These Guys Do Not Know What’s Going On

I mentioned that I took a tour of the Federal Reserve Bank of Dallas this last week. I forgot to mention another question posed to Fed economist Ken Robinson by someone in my group.

During our introductory video to the central banking system, which our tour director said was about 10 years old, it mentioned that there were approximately $500 billion in physical currency held by the public. The questions was how much physical currency is out there today. Mr. Robinson said he thought that was right, that there were still about $500 billion in people’s hands.

Well, what do you know? It turns out that is only 67 percent off. According to the latest report, there are $834 billion in circulation.