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All the financial market transactions are done electronically these days, it means that the mayor part of money declared by companies and governments doesn't exists physically. He endorsed the answer to this problem weeks ago with the platinum trillion dollar coin (the idea was nixed). AWD, the only difference between now and than is that we all use to agree that gold was worth $24 an ounce. Seems like others who love that gold prices are rising forget that it is only because we're off the gold standard. Notice everyone asking for gold and China and other major players buying it up like its better then the dollar, oh wait it is.
I have a friend who is hoarding Nickels as an investment, hoping that he can sell them later for a good profit. On a adjacent note, I was at a museum the other day looking at roman coins featuring a profile view of Caesar. You could keep the donut design on the current penny and call it the "Our American Cousin" edition. With additional editorial support from Nathan Jones, Keith Lampi, Gaylon White, Jos de WitNatural disasters can happen anywhere with little or no warning.
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Going digital is a great solution but what happens when the place you want to eat doesnt take cards or bitcon?
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Once you print endlessly the value of your currency drops compared to the metals market in which it use to be tied. From the the first application of steam bending in the Thonet chair to things like Glass Snowboards, material exploration is forever married to object design. As the cost of copper began to rise, it would have cost more per penny than the penny's own value, so the U.S. You essentially end the grey market, except for bartering, which shouldn't and wont be taxed.
Mint switched over to a zinc alloy.But the price of zinc has been steadily rising since 2005. The DOW is a terrible measure for the economy (see the latest episode of planet money's podcast). Machines that only rely on one metric can be tricked--dropping washers or game tokens of roughly the proper dimensions into an automatic toll booth, for example--but those that rely on both would need to be retooled. I think the best solution is to follow Canada's example, and simply give the penny the boot. It's true that the math is a little more complicated than it would be for pure product manufacturing; for example, while you'd quickly go broke selling a product for $100 that cost $240 to make, currency is a little trickier.
The government has an obligation to produce and circulate currency because it enables commerce, so it's okay if they lose a little in manufacturing costs, as its citizens will theoretically make it back up by creating wealth.
But if we don't do that fuzzy math and look at it in terms of straight production, in 2012 alone the U.S.
I guess those are terrible ideas, but it would certainly make wallet design more interesting.Seriously though, if they're going to insist on keeping the penny and nickel and using the same metals at the same overall size, couldn't we switch over to a donut design? If we kept the outer perimeter the same but removed material from the center, we could cut down on the metals cost. Of course we'd have to lose the portraits, but I think Abe Lincoln would be down to take a powder if he knew it'd save us $58 mil a year.Someone, please Photoshop what a donut penny and nickel oughta look like.



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