Monday, December 6, 2010

The Fed Can’t Print New Money

A shocking revelation was reported on Monday, December 6, 2010, that the $110 billion in newly-designed $100 bills has been put under lock and key in vaults in Forth Worth and Washington, D.C.  They are unusable due to a printing malfunction that left part of the bill face blank.

The new bill, with greater security, was the first to be signed by Treasury Secretary Tim Geithner.  To make up the shortfall in $100 notes, the Fed has instructed the Bureau of Printing and Engraving to produce more of the old-design $100 bills signed by Henry Paulsen.

Instead of printing new money, the Fed is printing fresh stocks of old money.

I still recommend, as previously blogged, that the Fed put $500 and $1000 notes back into circulation.

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