Posted on 07/24/2020 7:15:01 AM PDT by Roman_War_Criminal
As if the global economic disaster caused by the Chinese Covid-19 viral pandemic was not bad enough, the looming global “coin shortage” and the “unknown pneumonia” (Covid-20?) in Kazakhstan are here.
Why exactly do we have a coin shortage?
Banks tell us that the Fed are not releasing enough coins.
Armstrong Economics wrote that faith in governments has been eroded. It sees governments as promoters of the idea that money is dirty, and the solution is to eliminate coins and paper money even though physical money as a medium of exchange has been in circulation for centuries.
The U.S. Treasury reported a disruption in the coin supply chain and its velocity of circulation due to the lockdowns and the huge reduction in consumption in the last four months of forced lockdowns in all 50 states. People shopped mostly for food and avoided all other venues of direct commerce for fear of Covid-19 infection and because so many places were closed. Many shopped online or in large retailers like Costco, Target, Walmart, and Amazon.
Allegedly, the U.S. Mint has minted less coins to protect employees from COVID-19. It is an interesting issue to ponder since minting coins and printing paper currency are highly automated operations, with expensive computers driving the printing and minting presses and requiring very few employees, mostly in checking roles to make sure the machines run properly and the mint/print are done correctly, as well as controlling the quality of each batch that is bound and packaged for distribution and circulation.
Some central banks are sterilizing money with UV light to prevent the spread of viral infections. The Fed purportedly quarantined for ten days U.S. dollars returning from Europe and Asia.
The U.S. Treasury sees the current coin shortage in U.S. businesses as a decrease in velocity of various coins in circulation. The Treasury estimated the value of coins in circulation in April 2020 of $47.8 billion as an adequate coin supply, larger than last year’s supply of coins by at least half a billion. But the closing of retail shops, many permanently, bank branches, transit authorities, and laundromats due to Covid-19 fears, eliminated the typical places where coins enter circulation.
Nobody knows exactly if people are hoarding coins on purpose or if the businesses that have closed temporarily or permanently have cleared out all their cash registers of coins and paper currency.
“The coin supply chain includes many participants, from the U.S. Mint who produces new coin, to the Federal Reserve who distributes coin on the U.S. Mint’s behalf, to armored carriers, banks, retailers and consumers, all of whom have a role to play in helping to resolve this issue.”
On June 11, the Federal Reserve announced the Strategic Allocation of Coin Inventories which was a temporary coin order allocation in all Reserve Bank offices and Federal Reserve coin distribution locations effective June 15, 2020.
The Federal Reserve also established a U.S. Coin Task Force in early July to deal with disruptions to normal coin circulation. All interested parties participated – U.S. Mint, Federal Reserve, armored carriers, American Bankers Association, Independent Community Bankers Association, National Association of Federal Credit Unions, Coin aggregator representatives, and retail trade industry.
The Federal Reserve said that “it is confident that the coin inventory issues will resolve once the economy opens more broadly and the coin supply chain returns to normal circulation patterns, however, “it recognizes that these measures alone will not be enough to resolve near-term issues.”
Odd no one in the MSM has express concern about paper newspapers, paper books, or metal 'silverware' in restaurants, libraries, etc etc.
After a bit of modification, nickels work as wedges
to secure wood handles.
“Why exactly do we have a coin shortage?”
Because the banks (except for ATMs) are closed.
Well I got about 150.00 in my gallon jug. Cash it in about twice a year. He’ll of a lot of pennies.
MANUFACTURED crisis, like all the rest.
Isn’t it funny how we, average people live our lives and never know there’s a “crisis” until our leftist news and politicians TELL us so?
Our local Wal-Mart has a coin exchange but want a % for doing it. I go to local stores who welcome the chance for the change.
the newer American coins feel like fake play coins anyway.....its embarrassing to have such fluff for coins...
Bullets,the next coinage .
When discussing with the family the “coin shortage” and hearing their claim it was because the mint was closed, I pulled out the loose change from my pocket. Just over a dollar’s worth, including four quarters. I asked “where do stores get coins from?” - Banks was their answer. “Where do banks get their coins from?” - the mint was their answer. “So why do I have four quarters and only one is 2020. The others are 1982, 1984, and 1985?”
Do you really think that coins are only used once, then they go back to the mint to get new ones? Then I asked what we do with coins. We put them in a container in the bedroom and a couple times a year turn them in at the bank. And when was the last time we did that? Feb. How come? Because the bank closed it lobby.
Or we use them when shopping to get less change back. And when did we last go shopping? March?
Then we had a nice discussion about velocity.
This Covid Crap is a new government bureaucracy. And I am soooo sick of it.
I remember when they tried this crap in the 70s with a fake penny shortage.
Oh my...I forgot about that. You are right. The margin is going to kill them. On companies using debit cards, there is not only the visa network charge, there is a flat fee for debit card transactions.
Imagine paying a 5 cent fee, plus 3% for a 55% transaction. Incredible.
My insurance company sent a refund check for a little under a hundred dollars, due to the corona virus and no one driving, thus fewer claims.
Why not round them down?
Not that big a deal really. I remember once my bank was offering 2 for 1 on pennies. That was a shortage. Currently what we’re at is a minor nuisance at best.
Newspapers and books don’t change hands nearly as much as cash. And silverware isn’t absorbent. CDC identified cash as a disease vector in the 90s. Absorbent and tends to be stored at body temperature (in your pocket) and changes hands often. It’s basically a petri dish.
You’re right.
True of most books and newspapers... I’m amazed though that doctor’s offices still have magazines sitting out in waiting rooms.
Went to pickup s burger and paid the entire bill in change.
None of the ones I’ve been too since this started do anymore. And they’ll probably never be back. In the age of cellphones nobody used them anymore anyway.
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