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Bedrock of the Community
United States
10047 Posts |
Quote:
Can you quote a source that shows where the treasury dept. is making money from printing paper notes like the mint is from minting coins? I'm not saying your wrong, I honestly don't know, so I ask. On this I have to claim ignorance on a specific website b/c when I spent about quite a few hours (multiple times) recently reading up on this very topic. I simply started with a Google search of "cost to make a $1 bill." and went from there. The last time looking into this I visited many sites in the 2+hours (yes I have a lot of time on my hands to do things like this). The main gist of what I gleaned was that money making (bills and coin) is a profit making business - search for the term "seigniorage" on this forum as this was discussed not too long ago on CCF. Also - if I have made a mistake in this, please point it out to me. I am weird in that I would rather know the truth than care if I am right or wrong on any subject. |
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Valued Member
United States
108 Posts |
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Also - if I have made a mistake in this, please point it out to me. I am weird in that I would rather know the truth than care if I am right or wrong on any subject. Taking a look at the production figures for 2010 alone and the estimates given by the BEP, we see that 1,856,000,000 $1 notes were produced that year. Now, if 95% of notes are printed simply for purposes of replacing defunct currency, that means that the BEP is only introducing 5% of its production as new currency. If we conclude that the government (somehow) "makes" $1 for every note that is introduced into the economy, then $92.8 million was "made" in 2010. The overall cost per note, however, is 9.6 cents per note. Now, we can say, "Wow! The government introduced $92.8 million at a cost of only $8.9 million...that's $83.9 million profit!" But, we must determine the cost of all of the $1 notes produced. At a production of 1,856,000,000 notes, we have an overall cost of $178,176,00! That is the cost to introduce only $92,800,000 into the economy. That's a cost of $1.92 for every new $1 introduced! That's as bad as the one cent coin! Something to think about... You can see all of the figures at the BEP website at http://moneyfactory.gov/uscurrency/...figures.html |
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Moderator
 United States
189949 Posts |
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Pillar of the Community
Australia
560 Posts |
Only in America, having a hard time doing basic things that us Aussies don't even think about.
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Valued Member
United States
299 Posts |
I am thinking that they could take all the new dollar coins and GIVE them away equally to all citizens as an economic stimulus, LOL
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Pillar of the Community
United States
3294 Posts |
Or just put me in charge of distribution. For a 5% fee I think.
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Bedrock of the Community
United States
19972 Posts |
Stop printing $1 notes! END OF STORY
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Bedrock of the Community
United States
10047 Posts |
@NPCoin: Thanks for the link. Quote:
if 95% of notes are printed simply for purposes of replacing defunct currency and Quote:If we conclude that the government (somehow) "makes" $1 for every note that is introduced into the economy, then $92.8 million was "made" in 2010[/qoute] I am in no way making a challenge to you here. I do not know where these numbers (which the included word "if" appears to make these as assumptions) came from. I am assuming I missed them when I was on the site (would not be the first time  ). Is this where you got the numbers from? @ Bowfin: Quote:
Umm, for starters, our representatives are not there to do the "will of the majority". That socialist majority rules democracy crap is for the birds. That's where 51% get to legally rape and pillage the other 49%. Where 1/3 of the population gets voted into slavery by the other 2/3 of the population. This country is was a Constitutional Republic. Now we're not, and look at the mess we're in... What I was trying to say: If people want a law that a our flag MUST appear on our coins, then individuals will most certainly try to elect an official who agrees with their flag mandate proposal. The elected officials/representatives spend their whole campaigns making promises to the people that he/she will work for the agendas outlined in this platform and approved/wanted by those who vote for him/her. The obvious understanding is that when the vote for the flag mandate comes up, the official will look to the people who elected him and represent them with his vote. This is what I mean by the elected officials are there to do the will of the majority. Otherwise - why would we even need/desire to vote/write our elected officials? I am not sure where I was/am not making myself clear - but must have somewhere. @Piffin: [quote]I am thinking that they could take all the new dollar coins and GIVE them away equally to all citizens as an economic stimulus, LOL Actually, I thought I read somewhere that the stimulus" package(s?) were enough to give every household (or was it person?) in the US 17 grand! Lets see now - every household gets at least 17,000.00. Most people go out and buy all the toys (and good coins!) they want. Supply shortens, demand raises, productivity goes up, more jobs needed... But in reality, as with everything else - I am sure instead we would just get massive price gouging and inflation...  How much squash could a Sasquatch squash if a Sasquatch would squash squash? Download and read: Grading the graders Costly TPG ineptitude and No FG Kennedy halveshttps://ln5.sync.com/dl/7ca91bdd0/w...i3b-rbj9fir2 |
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Bedrock of the Community
United States
10045 Posts |
Quote:
Stop printing $1 notes! END OF STORY  It would simplify things immensely; having two forms of $1 legal tender makes little sense--and the coins are much more cost-effective. Besides, the stockpile we already have should serve us for many years. Edited by DVCollector
07/26/2011 4:10 pm
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Moderator
United States
189949 Posts |
Surprise, surprise, right?  |
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Valued Member
United States
108 Posts |
Quote:
I do not know where these numbers (which the included word "if" appears to make these as assumptions) came from. The number comes from the 5% of notes printed that are newly introduced into the economy and not simply to replace defunct notes. Thus, 92.8 million "new" notes were printed in 2010. In a fiat system, this is tantamount to the "creation" of money". Some people don't look at it that way, thus the use of "if". ;) The production "facts" for the current year are found at the bottom of the page. Thus under FY 2010, we have 1,856,000,000 $1 notes printed. If we apply fact #3 to the $1 notes alone (95% printed as replacements), then we are left with 5% or 92.8 million notes printed that are "newly" introduced into the economy. Now, being as the $1 note is probably the most widely used denomination, it is very possible that the percentage of replacements is even higher than that. So, we apply the denomination-wide average for lack of concise data. It has been pointed out many times before how with minted coinage, not only are there the benefits of the Mint being self-sustained, but also the fact that coin lasts magnitudes longer than paper notes. Notes have such a high maintenance cost! Every year notes must be printed again in order to replace those that are unfit for circulation. These costs add up every year. And as the economy requires more of these smaller denominations in order to function, that cost simply rises higher and higher. Naturally, any amount of data can be manipulated to speak one truth or another. It all comes down to which side is more convincing to any person's line of thought. |
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Pillar of the Community
Canada
3692 Posts |
Maybe if the money supply exploded five-fold with a newly created $500 note, and if the mint had the coins say, "this thing or token is legal tender". I hope not, but that would be the only way they'd see it.
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Valued Member
United States
296 Posts |
Quote:
What I was trying to say:
If people want a law that a our flag MUST appear on our coins, then individuals will most certainly try to elect an official who agrees with their flag mandate proposal. The elected officials/representatives spend their whole campaigns making promises to the people that he/she will work for the agendas outlined in this platform and approved/wanted by those who vote for him/her. The obvious understanding is that when the vote for the flag mandate comes up, the official will look to the people who elected him and represent them with his vote. This is what I mean by the elected officials are there to do the will of the majority. Otherwise - why would we even need/desire to vote/write our elected officials?
I am not sure where I was/am not making myself clear - but must have somewhere.
No offense, but your kinda still not. Me thinks one should do a little research on the difference between a Constitutional Republic, and a Socialist Democracy. Quote:
Otherwise - why would we even need/desire to vote/write our elected officials?
In all reality, except for ability of one interest group to plunder the rest of their brethren, we don't. The only legitimate functions of government is to protect INDIVIDUAL, not collective rights, enforce contracts, and provide for a common defense against invaders. Quote:
Actually, I thought I read somewhere that the stimulus" package(s?) were enough to give every household (or was it person?) in the US 17 grand! And just where in pray tell was the government going to get this money..? Quote:
Lets see now - every household gets at least 17,000.00. Most people go out and buy all the toys (and good coins!) they want. Supply shortens, demand raises, productivity goes up, more jobs needed... Until the money is gone... Quote:
But in reality, as with everything else - I am sure instead we would just get massive price gouging and inflation You'll get massive inflation all right. Price gouging will have nothing to do with it. Me thinks one should also do a little research on the difference Keynesian and Austrian economics... Keynesian economics, like Communism, is a failed 20th century experiment that is in it's dying last days. It will not be missed. |
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Pillar of the Community
Australia
1040 Posts |
I don't see what all the fuss is about. We have had dollar coins here since 1984 and $2 coins since 1988. 1 and 2c coins were phased out in the early '90s. There really is no issue with carrying around a little extra change in your pocket, you simply don't notice it and you get used to the idea very quickly.
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Moderator
United States
189949 Posts |
A little reminder to keep this topic on numismatics and not politics. |
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Posted 07/24/2011 10:30 pm
