DailyDirt: Spare Some Change?
from the urls-we-dig-up dept
There have been proposals to stop minting the US penny for decades, but the little copper-colored coins are simply too beloved to remove from circulation. Rounding to the nearest nickel also probably rubs people the wrong way, but it seems like Canadians are going to find out how that works. Here are just a few other interesting articles on coins.- Recently, Canada has killed its penny -- which cost more to mint than it was actually worth. In the US, it costs more to mint both pennies AND nickels, but it doesn't look like we're going to stop making them. [url]
- It's been difficult to get Americans to use dollar coins over paper bills. Dollar coins last longer and are cheaper to produce in the long run, but the Fed has just accumulated a collection of about 1.4 billion unused dollar coins that it's just storing in a vault. [url]
- Canada currently mints a $100,000 gold coin that weighs 10kg, but that's nothing compared to the proposal that the US treasury could mint a trillion dollar coin. A coin worth a trillion bucks was a crazy idea for solving the US debt crisis last year because there's no statutory limit on the amount of coinage the Fed can produce (while there is a limit on paper currency). [url]
- To discover more stuff on economics, check out what's currently floating around the StumbleUpon universe. [url]
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Filed Under: canada, coins, currency, gold coin, money, nickel, penny
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Hell, if they can't use them, send them to me.
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Life without the penny in Australia
If a consumer cares enough, they can use cash when the rounding is in their favor, and electronic payment (of the actual amount) when the rounding would go against them. I do not know anyone who cares enough to do this.
Not that reality will prevent any of the whining from the penny-pinching crowd in the US.
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Re: Life without the penny in Australia
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maybe it's the vending machines
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Re: maybe it's the vending machines
I would never suggest Mandatory replacement of all coin acceptors, but there has to be some way to encourage new equipment to come with dollar-coin accepting gear.
I have seen high-tech brand-new coke machines that could accept a credit/debit payment, but not take a dollar coin.
That and the "collector" series was a bad plan. Maybe after the coins had been out and gaining acceptance for many years, but you don't start out with a gotta catch'em all scheme when you are still trying to convince people that a dollar can jingle instead of crinkle.
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That third one...
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Since the Fed buys coins at face value, in exchange for a $1T coin, which could be 1 oz or even smaller, the Fed would markup Tsy's reserve account by $1 trillion.
If the proceeds were used to buy back T-bonds owned by the Fed (approx. $2T currently), Tsy could reduce the public debt without adding a single new dollar into the economy (since its basically a jumbo coin for T-bond swap). The NY Fed could store it easily enough in its underground vault (its not like a thief could ever fence it anyway).
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Not so smart
The minting of excessively high value US coins just like all the over printing and minting being done of late, it is just another way to fleece the American public. Watch this one as well while the US dollars continues it's value drop around the globe.
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Re: Not so smart
Nope. Totally wrong. Australian 5 cent coins are doing just fine without the now-withdrawn 1 cent and 2 cent coins. Nor is the Aussie dollar doing badly on foreign exchanges. It is currently worth more than the US dollar.
Be sure brain is in gear before engaging mouth. -- sign at the Air Force Academy in Colorado
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we used to have
Coins
1 cent
2 cent
5 cent
20 cents
50 cents
Notes:
$1
$2
$5
$10
$20
$50
Now we dont have 1c and 2c coins, coints start at 5c.
We have a
$1 coin
and a $2 coin
we now also have a $100 note
The way you get the people using coins instead of cash, is to take the cast out of circulation. As notes get to a bank the bank issues coins in return.
those changes were made 20 years ago, try to keep up :)
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I was skeptical when I read that and Wikipedia agrees...
"Polymer banknotes also incorporate many security features not available to paper banknotes, making counterfeiting much more difficult."
Macs don't get malware either.
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Trillion dollar coin???!!!
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Trillion dollar coin???!!!
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The real disgrace here is the paper dollar, that idiotic Americans refuse to give up, despite the indisputable fact that a dollar coin, which Canada adopted over 20 years ago, would actually save money. Compare the cost of a coin to cost of the same denomination in paper, and you're comparing apples to apples. But Americans don't have enough sense to do that.
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Yes, you could argue that paper bills are too similar, but they have large, distinctive numbers to differentiate them. With coins, you have to look closer. Even if they're a different color, if you're looking at them in dim lighting, it can be hard to tell them apart.
Plus, paper bills weight less and are more convenient to carry.
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Coins vs notes
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design for a $10^12 coin
Obverse: Lady Liberty playing three-card monte, emblem of U.S. Treasury in background suspended by fraying thread, flying elephants if space allows.
Reverse: ghosts of John Adams and Benjamin Franklin weeping over shards of broken piggy bank.
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I'm just a simple rocket scientist...
"[I]f the Fed doesn’t want... to create looser money, all they need to do is reflect on the fact that two rounds of quantitative easing have left them owning over $2 trillion worth of securities of various kinds. If they sell $2 trillion worth of securities to investors, then $2 trillion will be sucked out of the economy to replicate the $2 trillion worth of platinum coins the mint cooked up."
Wait... If they sell $2 trillion worth of securities, then they'll have $2 trillion dollars to play with, which is what they wanted. So why also create $2 trillion out of nothing? Are they planning to burn the $2 trillion they get from the sale before they strike the coins?
Honestly, it's as if these people didn't play with the same blocks I did in kindergarten.
And I can't believe nobody's mentioned the Mark Twain story yet.
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Re: I'm just a simple rocket scientist...
To stop the rich from complaining, they decided to try borrow and spend. Borrow and spend is the same as tax and spend, only you promise to pay MORE for your project in the future instead of paying less now. This had the political benefit of making it some other Congress/President's problem. This, of course, lead to very high debt and deficits and to America owing money to enemies, despots, and anyone with enough sense to realize that they could force the US government to subsidize their activities.
Now they are trying print and spend. If the printed money goes to the middle class/poor, the rich will complain like they did with tax and spend. If the printed money goes to the rich, the middle class and poor will subsidize the lifestyle of the rich through a steadily and continually declining quality of life, leading to politicians being booted out of office.
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Why Dollar Coins Suck
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