Economy doesn't stop printing of nation's money

If you are considering thievery as a means of making money during these harsh economic times, you might think the Bureau of Engraving and Printing, where United State Federal Reserve notes are printed, would make a good heist.

In actuality, though, you would be wasting your time.

Should you even make it out with some nice, crisp notes, all you would only end up with is worthless paper and a warrant for your arrest. This is because the notes printed at the Bureau do not become legal tender until they are monetized, or scanned into a database. Monetization is done at one of the 12 Federal Reserve Banks and not the Bureau, tour guide Tamika said.

The Bureau in Washington D.C. is not the only place that prints our nation’s currency, though. Another facility in Fort Worth, Texas shares the duties. The Texas facility, though, prints all the $2 bills, Tamika said.

In Fort Worth and Washington, 2,500 employees work to produce 38 million notes every day. Of the new notes, 95 percent are used to replace old or damaged ones in circulation.

These dollars are not made of average, everyday notebook paper. In fact, the material is more of a fabric than paper, made of 25 percent linen and 75 percent cotton, Tamika said. This unique fabric gives the notes a longer circulation. A bill’s lifespan, though, can also involve its denomination, with $5 bills having the shortest average circulation at 16 months. The $100 bill has the longest duration, at 89 months and the $1 bill lasts for about 21.

Though, duration is not the only reason for bills to be made of a special fabric. It works against counterfeiters, since it is illegal for anyone other than the Treasury Department to have the paper or ink used. Changing the design of the notes every 7-10 years, Tamika said, also keeps counterfeiters at bay.

While U.S. currency used to be backed by silver and gold in the Federal Reserve, there is no such limit imposed today. Somewhere along the line, it was deemed impractical and now the notes are backed by “trust and good faith” in the government, Tamika said. Theoretically, the government can print as much money as it likes.

Still, economic consequences leave many to question at what point the printing should stop.