The number of $100 bills in circulation has exploded since the Great Recession of 2008-09 and is still climbing rapidly. A decade ago, the number of $100 bills lagged well behind $1 and $20 bills. Twenty years ago, there were double the number of $1 bills versus $100s. But the $100 bill tally has doubled since the end of the financial crisis, according to the Federal Reserve.

By 2017, the $100 bill, also referred to as a “C-note,” eclipsed both the $1 and $20 bills to become the most widely circulated US currency in the world. DataTrek Research estimates there is $1.3 trillion in $100 bills in circulation worldwide, with most of them held outside the US (more on this below).

Some believe the growing demand for US $100 bills is partly due to a global fear of negative interest rates in Europe and Japan. Others suggest the growth is largely due to fears of another financial crisis, with more and more US and foreign households holding a stash of $100s.

The Benjamin Franklin-faced currency has been the largest US bill since 1969 when the $500 and $1,000 notes were phased out, but it’s not very popular with Americans for day-to-day transactions. According to the Fed, the average American carries only about $60 in cash.

A Pew Research Center study late last year found that 30% of Americans use no cash at all on a weekly basis, and that number is rising. This might suggest that cash is going out of style altogether. Not so, since foreign demand for “Benjamins” is booming.

Data Trek says 80% of all $100 bills in circulation are held outside of the US. Wow!

Some of this growth is the result of the US dollar supplanting local currencies in unstable economic environments. Other currencies are also used outside their home countries, but the dollar has the largest share of notes held outside the country by far.

Data Trek’s founder Nicholas Colas described it this way: “The $100 bill is basically that American flag waving in local economies around the world, for better or worse … Yes, it’s misused [crime] but there’s also a lot of benefits to the American economy.”

The $100 bill is universally accepted. Its high value also makes it easy to transport large sums of money. For that reason, it is also a favorite unit of currency for criminal activity, like drug trafficking and fraud.

One Harvard University fellow and former banker, Peter Sands, actually proposed eliminating the $100 bill several years ago. He reasoned, “By eliminating high denomination, high value notes we would make life harder for those pursuing tax evasion, financial crime, terrorist finance and corruption.”

At the time, however, the Treasury Department told The Wall Street Journal that it had no plans to eliminate the $100 bill.

I wasn’t surprised but I found it interesting that the US $100 bill is the most widely circulated form of currency in the entire world. I was surprised to learn that there are more $100 bills in circulation than $1 bills. Who knew?

Americans’ Credit Card Debt Hit New Record High in 2018

In Tuesday’s Forecasts & Trends, I wrote about the fact that 73% of Americans die with unpaid debt, and the average outstanding debt balance upon death is almost $62,000. I also reported that credit card debt is one of the largest components of household debt, behind mortgage debt, student loans, and auto debt.

We also learned on Tuesday that US credit card debt soared to a new record high last year. The Federal Reserve reported that US credit card debt soared to $870 billion at the end of last year, up $26 billion in the 4Q alone. Credit card debt rose faster than any of the other debt categories noted above in 2018.

About 37 million credit card accounts (over 6%) had a 90+ days delinquent mark added to their credit report last quarter, an increase of about two million from the 4Q quarter of 2017. These 37 million accounts hold roughly $68 billion in debt that is 90-plus days delinquent.

Older Americans are holding a significant and growing portion of credit card debt, with those over age 60 accounting for about 30% of the total. By age group, older Americans are seeing their credit card debt transition into the delinquency category at an increasing pace.

Interestingly, those in their 50s have seen the most rapid change in their delinquency rate and are considered the most vulnerable should a change occur in their employment. According to Bloomberg, 50-somethings have the highest delinquency rate of all age groups.

I could write a lot more on this subject, but I think you get the point: We just keep piling on debt at an ever-increasing rate. As I say often, I don’t believe this ends pretty!