Fresh Fiat

Each year, the U.S. Bureau of Engraving and Printing (BEP) produces between 6 to 8 billion individual Federal Reserve Notes, with a total face value typically exceeding $200 billion, though the vast majority—over 90%—are used to replace old, worn-out currency rather than expand the money supply.

Most newly printed fiat comes in $1, $20, and $100 denominations, with $100 bills alone often accounting for over two-thirds of the total face value due to global demand as a store of value.

The actual amount of new money entering circulation (i.e., monetary base expansion) is determined by the Federal Reserve through digital means, not printing presses—via open market operations and balance sheet adjustments.

In that context, physical cash printing represents a tiny fraction of total fiat creation, as trillions in new reserves can be generated electronically in a single policy move.