Government can’t print money properly

[rocketman2010]

As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print the money correctly.

Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC.

"There is something drastically wrong here," one source told CNBC. "The frustration level is off the charts."

Officials with the Treasury and the Federal Reserve had touted the new bills' sophisticated security features that were 10 years in the making, including a 3-D security strip and a color-shifting image of a bell, designed to foil counterfeiters. But it turns out the bills are so high-tech that the presses can't handle the printing job.

More than 1 billion unusable bills have been printed. Some of the bills creased during production, creating a blank space on the paper, one official told CNBC. Because correctly printed bills are mixed in with the flawed ones, even the ones printed to the correct design specs can't be used until they 're sorted. It would take an estimated 20 to 30 years to weed out the defective bills by hand, but a mechanized system is expected to get the job done in about a year.

Combined, the quarantined bills add up to $110 billion -- more than 10 percent of the entire U.S. cash supply, which now stands at around $930 billion.

The flawed bills, which cost around $120 million to print, will have to burned.

The new bills are the first to include Treasury Secretary Tim Geithner's signature. In order to prevent a shortfall,the government has ordered production of the old design, which includes the signature of Bush administration Treasury Secretary Henry Paulson. That, surely, is not the only respect in which the nation's lead economic officials would like to turn back the clock to sometime before the 2008 financial crisis.

http://news.yahoo.com/s/yblog_thelookout/20101206/us_yblog_thelookout/government-cant-print-money-properly

[Jazzy baby]

Great More Money Issues lol

[dinarokie]

Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more

Combined, the quarantined bills add up to $110 billion -- more than 10 percent of the entire U.S. cash supply, which now stands at around $930 billion.

The flawed bills, which cost around $120 million to print, will have to burned.

who prints iraq's money ??? any idea ??? i know usa prints some canadian or euros ???? just curious

[rocketman2010]

yes but that s a lot of printing

[flesh-o]

I love this post especially your opening line.

"As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print

the money correctly."

The real kicker being not only were the bills a bust they paid 2x what they normally do up from .06cents each to .12. Well, at least it will only cost 60 million to reprint.

[rocketman2010]

hell money cost money

[flesh-o]

TALK ABOUT DEVALUING THE DOLLER, THATS ONE WAY TO DO IT BILLIONS AT A TIME.

[lone star]

Thankis for the post. The situation would be funny if it weren't so sad.

[quadraph0nic]

Maybe this is a cover because they know the dinar is going to take off?

[Inahurry]

You would think someone would have caught it after what....the third sheet came off the press....Guess it is time for mandatory eye checkups for gov employees.... lol

[Serenity]

More wasteful spending................

[Sparky Scott]

Only in America !

[tkc]

Only in America under O'blabla.

[Les Klingel]

who prints iraq's money ??? any idea ??? i know usa prints some canadian or euros ???? just curious

Thomas DeLaRue

[tampa1000]

More like Obama i printing money and spending it so fast the printer can't handle the load!!! When will America see what is going on with this picture??? God bless us!!!