OK. Maybe I've watched the box set of Heroes Season One too many times recently, but once again people in Congress are trying to kill the penny again. 60 Minutes ran some great reports on this topic recently.
Given the run up in the cost of all commodities, especially Copper and Zinc, it should be no shock that the cost to make a Penny AND a Nickel are higher than the face value on the coins. No one is talking about offing Jefferson ...yet, but old Abe is in the cross-hairs again.
In 1982 they changed the Penny from 95% Copper and 5% Zinc to 97.5% Zinc and 2.5% Copper. But now the price of Zinc and Copper are such that the penny costs 2 cents to make. So what to do?
I frankly can't see the US Congress cutting the penny. The short term savings of $130 Million to stop all production of pennies, doesn't outweigh the inflation estimates of $600 Million from the American for common sense. Advocates that say, "prices will round down too and balance this out", sure have forgotten what happened to all of those countries that changed over to the Euro.
The next morning in Germany, instead of just seeing the equivalent price in Euro's from their old Deutche Marks, they found prices rolled up to the nearest Euro- .99 mark. An average inflation of 4.5%...overnight! This alone has been the rally call for other European counties to avoid the currency!
The US economy is scared with 3.1% inflation over a year...imagine 4.5% overnight!
I don't think this has real legs to get passed, but instead of charging the mints with monitoring and adjusting metallurgy as needed, some in Congress take a knee-jerk reaction that could cost us hundreds of Millions!
Abe, save us...you are our only hope!
13 Comments:
Wow. Prices would never roll down, but definitely up, for sure. Most people just save their pennies. Perhaps if put them back into circulation the government wouldn't have to produce as much...
Spend your pennies!!!
I've always wondered why there is such a need to keep producing pennies because there are so many floating around, kind of like paper clips. But, I never thought about those that hoard pennies being a contributing factor for the continued production. I would prefer to get rid of pennies all together and have the nickel being the lowest denominator of currency. I'm sure my purse would be a lot lighter.
@Sharon- Maybe. They do just produce what is needed. That wouldn't help the issue that the unit (penny) costs more than its face value. They just have to makeit cheaper.
@Brightside - You purse would be lighter, but you would get hit with pretty tough inflation nearly overnight. Think of just this if every item you buoght at the grocery store was 1-4 cents higher, how much would that cost? Eventually this will happen, I just don't want it to happen yet!
Thank you both for visiting!
There are a ton of other things the government could focus on and save just as much if not more.
Fiscal you are so right! Not to mention add 4% inflation!
Hello !.
might , probably very interested to know how one can collect a huge starting capital .
There is no need to invest much at first. You may start to get income with as small sum of money as 20-100 dollars.
AimTrust is what you need
The company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with structures around the world.
Do you want to become a happy investor?
That`s your choice That`s what you really need!
I`m happy and lucky, I began to take up income with the help of this company,
and I invite you to do the same. It`s all about how to select a correct companion who uses your funds in a right way - that`s it!.
I take now up to 2G every day, and my first investment was 500 dollars only!
It`s easy to start , just click this link http://qidylusy.freewebsitehosting.com/jekodubo.html
and lucky you`re! Let`s take this option together to get rid of nastiness of the life
Good day !.
You re, I guess , probably curious to know how one can reach 2000 per day of income .
There is no initial capital needed You may begin to get income with as small sum of money as 20-100 dollars.
AimTrust is what you thought of all the time
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with structures everywhere: In USA, Canada, Cyprus.
Do you want to become really rich in short time?
That`s your choice That`s what you really need!
I`m happy and lucky, I started to get real money with the help of this company,
and I invite you to do the same. It`s all about how to choose a correct partner utilizes your savings in a right way - that`s it!.
I make 2G daily, and my first deposit was 1 grand only!
It`s easy to get involved , just click this link http://mebigegyb.o-f.com/iqijes.html
and go! Let`s take our chance together to get rid of nastiness of the life
Hi !.
You may , perhaps very interested to know how one can collect a huge starting capital .
There is no need to invest much at first. You may commense to get income with as small sum of money as 20-100 dollars.
AimTrust is what you need
The company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with affiliates around the world.
Do you want to become really rich in short time?
That`s your chance That`s what you wish in the long run!
I feel good, I began to take up income with the help of this company,
and I invite you to do the same. It`s all about how to select a correct companion who uses your savings in a right way - that`s AimTrust!.
I make 2G daily, and what I started with was a funny sum of 500 bucks!
It`s easy to join , just click this link http://anaticixu.mindnmagick.com/yjorap.html
and go! Let`s take this option together to get rid of nastiness of the life
Hello!
You may probably be very curious to know how one can make real money on investments.
There is no need to invest much at first.
You may commense earning with a sum that usually is spent
for daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'm ready to let you know my secrets at my blog.
Please visit blog and send me private message to get the info.
P.S. I earn 1000-2000 per day now.
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]
What a information οf un-ambiguitу and preservеness of preсіous fаmiliаrity on the topіc of unexpеcted emotions.
My webрage - universal life insurance
It іs peгfeсt time tο mаke sοme plans for the longer term anԁ іt's time to be happy. I have read this put up and if I could I wish to suggest you few attention-grabbing issues or advice. Perhaps you could write next articles relating to this article. I desire to read more issues about it!
Also visit my page local Florist
Ӏ ωrite a cоmmеnt when ӏ esρeсially enjоy a
aгticle on a site oг І have somеthing to valuable to сοntгіbute tο the conveгѕation.
Uѕuаlly it's triggered by the fire communicated in the article I looked at. And after this post "Save the Penny, Save the World". I was moved enough to post a thought :-) I do have a few questions for you if you usually do not mind. Could it be simply me or do a few of the remarks come across like coming from brain dead visitors? :-P And, if you are writing on other online sites, I would like to follow anything fresh you have to post. Would you list the complete urls of all your community sites like your twitter feed, Facebook page or linkedin profile?
My blog: all natural hgh
Nісe blog! Is yоur theme custom made oг ԁid you download it
fгom someωhere? A thеme likе yours with a
few simple tweеks would reаlly make mу
blog stand out. Please let me know where you gοt your dеsign.
Bleѕs you
Неre is my ωеb site - Raspberry Ketones
Post a Comment