Actually it's better than that; he buys uncut sheets of bills and pulls various pranks with them. He ends up paying more than $2 per bill, so it's mainly just to weird people out.

He got sheets of 4 perforated and then bound with a gum binding (like a pad of paper). He then whips out the book and pulls a $2 off of the perforation.

He'll carry larger sheets folded up and then cut a bill out with scissors in front of the person he is paying it to. Apparently he got the secret service called on him once.

http://archive.woz.org/letters/general/78.html

[edit]

If you want to buy uncut bills you can yourself, but there's about a 50% markup on even the largest sheets:

https://www.moneyfactorystore.gov/2currencysheetsbeptestshee...