Redeemed? Redeemed for what? Its not like they're still trading dollars for gold at any kind of fixed rate.
I would love to see an analysis of the benefits of crime to the government accounts.
Since the government can just print money, it can spend whatever it wants, but doing so creates inflation because of the higher money supply.
Dollars that disappear (ie, they get eaten by rats) push that inflation back down by removing money from the supply.
Redeemed? Redeemed for what? Its not like they're still trading dollars for gold at any kind of fixed rate.