The True Story Of The Time The Government Printed A $100,000 Bill

dollar currency

[credit provider=”Wikimedia Commons” url=”http://upload.wikimedia.org/wikipedia/commons/5/53/US100000dollarsbillobverse.jpg”]

A $1 trillion-dollar coin seems like a high denomination to ask the government to print.Some say its weight could sink the Titanic! (This is benightedly ludicrous).

But one time, the U.S. government actually got 1/10000000th of the way there — by printing a $100,000 bill.

And it really helped the economy.

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[slide
permalink=”the-year-was-1933-we-were-in-the-midst-of-a-worldwide-depression-characterized-by-massive-deflation-1″
title=”The year was 1933. We were in the midst of a worldwide depression characterised by massive deflation.”
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[slide
permalink=”president-roosevelt-ordered-americans-to-surrender-any-gold-they-held-to-the-government-2″
title=”President Roosevelt ordered Americans to surrender any gold they held to the government.”
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[slide
permalink=”the-reason-no-one-was-buying-anything-with-cash-3″
title=”The reason: no one was buying anything with cash.”
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permalink=”gold-hoarding-and-bartering-were-also-reducing-the-amount-of-funds-flowing-into-the-government-4″
title=”Gold hoarding and bartering were also reducing the amount of funds flowing into the government.”
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[slide
permalink=”americans-agreed-to-surrender-their-gold-but-it-wasnt-enough-5″
title=”Americans agreed to surrender their gold, but it wasn’t enough…”
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[slide
permalink=”because-roosevelt-also-agreed-to-bail-out-the-banks-that-was-good-news-for-consumers-but-bad-news-for-currency-control-6″
title=”…Because Roosevelt also agreed to bail out the banks. That was good news for consumers but bad news for currency control.”
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[slide
permalink=”so-roosevelt-proposed-the-treasury-take-over-the-federal-reserves-gold-supplies-7″
title=”So Roosevelt proposed the Treasury take over the Federal Reserve’s gold supplies.”
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[slide
permalink=”the-pluses-once-the-federal-government-controlled-all-the-gold-it-could-better-enforce-its-plans-to-devalue-the-dollar-thus-reflating-the-economy-8″
title=”The pluses: Once the federal government controlled all the gold, it could better enforce its plans to devalue the dollar (thus reflating the economy).”
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[slide
permalink=”the-costs-end-of-fed-independence-9″
title=”The costs: end of Fed independence.”
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[slide
permalink=”fed-chairman-gene-black-was-sympathetic-but-wary-he-advised-the-decision-was-best-left-up-to-congress-10″
title=”Fed Chairman Gene Black was sympathetic but wary. He advised the decision was best left up to Congress.”
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[slide
permalink=”congress-took-up-the-measure-in-january-1933-the-democrat-controlled-senate–a-first-since-world-war-i–helped-get-the-measure-passed-jan-31-11″
title=”Congress took up the measure in January 1933. The Democrat-controlled Senate — a first since World War I — helped get the measure passed Jan. 31.”
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[slide
permalink=”the-gold-reserve-act-of-1934-set-a-new-federal-exchange-rate-for-gold-at-35-but-only-for-the-purposes-of-foreign-exchange-12″
title=”The Gold Reserve Act of 1934 set a new federal exchange rate for gold at $35, but only for the purposes of foreign exchange.”
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[slide
permalink=”it-also-allowed-the-treasury-to-print-bills-to-pay-for-the-federal-reserves-gold-13″
title=”It also allowed the Treasury to print bills to pay for the Federal Reserve’s gold.”
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[slide
permalink=”and-one-of-them-was-worth-100000-it-had-woodrow-wilson-on-the-face-14″
title=”And one of them was worth $100,000. (It had Woodrow Wilson on the face).”
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[slide
permalink=”spoiler-alert-it-worked-15″
title=”Spoiler alert: It worked.”
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[slide
permalink=”more-on-the-1tc-16″
title=”More on the $1TC…”
content=”A Harvard Law professor explains why minting it would be legal >
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