US government forced to burn $3 billion in faulty banknotes

[mitty14u2]

August 15, 2013

The US Federal Reserve has hit another snag in its effort to roll out a redesigned $100 bill. Having already been delayed multiple times by production issues, the new banknote was expected to finally enter circulation this October, but inspections by the Fed have uncovered a fresh printing issue. As The New Yorker reports, some of the new notes have received an excess of ink, rendering them "clearly unacceptable" in the judgment of Larry Felix, Director of the Bureau of Engraving and Printing (BEP).

Because the imperfect currency is already intermixed with properly printed notes, the only solution has been to consign the full batch of 30 million bills to the incinerator and start over. If you're keeping count at home, that's a potential $3 billion worth of paper, but what's more, there's another $30 billion awaiting inspection, which could suffer a similar fate.

http://www.theverge.com/2013/8/15/4623552/30-million-100-dollar-bills-to-be-destroyed


The Fed Has a $110 Billion Problem with New Benjamins

7 Dec 2010

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.

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.

http://www.cnbc.com/id/40521684

US Burning Billions in $100 Bills Is Something FISHY?

How on earth do you print money day after day and not inspect until you have to burn them in a incinerator. This happened in Texas and Washington sounds like people are doing this on purpose to keep old bills in circulation. If you are sitting on Millions in cash and the old bills are no longer any good its going to be really hard to get ride of them without some flags popping up? Who could be sitting on large hordes of cash that have enough power to keep the shenanigans going, Banks, Governments, Military?

[democratisphere]

1. Looks like the cost of printing 'BENJAMINS' may ultimately be more than its face value.

Great Job!

[CFLDem]

2. Send the bills to me!

I'll make sure they'll be taken care of.

Honest😇😈

[defacto7]

3. It's just paper at this stage.

The tragedy is not the money... this isn't really money... the tragedy are the trees lost and the chemical polution of the inks and their production and the air pollution of burning them.

As far as the hoarding of old bills is concerned, GB junior shipped billions in C notes to Iraq in million dollar bundles stacked on 10'x10'x6' high palates. US soldiers even played football with those 1M packs before they were distributed to ???? no one knows. The old bills still function all over the world and there is no question... except maybe here.

[Aristus]

5. American currency contains no wood pulp.

It's made from cotton and linen fiber.

Still, I agree, the whole thing is a waste...

[defacto7]

6. Thanks for the clarification.

I didn't know. But I suppose the point lies in waste in all its forms.

[quadrature]

4. 2 cents to print...times 30 million

$600,000 or so.

why is this news?

[Fortinbras Armstrong]

7. If one of my subordinates had made that sort of mistake

He or she would be looking for a new job.

[Igel]

8. The old bills will stay in circulation and be valid for quite a while. n/t