Pennies coming from "the fed"

[stonewallrabbitry]

I picked up my first box of pennies two weeks, this week I decided to step it up and I just called and ordered three boxs. I told her that I would take bagged unwrapped pennies and she said that they do not do that and that my boxes would be rolled and boxed by "the fed", Does that mean they are coming from the mint and will be all new pennies?

[spjegues]

No- Banks get confused about where they get their coins. They will come from one of the coin places - brinks, loomis etc. who get their coins from the fed in big bags that then the coin guys roll to sell to the bank.

[AGgressive Metal]

Fed as in Federal Reserve, not the US Treasury. The Federal Reserve is a quasi-private monopoly central bank that sets interest rates, reserve requirements, issue banknotes, does currency swaps, gives credit to the US government, etc. It was established by Congress in 1913 and its shareholders are most of the major US and European banks, though they will not release the exact list.

[galenrog]

The Federal Reserve also introduces coin to circulation. The Mint does this on a limited basis, but the cash management part of the Fed does most of it by purchasing coin from the Mint, and distributes it with FRNs through their network of cash management and armored services to Banks, Credit Unions, and other institutions that handle large amounts of cash.

[Lemon Thrower]

banks take their surplus cash and deposit it with the fed, with whom they have an account. if they are low on certain denominations, they place an order with the fed and its delivered by brinks, loomis, etc. the order is essentially a withdrawal.

[anarchir]

End the FED. I remember in HS learning about the FED Senior Year. I am positive not a single person walked away with any knowledge from that lecture. I sure didnt, had to find out later on my own.

[galenrog]

Agreed, but the legitimate functions of the Fed need to be retained at some organization. The legit functions are cash management and distribution, serving as a clearing house for both electronic and paper transactions, among others I might not be considering at this time. Most of this can be done by private organizations.

[AGgressive Metal]

Most of this can be done by private organizations.

So far as payment systems like checks, yes. So far as cash distribution, yes as well, though I think Treasury could fill in the gap in that area as well if the Fed was abolished.

[John_doe]

End the FED. I remember in HS learning about the FED Senior Year. I am positive not a single person walked away with any knowledge from that lecture. I sure didnt, had to find out later on my own.

The fed is illegal. It's a legal and ethical obligation IMHO to oppose the fed and it's detrimental policy.

Everything I have learned about the fed I found in independant study, however I did have an Econ professor in college that helped to steer me the right way.

[exbingoaddict]

The fed is illegal. It's a legal and ethical obligation IMHO to oppose the fed and it's detrimental policy.

Everything I have learned about the fed I found in independant study, however I did have an Econ professor in college that helped to steer me the right way.

You're going to be tilting at a windmill for some time.

[exbingoaddict]

Ah the old Federal reserve debate. Funny how it becomes much more heated and more interested parties show up when the economy is not too hot. Somebody has to place the blame somewhere for all the trouble in the world.

Is the Fed making missteps currently? Likely yes. That said, we have bigger problems. U.S. governement itself needs to turn the ship. It's spending way too much. If entitlement cuts are not made, we're going down the path of becoming a lesser power in the future.

[John_doe]

The fed is illegal. It's a legal and ethical obligation IMHO to oppose the fed and it's detrimental policy.

Everything I have learned about the fed I found in independant study, however I did have an Econ professor in college that helped to steer me the right way.

You're going to be tilting at a windmill for some time.

Against the wind, almost sounds like a song.

[exbingoaddict]

Against the wind, almost sounds like a song.

Ha, don't forget about the 'night moves'.