04-27-2008, 01:51 PM
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#1 (permalink)
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Last Online: 10-12-2008 11:01 PM
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Penny worth 5 cents?
Due to the rising price of metals, there is talk of making the US penny worth five cents, or just doing away with it. Makes sence to me. Most people won't even bother to pick up a penny if they see it lying on the ground these days. It's all but worthless.
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Coin Shortage Means a Penny Could Be Worth 5 Cents Soon
A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon, says an economist at the Federal Reserve Bank of Chicago.
Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.
Such a risk spurred the U.S. Mint last month to issue regulations limiting melting and exporting of the coins.
But Francois Velde, senior economist at the Chicago Fed, argued in a recent research note that prohibitions by the Mint would unlikely deter serious speculators who already have piled up the coinage.
The best solution, Velde said, would be to "rebase" the penny by making it worth five cents rather than one cent. Doing so would increase the amount of five-cent coins in circulation and do away with the almost worthless one cent coin. "History shows that when coins are worth melting, they disappear," Velde wrote FOXNews.com - Coin Shortage Means a Penny Could Be Worth 5 Cents Soon - Business And Money | Business News | Financial News
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Someone needs to take the US penny out behind the outhouse, and shoot it in the head, or put it in a burlap sack full of rocks and throw it in the reservoir. The penny is dead. But given the intelligence demonstrated by the US Mint, I peg the year 2300 as the year they finally figure out they can get rid of the damn things, when McDonalds cashiers will be making $5,000 an hour, and a dozen eggs cost $6,000. I am certain in such an age, the moronic US Mint will still be issuing pennies.
American currency is stupid || kuro5hin.org
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