Hi! :D

 I used to do paper mache for our school craft projects when I was a kid. It's a great way to recycle old newspapers and magazines. All we need are shredded paper, paste, and molds. I've seen paper mache reindeers sell for as much as $30 in stores.
 

I think that might be a good idea for someone that needs to make some extra money, or for a school to do some charity work. But I find there are a lot better uses for recycling news papers out there. Creating new paper out of the recycled news paper. But this requires enough people to recycle the papers, and this responsibility does not always fall easy for everyone.

Gizmo:

But this requires enough people to recycle the papers, and this responsibility does not always fall easy for everyone.

Yup, there's always the problem of collecting and transporting the paper to plants for large scale recycling. But it's a good alternative to wood  pulp used in making bathroom tissue. Kleenex is a major cause of deforestation. :) 

I prefer to just recycle paper at the local recycling bins, but I guess this could work too.

The main thing I'm not sure about at the moment is what to do with sensitive documents that require shredding.  A lot of local businesses shred then burn, which I feel is hardly the most environmentally friendly solution. 

etali:

The main thing I'm not sure about at the moment is what to do with sensitive documents that require shredding.  A lot of local businesses shred then burn, which I feel is hardly the most environmentally friendly solution. 

The would be a security problem. Though I'm sure cross-shredding machines could produce nicely-shredded fluff appropriate for paper making, the problem would be in transporting the material and making sure nobody tries putting them together. There are software now that could fit the pieces together like a puzzle