FlyerTalk Forums - View Single Post - Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping
Old Jun 18, 2009, 10:14 am
  #2455  
WBurcham
 
Join Date: Dec 2005
Location: Hopefully on a plane...
Posts: 6,580
Originally Posted by Andy2
Let's not forget that we are doing an enormous patrotic service here. Maybe that is why the mint is so nice when they cancel an order (giving the hint "feel free to place your order again")

The dollar coins allow the government to reduce costs (dollar coins are better in the long run than paper dollars). The difficulty is in getting common people to deal with a new system, i.e. change (no pun intended). Remember the Susan B. Anthony dollar coin disaster?

When we buy coins, the Mint observes an increase in demand and produces more coins. When we deposit the coins I hope that the coins enter the banking / Federal Reserve system (correct me if I am wrong) rather than going back to the Mint. When the banking system recognizes that is has an enormous quantity of dollar coins, it forces its banks to take more delivery of dollar coins instead of dollar bills and the banks but the same pressure on their retail business customers. More dollar coins get handed out to the common folk.

Gradually, individual customers become more accustomed to dollar coins and eventually dollar coins become more prevalent than paper dollars. While this long process occurs, the Mint keeps producing more coins to keep the process working because of our credit card orders. The government saves more money in the long run than it incurs in the short-term costs of paying the credit card fees and shipping. We get free and upgraded travel as the workhorses of this system (it takes a full suitcase and a backpack to transport $5,000 in dollar coins; hence the term workhorse.
Good points that I did not consider prior. I'm forwarding this to my family who think I'm nuts for doing it.
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