New $100 bill error

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goes211's picture
goes211
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New $100 bill error

I assume that many of you have heard about the problems the FED had printing new $100 bills.

http://www.independent.co.uk/news/world/americas/printing-error-produces...

Printing error produces a billion unusable $100 bills

By Guy Adams in Los Angeles

Thursday, 9 December 2010

More than a billion $100 bills, representing roughly 10 per cent of the entire stock of US currency on the face of the Earth, is being stored in two highly-fortified Government warehouses after printing problems left it unusable.

Officials say a production error means that as many as 30 per cent of the notes, printed at a cost of roughly $120m, have been left with a blank strip on their face, which only appears after they are pulled flat.

...

What I was wondering was if anyone knows if this is an unusually large quantity of bills to print up?   Why would the government print up more than $100 billion worth of currency in $100 bills at one time?  Personally I almost never see a $100 bill but I know that $100 bills are more popular overseas than domestically.

I am not saying that there is more to this story than meets the eye but doesn't this quantity sound excessive?  I certainly seems like something that could be used as cannon fodder by conspiracy theorist's.

rhare's picture
rhare
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Re: New $100 bill error
goes211 wrote:

I am not saying that there is more to this story than meets the eye but doesn't this quantity sound excessive?

If you look at this link on bills in circulation and their lifetime, it's only about a years worth of 100s, and if they are trying to replace them at a faster rate due to counterfeit problems, it seems even more reasonable.

 

 

yobob1's picture
yobob1
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Re: New $100 bill error

Something like 2/3 of the currency in circulation world wide is $100 bills (roughly $600 billion), so the introduction of a new design is an ongoing process where large amounts are printed to feed the system as old worn out bills are retired.

What gets me is why it wasn't caught early on.  A fold in the bill would have resulted in bills that were undersized in one dimension.  You would have thought that they would have picked up on that after the first million or so - maybe they should invest in a tape measure.

Johnny Oxygen's picture
Johnny Oxygen
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Re: New $100 bill error

I'm linking these two post together.

http://www.peakprosperity.com/forum/fed-has-110-billion-problem-new-benjamins/49235

 

goes211's picture
goes211
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Re: New $100 bill error
Johnny Oxygen wrote:

I'm linking these two post together.

http://www.peakprosperity.com/forum/fed-has-110-billion-problem-new-benjamins/49235

I missed that thread.  Sorry to have contributed to thread spam. 

Johnny Oxygen's picture
Johnny Oxygen
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Re: New $100 bill error

Yep something is up with this story. Why was this information given to the public in the first place is another good question. Why would the government be so eager to say "Hey look how bad we screwed up!"

As I've said before there is no way they printed that many bills without someone catching it right away.

Stan Robertson's picture
Stan Robertson
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Joined: Oct 7 2008
Posts: 665
Re: New $100 bill error
Johnny Oxygen wrote:

Yep something is up with this story. Why was this information given to the public in the first place is another good question. Why would the government be so eager to say "Hey look how bad we screwed up!"

As I've said before there is no way they printed that many bills without someone catching it right away.

Have a look at Jon Stewart's take on it:

http://www.thedailyshow.com/watch/tue-december-7-2010/the-big-bank-theory

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