Why aren’t their more counterfeit organizations? According to the Secret Service, only 0.02% of all bills circulating in the U.S. are counterfeit (though they claim that about 70% of U.S. bills circulating in Russia might be counterfeit). My question: what doesn’t this happen more often?
Just a small number of counterfeit bills could absolutely undermine the U.S. economy. Some rogue countries like North Korea supposedly have factories that churn our counterfeit dollars. How come so few come to market?
We have people successfully smuggling drugs into this country – why can’t they smuggle in cash?
First, let’s look at the manufacturing problem. Manufacturing good fakes (especially of the new bills) is extremely difficult. But a country like north korea (which can make nuclear weapons) surely can develop the technology to create good fakes. And these fakes don’t have to be perfect – they just have to fool most of the people most of the time.
Second, let’s tackle the distribution problem. This is probably the reason why fake bills are not as prevalent in our society. But it isn’t that insurmountable. You’d think a sophisticated intelligence network like north korea, al Qaeda, or the Medellin Cartel could make a deal with a U.S. distribution partner.
So why aren’t their hundreds of billions of new dollars flowing into the U.S. every year? Maybe the only reason is that they are too bulky. A brick or 20 dollar bills is worth a heck of a lot less than a brick of cocaine. But that doesn’t seem insurmountable either.
I hope there are other reasons why counterfeiting isn’t rampant. I look forward to any comments.