The Dollar ReDe$ign Project

The Dollar ReDe$ign Project wants to resdesign U.S. currency in order to " rebrand the US Dollar, rebuild financial confidence and revive our failing economy." The project allowed submissions of alternative designs for U.S. currency. People were asked to vote on their favorite until Septemeber 30, 2010.

15 Things You Never Noticed on a Dollar

According to the January 24, 2010 Grandparents.com article "15 Things You Never Noticed on a Dollar":

Pull a buck from your wallet now and prepare to be amazed.

We’re serious. Did you know a dollar bill has hidden pictures, flecks of color, and mysterious symbols? And that’s just the beginning. What do all those seemingly random letters and Latin phrases mean, anyway?

The Basics: How much is a dollar worth?

The question seems simple, but the answer is quite complex. Since 1973, the dollar bill has had no value tied to it. You cannot trade in a dollar to the government for gold, silver, or any other commodity. The value of the nation's currency is related to the decree by the government that a dollar is legal tender for all debts. This means if someone attempts to pay a debt using dollars, the person being paid must accept the money or the law no longer recognizes the debt. This is important enough that the phrase is printed on every bill the government creates.

It is also vital for the nation's citizens to agree that the bills have value. If the members of a society decided that they did not believe in the currency, it would quickly be worth no more than the paper it is printed on. For the record, each bill costs the government 6.4 cents to print.

What kind of paper are the bills made from?

Bills are made from a blend of linen and cotton, which is why they don't fall apart in the wash the way paper does. If you look closely, you can see red and blue silk fibers woven throughout the bill. The threads are thought to be an anti-counterfeit measure.

Hint: Look in the white spaces on the face of the bill for little bits of the colored thread. They look like lint but you can't scratch them off!

On the face of a dollar, what does the letter inside the circular seal mean?


The black seal with the big letter in the middle signifies the Federal Reserve bank that placed the order for the bill. A = Boston, B = New York City, C = Philadelphia, D = Cleveland, E = Richmond, Va., F = Atlanta, G = Chicago, H = St. Louis, I = Minneapolis, J = Kansas City, K = Dallas.

The letter also corresponds to the black number that is repeated four times on the face of the bill. For example, if you have a bill from Dallas with the letter K, then the number on the bill will be 11 because K is the eleventh letter in the alphabet.

Can you find any tiny owls or spiders hidden on the front of the bill?


Many people believe they can see a tiny owl (some say it is a spider) next to the large "1" on the upper right of the bill. If you look at the shield shape that surrounds that "1," the tiny owl rests on the top left corner.

More than likely, the markings are nothing, just a point where the webbed design of the border varies. That won't stop some people from associating the peculiar detail with Masonic symbols, or with more practical things, like anti-counterfeit measures.

The Great Seal of the United States

The green back of the dollar bill features the two sides of The Great Seal of the United States. The founding fathers approved its design in 1782. Ben Franklin, John Adams, and Thomas Jefferson all had a hand in devising it. The seal provides great insight into the values of the newborn nation and, like the Constitution, provides a direct link to its formative days.

What does Annuit Coeptis mean?

The first of three Latin phrases on the back of the bill is translated as "God has favored our undertakings." Many founders, Franklin and George Washington among them, believed that God's will was behind the successful creation of the United States.

Beneath the pyramid, what does Novus Ordo Seclorum mean?

These Latin words mean "New order of the ages." Charles Thomson, a statesman involved in the design of The Great Seal of the United States, proposed the phrase to signify the beginning of what he called "the new American Era," which he said began in 1776 with the signing of the Declaration of Independence.

Why is MDCCLXXVI on the bottom of the pyramid?


The letters are Roman numerals for 1776. M is 1,000, D is 500, CC is 200, L is 50, XX is 20, VI is 6. Add the numerals on the pyramid together and you get the year 1776, when the Declaration of Independence was signed, and when the Novus Ordo Seclorum began.

Why is there an unfinished pyramid with a glowing eye?

Thomson explained the sturdy pyramid as a symbol of "strength and duration". He did not explain its unfinished state, but many believe it signified that our nation remained unfinished. The pyramid also stops at 13 steps, the number of the original colonies.

The "Eye of Providence" is a visual representation of the words Annuit Coeptis, and reinforces the founders' notion that God looked upon the endeavor of the new nation with favor. Many theorists mistakenly believe the symbolism of the eye is related to the Freemasons (a secret society whose members believed they were under the careful scrutiny of God), but the symbolism of the glowing eye is far older than any Freemason thinking. Scholars have traced versions of the symbol as far back as the ancient Egyptians.

What does E Pluribus Unum mean?

"Out of many, one." The 13 disparate colonies came together to form one nation.

Why a bald eagle? The founders wanted an animal native to America to be the new nation's symbol. In its talons the eagle holds arrows and olive branches, signifying war and peace.

Fun activities you and the kids can do with a dollar bill

Track your bills. Go to the website Where's George? and enter the serial number of the bill. If the bill has been in circulation long enough, you might be able to see where your bill has been as it travels from wallets to registers and back. After you enter your bills, check back later to see where they have gone.

Play dollar-bill poker. Each of you takes a dollar bill and examines the green serial numbers as if they were a hand of playing cards. Make your best poker hand and see who wins.

Bernanke: Fed will keep eye on sliding dollar

In the November 16, 2009 article "Bernanke: Fed will keep eye on sliding dollar," Associated Press economics writer Jeannine Aversa reports the Federal Reserve System anticipates keeping interests rates extremely low to encourage economic growth. But the declining value of the dollar and continued high budget deficits remain as challenges for U.S. macroeconomoic policymakers.

WASHINGTON – Federal Reserve Chairman Ben Bernanke on Monday said the central bank will monitor the sliding U.S. dollar but pledged anew to keep interest rates at record lows to nurture the economic recovery.

In remarks to the Economic Club of New York, Bernanke engaged in a delicate dance. He tried to bolster confidence in the dollar without taking any real action.

"Bernanke is trying to use words — not interest rates — to prevent the dollar from going even lower," said Jay Bryson, global economist with Wells Fargo Securities.

Bryson and other analysts said they didn't think Bernanke was signaling that the Fed would join with central bankers in other countries to intervene in markets to strengthen the dollar. But that is an option for the Fed if the dollar were to start plunging.

Bernanke's remarks gave a brief lift to the dollar in trading Monday. But it resumed its fall after traders focused on his assertion that the central bank would hold interest rates low for an extended period. The dollar has posted double-digit declines against other major currencies since spring.

Low interest rates could put additional downward pressure on the dollar. And economists say a free-fall in the value of the dollar, while unlikely, can't be entirely dismissed. Still, low rates are needed to encourage consumers and businesses to spend more and fuel the economic rebound.

"We are attentive to the implications of changes in the value of the dollar," Bernanke said in rare remarks about the greenback. The Fed, he said, will continue to "monitor these developments closely."

Commodity prices — such as oil — have risen lately. That pickup likely reflects a revival in global economic activity and the recent depreciation of the dollar, Bernanke said. Commodities such as oil and gold are priced in dollars so they become cheaper when the dollar falls.

Despite "cross-currents" in the outlook for prices, the Fed chief predicted inflation probably will remain "subdued for some time."

That gives the Fed leeway to hold rates at record-low levels for an "extended period," he said, repeating a pledge made at the Fed's meeting earlier this month.

The sagging dollar has helped sales of U.S. exports because it makes those goods less expensive on foreign markets. But if the dollar were to plunge in value, it could ignite a new economic crisis in the U.S., prompting investors to dump their dollar holdings and driving up domestic interest rates.

Still, by holding rates at record-lows, the Fed risks creating a speculative bubble.

"It's extraordinarily difficult to tell" if a bubble is forming, Bernanke acknowledged. "It's not obvious to me in any case."

If a bubble did form, "we use our interest rate tools to try to meet our mandate — full employment and price stability," he said.

The Fed's decision to hold interest rates at exceptionally low levels after the 2001 recession was blamed for feeding the housing bubble. When the housing boom went bust in late 2006 the economy soon followed.

During the question and answer session, the Fed chief also urged Congress and the White House to trim the record $1.42 trillion budget deficit, another force depressing the value of the dollar.

China, the No. 1 lender to the United States, has expressed concerns that the falling dollar threatens the value of its existing U.S. holdings. China also is the third-largest market for American goods, accounting for 6 percent of U.S. exports through September.

The ICE Dollar Index, which measures the value of the dollar against a basket of foreign currencies, has fallen 16.7 percent since March 4. The dollar is off 19.5 percent against the Canadian dollar since March 9, while the euro is up 18.4 percent since March 4. The dollar has also lost 12.2 percent of its value against the Japanese yen since April.

In recent weeks, some Asian countries have been intervening to try to keep their currencies from rising further against the dollar. They are feeling pressure because of China's tight link to the dollar which has meant as the dollar has tumbled since March, China's currency has fallen in relation to their currencies, giving China a competitive advantage.

Economists expect the Fed will hold rates near zero at its next meeting on Dec. 15-16 and into part of next year to help the recovery gain traction.

Bernanke predicted the economy should continue to grow next year, but he warned of "important headwinds" that will restrain the recovery, including a weak job market and tight credit for small businesses and households.

After a record four straight losing quarters, the economy started to grow again in the July-September period at a pace of 3.5 percent. Government-supported spending on homes and cars drove the rebound, raising questions about the staying power of the recovery once that assistance fades.

Bernanke said the rebound reflected more than "purely temporary factors" and predicted growth would continue into next year.

One of the biggest threats hanging over the recovery is rising unemployment. The nation's unemployment rate bolted to 10.2 percent in October. It marked just the second time in the post-World War II period that the jobless rate topped 10 percent.

Some economists think it could rise as high as 11 percent by the middle of next year before starting to gradually drift down.

Bernanke said the unemployment rate "likely will decline only slowly" if economic growth remains "moderate" as he expects.

U.S. must live within its means: Geithner

In the October 17, 2009 article "U.S. must live within its means: Geithner," Glenn Somerville and Walter Brandimarte report:

WASHINGTON (Reuters) – The United States must live within its means once its economy recovers if it is to preserve global confidence in the U.S. dollar's status, Treasury Secretary Timothy Geithner said on Friday.

The comments came as the Obama administration reported a record U.S. budget deficit for the fiscal year ended September of $1.4 trillion. At 10 percent of gross domestic product, it was the biggest U.S. fiscal shortfall since World War Two.

Rescuing the economy and some of the country's biggest banks from the worst recession since the Great Depression took a toll on U.S. finances, and the White House has forecast deficits of more than $1 trillion through fiscal 2011.

"Future deficits are too high, and the president is committed to working with Congress to bring them down to a sustainable level as the economy recovers," Geithner said in a statement accompanying the fiscal data.

Separately, White House economic adviser Lawrence Summers said financial firms that helped precipitate two years of economic crisis are going to have to bow to stiffer oversight of their activities to prevent it happening again.

Geithner and other policymakers will discuss the U.S. economic and budget outlook, and prospects for financial regulatory reform, at the Reuters Washington Summit on October 19-21.

FISCAL OUTLOOK AFFECTS U.S. DOLLAR

On Friday, Geithner said the U.S. dollar's status as a key reserve currency carries special responsibilities that include keeping spending under control, Geithner said earlier on Friday in an interview on CNBC television.

"It is very important that Americans understand that we need to do everything possible to sustain confidence in our ability to keep inflation low and stable over time and to make sure we're getting our fiscal house in order," Geithner said.

Developments over the past year, when many investors put their money into U.S. Treasury securities and the dollar rose at times, showed there was still a great deal of confidence in U.S. economic management.

"The world wanted to be in Treasuries, in the safest and most liquid markets, and you saw the dollar rose when people were most concerned about the future of the world," he said.

"That is a very important thing. It's not something you can count on. It's something we can understand, and we can continue to foster, and we're going to do that," Geithner added.

The administration has to be careful not to withdraw economic stimulus too fast though, Geithner added. But he denied that the administration was ready to consider a second economic stimulus program.

Geithner said access to credit in the overall economy has improved dramatically but many small businesses that typically create many jobs still face borrowing constraints.

The Obama administration is working on measures to help small businesses get easier access to credit -- possibly by diverting some bank bailout funds to them -- but hasn't yet announced a program to do so.

BANKING NEEDS TO CHANGE

Summers also argued for change to the banking system.

After two years of economic crisis and government rescue efforts, he said the banks at the center of the credit debacle had a moral imperative to be part of the solution.

"Financial institutions that have benefited from government support can, should, and must use this moment to think about what they can do for their country -- by accepting the necessary regulation to protect the American people," Summers told an audience of financial market participants. "Wall Street was no small part of the cause of the crisis and Wall Street needs to be part of the solution."

Summers, chairman of the National Economic Council, suggested banks had little choice in the matter.

"There is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support," he said. "This has direct relevance on the changing nature of the social compact between the financial sector and the broader economy."

The Obama administration has been pressing for wide-ranging reforms in U.S. financial regulations. It scored a victory on Thursday when a House of Representatives' panel passed a bill to tighten regulation of financial derivatives -- contracts derived from existing securities or transactions that are blamed for amplifying the 2008 crisis.

New, tighter regulation doesn't mean, however, that financial firms will never go bust again. In fact, Summers said that such firms must be able to fail for market discipline to work.

In addition to that, though, profitability and prudence should be reconciled under any framework of financial regulation.

"The financial system has to be safe for failure," said Summers.

Summers also said officials need to avoid prematurely withdrawing measures meant to stimulate the economy after the worst recession in decades, noting discussion of any "exit strategy" would be different on Main Street than it would on Wall Street.