The timing of yesterday’s announcement by the Federal Reserve Board that the new $100 Federal Reserve Note will be released Oct. 8, 2013 is somewhat ironic.
Gold buyers have been going wild in recent days trying to obtain physical gold for their paper assets. Now comes the announcement of a new form of paper asset.
After the many accusations hurled in the FRB’s direction over the past five years about unlimited money printing, it might even be considered humorous that the new $100 note is almost two year’s late because of the Bureau of Engraving and Printing’s inability to print it.
Perhaps the gold crowd can say they are the gang that couldn’t inflate straight.
Rather than unreliable statistics, the current low reported rate of inflation might be due in part to the inability of the government to release boxcars full of “C” notes to really get fiat money demand into high gear..
That situation will change come October. Billions of the new notes will suddenly begin making their way into circulation.
What will happen?
Those of us who earn our paychecks in paper dollars, though, will be happy to accept either new notes or old ones.
Buzz blogger Dave Harper is editor of the weekly newspaper “Numismatic News.”