A bill has been introduced to kill the penny, mostly because it actually costs more than a penny to produce a penny. That makes sense, and I’m all for it. It’s not like you can do much with pennies these days anyway, so I say go for it.
Did you catch the idea of rounding down a transaction ending in 1, 2, 6 and 7 and rounding up 3, 4, 8 and 9? Did you have to think twice about it? I sure did. Let’s walk through it: If the transaction ends in 1 or 2 cents, round down to 0 cents. If it ends in 6 or 7, round down to 5 cents. If it ends in 3 or 4 cents, round up to 5 cents. If it ends in 8 or 9 cents, round up to 0 cents (and the next dollar).
The bill apparently contains a provision for a dollar coin and a two-dollar bill. Let’s get real. We’ve already covered the fact that bills cost way more than coins to make and they don’t last nearly as long. Drop the bill and make a two dollar coin. Or even a five-spot. You want to save money, let’s go for it and not create more useless paper currency that will be gone in eighteen months or so.
Comments
7 responses to “Kill the Penny”
I’m for this bill. But, if they wanted to keep the penny, why not make it out of the same metals as the other coins? Would that save money?
According to the article, Representative Jim Kolbe (who has done it before).
Chad, do you know who introduced the bill?
Here is an idea: restore our money to its Constitutionally mandated gold and silver backing. Here is a clue: the amount of silver mandated in the Coinage Act of 1792, adjusted for inflation, would be worth ~$12-13 bucks today. The gold in a $50 gold piece is worth over $500. The problem isn’t the value of the content of the coins, it is that Congress has unconstitutionally delegated the power to make fake money to the Federal Reserve Bank, which is not Federal (it is a private cartel with a monopoly to issue fiat, or fake, money), has no reserves (the amount of gold it holds in gold certificates and boullion equal less than 1% of the face value of the money supply), and is not a bank (you and I can’t hold accounts there, only other banks can borrow from it, borrowing fake money produced at a cost of $0.065 per note and charging prime rate on the face value). Who does the profits go to? JP Morgan, the Rothchilds, and other merchant bankers.
This penny issue comes up every few years when the price of copper goes up. My feeling is, this too shall pass.
What about something similar to those Australian paper bills? They are more like plastic and almost impossible to destroy or ruin. I’m guessing it would cost even more to make those…
A twenty dollar coin…back to the future, our country used them in the 19th century, of course they were made of gold!
When in Japan I noticed that country employed large denomination coins, very convenient.
And thanks for the tip for last week’s Treasure Hunter!
Hannibal, MO, who woulda thunk??? Fine business bro!