Treasury Dept. to stop producing pennies and nickels?

pmbug

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The U.S. is following Canada's footsteps regarding the production of pennies and nickels. According to U.S. Treasury Secretary Tim Giethner, our U.S. Mint intends to remove the penny and nickel coins from circulation beginning early in January 2013.
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http://www.wealthwire.com/news/inflation/4210?r=1

I'm aware of calls for changing the metal composition for the coins, but this is the first I've heard that they will be phased out altogether. The quoted article does not list a source for their claims - I'm not able to corroborate it anywhere... Probably just a bad interpretation of remarks Geithner made last March.
 

dontdeBasemebro

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I'm pretty sure we have heard rumblings of this before, at least for pennies that is.

The treasury could save money if they just STOPPED PRINTING IT!!!!!!!
 

DSAbug

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This is actually going to create a lot of practical problems for businesses and consumers in states with sales taxes. Will prices just automatically be rounded up/down to the nearest dime on cash transactions?

To me.. This is part of a transition to a "cashless" society that is even more dependent on debit cards. Not exactly a good thing in many ways.
 

Penn

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I went thru a nickel stage- in the end it was a wash. While I did find a few buffalos- there were slugs in some of the rolls- in the end- I cashed in the $400 and bought some silver
 

Jetstream

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This is simply the natural effect of inflation in fiat currency. If the money itself has no intrinsic value (copper / silver / gold content), then it will become worthless as inflation rises.

On a sound, gold/based currency this problem would not exist because there would not be inflation.

For me, I really don't care if the pennies and nickels cease to exist. Eventually, as in Germany, our dollar won't be worthy anything, then it will be the five dollar bill, etc. But I think there will be a systemic crash and reset before that happens.
 
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