effectively though .. er .. any hyperinflationary event. Let's hope to {insert your deity of choice} they do actually have a clear plan to negotiate this faux crisis **, because it's not looking pretty.

** it is a crisis because ordinary people are getting hurt through this.


Kid Dynamite said...

somebody call Paper Money Shield!

Warren James said...

haha, yes - originally this content was drafted for that website.

Turns out most of the Paper Money Shield writers were deeply involved in the Securency Scandal and the site is in the hands of administrators. At least, this is the information I received from King World News (who asked not to be identified as a source and will deny it if asked).

Paper Money Shield said...

The rumours of my demise have been greatly exaggerated... I'm sorry to report that your theory is nothing short of arse backwards! Let me explain:

Fiat Backed Standard as Gold Returns to Circulation

Warren James said...

Argh! So what Eric King told me was ... FALSE!! Makes sense!! .. I mean Paper Money Shield's counter-argument, not Eric King providing wrong information.

Robert Mix said...

I have had a chance to look over the new $100 (got them on Weds. at Wells Fargo), and there are only two things I could find that were NOT mentioned at the website:

1) There is microprinting all over the place.

2) A nice diamond pattern in the green/gold "100" at bottom right.

Note that I am unimpressed with the "gold" (that Bix Weir made a big deal out of) coloring, more like orange.

Warren James said...

Thanks Robert, for the first hand observation. Wix's commentary doesn't seem so exciting in this light (and my theory takes on water too). Viva la dollar?