I will be posting places that I think (along with many Americans) places we should save as a country. Until I was in my 30’s I had no idea what the saying “You can’t see the forest for the trees meant”; I do now! We will take these proposed savings and keep a tab on the running amount that could be saved. Today’s post will be quotes from 3 articles about the waste of the $1 billion plus worth of dollar coins held in storage by Federal Reserve Banks. I’m posting the link to each so you can read the whole article…I just don’t understand why they are so…well stupid!
$1 Billion That Nobody Wants
June 28, 2011
Robert Benincasa and David Kestenbaum
Politicians in Washington hardly let a few minutes go by without mentioning how broke the government is. So, it’s a little surprising that they’ve created a stash of more than $1 billion that almost no one wants.
A Government Accountability Office study out this spring says that switching to a dollar coin “would provide a net benefit to the government” of about $5.5 billion over 30 years.
But it’s not because coins are cheaper. The report says the government would not recover the cost of switching from bills to coins over that period.
Instead, the benefit to the government would come only from the profit it makes by manufacturing each coin for 30 cents and selling it to the public for a dollar.
When this profit, known as seigniorage, is factored out, switching to the dollar coin would actually cost taxpayers money over three decades, according to a Federal Reserve analysis of the GAO’s figures. The cost works out to $3.4 billion.
Proposed Legislation Would End Presidential Dollar Coins
by Darrin Lee Unser on July 22, 2011
This new legislation comes in response to recent media attention to a reported $1 billion plus worth of dollar coins held in storage by Federal Reserve Banks. (Check out the PDF of the Annual Report to the Congress on the Presidential $1 Coin Program from the Board of Governors of the Federal Reserve System.) The massive stash of coins has been building up over the years with a marked increase occurring since the introduction of Presidential dollars four years ago.
US Mint: Wasting Money By Making Money
By JONATHAN KARL (@jonkarl) , ROBIN GRADISON and BEN FORER
July 14, 2011
In their most recent annual report to Congress, the Federal Reserve says the coins are piling up so quickly they will need to spend $650,000 to build a new vault in Dallas to hold them. Shipping the coins to the new secure facility will cost an additional $3 million.