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Source link: http://archive.mises.org/14910/new-c-notes-with-treasury-secretary-tim-geithners-signature-found-defective/

New C-notes with Treasury Secretary Tim Geithner’s signature found defective

December 6, 2010 by

It turns out the new high-tech $100 bills, all 1.1 billion of them, “are unusable because of a creasing problem in which paper folds over during production, revealing a blank unlinked portion of the bill face,” CNBC reports.

So how much does it cost to print the new bills incorporating “sophisticated high-tech security features, including a 3-D security strip and a color-shifting image of a bell designed to foil counterfeiters?” Twelve (12) cents, and that’s double the cost of conventional bills. Now that’s some seigniorage that for the moment is just collecting dust in vaults in Fort Worth and D.C..

Not to worry, “to stave off a cash crunch as existing $100 bills deteriorate and can’t be replaced, the Federal Reserve has ordered renewed production of the current-design $100 bills, which feature Bush Treasury Secretary Hank Paulson’s signature and do not have the new security features.”

{ 4 comments }

J. Murray December 6, 2010 at 11:56 am

I don’t see the difference. They’re equally worthless with the crease and “properly done”.

jon December 6, 2010 at 1:22 pm

can you believe it? and nobody there has thought, “it would be cheaper to destroy them all and print new ones,” or if they have, they didn’t speak up loud enough.

so the bills sit in a vault and wait to be sorted. why? to separate the wheat from the chaff: they literally worship not just “the dollar” the concept, but the pieces of paper themselves, too.

Alan December 6, 2010 at 3:49 pm

Just unlock the doors to the vault and post the address and the bills will be sorted in hours.

Roy December 6, 2010 at 7:17 pm

So it that how they’ll explain why there is not enough currency to go around, even though inflation is through the roof? “Technical problems due to enhanced security measures?”

The central bank of Zimbabwe was taking a lot of heat for not printing enough currency to meet demands — no one had any cash, even though prices were doubling every day. It was a paradox that neither the bank customers nor the government officials were able to comprehend.

So I imagine that this will be an ideal excuse for our Treasury: “We have to make new bills, because counterfeits led to this terrible inflation, so have patience, and once we can get them into circulation, everything will be fine…”

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