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Ron Paul to Probe U.S. Mint Coin Shortage

I am by no means a "Pauler", however the article is Coin related as someone needs to be able to pressure these Clowns.

Ron Paul to Probe U.S. Mint Coin Shortage

01 April 2011, 04:08 p.m.
By Daniela Cambone
Of Kitco News
http://www.kitco.com/


Texas (Kitco News) -- Rep. Ron Paul, R-Texas, has one question for the U.S. Mint: why is there a coin shortage?


He is aiming to get to the bottom of this during a scheduled April 7 hearing of his U.S. House Subcommittee on Domestic Monetary Policy to examine the bullion programs at the U.S. Mint. “We are going to try and find out what the Mint has done so they can give us a better answer as to why there is a shortage. Why can’t they keep the supply of coins up?” said the congressman in an exclusive interview with Kitco News.


Demand for precious metals in the futures markets and in physical gold bullion coins increases as the dollar weakens, which often leads to coin shortages. Part of the problem lies in manufacturing the blanks, said Paul. The blank planchets are not made at the Mint, which hasn't had the production capacity for this stage of the minting process since the budget cuts of 1981.


“Looks like we don’t even get (all) blank coins made in the U.S. – there is a contract with a foreign company, which makes no sense at all,” said the congressman. Today there are three refineries that supply planchets to the Mint: VennerBeck Stern Leach in Rhode Island, Sunshine Minting in Idaho and Goldmark in Perth, Australia. Paul said that a U.S. company may appear at the scheduled hearing with a solution. “They can help relieve the shortage by providing these blank planchets for the Mint,” he said, not revealing the company. “I think there is a huge demand and it is being provided by a bureaucracy, and the bureaucracy isn’t responding very well -- but I can’t believe there is any excuse for this,” he said.

The Mint is planning a major overhaul of the metals composition of coins and how they manufacture them. The Coin Modernization, Oversight and Continuity Act of 2010 gives the Mint greater flexibility in meeting the demand for bullion coins as well as meeting the demand for gold and silver numismatic items.


Give Them a Choice: Paul

Paul is a strong advocate of currency backed by precious metals. Paul wants competition in currencies, and to do so, he said the tax on coins needs to be done away with. “Money shouldn’t be taxed with sales taxes or capital gains taxes, that would be my goal,” he said.

In March, Paul introduced H.R. 1098, the Free Competition in Currency Act of 2011, which would repeal legal tender laws in order to prohibit taxation on gold, silver, platinum, palladium and rhodium bullion. The bill has been referred to the House Committees on Financial Services, Ways and Means, and Judiciary.

A staunch critic of the Federal Reserve, Paul said that instead of arguing his case for the Fed to close down tomorrow, he’s arguing the fact it should not hold a monopoly. “They have a monopoly on a type of money that isn’t even constitutional,” he said.

“We would use no force, nobody has to use gold and silver coins,” said Paul. Rather, he said the Fed does use force. “They are a cartel and they make us use Federal Reserve notes,” he said. The market provides a competition; however, he said there is always the threat of being taxed or the gold and silver being taken away as in the 1930s.

Paul explained that ideally, we should allow the market to pick the currency. “If you deal with international finance, people can use different currencies. Within the U.S., I believe you literally could, especially in this age of computers, that you could calculate two different currencies without difficulty.”


Return to Gold Standard

A common assumption is that Paul is calling for a return to a gold standard. He clarified, saying he is not so inflexible. “I wouldn’t be overly rigid and say, ‘you must have a gold standard, you must go back to what we had.’ Our gold standard was imperfect, even though it worked better than the paper standard,” he said.

Lawmakers in several states, including Tennessee, Virginia, New Hampshire and South Carolina, have introduced bills to look into minting their own currencies in the event of a complete breakdown of the U.S. Federal Reserve. In Georgia, a bill to make the state only use gold and silver is in committee.

Utah has received the most media attention on this subject as the House and Senate have passed HB317, which would recognize gold and silver coins as legal tender and exempt them from certain state tax liability.

“Governments over the many, many centuries have always demanded monopoly control over money. Even when gold and silver were principally used in the economies, they still wanted monopolies,” Paul said.


Hence, he is not confident that any Utah law would be allowed to stand. “Well, they are going to fight it tooth and nail. They are not going to go along with this even though we have the law and Constitution on our side and it should appeal to all Americans to have competition.”

Interest Rates

Regarding U.S. interest rate hikes, Paul said they are going to be gradual and steady but they are indeed coming. “The next big shoe to fall will be interest rates going up on municipal bonds -- that means a lot of these bonds will start defaulting,” he said.

Presidential Run

Paul has not ruled out a run at the presidency but has not confirmed it either. When asked what would stop him from running, he said: “minimal support.”

“So if there is a receptive audience out there, that is going to influence my decision,” he said. “I have to have a good sense that the message I have will be received well. Last go-around I kept talking about the dangers of the financial and housing bubble. This go-around, I’ve been concentrating on the dangers ahead for the dollar.”

Comments

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    BBNBBN Posts: 3,761 ✭✭✭
    I like Ron Paul. While I don't think he's electable in a general election I think he'll make a little more noise in this primary. Don't think he'd win the primary either but I do believe he could pull double digits in voting percentage in some states besides Idaho or Montana.

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

    #1 1951 Bowman Los Angeles Rams Team Set
    #2 1980 Topps Los Angeles Rams Team Set
    #8 (and climbing) 1972 Topps Los Angeles Rams Team Set
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    keetskeets Posts: 25,351 ✭✭✭✭✭
    Paul is a strong advocate of currency backed by precious metals.

    as long as there is instability in markets this is a pipe dream. the only reason it worked in the past and would work now is a fixed price on Gold, Silver or whatever else "backed" currency.
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    This guy has nothing better to focus on? It will be prety irrelevant when government shuts down at the end of next week.
    "If we are facing in the right direction, all we need to do is keep on walking." - David Brent
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    SwampboySwampboy Posts: 13,239 ✭✭✭✭✭
    I know if I had more coin it would solve some of my problems. image

    "Inspiration exists, but it has to find you working" Pablo Picasso

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    CaptHenwayCaptHenway Posts: 33,926 ✭✭✭✭✭
    Congress gives the Mint hoops to jump through, such as requirements on bullion sources, and then complains when the Mint can't jump through the hoops fast enough!!!

    image
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
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    MsMorrisineMsMorrisine Posts: 39,533 ✭✭✭✭✭
    there is risk in ramping up manufacturing and then having demand fall off.

    we are procuring from private companies who don't want to over purchase equipment.


    If Ron Paul wants an unlimited (and potentially wasteful) supply of planchets then he should consider funding (which we don't have) the mint to manufacture their own planchets.


    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    CaptHenwayCaptHenway Posts: 33,926 ✭✭✭✭✭
    As I wrote in COINage, a year or two ago the Mint was trying to get the planchet suppliers to invest in additional capacity, and the suppliers all wanted five-year minimum orders to justify the cost of the investment. Perhaps they have solved that dilemna.
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
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    pontiacinfpontiacinf Posts: 8,915 ✭✭
    sounds like a bunch of crap to me
    image

    Go BIG or GO HOME. ©Bill
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    derrybderryb Posts: 38,570 ✭✭✭✭✭
    I'm a "Pauler." Better than being a "Trumper."

    Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

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    johnny9434johnny9434 Posts: 32,643 ✭✭✭✭✭


    << <i>I'm a "Pauler." Better than being a "Trumper." >>



    I as well am a Pauler.
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    mrearlygoldmrearlygold Posts: 17,858 ✭✭✭
    I support Dr Paul and I believe I'm one of the only coin dealers that has a banner to Ronpaul.org on my website's homepage .





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    CaptHenwayCaptHenway Posts: 33,926 ✭✭✭✭✭


    << <i>I'm a "Pauler." Better than being a "Trumper." >>



    I, personally, am a Vulcan!!!!

    image
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
  • Options
    DentuckDentuck Posts: 3,836 ✭✭✭✭
    This article seems to confuse circulating coinage with bullion coinage.

    "...why is there a coin shortage?"

    "Why can’t they keep the supply of coins up?"


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    coolestcoolest Posts: 2,281 ✭✭✭
    What coin shortage?
  • Options
    19Lyds19Lyds Posts: 26,503 ✭✭✭✭


    << <i>As I wrote in COINage, a year or two ago the Mint was trying to get the planchet suppliers to invest in additional capacity, and the suppliers all wanted five-year minimum orders to justify the cost of the investment. Perhaps they have solved that dilemna. >>

    Perhaps.

    One question.

    What happens to the price of silver when everybody has a bunch of it and nobody wants it anymore?

    Seems to me there's plenty out there what with the US Mint alone selling nearly 30,000,000 ounces a year. Thats a lotta silber(sic) folks!

    I wonder what the totals are for other world governments?
    I decided to change calling the bathroom the John and renamed it the Jim. I feel so much better saying I went to the Jim this morning.



    The name is LEE!
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    291fifth291fifth Posts: 25,191 ✭✭✭✭✭
    Why is he wasting his time on this very minor issue?
    All glory is fleeting.
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    dogwooddogwood Posts: 1,935 ✭✭✭✭
    Because he registers with his base with quotes like this:
    “We would use no force, nobody has to use gold and silver coins,” said Paul. Rather, he said the Fed does use force. “They are a cartel and they make us use Federal Reserve notes,” he said. The market provides a competition; however, he said there is always the threat of being taxed or the gold and silver being taken away as in the 1930s.
    We're all born MS70. I'm about a Fine 15 right now.
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    GrumpyEdGrumpyEd Posts: 4,749 ✭✭✭


    << <i>What coin shortage? >>



    image
    Ed
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    TwoSides2aCoinTwoSides2aCoin Posts: 45,051 ✭✭✭✭✭
    Why aren't you a "Pauler" ?
    JFK said "Ich bin ein Berliner" (roughly translated that means "I am a doughnut")
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    LokiLoki Posts: 897 ✭✭


    << <i>

    << <i>I'm a "Pauler." Better than being a "Trumper." >>



    I, personally, am a Vulcan!!!!

    image >>

    I don't buy it. Vulcans would never collect coins. They would find that human endeavor to be highly illogical.
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    rickoricko Posts: 98,724 ✭✭✭✭✭
    I hear a lot of chatter, however, I see no one presenting solutions to the very critical monetary issue facing the U.S. at this time. Even 'solutions' that may not work, can be discussed, debated - and, may lead to a real solution. Let's work on ideas and not focus on personalities..... always the downfall when it comes to elections, as is now painfully obvious. Cheers, RickO
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    mrearlygoldmrearlygold Posts: 17,858 ✭✭✭
    Why were the planchets for the Ultra High Reliefs imported? What's next?


    Ron Paul: People Need Currency Choices - Kitco News





















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    CaptHenwayCaptHenway Posts: 33,926 ✭✭✭✭✭


    << <i>Why were the planchets for the Ultra High Reliefs imported? What's next?
    >>



    Presumably the Perth Mint made the lowest bid. Can't blame the Mint for trying to cut expenses.
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
  • Options
    mrearlygoldmrearlygold Posts: 17,858 ✭✭✭


    << <i>

    << <i>Why were the planchets for the Ultra High Reliefs imported? What's next?
    >>



    Presumably the Perth Mint made the lowest bid. Can't blame the Mint for trying to cut expenses. >>



    Then outsource everything including the actual manufacturing of the "currency". I'm sure that doing so and sending it all to China would save a few bucks. Ya think?
  • Options
    CaptHenwayCaptHenway Posts: 33,926 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>Why were the planchets for the Ultra High Reliefs imported? What's next?
    >>



    Presumably the Perth Mint made the lowest bid. Can't blame the Mint for trying to cut expenses. >>



    Then outsource everything including the actual manufacturing of the "currency". I'm sure that doing so and sending it all to China would save a few bucks. Ya think? >>



    That depends. Do you want quality outsourced products, or do you want typical Chinese-made kraap???
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Also won the PNG's Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
  • Options
    mrearlygoldmrearlygold Posts: 17,858 ✭✭✭


    << <i>

    << <i>

    << <i>

    << <i>Why were the planchets for the Ultra High Reliefs imported? What's next?
    >>



    Presumably the Perth Mint made the lowest bid. Can't blame the Mint for trying to cut expenses. >>



    Then outsource everything including the actual manufacturing of the "currency". I'm sure that doing so and sending it all to China would save a few bucks. Ya think? >>



    That depends. Do you want quality outsourced products, or do you want typical Chinese-made kraap??? >>



    Now we know your position.
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    TwoSides2aCoinTwoSides2aCoin Posts: 45,051 ✭✭✭✭✭
    I hope we can get our marbles back.
    In the meantime, I read that Canada is going to a polymer currency, apparently following Australia.
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    Type2Type2 Posts: 13,985 ✭✭✭✭✭
    The one thing I did grab on to is he says " The Mint is planning a major overhaul of the metals composition of coins and how they manufacture them." Now that is News. image


    Hoard the keys.
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    slipgateslipgate Posts: 2,301 ✭✭


    << <i>This guy has nothing better to focus on? It will be prety irrelevant when government shuts down at the end of next week. >>



    What you fail to realize is that if what he focuses on were not an issue, then we would not be in the dire financial/political straights that we are.
    My Registry Sets! PCGS Registry
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    pf70collectorpf70collector Posts: 6,855 ✭✭✭
    n the meantime, I read that Canada is going to a polymer currency, apparently following Australia.

    Is that another name for plastic money?


    A polymer is a large molecule (macromolecule) composed of repeating structural units. These subunits are typically connected by covalent chemical bonds. Although the term polymer is sometimes taken to refer to plastics, it actually encompasses a large class of natural and synthetic materials with a wide variety of properties.

    Plastic Coins? I hope not.
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    RWBRWB Posts: 8,082
    The Mint is planning a major overhaul of the metals composition of coins and how they manufacture them.

    That is very old news. Congress gave permission to do that months ago, after refusing to let the mint simply make composition changes. Experiments are proceeding and we hope that examples of the tests are being kept for historical reference.
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    pf70collectorpf70collector Posts: 6,855 ✭✭✭
    Experiments are proceeding and we hope that examples of the tests are being kept for historical reference.

    To bad none will escape like the old days of the mint.
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    IrishMikeyIrishMikey Posts: 1,561 ✭✭✭
    The interesting part of all this is the use of "force." How can the Fed force someone to use
    our fiat currency? Between credit and debit cards, checks, and electronic payments, the
    average U.S. citizen could completely do without paper money and coins. Granted, all of
    these payments are denominated in U.S. dollars, but if one is truly opposed to the Federal
    Reserve system and its notes, you might be able to get away with Canadian dollars as an
    alternative, since the two currencies are about equal. Or Australian dollars.
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    The tools of conquest do not necessarily come with bombs and explosions and fallout. There are weapons that are simply thoughts, added to prejudices to be found only in the minds of men. For the record, prejudices can kill, and suspicion can destroy, and a thoughtless, frightened search for a scapegoat has a fallout all its own, for the children and the children yet unborn, and the pity of it is, that these things cannot be confined to the Twilight Zone.
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    MsMorrisineMsMorrisine Posts: 39,533 ✭✭✭✭✭


    I had an idea today.

    Ron Paul is interested in chasing down this "un-American crap" but I think people here can tell him he need not waste his time on it as it is a business-risk decision that's part of life.

    >>The idea is to team him up with the Rep from TX on the Judiciary Cmttee and sic him on the counterfeiters. Now, that'd be something to see.


    I propose people e-mail Ron Paul and tell him not to sweat the planchet problem, as it is a risk based decision any company would be fearful of making, but go after the counterfeiters instead, and he'd have a Texas friend to work with.



    We get Ron Paul on board and we might even get some media attention to go with it.


    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions

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