Image: Unveiling Of New Hundred Dollar Bill
Chip Somodevilla / Getty Images file
Is Ben blushing? The government has stopped producing the new $100 bills (one shown here) until it can work out printing problems.
updated 1 hour 0 minutes ago 2010-12-06T18:44:30
A significant production problem with new high-tech $100 bills has caused government printers to shut down production of the new notes and to quarantine more than one billion of the bills in huge vaults in Fort Worth, Texas and Washington, CNBC has learned.
Initially scheduled for release in February of 2011, the new bills were announced with great fanfare by officials at the Treasury Department and the Federal Reserve in April.
At the time, officials announced the new bills would incorporate sophisticated high-tech security features, including a 3-D security strip and a color-shifting image of a bell designed to foil counterfeiters.
But the production process is so complex, it has instead foiled the government printers tasked with producing billions of the new notes.
An official familiar with the situation told CNBC that 1.1 billion of the new bills have been printed, but they are unusable because of a creasing problem in which paper folds over during production, revealing a blank unlinked portion of the bill face.
A second person familiar with the situation said that at the height of the problem, as many as 30 percent of the bills rolling off the printing press included the flaw, leading to the production shut down.
The total face value of the unusable bills, $110 billion, represents more than ten percent of the entire supply of U.S. currency on the planet, which a government source said is $930 billion in banknotes. For now, the unusable bills are stored in the vaults in "cash packs" of four bundles of 4,000 each, with each pack containing 16,000 bills.
Officials don't know exactly what caused the problem. "There is something drastically wrong here," a person familiar with the situation said. "The frustration level is off the charts."
been a long time since I saw one of these...
I missed this one on the news.
Thanks for the post.
Our government at work…, scary sometimes…
by Ralph Deeds8 years ago
Paul Krugman's column in the NYTimes today 1-5-08 is entitled "Fighting Off Depression." In it he called the recent economic numbers "terrifying," not just in the U.S. but around the world....
by ViralWhisper6 years ago
Politics in itself is good. It was basically created to give meaningful directions to an otherwise chaotic and multi-dimensional problems of our society. The politicians are the ones that make it look trashy and...
by billchucks6 years ago
scientist have predicted wat the world is going to experience some 4 yrs time and America is doing nothing abt it. i hope the BP OIL SPILL will teach them one or two lessons
by Jack Lee4 weeks ago
Mayor Ed Murray of Seattle is defying the Trump administration action over sactuary cities and going to the courts.Trump administration wants to withhold federal funds to cities that defy ICE compliance.What do you...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.