Tuesday, December 13, 2011

Printing Coins

ZeroHedge notes that the Treasury is moving away from 'minting' dollar coins.  It seems that a large percentage of the coins have been landing back at the Treasury because no one wants/needs them.  The best suggestion I see around this is to mint dollar coins that actually carry some 'melt value' rather than a small, metal, inconvenient version of a dollar bill.

(What I'd heard, but am too lazy to verify, is that coins are, or at least can be, issued directly from the Treasury and so are a small, but competing money supply with the Federal Reserve notes that we all know and love. Counting into this is that every FRN is issued as debt (i.e., I get a car and the bank gets $20,000 in FRNs on the promise that I'll pay back $28,000 FRNs) whereas coins are actual American money free of the tyrannical hold of the banking class, for what that's worth (not much)).

1 comment:

EK said...

The US Treasury Department’s Bureau of Engraving and Printing produces currency; that currency is then issued into circulation through the Fed. Federal Reserve Notes are obligations of both the Fed and the Treasury.

The U.S. Mint, on the other hand, produces and issues coins.