New $100 bills are a no go …
If you were anxiously awaiting the release of the new $100 bills, don’t hold your breath. The high-tech bills that were slated to be put into circulation in February 2011 are deemed unusable and have been locked in secure vaults in Fort Worth and Washington D.C.
It turns out that a significant production problem occurred while a billion of the new bills were being churned out – causing a significant amount of the currency to fold over on itself during the printing process — creating flaws. As many as 30 percent of the new bills may need to be burned.
The crux of the matter is that it would take 30 years to go through the currency by hand. Even with the use of sorting machines, it could be a full year before the bad bills can be culled out.
The new security bills, which feature a 3D security ribbon, are the most costly ever produced, at 12 cents per note. Doing the math, it appears the government has spent $120 million to produce money it cannot use. The face value of the quarantined bills is in excess of $100 billion.
In the short term, the Federal Reserve has ordered renewed production of the current design. Officials indicate that there are 6.6 billion $100 notes in circulation at any given time, with worn out bills routinely destroyed.
Check out a video report below: