Gone in 2013
Earlier this week Canada announced that they would be phasing out their penny coin. On the heels of the Canadian announcement, U.S. Treasury Secretary, Tim Giethner stated in a press conference today that the U.S. Mint will remove the penny and nickel coins from circulation, starting early in January 2013.
Due to the rising costs of zinc and production related expenses, the U.S. Mint now spends 4.8 cents to make a penny. And the cost of copper and nickel have inflated the cost to create a nickel coin to 16.2 cents.
In 2011, the U.S. mint made over 4.9 billion pennies, at a cost of $118 million to make. That is $236 million to produce only $49 million worth of pennies, a loss of $187 million in minting costs. Minting the nickel coin also represents a significant loss in revenue.
By comparison, the dime (which costs 9.2 cents to mint) and the quarter (21.31 cents) are economically more feasible, and will continue in circulation through 2013. However, according to Giethner, the dime may be in jeopardy as early as 2014.
Once the phase out of pennies and nickels begins, merchants must be equipped to round all transactions to the nearest ten-cent increment…
http://skewnews.com/penny-and-nickel-coins-to-be-phased-out-in-2013/
This is how hyperinflation starts: First pennies and nickels and eventually you get a totally worthless currency. Save your coins; trash the government inflation reports. Remember that every single fiat money system in history failed…every one.
“The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the revolution.” -Benjamin Franklin
Of course the corporate media already is trying to tell us that up is down, black is white, and inflation is good.
In his NY Times column today, Paul Krugman lets himself go and calls for an outright “inflation solution.”
The government, he says, does not have to worry about debt, since it can print as much money as it wants and investors apparently never will change any of their plans or expectations.
Indeed, he writes that more inflation will encourage more investment, since “expected inflation would discourage corporations and families from sitting on cash, while a weaker dollar would make our exports more competitive.”…
http://www.prisonplanet.com/paul-krugman-outright-calls-for-printing-money-and-lots-of-it.html
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