US Federal Reserve invests 666 million in the printing of new banknotes

The Federal Reserve of the United States spent 666 million dollars in the printing of notes and fiduciary coins during 2016, this being the most recent date in which this information is shared. Fed says:

"The estimated expenses for printing Federal Reserve Notes in CY 2016 are USD $ 666.1 million, which is USD $ 4.4 million, or 0.7 percent, lower than the budgeted amount. This lack of budget does not reflect a change in the order of annual printing or deliveries less than those planned by the BEP, but rather a change of deliveries between the years of the budget ".

That odd number is an estimate, rather than a precise actual expense, and seems to have come about due to a slight overprint of 0.2 billion more notes in 2015. If we take the cost of each one at 10 cents, that would be around USD $ 20 million, something that could have ruined the fine number of 666 with an annoying 8.

We, of course, do not know if they intentionally tried to obtain that symbolic number, but for that, or a similar sum, they received USD $ 7 billion of bills. The dollar value of those bills, each of which costs around ten cents, is about 233 billion dollars for just one year.

The Fed says that 75% of those USD $ 233 billion was to replace old or damaged bills. That leaves around USD $ 60 billion, which was earmarked for "net payments".

For those who make such payments it remains a mystery within an encrypted enigma, but some banks receive around 6% of the Fed's profits. That in this case would be around USD $ 4 billion for printing alone.

These sums could be quite small compared to the USD $ 3 trillion of new bills and coins that the Fed has printed in this decade. Many wonder where the $ 3 trillion fiat block reward came from.

Few really know, and how all this works, even economists do not understand, as evidenced by textbooks that continue to erroneously teach that money is created through multiple savings when the Bank of England has declared that banks create money Literally without air and they are limited how much they can create only by "competition".

Why banks will not continue to create that new money that nobody has explained satisfactorily. No less important perhaps because they can not, since history has shown that they still create a lot with the value of 1 dollar falling to 5 cents in just a couple of decades.