Death of the dollar bill

Discussion in 'Coin Chat' started by biggiej, Jul 19, 2009.

  1. biggiej

    biggiej Member

    Please do not take this as gospel, but i just returned from a family outing where one of the attendees was the local bank president. We started talking coins and he informed me that they got a call earlier in the week from the U.S. Mint to inform them that they were beginning a 10 year phase out of the one dollar bill!! I have no other details only what the man told me. Has anyone else heard this?:bigeyes:
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  3. Boss

    Boss Coin Hoarder

    Google "North American Union". I think it will be a lot quicker than 10 years. There is a push to abandon our soverignty and our currency for a EURO style form of money. The coins would be called AMERO's. They sold 2 prototypes at my local shop 3 weeks ago, but I was not there so I didn't get the coins on bid.
  4. De Orc

    De Orc Well-Known Member

  5. TomCorona

    TomCorona New Member

    Boss, Boss,'ll never learn will ya?. :rolleyes:
  6. chrisild

    chrisild Coin Collector Moderator

    Ha, there is new fodder for those conspiracy theorists in the US. :p Some have been focusing on that "United Future World Currency" which Sandro Sassoli, an Italian journalist/PR manager, presented at the G8 meeting in Italy a couple of days ago. On that occasion, Sassoli had some "samples" (gold medals) produced and gave them to Obama, Medvedev and a few others.

    Then Medvedev, who does support the idea of some new reserve currency concept, showed Sassoli's piece around. Immediately some people in the US wrote, how dare those Russians, the G8 wants to take our dollar away, etc. The most hilarious comment I have seen so far is this: Oh my, what would Hal Turner and the like say to that ... :eat:

  7. De Orc

    De Orc Well-Known Member

    Please do not comment on what you read in that link as it is deffinatly too political for here :eek:
  8. chrisild

    chrisild Coin Collector Moderator

    Umm, you may be right. :) What I found a little strange about the very first post in this topic: Why would the US Mint call banks and tell them about a plan to phase out the $1 bill? Either that was a prank call, or a misunderstanding. Something like "you know, the note should at some point not circulate any more, so please help us by ordering more coins". Who knows ...

  9. Dollar1948

    Dollar1948 New Member

    Not to beat to death a dead horse, but this dollar coin thing is all about money. The life expectancy of a dollar coin, far excedes the life of any currency note, so there are cost savings to be had.
    As it is a well known fact the Americans public's opinion pertaining to eliminating the dollar note, it sounds like they are going to ween you off it. Have a blend of both until people can become a little more receptive.
    In 1987 Canada just stop making the dollar bill altogether. No phasing in period, and it was well received.
    It is my hope that this 'Amero' doesn't happen, or at least Canada doesn't participate.
    The world has just witnessed what happens when incompetant US banking policies prevail and as such if we can segregate ourselves as much as possible from that in the future, the better.
  10. grizz

    grizz numismatist

    .......let's not forget the govt. does know whats best for us. schedule any maintenance yet for the new GM (government motors) car you bought? insert tongue in cheek here.
  11. Ardatirion

    Ardatirion Où est mon poisson

    Unfortunately, at times politics can be inseparable from numismatics. If we can manage to keep it civil, maybe this thread can survive. But this is the internet, so I doubt that will happen.
  12. Snowman

    Snowman Senior Member

    lets do the math

    the mint has already made over 300 million dollar coins this year alone and the year is ½ over. plus the mint has stopped making nickels and dimes. i wonder where all these dollar coins are going ? i bet this tide would continue

    if we add up all the dollar coins made for circulation in the past years 1979,1980,1999,2000,2001,2007,2008 that total is almost 4 billion.

    WOW, sure is alot of them. Snowman
  13. urbanchemist


    well i work at a bank and i deal closely with our vault tellers. there has been not mention what so ever of stopping printing of $1's. if you think about just vending machines alone that use $1's that is a tremendous feat to change them over to use some other type of currency. if anything there might be a redesign of the dollar but i highly doubt the death is anywhere close to happening. JMHO
  14. Numbers

    Numbers Senior Member

    Um...yes, let's do the math. The total is indeed almost 4 billion dollar coins, but that number is tiny compared to the number that would be needed if there were no more dollar bills.

    First of all, according to the Fed, there are currently some 9.5 billion $1 notes outstanding, in addition to probably a billion-plus of those dollar coins that are already out there in commerce rather than in FRB vaults or collectors' hoards.

    Next, note that when Canada replaced its $1 bill with a $1 coin, they found that they needed roughly three times as many of the coins as of the bills to meet demand. This is because coins circulate differently from bills: they sit idle in vending machine coin boxes, people's change jars, &c. for much longer periods of time than bills do, so it takes more coins than bills to do the same job.

    Therefore, we can estimate that the U.S. would need an initial supply of roughly 30 billion dollar coins, if no dollar bills existed.

    Now, the dollar bill is generally believed to have an average circulation life of roughly 18 months. So the dollar bill can't go out of production until we're already quite close to having 30 billion dollar coins on hand. It'd be utterly impossible to stop printing dollar bills and then get all those dollar coins ready in such a short time.

    Even if the Mint decided to devote substantially all of its excess production time to dollar coins, it'd take several years to produce the missing 25 billion or so. And in fact they're doing no such thing--almost every Presidential dollar has had a lower mintage than the previous one, since the previous ones aren't circulating as much as the Mint had hoped.

    Thus it's pretty clear that nobody's planning on killing off the dollar bill. If they were, you'd see the Mint churning out dollar coins as fast as it could, even despite the lack of present-day demand, and socking them away in the vaults by the billions against the day when people would suddenly have no choice but to use them. Instead, we see the Mint offering free shipping on boxes of dollar coins in order to prevent them from accumulating in the vaults.

    The $1 bill may well be discontinued someday, but that day will not come as a surprise. It'll take years of preparation that'll be obvious to everybody. And for that very reason, it'll require a deliberate firm decision by Congress or the Treasury or somebody--none of the current "let's promote the dollar coin while the dollar bill still exists" stuff is going to move us one iota in that direction.
  15. Just Carl

    Just Carl Numismatist

    Now imagine just how many banks, credit unions, savings and loans that would be getting those calls. I suppose the Mint would hire a staff of several thousand of those telemarketers to handle this. That should be fun with so many large banks with those stupid answering systems of press 1 for English, press 2 for loans, press........................
  16. Just Carl

    Just Carl Numismatist

    I suspect this is a rumor started by someone that just got cheated by one of those machines your talking about. I'm still wondering what you do about it when you put a dollar bill in one and get a rotten candy bar and no change.
  17. PennyGuy

    PennyGuy US and CDN Copper

    This makes a lot of sense to me. Good Post :thumb:
  18. green18

    green18 Sweet on Commemorative Coins Supporter

    I think Lewis Black could say it best.....
  19. TheNoost

    TheNoost huldufolk

    Wouldn't it be the BEP that says no more dollar bills?
  20. coinman0456

    coinman0456 Coin Collector

    You are correct.
  21. coinman0456

    coinman0456 Coin Collector

    skuttle butt has it, that the Fed has already printed these "ameros" and has supplied china with them as payment for indebtedness by the U.S.
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