Badly Printed $100 Bills Are a Multibillion Dollar Problem

[DreamFLight911]

http://www.dailyfinance.com/story/badly-printed-bills-are-a-multi-billion-dollar-problem/19747727/

 

http://www.cnbc.com/id/40521684

[thedeadpoint]

This brings up a question that may have a trickier answer than the knee-jerk response: what is the cost of putting them into circulation? If they're going abroad or to big banks anyway, what is the decreased value of a $100?

 

To rephrase this before two or three of you take this the wrong way... by "cost" and "value" I mean to the brand. If you see a US dime, you *know* it's worth the face value (again... please don't make any snide remarks) because it's minted by the US and meets high standards. That keeps the dime worth 10 cents.

 

Conversely, if you see a Rolex... it may not be worth a Rolex to you because the market is so flooded with fakes. A true Rolex isn't worth buying anymore for that reason.

 

Will these bills really dilute the value of US $100 currency (like the fake Rolexs dilute the value of true Rolexs)?

[Saor Alba]

This brings up a question that may have a trickier answer than the knee-jerk response: what is the cost of putting them into circulation? If they're going abroad or to big banks anyway, what is the decreased value of a $100?

 

To rephrase this before two or three of you take this the wrong way... by "cost" and "value" I mean to the brand. If you see a US dime, you *know* it's worth the face value (again... please don't make any snide remarks) because it's minted by the US and meets high standards. That keeps the dime worth 10 cents.

 

Conversely, if you see a Rolex... it may not be worth a Rolex to you because the market is so flooded with fakes. A true Rolex isn't worth buying anymore for that reason.

 

Will these bills really dilute the value of US $100 currency (like the fake Rolexs dilute the value of true Rolexs)?

 

 

Here is the enormous problem with the US dollar and especially $100 bills - most of them circulate overseas. I know from many experiences with travelling and living in E. Europe where dollars are the primary currency still for larger transactions that anything out of the ordinary causes instant panic. I have had to exchange the older small head style bills for friends when I knew I was going back to the United States because otherwise they are no good. Similarly very worn, written on etc notes will be rejected very easily when changing money or making a purchase.

 

When I travel back to E. Europe I have to make sure to have as new as possible bills, all the same new larger head style, with no writing etc on them or they will be refused. Quite frankly counterfeiting of USA and local currency is a much much bigger problem in E. Europe and Asia than it is in the USA. If I spend bills 100 Hryvnen, but especially the 200 and 500 Hryven notes - they are without fail always run under an ultra-violet light to detect the inks. Similarly $100 bills get a lot of scrutiny when they are exchanged.

 

So, even if the bill was legitimately printed by the USA BEP, it may cause big problems in the parts of the world where most of them end up being used - Europe and Asia.

[ccg]

anything out of the ordinary causes instant panic. I have had to exchange the older small head style bills for friends when I knew I was going back to the United States because otherwise they are no good. Similarly very worn, written on etc notes will be rejected very easily when changing money or making a purchase.

 

That pretty sums up my thoughts.

[pickman]

How was this problem not picked up earlier, before they finished printing 1.1 billion note.

 

That is literally $120m down the drain.