Each year the Fed destroys billions of dollars*. This currency is taken out of circulation because it is old, wore out, torn or otherwise unfit for use. In the past most of it was shredded and dumped in landfills. If you visit many regional Federal banks or Bureau of Engraving and Printing you may get a souvenir bag of shredded money.
The Federal Reserve in now looking to “go green” with the disposal of all this cash. United Fibers LLC in Chandler, AZ uses shredded cash for home insulation. The Philadelphia Fed sends cash to a local power plant to generate electricity. The Sanitation Districts of Los Angeles burns about 400 – 500 tons of cash a year. Every now and then the Fed’s approve special request for the disposal of cash, including cash to fill luxury dog beds.
What would do with a pile of shredded cash?
*As reported in the Wall Street Journal