Tuesday, December 7, 2010

New $100 bill flaw, $110 billion Fed headache

More than 1.1 billion new $100 bills recently printed by the Federal Reserve are now in quarantine due to a flaw in the printing. These bills were designed to combat counterfeiting by including a new 3D ribbon, however creasing during the printing process has rendered the majority of these bills unusable. These quarantined notes represent $110 billion in US currency, however the Fed has already ordered the printing of the current design to compensate for their loss. Fortunately the flawed bills were not yet in circulation but this mistake still comes at a tough time for the Fed with the current recession since, as a similar article pointed out, "You can't stimulate the economy via the money supply...if you can't print the money correctly."

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