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Shocker: The Fed Botches Printing Money

From CNN’s Money.Com:

Flawed new $100 bill, $110 billion Fed headache

By Charles Riley, staff reporter
December 6, 2010

NEW YORK (CNNMoney.com) — More than 1.1 billion new $100 bills have been put into quarantine while officials search for a solution to a printing problem that has rendered some of the bills unusable, an official familiar with the situation said Monday.

Originally scheduled for a February 2011 release date, the bills were the first run of a high-tech note designed to combat counterfeiting by including a 3-D security ribbon.

The Federal Reserve first acknowledged an issue with the bills in October, but did not specify the scope of the problem.

The flaw — a problem with sporadic creasing of the paper that results in small blank spaces — only surfaced during a part of the process that requires high pressure printing, the official said.

That made the flaw difficult to detect during the normal inspection process.

"The Bureau of Engraving and Printing did testing so they could be sure the notes would run correctly," the official said. "Unfortunately the creasing problem did not reveal during testing. It’s very difficult to detect."

Man alive. We thought the one thing the Fed could do well was print money.

The 1.1 billion notes represent a staggering $110 billion in currency.

The notes have not been put into circulation, and instead are sitting in lockup in Fort Worth, Texas and Washington, D.C., the official said.

"This is something completely unanticipated," the official said. "It’s not as simple as, ‘Oh there is the problem.’ Finding it at all was quite monumental."

Inspections performed by hand reveal that a majority of the notes will be useable, and government printers are currently working on a way to mechanically separate the good notes from the bad, the official said.

A new release date for the updated $100 bill has not been set, but the official emphasized that there will be no disruption in the money supply due to the delay, as the Fed has already ordered printers to produce more of the current design to compensate

Roll, baby, roll.

Ink and paper must be one growth industry, at least in Washington.

This article was posted by Steve on Tuesday, December 7th, 2010. Comments are currently closed.

8 Responses to “Shocker: The Fed Botches Printing Money”

  1. Tater Salad says:

    These new bills are being quarantined as the story states. How can we get the Obama regime quarantined the same way. Both are destroying the country as we speak. One prints phoney money and the other entity “spends” phoney money.

  2. NoNeoCommies says:

    They can make a “mint” by selling these bills at more than face value as a collectible.

  3. tranquil.night says:

    Ironic Alternate Headline: Fake Money Designed Not to be Counterfeit is Worthless

    Sub-Headline: Feds to spend $110 billion repairing $110 billion worth of broken money. Obama calls plan “deficit neutral jobs stimulus.”

  4. River0 says:

    We’re living in a genuine tyranny of incompetence. It looks like the government can’t do ANYTHING right! Imagine how they’re going to F*up health care! At first I was appalled, but the truth is that this mistake is a marker that counterfeiters would find as difficult to duplicate as any other detail in the printing. They’ve said it’s extremely hard to detect; well, that makes it harder for fakers too. Just release the bills into circulation.

  5. bobdog says:

    “The 1.1 billion notes represent a staggering $110 billion in currency.”

    Oh, stop the violin music. It’s just scrap paper. Bills have no value whatsoever until issued. Until then, they’re just paper.

    In case nobody in the press mentioned it, Obama just added almost another trillion to our national debt last night and is about to get away with it. We’re worried about a botched printing job?

  6. P. Aaron says:

    The government can print about as well as they run social security & medicare.

  7. Chuckk says:

    Who cares? It’s pretty much worthless anyway. Release it!!

  8. preparing4theworst says:

    Is working in the print section of the mint a union job?? go figure..

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