A new headache may have been created for US and international currency use as it has been determined that a flaw was created in the printing of up to 30% of all new $100.00 bills scheduled for distribution in 2011.
In a new report by CNBC today, an official familiar with the problem reported that the new $100 bills are so complex that the printers at the mint have experienced massive problems in the creation of the notes.
A significant production problem with new high-tech $100 bills has caused government printers to shut down production of the new notes and to quarantine more than one billion of the bills in huge vaults in Fort Worth, Texas and Washington, DC, CNBC has learned.
An official familiar with the situation told CNBC that 1.1 billion of the new bills have been printed, but they are unusable because of a creasing problem in which paper folds over during production, revealing a blank unlinked portion of the bill face.
A second person familiar with the situation said that at the height of the problem, as many as 30 percent of the bills rolling off the printing press included the flaw, leading to the production shut down.
The total face value of the unusable bills, $110 billion, represents more than ten percent of the entire supply of US currency on the planet, which a government source said is $930 billion in banknotes. For now, the unusable bills are stored in the vaults in "cash packs" of four bundles of 4,000 each, with each pack containing 16,000 bills.
Every few years, the Treasury department spends billions of dollars ensuring against the counterfeiting measures criminals have at their disposal to debase our currency. This new bill for the $100 denomination is expected to be more like Europe in its composition and color scheme, and as such, the complexity for even the mint gets tested with the new model notes.
Assuredly, there is time to address the issue, and for the Treasury to have enough bills to satisfy the markets when 2011 rolls around. But even a slight error such as this one has the capacity to hinder our money supply, especially since the $100 denomination is the most used federal reserve note for national and international transactions.
Comments
what happen to QC??
Yeah, gotta change those bills every few years. One wouldn't want the illegal printers getting ahead of the Unconstitutional printers, now would we?
Wow.. Interesting!
I would laugh if it weren't so sad that our government can't even print our $$ properly
Hey Whitney our GOVERNMENT doesn't print our money.The Federal Reserve is a privately owned bank (owned mostly by foreigners) hired by the US Government to print our money
Bob, you may wish to research the US Mint.
In other words, you're an idiot.
Its a private org within the government, similiar to the USPS.
Still is overseen by Congress and still managed by Federal Government. A quick google/wiki search will give you more insight, my copypasta is being blocked.
just to clarify
Actually, it's the Bureau of Engraving and Printing, which is a government agency under the Department of the Treasury, like the mint. BEP does paper currency, the mint does coinage.
Print the money in China!
It makes no difference what new fancy security crap they roll into the new bills, when you can still use the old bills. Why counterfeit something hard, when you can easily counterfeit an old bill?
Excuse me nocents - why are you trying to insert a modicum of reason into the discussion?
Screwing up the currency is a government psy op to make the Beast666 implant more appealing!
How are they going to write off $110 billion dollars? The should have credited the defective bills to the deficit. Too back the overly complex design backfired. There was a poll about the design of the $100 this morning, http://my-take.com/poll/What-do-you-think-of-the-new-design That is a lot of money to blow on designing and making money. I wonder how the public is going to deal with this screw up.
Why don't the gov sell the defective bills as collectables and use
the proceeds to print a batch of correct notes.
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