By Doug Bandow
The U.S. government is worried. Counterfeiters around the world are at work. Printing fake greenbacks has become big business.
So the Treasury has unveiled a new banknote. Reports the Wall Street Journal:
Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke unveiled a new $100 bill equipped with two new security features.
The bill will go into circulation Feb. 10, 2011.
Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke unveil a new $100 bill equipped with two new security features. The News Hub takes a look at the new bill, which goes into circulation Feb. 10, 2011.
The Fed, along with the Treasury Department, the Bureau of Engraving and Printing and the U.S. Secret Service, “continuously monitor the counterfeiting threats” for each denomination and redesign decisions are made based on those threats, Mr. Bernanke said.
“This job has become more complex in recent years as technology advances and U.S. dollar flows expand and increase,” he added.
The bill-the highest denomination of all U.S. notes-circulates widely around the world, with circulation in the past 25 years growing to $890 billion from $180 billion.
About two-thirds of all $100 notes circulate outside the U.S.; Mr. Bernanke said the agencies must ensure people around the world are aware of the design change. Over the next several months, officials at the agencies will work to educate cash handlers, consumers and others about the design and explain how to use its security features.
Benjamin Franklin is still on the latest makeover of the $100 bill, unveiled Wednesday, but he has been joined by a number of security features as part of an effort to stay ahead of counterfeiters.
The 6.5 billion or so $100 notes in circulation now will remain legal tender, Mr. Bernanke said.
Okay, so now the counterfeiters will have a harder time. (Though as long as older notes are legal tender, nothing prevents counterfeiters from faking the old currency.)
But who’s going to stop the Fed from running the printing presses? Just like killing is illegal murder when conducted by individuals but legal war when conducted by government, counterfeiting is illegal when private individuals pass the notes onto unsuspecting people but legal when the government forces private individuals to accept its currency as “legal tender.”
Who’s going to put a stop to legal counterfeiting?