TLP: Don't Worry, You'll Still Be Able to Choose "Head" or "Tail"

Tuesday, May 11, 2010 , , , 2 Comments

coins mint waste
Faithful readers will know that JDA finds the U.S. dollar to be worthless. Actually, any reader should know that. Wonder if she'll care about this ...


It costs the federal government up to nine cents to mint a nickel and almost two cents to make a penny. So, in addition to overhauling Big Finance, President Barack Obama wants to tinker with America's small change.

The president's plan to save money by making coins from cheaper stuff seems simple on its face. But history shows it would rekindle an emotional debate among Americans who fear changing the composition of their currency will hurt its value.

On top of that, trade groups from the coin-laundry owners to the Zinc Association have lobbied for years to keep small change just the way it is.

Like many things produced in Washington, U.S. coins aren't what they seem. A penny is a copper-coated token made mostly of zinc. The nickel contains more copper than it does actual nickel. And no coin contains silver anymore.
My guess? It's a big no-brainer WTF. The more people's payment options move toward things that aren't "money," the less people care about it. Debit cards at the corner store, EZ-Pass on the expressway, FastPass on the bus, paper tickets in casino slots — The Lazy Paperboy hasn't put a coin in anything but a CoinStar machine in who knows how long.

If the move saves the $100 million a year the Treasury estimates, coins really will be nothing but small change.

The Lazy Paperboy

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


elf2006real said...

What do you think of the idea of returning to commodity money, in particular mixed baskets of commodities, say the following baskets:

-Precious metals (gold, silver, platinum, Palladium, copper, nickel, zinc).

-Energy (oil, coal, NG, nuclear, electric units by KwH.

-Food/water units (this is not a laughing matter in much of the world).

And hence a different bill for each category. Market sets the price of each unit. The Energy and Food/Water units probably suitable for larger transactions, that is institutional.

And until my fantasy comes true, what are good commodity moneys to stock up on? The Canadian Dollar, the Kroner?

Bimetalism has never worked. You can't have gold and silver money, much less: gold, silver, copper, zinc, platinum, oil, etc. as money. Study Gresham's law and why Andrew Jackson raised the gold/silver ratio to 16 to 1 from 15 to 1. Also study Sherman's 1878 silver purchase act and its effects.



I'm so old I remember when we called change "silver". Before 1964, US dimes, quarters and half dollars were silver.