No Shortage of Idiots

Costly Spoilage During Production of Redesigned $100 Bills

By Adam Dewitz
Print CEO

Back in October the Bureau Of Engraving And Printing announced the issue date of the redesigned $100 bills would be delayed citing a manufacturing problem:

The Bureau of Engraving and Printing manufactures Federal Reserve notes and has identified a problem with sporadic creasing of the paper during printing of the new $100 note, which was not apparent during extensive pre-production testing. As a consequence, the Federal Reserve will not have sufficient inventories to begin distributing the new $100 notes as planned.

CNBC talked to unnamed persons familiar with situation for more details:

* 1.1 billion of the new bills have been printed
* officials don’t know exactly how many of the 1.1 billion bills include the flaw
* speculation is as many as 30% of the bills included the flaw
* per-note cost of about 12 cents
* $120 million in spoilage

The Bureau is looking into automated inspection to find the defective bills:

Because officials don’t know how many of the 1.1 billion bills include the flaw, they have to hold them in the massive vaults until they are able to develop a mechanized system that can sort out the usable bills from the defects.


Advertisements
This entry was posted in economy, Federal Reserve, financial, government and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s