Federal Reserve Rips Up Old Money?

[Patriot123]

I've got a question... Now apparently the Federal Reserve rips up old dollar bills. Right? Now I don't mean to sound, well... Out of the ordinary, but how is printing more money the cause of the devaluation of our currency if the Federal Reserve rips up old dollar bills continuously?

[Conza88]

http://icanhascheezburger.files.wordpress.com/2007/05/money.jpg

[sratiug]

I've got a question... Now apparently the Federal Reserve rips up old dollar bills. Right? Now I don't mean to sound, well... Out of the ordinary, but how is printing more money the cause of the devaluation of our currency if the Federal Reserve rips up old dollar bills continuously?

Because they print them a lot faster.

[Patriot123]

...well that was a fairly simple answer. Thanks :p

[Mahkato]

They don't really "print" all that much money. Most of it is manufactured digitally by manipulating bank account balances on a whim. It's like they have a checkbook with no bank account number on the checks, but people still accept them. My checks don't have my phone number on them and the cashier at Target still gives me grief.

[Zippyjuan]

Printing money:
http://www.frbsf.org/publications/federalreserve/fedinbrief/keyfacts.html

Currency

A common misconception is that the Fed prints money, but it is actually the Bureau of Engraving and Printing (BEP) that prints U.S. currency. In 2006, the Federal Reserve System paid $488.7 million to the BEP for printing currency.

During fiscal year 2007, the Bureau of Engraving and Printing will produce approximately 38 million pieces of currency each day with a face value of approximately $750 million.

On average, 45 percent of notes printed are $1 notes.

The Fed's Cash Services department processes currency using high speed computer controlled machines that each verify currency at the rate of approximately 1,290 notes per minute. The machines intercept potential counterfeits and destroy old, worn out notes.

The average life of United States currency corresponds to the note's denomination:



Of the total U.S. currency in worldwide circulation, up to two thirds is held outside of the United States

[bander87]

...well that was a fairly simple answer. Thanks :p

Wish more things were that simple :)

[Carehn]

1 (http://www.youtube.com/watch?v=ThXpjmfyiMQ)
2 (http://http://www.youtube.com/watch?v=LgkYjFYr2QI)
3 (http://www.youtube.com/watch?v=qTu4kGkQOvE)
4 (http://www.youtube.com/watch?v=CPmZBfBx53Q)
5 (http://www.youtube.com/watch?v=-IdpkvLdKLQ)

[Zippyjuan]

If you want, you can buy shredded up currency from the Government. You can also get uncut sheets of notes too.
http://www.treas.gov/education/faq/currency/sales.shtml