Why Governments Print Too Many Banknotes

Episode 35 of Government Spending with Fexingo dives into seigniorage – the profit governments make from printing money. Lucas and Luna break down how the U.S. Mint made about $800 million in 2025 from pennies and nickels alone, and why the Federal Reserve remitted roughly $100 billion to the Treasury last year. They explore the mechanics of seigniorage in modern central banking, the difference between coin and paper currency profits, and the surprising fiscal role of the Fed's balance sheet. Listeners will learn how the government turns a profit on every dollar bill in circulation, why the penny is a money-loser, and what happens when foreign countries use U.S. dollars as their own currency. The episode also touches on the line between seigniorage and inflationary finance, drawing on examples from Zimbabwe and the U.S. Revolutionary War. #Seigniorage #GovernmentSpending #FederalReserve #USMint #CentralBanking #MonetaryPolicy #Inflation #ProfitFromPrintingMoney #PennyDebate #Currency #Economics #Budget #PublicFinance #FedRemittance #ZimbabweHyperinflation #FexingoBusiness #BusinessPodcast #Macroeconomics Keep every episode free: buymeacoffee.com/fexingo