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What Would Occur If The United States Only Minted Cents Every 3 Years?
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<p>[QUOTE="Conder101, post: 1559625, member: 66"]I've run and posted the figures before. Most households have change jars, cans, drawers etc where they toss their surplus coins so they don't weigh down their pockets or purses. And each household of FOUR people, only need to toss back or lose ONE coin per WEEK to consume the entire annual production of the mint. So if you have more than about 12 coins, you have more than your entire annual production allowance. If you toss aside your change each day, how long does it take you to accumulate two rolls of cents? Not long, but that is nearly ten YEARS worth of your cent allowance. So you can see that if coin hoards are not returned to the bank on a very rapid cycle (Like every time you accumulate fifty cents worth of cents) that DECADES worth of production are just sitting out there in change jars. </p><p><br /></p><p>But people don't take their change back to the bank that often. And by the time they do they have decades worth of their coinage allowance in that jar. Even if they take them back annually. Now that is where the majority of the cents come from to the banks each year, not the mint. The mint doesn't make another five billion cents each year because the economy NEEDS five billion more cents, they make them to replace the five billion cents that have disappeared from circulation over the last year. And believe it or not, often when a shortage does develop, rather than encourage people to pay with exact change or to return their cent hoards to circulation it often causes the opposite reaction with people deliberately hoarding the ones the get. "Because there is a shortage!" And when banks and businesses start offering to pay a premium for cents it frequently just makes the problem worse. "If they will pay me 55 cents a roll this week, maybe they will pay 60 cents next week." So instead of returning them for the offered premium they hoard even more hoping for a higher premium. And the shortage gets worse. And this can happen even with the mint putting billions of cents into circulation. Stop production for two years which effectively takes ten billion cents out of the equation and you get serious shortages developing quickly.[/QUOTE]</p><p><br /></p>
[QUOTE="Conder101, post: 1559625, member: 66"]I've run and posted the figures before. Most households have change jars, cans, drawers etc where they toss their surplus coins so they don't weigh down their pockets or purses. And each household of FOUR people, only need to toss back or lose ONE coin per WEEK to consume the entire annual production of the mint. So if you have more than about 12 coins, you have more than your entire annual production allowance. If you toss aside your change each day, how long does it take you to accumulate two rolls of cents? Not long, but that is nearly ten YEARS worth of your cent allowance. So you can see that if coin hoards are not returned to the bank on a very rapid cycle (Like every time you accumulate fifty cents worth of cents) that DECADES worth of production are just sitting out there in change jars. But people don't take their change back to the bank that often. And by the time they do they have decades worth of their coinage allowance in that jar. Even if they take them back annually. Now that is where the majority of the cents come from to the banks each year, not the mint. The mint doesn't make another five billion cents each year because the economy NEEDS five billion more cents, they make them to replace the five billion cents that have disappeared from circulation over the last year. And believe it or not, often when a shortage does develop, rather than encourage people to pay with exact change or to return their cent hoards to circulation it often causes the opposite reaction with people deliberately hoarding the ones the get. "Because there is a shortage!" And when banks and businesses start offering to pay a premium for cents it frequently just makes the problem worse. "If they will pay me 55 cents a roll this week, maybe they will pay 60 cents next week." So instead of returning them for the offered premium they hoard even more hoping for a higher premium. And the shortage gets worse. And this can happen even with the mint putting billions of cents into circulation. Stop production for two years which effectively takes ten billion cents out of the equation and you get serious shortages developing quickly.[/QUOTE]
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