Government Wastes Money When Printing Money

Posted: Dec 06, 2010 3:50 PM
This time, it's all too literal.

The government has been in the process of printing billions of dollars' worth of new bills. It turned out there was a massive failure, and the government has now quarantined $110 billion of new hundred dollar bills in Ft. Worth, Texas, with the intention of burning it all.

The actual process of printing this much money has so far cost $120 million.

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.

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.