Money costs Money

Everyone from BBC to The New York Times has wondered what it costs to make a penny. Both sources predict that the actual cost of creating a US penny will exceed one cent.

Q1: What does it cost to make a penny?
Q2: What happens if cost > face value?

The US Mint reports that value in its Annual Report each year. The 2004 annual report was made public via the mint website recently.

Page 47 of this report breaks out the cost of a coin by denomination:


The US Mint is funded by seigniorage. So while the organization is government sanctioned it is not government funded. The operating expenses of the Mint are obtained through the difference of actual Mint costs less the face value of the coins produced. Profits, if any, are turned over to the Treasury Department General Fund every year.

It is true that the value of a penny may be, on occasion, more than a cent based on metallic content. However, the cost of producing a new unit is not. Additionally it would cost more to buy and melt pennies for metallic content than it would to buy the pure materials.

If it became necessary the Mint would be able to change the metallic contents of coins with congressional approval. This was last done for the penny in 1982. A move to stop making the cent, or any coin, would require a congressional mandate signed by the President.

All costs in the long-term are variable, metals are no exception. The mint compares profitability of all its products by comparing average cost:profit to that of the quarter. This allows for 'apple to apple' comparison yearly.

Protect America

If you must preface discussions about
immigrant's rights with the term illegal
there is nothing to discuss

The rights and responsibilities of citizens are protected by the Constitution of the United States of America. If an immigrant wishes to become a citizen or protected national they may do so by following a specified procedure.

Active Immigration Bills before the Senate and the House:
S.1033, S.1438, S.1916, S.1917, S.1918, S.1919, S.2611, S.2612 H.R.2330, H.R.4240

The Bill of Rights

Amendment I - "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."

Amendment II - "A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed."

Amendment III - "No Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law."

Amendment IV - "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."

Amendment V - "No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation."

Amendment VI - "In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence."

Amendment VII - "In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law."

Amendment VIII - "Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted."

Amendment IX - "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people."

Amendment X - "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

Time to Vote

03 May 06

WASHINGTON, DC - According to Secretary of State Dr. Condoleezza Rice, the nationwide turnout for the primary elections May 2 was lower than anticipated.

In Ohio, State Secretary of State Kenneth Blackwell announced today that 23% of his electorates went to the polls. This is significantly below the initial 34% estimate. In fact, according to Blackwell, cities with 5% votes were not uncommon. The City of Saint Bernard, representing 1% of Hamilton County, had only 167 votes cast. The Census Bureau noted in 2000 that the most common reason for not voting is 'lack of time'. On the plus side, Blackwell joked, those who came out made themselves known - each vote was worth nearly 1%.

The United States Naval Observatory Time Service Department announced today that the master clock is running two minutes slow. The Time Service Department used this information in briefing the President this morning. Bush is expected to issue an executive order by week's end allowing for the minutes to be returned on Election day, November 7.

Press Secretary Scott McClellan is expected to entertain questions on this topic during Friday's press briefing.

Danger: Explosive Pumps

01 May 06

HOPE, Arkansas - Hyde R Cabian injured by pump malfunction at local Triathlon station. He is being held for observation at Medical Park Hospital.

The board of weights and measures assures accuracy on a yearly basis. But the safety latch, designed to control the flow of gasoline, is not on scheduled maintenance.

After swiping his credit card to refuel, Mr. Cabian set the auto-fill latch and went inside to shop. The spicket fell out of the vehicle and covered him with gasoline.

The fumes caused him to briefly lose consciousness. Due to the quick thinking of the attendant, he was moved to safety.

A spokeswoman for the company says that Triathlon will cover any medical expenses accrued as a result of the incident. And they will check all pumps nationwide and repair them if necessary by 01 June 06.

Though appreciative of the company’s support Mr. Cabian is disappointed with the local station. The $45 bill remains. The manager of the station refuses to refund the cost of the gasoline since he did receive it.

City council had scheduled a meeting Friday to consider legislation limiting the liability of gasoline companies. That meeting has been postponed indefinitely. Instead council will honor the clerk for bravery by presenting her with a key to the City.