This absurdity was all started in 2005, with the passing of the Presidential $1 Coin Act, a program which directed the United States Mint to create $1 coins with engravings of U.S. Presidents. The act was largely enacted in response to the massive failure of the Sacagawea $1 coin.
NPR’s Planet Money investigated the $1 presidential coin scam, but after all this time, still only 60 percent of the coins have made it into circulation. The other 40 percent are lounging in the Fed’s vaults accumulating dust. According to NPR, the government forks over 30 cents for every coin produced, which means taxpayers have footed a $300 million bill for a monetary program that never really took off.
Members of Congress reasoned that a coin series that changed frequently and had educational appeal would make dollar coins more popular. The idea came from the successful program that put each of the 50 states on the backs of quarters.
But as the new presidential dollar coins rolled out, the greenback lost none of its dominance in Americans’ hearts and wallets.
If the mandate to make presidential coins wasn’t enough to generate a growing heap of unwanted coins, a political deal ensured that even more unwanted coins would be produced.
Many would say, including myself, we should use this gimmicky currency to pay off our skyrocketing national debt, but the coins are not exactly “money” yet, as they have not been adequately funneled into the financial system. But still the program presses on, and NPR predicts that by the time it’s finished, there will be 2 billion coins cluttering the Fed’s vaults.
Good grief, another Congressional scam. The sleazy relationship between Congress and the Federal Reserve is one that is defacating on our financial system.
Sorry, that was a little graphic.
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