Treasury Dept. to stop producing pennies and nickels?

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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.
 
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!!!!!!!
 
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.
 
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
 
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.
 
* bump *


https://www.ft.com/content/2a4332d1-9faa-4325-a2b7-26203c44f12d

h/t: https://gata.org/node/22577

Will Congress take up the issue again?
 
Because I'm a hoarder by nature, I had to stack a few dozen boxes of nickels and maybe a ton or so of pre 82 american cents. I came across the cents at a coin store in $50 bags and the guy wanted them out of the way so I paid him $60 per bag. I just threw all that junk in a corner and forgot about it.
 


Will momentum build for this?
 
I would have to guess no becuase congress has been talking about this since 1982. All they've done is changed the composition of the cent. Plus, the US govenement doesnt belive in saving money. They sincerely don't care.
 
Will momentum build for this?
I, for one, sure hope not.

If the gov insists on controlling the money and then mismanages it, the gov should pay the price it takes to produce the coins that the public needs in order to properly make change.

It's not our fault they f'ed up.

Gov: "hey everybody, we devalued the currency to such a degree that some of it is now virtually worthless. Please let us stop making them so we can further line the pockets of our buddies."


If we had politicians that actually desired to enforce the intent of the Constitution they swore an oath to protect preserve and defend, gold would still be $20.67/oz, silver coinage would still be in circulation, and the gov would not be in $31Trillion of debt.

Instead, for almost 100 years we've had a gov virtually filled with people who swear an oath to the Costitution, but then immediately turn around and defecate all over it.
.....and the majority of the people, mostly out of pure unadulterated ignorance, cheer it on.
 
I am probably in the minority on this issue, but for what's worth by doing away with both the penny and nickel what we are doing is increasing the cost of goods and services. Cost of labor and finges will be going up slightly. After the initial cessation of these coins no further added cost will be noticed.

So can it be done. Yes. Should it be done - who knows.

Any savings that the government will realize by doing away with these coins will be wasted away the government. Cost savings earned by the government will be lost almost immediately.
 
I am probably in the minority on this issue, but for what's worth by doing away with both the penny and nickel what we are doing is increasing the cost of goods and services.
Absolutely not. It's a given that businesses would round prices up.

It would make no sense for them to round down.


Any savings that the government will realize by doing away with these coins will be wasted away the government. Cost savings earned by the government will be lost almost immediately.
Exactly. If the gov is going to waste money either way, I would much prefer that the money be wasted doing the things our gov is supposed to be doing as opposed to wasting the money on more stuff the gov is not supposed to be doing.
 
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