Out of Thin Air: How Money is Really Made

Newer bills cary security threads, color-shifting ink and watermarks. None of that insures the money will grow, however. For that, you need lots of lending and even more faith.

From Live Science:

Making money in 2008 looks like a grim proposition, but not because U.S. government printing presses can't create enough dollar bills.

The U.S. Bureau of Engraving and Printing (whose web site name perhaps says it all: moneyfactory.gov) churns out about 38 million bills of varying denominations daily, all worth $750 million in face value. Facilities in Fort Worth, Texas and Washington D.C. use 18 tons of ink per day to keep up.

Yet 95 percent of fresh notes simply replace those already in circulation. Common $1 bills last about 21 months, while a $100 bill can go for roughly 7.4 years before requiring replacement. Taken all together, these physical bills represent just a drop in the bucket of global money.

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