Friday, July 01, 2011

Makin Money!

Re-posted in its entirety from an always fascinating Cafe Hayek: (Because I cannot improve on it)
"Planet Money uncovers the fact that the US government has been minting dollar coins that no one wants to use. We prefer paper. A billion dollars worth of the coins that nobody wants is sitting in Fed vaults. And more are on the way–we’re only up to Ulysses S. Grant.
Why is Congress continuing with the program? This story may help–Arizona is rich in copper and Tennessee has zinc. Wonder what the coins are made of. Probably mostly copper. So Arizona politicians think it’s a good idea. They’ve pushed for the dollar coin before. I suspect somebody made a deal to get someone else to get behind it in exchange for doing that person a favor…" - Russ Roberts

1 comment:

Gino said...

the mint has been pushing to remove paper from circulation in exchange for more coins for many years, decades really.

its a cost issue.

previously, all attempts to increase coin mintage were dealt the death blow in committe by sen kennedy, or a rep of the same last name.

the special paper that bills are printed on is made in MA. and, i think somebody named kennedy owns a stake in it.

ist time to remove the paper. canada has coins, and dont issue bills under C5 increments. it works. i been there.