Originally Posted by
aviators99
M0 is indeed increasing, but having nothing to do with the $1 coin direct ship program.
True, and I was never trying to deny that. However, each dollar coin does represent and embody, in some little way, the dilution of the money supply. Honestly, though, I don't really have a problem with the rate M0 is increasing; it's the more inclusive money supply measures that really have me worried.
That said-- All in all, I am not 100% sure what the OP's point was. You responded with something about how the coins are not dilutive, and that's all that I was replying to. I really wasn't trying to make a larger point -- just trying to correct what I perceived as an obfuscation or oversimplification.
Now, imagine that the direct ship program didn't include free shipping, and didn't include the ability to earn miles. Would anyone buy these coins? I feel 100% confident in saying that many fewer coins would be sold. The money that the Mint makes on seignorage would be substantially less, and yet M0 would still be increasing at the same rate.
Right?
Sounds reasonable to me.