And they say there is no inflation....
When it costs more than a penny to make a make a 5%
copper 95% zinc penny, you know inflation is rearing its
head.
Did you know the head of the U.S. Mint a few years back,
Ed Moy, used what he said were his powers under title 18,
USC, and made melting pennies a felony? Who owns your
money? You or the government? Why must you lose money
using something worth more than a penny for only a penny?
Did you know it is illegal to take more than $50 in
nickels out of the country when you travel? You see, the
copper in a nickel (they are mostly copper, you know) alone
is worth roughly $80 overseas, so the U.S. Mint got a
regulation passed that is a currency control. When I was
younger, currency controls were things other, poorer, less
well governed countries did, like Albania.
I’ve got a hint for those of you out there who think this
means nothing...it means the Treasury and the unknown,
unelected and unaccountable men who run the Federal Reserve
(a private bank cartel given monopoly powers by the
Congress) are stealing from your paycheck and your
retirement by inflating the currency. That nest egg you put
away for your golden years? It will buy you a cup of coffee
someday. I hope you can still flip burgers at 80. You’re
gonna have to.
Ernest Hemmingway had it right when he said, “The first
panacea for a mismanaged nation is inflation of the
currency; the second is war. Both bring a temporary
prosperity; both bring a permanent ruin. But both are
the refuge of political and economic opportunists.
Ernest Hemingway
Ernest Hemingway
Couldn’t have said it better myself.
Regards
Pete
Penny and Nickel Coins to be Phased Out in 2013
Earlier this
week Canada announced that they would be phasing out
their penny coin. On the heels of the Canadian
announcement, U.S. Treasury Secretary, Tim Giethner
stated in a press conference today that the U.S.
Mint will remove the penny and nickel coins from
circulation, starting early in January 2013.
Due to the
rising costs of zinc and production related
expenses, the U.S. Mint now spends 4.8 cents to make
a penny. And the cost of copper and nickel have
inflated the cost to create a nickel coin to 16.2
cents.
In 2011, the
U.S. mint made over 4.9 billion pennies, at a cost
of $118 million to make. That is $236 million to
produce only $49 million worth of pennies, a loss of
$187 million in minting costs. Minting the nickel
coin also represents a significant loss in revenue.
By
comparison, the dime (which costs 9.2 cents to mint)
and the quarter (21.31 cents) are economically more
feasible, and will continue in circulation through
2013. However, according to Giethner, the dime may
be in jeopardy as early as 2014.
Once the
phase out of pennies and nickels begins, merchants
must be equipped to round all transactions to the
nearest ten-cent increment.
If something
costs $1.53, for instance, it will be rounded down
to $1.50, and a transaction for $1.55 or higher will
be rounded up to $1.60. Credit card, debit and check
payments would also be subject to the rounding rule.
It is expected that the rounding will not result in
higher costs for purchases or losses for merchants.
Pennies and
nickels will continue to hold their inherent cash
value, and they can be traded in at financial
institutions. Banks will then return the coins to
the mint for recycling into their base materials. By
mid 2013 it is expected that the penny and nickel
will both be mostly removed from the U.S. economy.
H/T TO PB, LIBERTARIAN
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