Just a local update. I’ve seen posts about banks being closed and folks not being able to get cash or change. This morning it has come to our local county.
County pop 18k, 4 banks, just small towns. Hubby has been out clearing vacant property this week. He stops at a convenience store for drinks and munchies. Monday and Tuesday he pays with a $20 and gets change. This morning they said he had to pay with plastic. The 3 banks within a mile of the convenience store all say they can’t get change from the Fed, so the store has no change and will only accept exact cash payment or plastic.
Signs around here say “we are having a nation wide coin shortage”. I do think most everyone is paying for things online or with cards. Saw a line at Lowe’s the other day saying “this is the only line that accepts cash”. A friend said businesses aren’t turning in coins so banks have no coins to turn around and give out? Don’t know how that affects getting coins from the Fed? I’m not up on banking procedures enough to know how it works.
One thing it will affect is anyone getting paid in cash, such as illegals.
:: I do think most everyone is paying for things online or with cards. ::
Thus reducing the amount of cash (and coins, cuz errybody wants you to ‘round up’).
It’s causative.
A friend said businesses aren’t turning in coins so banks have no coins to turn around and give out? Don’t know how that affects getting coins from the Fed? I’m not up on banking procedures enough to know how it works.
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Well, our banks used to only accept coins on a specified day, and unless it’s changed, businesses have to count out the coins and put them in the paper rolls. Money is dirty-might have a CV-spit.
Also, What I have read is that the mints are not producing the coinage they used to because of covid-distancing and down time for extra workplace cleaning etc. This is also impacting the availability of gold and silver coins.
The mint had been churning out every increasing numbers of American Eagles each year and demand has really increased with all the trillions of dollars being printed for the rescue packages—thereby decreasing the value of the dollar and posing a risk of hyperinflation down the road.
People continue to move their cash into hard assets such as land, precious metals, ammo, food etc.