- Congress decides we need a US Presidential Dollar coin program.
- People don't buy the coins; they prefer paper.
The U.S. Mint sells the coins at face value, using taxpayer money to cover shipping and handling costs. If you want to buy $1,000 in coins, you simply pay $1,000 on your credit card and wait for the shipment to arrive in the mail.
Credit card rewards enthusiasts leapt at the program. They use a simple strategy: Purchase coins. Wait for coins to arrive in mail. Deposit. Use deposit to pay credit card. Repeat.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. --Milton FriedmanH/T to KB