Posts Tagged ‘United States’

Currency Counterfeiting and Defacing-Be Nice to Your money

Tuesday, March 10th, 2009

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Title 18, Section 471 of the United States Code states that manufacturing counterfeit United States currency or altering genuine currency to increase its value is a violation punishable by a fine of up to $5,000 or 15 years imprisonment or both. Also in Title 18, Section 333 of the United States Code, defacement, mutilating, cutting, disfiguring, perforating, uniting or cementing together any bank bill, draft, note or other evidence of debt issued by any national banking association, Federal Reserve Bank, or Federal Reserve System, with intent to render such items unfit to be reissued, shall be fined and/or imprisoned for up to six months.


You can just as easily be imprisoned and/or fined just for possession of counterfeit money with fraudulent intent. All of these offenses are covered under Title 18 of the United States Code. Possession of counterfeit money is under Section 472 and is punishable by a fine of up to $15,000 and/or 15 years imprisonment. These sections in Title 18 regarding counterfeiting are clear and strict however they only cover paper money. The defacement section covers all money. Defacement of currency in such a way that it’s made unfit for circulation is under the jurisdiction of the United States Secret Service.

Regarding the counterfeiting of change, also covered in Title 18, is outlined in Section 331of the United States Code. It seems that there isn’t a big problem of counterfeiting pennies because pennies are not mentioned whatsoever in this section. However, anyone manufacturing a counterfeit U.S. count in any denomination above 5 cents (which also sounds like nickels aren’t included, just amounts above them) is subject to the same penalties as all other counterfeiters, that is a fine of up to $5,000 and/or 15 years imprisonment. Someone who is only altering, not manufacturing, a U.S. coin to increase its value, also according to Section 331, is a crime punishable by a fine of up to $2,000 and or imprisonment of up to 5 years.

Section 510 covers the forging, altering or trafficking in United States government checks, bonds or other obligations. If you were to participate in doing these things, you could face a fine of up to $10,000 and or 10 years in prison. Section 474 covers and prohibits the printing reproductions, photographs of paper currency, checks, bonds, postage stamps, revenue stamps and securities of the United States. Violations are punishable by a fine of up to $5, 000 and/or 15 years in jail.

We all know, especially in these hard times that sometimes money is scarce. People are losing their jobs and paying more for their homes, food and basic necessities. The more people counterfeit, the lower the value of our dollar drops. If this is something you were to come across, think of the consequences outlined here and think if using counterfeit money is worth the $2,000 to $10,000 fine and years of jail time is worth it. Chances are that you would rather stay in the position you are in than every try to counterfeit money!

The Value of a Dollar-It’s more than just 100 Cents

Wednesday, March 4th, 2009

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The value of our dollar depends strongly on the values of the dollars of other countries, exchange rates and interest rates. The interest rate in the United States from the Federal Reserve dropped to 4.75% in September 2007. Other banks around the world did not follow when this happened. This means that the European Central Bank (the home of the euro) has a higher interest rate right now than the Federal Reserve. Basically holding a Euro in your hand would be worth more in interest than holding a dollar in your hand. At this time in the dollar’s life, which would you choose?

Because of this difference in interest rate, other countries around the world are thinking like you and I are. They’re diversifying their holdings from dollars to Eruos and even British pounds for this same reason. In a supply and demand aspect, this situation causes there to be a large supply of dollars making them worth less. This loss in value caused the oil industry to charge higher prices, hence the skyrocket this past summer. Other countries don’t want the dollars they get for oil so they exchange them for Euros. It’s an endless cycle that has only gotten worse, despite understanding the root of the problem.

The dollar dropping is a double edged sword. On one hand, many manufacturers want to produce their products in factories in the United States, bringing us jobs. The reason manufacturers want to bring their factories here because it’s so cheap to run because of the low dollar value yet they can sell them overseas for the value of the Euro. On the other hand, the low dollar causes inflation. We know how bad that can be. Everything becomes more expensive in order to make up for the dollar value going down. Companies still want to make a profit on their goods so the cost of everything rises.

In order to get bonds to sell, they will be cheaper and have higher interest rates. These interest rates correlate to mortgage rates which don’t seem to be dropping anytime soon. Our weak dollar is also scaring away foreign investors who are now afraid to own stock in US companies. Foreign nations who have a lot invested in the dollar have the ability to cause a nuclear financial meltdown for the United States. They could easily exchange their dollars for something else, releasing our money into circulation, causing the value to plummet.

All in all, yes the dollar is worth 20 times less than it was in 1913 but a year or two ago, we knew that and we were used to it. Right now, on top of the 20 times less, it is losing more value in front of our eyes. I’m no one to give financial information but now that you know about the value of the U.S. dollar, just watch what you do with it. Buy and sell carefully because this is a delicate time for our economy.