The Truth About the Coin Shortage

published on August 2, 2020

What's up everybody welcome to heresy financial my name is Joe Brown and today we are discussing the current coin shortage number one is it true are we currently experiencing a shortage of coins in America number two if it's true what is causing this current coin

Shortage and number three does this point to truth about conspiracy theories saying the Antichrist is taking over the world right now and we're gonna have one-world government in a cashless society no no it does not

Let's dive in yes the rumors are true there is a current coin shortage across the states right now it is increasingly difficult to get your hands on any large number of coins right now depending on where you go to the point where a lot of

Local merchants are asking you to pay with card only or asking you to pay in exact change they don't have the ability to make change for you now this has led to some speculation about the reasons behind it about there

Being a concerted effort from the powers that be to take cash and coins out of circulation from the system so that we can move closer and closer to on all digital transactions at an all-digital economy where there is no paper or metal

Money being traded which would make it easier for monetary policy to have the intended effect and it would also make it easier for the government to track all transactions for money laundering of course the truth is if you look at all

The evidence it really does look like this is just a short-term shortage of coins that was caused by a number of factors that came into play that was you know they were not backed up by any intentions because of the coronavirus

There has been a massive wave of permanent closures of small businesses and small businesses are the ones that primarily deal in cash and change as opposed to most of the larger corporations are going to have the

Majority of their monetary transactions money going in and out are going to be done electronically so most cash and and coin transactions are done through small businesses and even if you ignore the permanent closures

There's obviously even more small businesses that have been temporarily closed due to city state and national restrictions on on quarantines and shutdowns from the virus out on top of that the fact that over the last couple

Of months obviously we've had a steep decline in the amount of activity that people are going out and taking part in and we see there's been a steep decline in the number of cash transactions that have been taking place across the board

Now at first glance this might not make sense as to why this contributes to a coin shortage because coins are not consumable items they're metal they just there's always there's gonna be a constant supply so why would there be a

Shortage it's not as if these coins have been destroyed as a result of the coronavirus well it turns out that it's just the lack of circulation that is causing a lot of the lack of supply right now because most coins are being

Stored up where they would usually be going back into circulation and in large part due to people just you know they're they're storing up in their piggy banks for lack of a better example there there's less circulation and so if

You're in need of coins you don't have a stash of coins at home you're gonna go to the to the bank to get coins right well where does the bank get their coins from they get their coins in their cash from two sources they get them from

Deposits largely from businesses and they also get them from the the Federal Reserve and the Federal Reserve gets their coins from the US Mint who actually produces that well this year again largely due to the coronavirus the

US Mint production has been a lot lower than it normally has their production of new coins has not been on pace as the last couple of years just because they've been on a more restricted production capabilities because of you

Know people not being able to come in to work and having the same restrictions that a lot of other organizations are going through right now and so because the one source that banks usually get a lot of coins from which is commercial

Transactions and small businesses and making people making deposits since those aren't coming in banks have been going to the Federal Reserve and saying hey Federal Reserve we need more coins but the Fed is going

To the mint and saying hey we need you know you're not giving us enough coins and so there's been a little bit of a rationing going on to where the US Mint is producing as many coins as they can and then the Federal Reserve is taking

Those coins and distributing them out through Y through to their banks kind of on a rationed basis now on one hand I do not think that the Federal Reserve anybody who's in charge of monetary policy or has any say in it or write

Even people in charge of fiscal policy and monitoring financial transactions I don't think anybody's upset about this right now I think the only people are upset about are that you know the average everyday people that are trying

To go and pay with cash and they can't because a store can't give them change the people who don't have bank accounts and so they don't have debit cards and so there's there's a large population especially poor people that are gonna be

That are being negatively impacted by this right now but I don't think anybody who is in charge is upset about this because it really does impact them in a beneficial way as more and more transactions are digital transactions

And more and more money is stored in electronic storage systems bank accounts that are ultimately really just reserves at the Federal Reserve this is really a welcome change for them it is really difficult to control monetary policy the

Way they want to control monetary policy if there is an avenue out of electronic banking if you can use if there's a large section of the population using cash and coin for most of their transactions it's hard to have as tight

Of control on the money supply when you're out when you do have that that physical outlet there similarly no government will ever be disappointed about being granted additional power and the ability to monitor more and more

Percentage of transactions that are taking place because they're not happening physically anymore and they're happening digitally that's going to be something that they're gonna be happy about as well the government doesn't

Like cash transactions they can't tax it they can't watch it they can't control it they can't stop it but despite the fact that these are beneficial things for the federal government and Federal Reserve and

They're at detrimental for the average person a especially the poor person who on average will use a lot more cash and coin than somebody who is wealthier I don't think it is intentional it still

Looks like just if you look at all the reasons behind everything that's happening right now it doesn't look like it was intentional it doesn't look like there's any malicious intent behind what the mint is

Doing what the mint is producing how many coins the Federal Reserve is sending out to its member banks it doesn't look like that at all now there are two implications of this and one implication of this is what

We're going to spend the rest of the video on and the other one is a topic for another video if you guys think you want to see a video on that the one we're not going to talk about today is a transition to a cashless society and how

To preserve your wealth in that transition because it does look as if we're headed that way all of the benefits go to the government in a society that's completely cashless in all digital transactions and it looks

Like that's the direction that we're headed at least legally when you don't consider the black-market and so if you guys would like me to do a video on kind of navigating through a transition from a you know a site our monetary system

Today into like a cashless society while being able to preserve your wealth and not having to break the law let me know I can put together a video like that if you want but what we're gonna talk about for the rest of this video is basically

What this points more to in terms of implications for the the free market versus government operated organizations and really what this coin shortage is showing right now is just one more fantastic example of how anything that

The federal government does and owns and operates and controls is largely just wasted resources misallocated funds and could be done far better by the free market a private institution instead so far this year fifty-four percent of the

Coins that the US Mint has produced have been pennies pennies what was the last thing you bought with a penny I'll do you one better when was the last time you saw a penny on the ground and while you're walking and you stopped to pick

It up even further than that I've actually dropped pennies before on accident and decided it was worth it for me to stoop down and pick the penny up that I just dropped so over half of the coins that the US Mint has

Produced this year have been coins that are utterly useless and nope that's not all not only our pennies useless but they also cost a massive amount of money to produce compared to the actual value of

The coin last year the US Mint lost 99 cents for every hundred pennies they produced it costs so much to make a penny that they're actually losing almost the full value of the penny by the time that that penny has been made

Largely because of penny production the US Mint operates at a net loss last year they lost almost seventy million dollars in their coin production this is a perfect example of government run institutions being extremely wasteful of

Resources because no business that has a profit and loss no company that is concerned about making money would ever make money at a loss they're literally losing money in making money and yes the only reason why they still make pennies

At the US Mint is because the one company that profits the most off of this of sourcing the supplies to the mint they pay a lot of lobbyists to ensure that the government continues to make pennies and before we go do not

Confuse this with capitalism that is not the free market at work the government granting special privileges at the taxpayers expense for the profits of a private enterprise is not capitalism that is not free markets that is

Cronyism at best so yes there is a coin shortage and no it does not look like it was an intentional conspiracy by those in power but it does benefit them because there's more there the Federal Reserve is more easily able to control

Monetary policy with less cash transactions taking place across the board the federal government is able to more closely monitor all financial transactions that take place across the board with them more and more digital

These days and so if you would like me to do a video about navigating a transition to a completely cashless a completely digital money ecosystem let me know and I will put together a video like that for you thank

You so much for watching if you haven't noticed already I do have my merchandise shelf activated now it's below all my videos and I have not gotten my test orders in yet from the merchandise store that I'm using to do the printing and

Shipping so if you want to wait until I get my test orders in so that I can make sure that there's no errors that they look good they feel good don't buy them yet I will get my test orders in I will take a look at it and then I'll show you

Guys the final results in an actual video letting you know that they're good to go to be bought to pick up some merch thank you again so much for watching if you liked the video hit that like and subscribe button you guys are the best

Have a great day

Related Videos

from daily forex this is chris taking a look at the uh bitcoin market here you can see that we have uh found the market to be bullish we have broken above the ...
from daily forax this is chris taking a look at the um us stock indices this is the s p 500 and you can see that the s p 500 has uh rallied quite a bit did pul...
Hi this is vlad from effects empire euro dollar failed to settle above the resistance at 1.1870 and is trying to get below the support at 1.1830 if this attempt...
from daily forex this is chris taking a look at the uh crude oil marking cwti has gapped a little bit lower and then basically did nothing so uh at this point ...
from fx empire this is chris taking a look at the euro dollar and you can see that we are reaching above 118 as new york gets on board and perhaps trying to ma...
from daily forex this is chris taking a look at the euro and the pound you can see the euro has fallen a bit during the trading session here on friday as there...
Hi this is vlad from effects empire silver is currently trying to settle above the nearest resistance level at 23.30 if this attempt is successful silver will g...
from daily forex this is chris taking a look at the gold and silver markets you can see gold has smashed into this little short-term downtrend line that i have...
from fx empire this is chris taking a look at the british pound japanese gen pair you can see we shot straight up in the air and uh slammed into 136 but at thi...
from daily forex this is chris taking a look at the west texas intermediate crude oil market and as you can see we have a little bit of stability here it looks...
from daily 4x this is chris i'm taking a look at the indices and the e-mini contracts in america this is the s p 500 you can see that we have fallen a bit ...
from daily forex this is chris taking a look at the us dollar japanese yen and the aussie dollar the dollar yen as you can see continues to kind of chop around...
from fx empire this is chris taking a look at the dollar yen weekly chart you can see that we are dancing around 105 at this point if we rally 106 is an area i...
from daily forex this is chris taking a look at the wti crude oil market you can see that we have rallied a bit during the trading session here on wednesday yo...
from fx empire this is chris taking a look at the euro dollar weekly chart you can see that we have a slice through 117 on the weekly time frame now it looks l...
from daily forex this is chris taking a look at the um euro and the pound and you can see that the euro did rally a bit during the training session a lot of th...
good morning this is bob mason from fx empire and welcome to the daily crypto tech review we'll be looking at bitcoin ethereum litecoin and ripples xrp the ...
from daily forex this is chris taking a look at the s p 500 you can see we've rallied quite nicely during the trading session um but uh really at this poin...
from daily 4x this is chris taking a look at the dollar yen and the aussie dollar pairs you can see the dollar yen has broken down a bit during the uh trading ...
from fx empire this is chris taking a look at the s p 500 you can see that we are reaching towards 3200 an area that has previously been resistance and now is ...