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Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping

Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping

Old Mar 3, 11, 9:31 am
  #13756  
 
Join Date: Sep 2010
Location: Phoenix, AZ
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Originally Posted by mrpickles View Post
Nobody is "footing the bill":

The Mint makes money selling cash for less than it costs to manufacture.

UPS makes money off of the shipping fees and keeps those guys in brown shorts in shape.

Credit card/Banks make money off of the cc discount rate for basically doing nothing else.

Airlines make money by selling the points to the credit card departments of the banks hoping that those points will expire.

Hotels make money when you travel and redeem points for nights that they can't sell otherwise.

Armored transport companies make money transporting the coins to the Fed to store them (because they are too lazy to require the banks to use them).

Warehouse owners make money renting empty warehouses to the Federal Reserve to store all of these coins.

Security guards make money watching these coins go nowhere.

Tellers should be happy because they have a job to begin with, counting the coins when we make deposits.

Costco makes money every time I fill my gas tank to go to the bank and make a deposit.

THE BANKS ARE MAKING MONEY BECAUSE THEY ARE CHARGING HOMEOWNERS, CREDIT CARD CUSTOMERS AND EVERYONE ELSE > 5-24% FOR MONEY THAT THEY GET ELECTRONICALLY FROM THE FED FOR NEXT TO NOTHING. (<1%)


They only one getting the shaft is the customers buying the coins being forced to play this ridiculous game of ordering every 10 days.
Thats right! you tell 'em Mr. Pickles!
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Old Mar 3, 11, 10:03 am
  #13757  
 
Join Date: Dec 2010
Location: CHA
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My bank lets me bring them in rolled. She doesn't mark them with my account number or anything. I get credited immediately, and I even made a comment last time, "I hope you don't mind all these coins". She said, "Not at all... cash is cash!". God bless Credit Unions...
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Old Mar 3, 11, 10:18 am
  #13758  
 
Join Date: Feb 2001
Location: Oregon (DL and Marr Lifetime plat. etc.)
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I totally agree with the prededing comments about the economics of this deal. It may appear that the Mint is making money, but then the Federal Reserve winds up with an increasing inventory of coins that nobody wants. For everybody that supposedly makes money, somebody else is paying for it.

My hope (and rationalization for a couple $1000 a month) is that, sooner or later, the Fed will complain to the extent that the dollar bill is eliminated, thus forcing people to use the coins (which should be done anyways). Otherwise, what is the Fed going to do with all the coins?
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Old Mar 3, 11, 10:27 am
  #13759  
 
Join Date: Feb 2009
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Originally Posted by PIONEER View Post
I totally agree with the prededing comments about the economics of this deal. It may appear that the Mint is making money, but then the Federal Reserve winds up with an increasing inventory of coins that nobody wants. For everybody that supposedly makes money, somebody else is paying for it.

My hope (and rationalization for a couple $1000 a month) is that, sooner or later, the Fed will complain to the extent that the dollar bill is eliminated, thus forcing people to use the coins (which should be done anyways). Otherwise, what is the Fed going to do with all the coins?
If the American public can't give up pennies, what makes you think they can give up the dollar bill?
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Old Mar 3, 11, 10:39 am
  #13760  
 
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Originally Posted by Astrophsx View Post
If the American public can't give up pennies, what makes you think they can give up the dollar bill?
Good point about pennies. The problem is that Congress won't make a decision on either pennies or dollars.
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Old Mar 3, 11, 11:08 am
  #13761  
 
Join Date: Mar 2006
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Originally Posted by PIONEER View Post
I totally agree with the prededing comments about the economics of this deal. It may appear that the Mint is making money, but then the Federal Reserve winds up with an increasing inventory of coins that nobody wants. For everybody that supposedly makes money, somebody else is paying for it.

My hope (and rationalization for a couple $1000 a month) is that, sooner or later, the Fed will complain to the extent that the dollar bill is eliminated, thus forcing people to use the coins (which should be done anyways). Otherwise, what is the Fed going to do with all the coins?
It doesn't just "appear" that the Mint is making money -- they are. But you don't really seem to be disputing that. You are correct that the Federal Reserve winds up with an increasing inventory of coins that nobody wants. But your following sentence seems to imply that this means that someone is "paying for it". Are you talking about storage space costs?
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Old Mar 3, 11, 11:48 am
  #13762  
 
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Originally Posted by aviators99 View Post
It doesn't just "appear" that the Mint is making money -- they are. But you don't really seem to be disputing that. You are correct that the Federal Reserve winds up with an increasing inventory of coins that nobody wants. But your following sentence seems to imply that this means that someone is "paying for it". Are you talking about storage space costs?

The Federal Reserve pays for the coins banks send to them as well as the ongoing storage costs.
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Old Mar 3, 11, 11:55 am
  #13763  
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Originally Posted by buschoi View Post
It is. Sometimes, they even ask me how to get in.
yeah I wish a banker would ask me that. Most just cock their heads to one side and give you that furrowed brow "huh?" look while trying to act all serious. I don't even bother as I feel that most bankers and I are of completely different species or something.

Originally Posted by MojaveJack View Post
It doesn't matter who the idiots are. As we all know, when you're on THEIR turf you have to play by THEIR rules.
Well I wasnt talking about the banks, government, stores, mint, credit cards in this case

Originally Posted by Astrophsx View Post
You mean you aren't getting paid to bring in coins to your bank? I am... kid you not!
so do I. Once again I publicly find a way to agree with Astro! Wow! Why, this is a new beginning!


****

Anyway I was having a coin debate with a friend of mine who is privy to it all but does not partake for whatever reasons of his own. He is not a FTer either but is often intrigued with what I have told him about what we all do in here. Below is our conversation from email:



first email to friend From:MM

a moderator in the forum on the miles section of FlyerTalk said this in the coins thread...

Originally Posted by aviators99

The congress requires that the mint mints these coins as part of the presidential dollar coin program, in addition to the dollar bills that are ordered to be printed. They are not being minted to order. If we don't buy them, they will sit, and the costs will be absorbed by the government, without the revenue of us buying them.

So, the profit you're talking about could only be realized if the dollar coin law was stricken. It has nothing to do with us. We (as purchasers of the coins) are the ones who are saving the government money in this case.


friend's email 1:
I would agree, except for one thing. The purchasers of coins are not circulating them as intended. Returning them to a financial institution/bank is not circulating them. The coins’ production is based upon a calculation that their costs of production/sales will be compensated by the number of coins that are kept as keepsakes by the public, or lost down gutter drains, etc. I’m sure a complicated algorithm was computed to determine the approximate number that would “disappear” into the circulatory system, and how many would show back up at banks to be returned to the treasury as excess. I’m sure your local bank has more coins, now, than they will ever need from customer requests. They have probably been trying to return them to the treasury, but the volume has become uncomfortable for them.

If the coins were somehow being used to pay bills, and then those vendors used the coins, or then returned them to their banks, then the coins would have at least made a small journey through the monetary circulatory system, and some would have “disappeared” into personal collections or the aforementioned gutter drains,,,, thus having funded the original production of the coins.

Give them away to kids. Kids love unique coins.
And old people… for some reason….


MM's second email:

your first line, though, is based on a false premise
they HAD to put that in there to satisfy the blunders and attempted saves of the promoters of this gig.

I agree people should use them but to be honest it has been hard to do just that as someone really messed up on how to make the public--and most businesses even have the means to accept them!

(registers with a slot to hold them, vaults with slots and space for them, coin changers and machines that take them, stores and business that enjoy taking them and want to. They are not catching on)


friend's last email - also loosely quoting animal house too in it:

It is very European.

However, (regarding the false premise) when the promoters of gig pitched the program, it was qualified because of the circulation/disappearance component –offsetting its overall cost, including storage. Coins sitting in boxes unused, waiting for future purchases and circulation/disappearance is not terribly costly. Immediate purchase does, as you say, relieve them of these minor storage costs,,,, but their immediate return to financial institutions wipes out all “disappearance” factors, and therefore, there is no cost benefit enjoyed by the program or the mint.

The issue here is not whether the coin purchasers broke a few rules, or took a few liberties with their female party guests—they did. [winks at Dean Wormer]But you can't hold a whole fraternity responsible for the behavior of a few, sick twisted individuals. For if you do, then shouldn't we blame the whole fraternity system? And if the whole fraternity system is guilty, then isn't this an indictment of our educational institutions in general? I put it to you, Greg: isn't this an indictment of our entire American society? Well, you can do whatever you want to us, but I for one am not going to stand here and listen to you badmouth the United States of America . Gentlemen!
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Old Mar 3, 11, 12:16 pm
  #13764  
 
Join Date: Sep 2009
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It seems we are getting to the end of this pipe dream. Where does the Federal Reserve get the money to pay for these coins?
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Old Mar 3, 11, 12:21 pm
  #13765  
 
Join Date: Feb 2003
Location: Reston, Virginia, USA
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I have to agree that using coins where one could use a rewards CC is a waste. Most coins I bank, but there are some uses where cash is required or is most convienient:

1. Vending machines.
2. Metro tickets.
3. Office collections
4. Garage Sales
5. Farmers' market
6. Splitting a lunch tab.
7. Barber shop
8. Taxi

Obviously, these don't cover my $1K/month spend, but at least some coins get circulated. What the coins DON'T do is ride around in my pocket. They are too bulky and too heavy.
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Old Mar 3, 11, 12:24 pm
  #13766  
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Originally Posted by QL_714 View Post
It seems we are getting to the end of this pipe dream. Where does the Federal Reserve get the money to pay for these coins?
answer 1 could be they just MINT them! lol
answer 2 could be our parents paid the taxes for that process long ago
answer 3? who knows. I am curious too though

Originally Posted by scubadiver View Post
I have to agree that using coins where one could use a rewards CC is a waste. Most coins I bank, but there are some uses where cash is required or is most convienient:

1. Vending machines.
2. Metro tickets.
3. Office collections
4. Garage Sales
5. Farmers' market
6. Splitting a lunch tab.
7. Barber shop
8. Taxi

Obviously, these don't cover my $1K/month spend, but at least some coins get circulated. What the coins DON'T do is ride around in my pocket. They are too bulky and too heavy.
yes, when one cannot use a CC on the above, I agree. Splitting lunch I often am in situations where both parties just have 2 CCs. But yes it could happen with coins.

babysitter is another perfect person to give them to
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Old Mar 3, 11, 12:33 pm
  #13767  
 
Join Date: Mar 2006
Location: Miami, FL, USA
Posts: 3,888
Originally Posted by aviators99

The congress requires that the mint mints these coins as part of the presidential dollar coin program, in addition to the dollar bills that are ordered to be printed. They are not being minted to order. If we don't buy them, they will sit, and the costs will be absorbed by the government, without the revenue of us buying them.

So, the profit you're talking about could only be realized if the dollar coin law was stricken. It has nothing to do with us. We (as purchasers of the coins) are the ones who are saving the government money in this case.
[/COLOR]


Originally Posted by alleged mystery person
I would agree, except for one thing. The purchasers of coins are not circulating them as intended. Returning them to a financial institution/bank is not circulating them. The coins’ production is based upon a calculation that their costs of production/sales will be compensated by the number of coins that are kept as keepsakes by the public, or lost down gutter drains, etc. I’m sure a complicated algorithm was computed to determine the approximate number that would “disappear” into the circulatory system, and how many would show back up at banks to be returned to the treasury as excess. I’m sure your local bank has more coins, now, than they will ever need from customer requests. They have probably been trying to return them to the treasury, but the volume has become uncomfortable for them.

If the coins were somehow being used to pay bills, and then those vendors used the coins, or then returned them to their banks, then the coins would have at least made a small journey through the monetary circulatory system, and some would have “disappeared” into personal collections or the aforementioned gutter drains,,,, thus having funded the original production of the coins.

Give them away to kids. Kids love unique coins.
And old people… for some reason….
Originally Posted by alleged mystery person
How is this disagreeing with me? I think what MM's friend is saying is that the Fed has done a stupid thing by requiring the minting of these coins. No argument there. The point of my post is that whether we buy them or not, they are minted. Since we are buying them, there is additional money going into the government. I don't see this disputed at all. Therefore, when we (the Flyertalk people) buy coins, even if we deposit them directly to the bank, it does not cost taxpayers money any more than if we weren't involved at all. In fact, it saves the taxpayers money. I am looking for a rebuttal to this, and your friend doesn't seem to give one.

In terms of short circulation and people collecting coins, I claim that this is irrelevant, because if we didn't buy them they still wouldn't be in circulation. It's just that they would sit at the Mint instead of the Fed, and the Mint wouldn't have the benefit of the money we pay.
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Old Mar 3, 11, 12:36 pm
  #13768  
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you are correct aviators99...

and I guess my problem has been trying to 'splain to friends of mine who kinda get me but don't get these gigs... HOW what we do is NOT wrong or bad.

it is so hard to explain it and everyone here knows what I am talking about. So most of us don't even bother sometimes I bet.
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Old Mar 3, 11, 12:40 pm
  #13769  
 
Join Date: Sep 2009
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Originally Posted by aviators99 View Post
Therefore, when we (the Flyertalk people) buy coins, even if we deposit them directly to the bank, it does not cost taxpayers money any more than if we weren't involved at all. In fact, it saves the taxpayers money. I am looking for a rebuttal to this, and your friend doesn't seem to give one.
Where does the Federal Reserve get the money to pay for these coins.
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Old Mar 3, 11, 12:51 pm
  #13770  
 
Join Date: Jul 2010
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Originally Posted by QL_714 View Post
Where does the Federal Reserve get the money to pay for these coins.
They literally print money electronically out of thin air.. Well they dont literally say it, they call it bank reserves. they lower the funds rate in order to do so. Our taxes dont even cover enough of the federal deficit. So they been cranking up the presses for quite a while. So they expand the money supply which most of the time results in inflation and when prices are going up to fast, they have to bring a recession. They have to balance these two..It is a scheme to transfer the citizens wealth into the pockets of central banks, and bureaucrats.
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