Is it true that in 2020 almost a quarter of the ever existing dollars was printed in the United States?

In some sources, you can read that in a crisis 2020, the American authorities went to an unprecedented step and made a record cash money, putting the country before the risk of huge inflation. We checked whether such figures really correspond to the truth.

Here's what was reported on the information website Hash Telegraph In October 2020: “According to the study, starting in September 2019, the Federal Reserve System (Fed) provided its primary dealers more than $ 9 trillion using massive emergency repo operations. The recently published report has demonstrated that the Fed subsise data on the daily loan, but does not inform the public about recipients. According to available estimates, only in 2020 the United States created 22% of all US dollars issued from the moment the state was created. ”

Similar information is reported by the Russian -speaking portal Incryptedas well as English -speaking Bitcoin.com, Reddit, Bid-over.com and a number of other resources.

Undoubtedly, in 2020, the world encountered the global economic crisis caused primarily by the Pandemia of Coronavirus. Already in September, UN Secretary General Antoniu Guterrish declared About the "largest loss of jobs since the Great Depression." The crisis and the United States of America, which play a key role in the world economy, did not bypass. If at the beginning of the pandemic inflation in the country reached relatively modest indicators, then according to the results of 2021 I broke a 39-year record - 7%. However, all the same, the news about 22% of all banknotes in one year looks incredible.

The role of the Central Bank in the United States is played by the Federal Reserve (Fed). On the official website of the organization, you can see the volume of orders for the manufacture of banknotes received at the engraving and printing office - both for a specific year and for the past few years. Let's take a look at the placed there schedule:

There are the same data in numbers - In the number of bills of each denomination and in the total volume of cash money. Of these, we see that 2020 was not at all a record for either one or another indicator. Yes, in April 2020 (the fiscal year lasts from October to September) Fed Passed About a million banknotes (plus 20% of the initial order), bringing the total amount of printed money to $ 185.7 billion. But this, as it is obviously, cannot amount to 22% of all dollar banknotes not only for the entire history of the United States, but even over the past decade. We also note that individual American coins (without banknotes) do not make up a serious share in the total amount of cash, but with them in 2020 nothing extraordinary.

Where did the information about 22%come from? If we take a closer look at some of the news who interested us, we can notice that there is a parallel about "Existing" or “in circulation” dollars. It may seem that “ever issued dollars” is the same thing, but this is far from the case. On the FRS website you can Relate With an average expected life of the bill of each popular face value - from $ 1 to $ 100. As you can see, the most common banknotes- five- and ten-dollar- live on average about five years, after which they are removed from circulation and destroyed. Under these conditions, the increase by 22% of the amount of money (or the amount of banknotes) in one year does not look like something extraordinary. Moreover, we can noticethat in 2020–2021, the volume of the American monetary unit M0 (physical cash in circulation) has grown markedly, but on a century, it does not look somehow out of the ordinary growth, and at the beginning of this year this indicator has fallen.

Thus, information about 22% printed dollars “for all the time” is not true.

Not true

What do our verdicts mean?