It seems that no one wants real money anymore or at least dollar coins. The White House announced today through their Press Secretary that they’ll be slowing down the production of United States Mint Presidential $1 Coins. The coins were expected to be produced until 2016 but after nearly $1.4 billion in unused coins piled up, Congress & Timothy Geithner announced the end to a coin era.
If you’re a coin collector, don’t fret, it seems that production capacity will be entertained for the needs of collectors. Honestly, we’re not very sure why you’d want to collect a coin that no one wants but nonetheless you’ll still be able to snap these up.
Stopping productiong of the minting of the Presential Dollar Coins will save the country $50 million dollars in taxpayer expense. Now the Federal Reserve just needs to figure out what to do with the $1.4 billion coins that are piled up in its vaults that no one wants.
Interesting enough, there did use to be something that Americans found these coins good for. It seems that smart consumers were using these coins to inflate their airline miles by purchasing the coins on a credit card with Airline mile rewards and then depositing the coins in the bank. The consumer would get the points but they really didn’t have to pay much of anything for the coins. This scheme was limited to $3000 a month but it seems with no dollar coins it will be killed off altogether.
The White House Press Release announcing the end to the mass production of the US Presidential Dollar Coins is below:
The Vice President and Secretary Geithner announced the Administration’s plan to stop the wasteful production of $1 coins for circulation. In 2005, Congress enacted the Presidential $1 Coin Act, which mandated that the United States Mint issue new Presidential $1 Coins with the likeness of every deceased President. But more than 40 percent of the $1 coins that the United States Mint has issued have been returned to the Federal Reserve, because nobody wants to use them.
As a result, nearly 1.4 billion excess dollar coins are already sitting unused in Federal Reserve Bank vaults – enough to meet demand for more than a decade. But until today, the Mint was on pace to produce an additional 1.6 billion dollar coins through 2016.
To put a stop to this waste the Administration will halt the production of Presidential $1 Coins for circulation. The Administration will still be required, by law, to continue to produce a relatively small number of the coins to be sold to collectors, at no cost to taxpayers. Instead of producing 70-80 million coins per President, the United States Mint will now only produce as many as collectors want. Regular circulating demand for $1 coins will be met through the Federal Reserve Banks’ existing inventory, which will be drawn down over time. Overall, this step will save at least $50 million annually over the next several years.
“At the Treasury Department, we’re continuing to work hard in support of President Obama and Vice President Biden’s efforts to cut waste and streamline government,” said Treasury Secretary Tim Geithner. “Putting a stop to the minting of surplus $1 coins represents a significant opportunity to reduce costs and improve efficiency. In these tough times, Americans are making every dollar count, and they deserve the same from their government. We simply shouldn’t be wasting taxpayer money on money that taxpayers aren’t using.”