The Latest Economic Downturn For America:
Yet another serious setback to the economy has occurred: 10 percent of the entire supply of the USA’s money supply has been quarantined in a vault in Texas due to a defective printing of over one billion faulty bills.
All production of new $100 bills has been shut down due to printing presses failing to produce the bills correctly. Over one billion bills were printed already and are currently quarantined in Fort Worth, Texas, in a vault where they will be held for security purposes.
The bills featured a complex security system that took 10 years to develop. These features were praised by officials with the Treasury and the Federal Reserve, and the security measures include a 3-D security strip as well as a picture of a bell that changes colors. These features were designed to prevent counterfeiting. However, because of the complexity of the bills, the presses cannot print them correctly as they are.
What Happened During Printing that Ruined Over One Billions Bills?
The problem is that some of the bills creased during production while others did not crease, further adding to the problem by mixing up the usable bills with the bills that were ruined. The creasing of the newly minted money resulted in blank spaces, making them defective.
If the usable bills from the misprints had to be sorted by hand, it would take somewhere between an insane 20 to 30 years to pick out the correct bills from the bills that printed incorrectly. Fortunately for the United States, a mechanized system should manage to sort the bills in the considerably shorter period of time of one year, though this is still a major setback.
What Will Be Done About The Defective Bills?
Once sorted, the defects will need to be burned to dispose of them properly.
Totaling about $110 billion, or 10 percent of all of the US’s money, the bills themselves were fairly expensive to print, costing approximately $120 million.
These bills were the first of their kind to include current Treasury Secretary Tim Geithner’s signature on them. However, the government has issued another set of production of the old design for the $100 bill. The previous design sports a signature by Henry Paulson, Treasury Secretary under the Bush administration.
The reprint of the old design has been issued to prevent a shortfall.
Government Can’t Print Money Properly