Zinc Dimes, Counterfeit Tungsten Gold And Lost Interest

The Market Oracle ^ | 11-18-2009 | Jim Willie CB

[jaydubya2]

[FromLori]

Yes there was an article this one I bet

http://www.marketoracle.co.uk/Article14996.html

Also worth reading

http://www.economicpolicyjournal.com/2009/11/whats-fed-hiding.html

http://www.financialsense.com/fsu/editorials/kirby/2009/1009.html

http://www.marketskeptics.com/2009/10/gold-market-reaching-breaking-point.html

http://www.scribd.com/word/embed/21133990

[Atlas Sneezed]

Nickels always seem so useless...That’s a coin that should be discontinued....

along with the stupid penny. The $4.99 and $6.99 and $1999.99...Duh...Like I think we figured it out!!

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It’s time once again to trot out my currency and coinage reform proposal.

Given that there has been ample inflation on the order of 10 since the last change, and we have an excessive array of confusing coins and low-value currency, it is time for a practical simplification.

First, denominations need to proceed in a proportional way without large value ratios or crowded ratios. The classic 1-5-10-50-100... progression with ratios of 2.0-5.0 is ideal as a minimum, with denominations of 2, 20, etc. being optional for important valuations.

Second, we want to avoid coins of such low value that they are more trouble than they are worth. Economic waste occurs with the extra time wasted dealing with needlessly small coins. A dime is worth less than a minute of labor at minimum wages, and no currency transaction requires anything smaller than this denomination. The penny and the half-cent served well as the smallest denominations when their values were that of today’s dime. Note that electronic transactions are often conducted in smaller units than our smallest coin, and that cash registers have been “rounding” (without bias up or down) to the nearest small coin for sales tax purposes for generations.

Third, we want to set the coin/currency transition at a practical level that avoids our wallets being overstuffed with small bills, or our pockets with too many coins. Coins should be suitable for purchases like a magazine, a coffee, a lunch, or a brief cab ride.

Fourth, the ratio between the largest and smallest coin should be limited to a practical factor. Consider that the economy functions effectively with coins at 0.05, 0.10, and 0.25, with pennies treated as trash, and larger coins generally not used. That is a factor of 5 between the largest and smallest coin. A factor of 10-50 may be ideal, and a factor of 100 (as in actual current coinage) is excessive.

Fifth, we need bills of adequately high value for large cash purchases (consider the largest Euro note has a value of about 7.5 times that of the largest US note.)

Sixth, coins should be sized approximately proportional to their value for ease of recognition and use.

The proposal:

Coins:
$0.10 (slightly smaller than the current dime)
$0.50 (slightly smaller than the current nickel, larger than the penny)
$1.00 (slightly smaller than the current quarter dollar, larger than the nickel)
$5.00 (slightly smaller than the current half-dollar) Or it could be set at $2 to avoid overlap with a $5 note.

Currency Notes:
$5 (optional)
$10
$20 (optional)
$50
$100
$500

Our current 6 coins are replaced with 4.
Our current 7 notes are replaced with 4-6.

If you want to talk about making coins out of silver or gold, that’s another topic.

[InterceptPoint]

Or am I totally off base here?

Nope. I had the same thought.

[tiki]

I gotta go get some tomorrow and I’m stopping at the grocery store tonight for pumpkin.

[D Rider]

Based on curent prices, a pre 64 quarter is worth over $3.00

[libertyhoundusnr]

Copper is most valuable today in the form of a FMJ bullet. If you have enogh FMJ, you may not have to worry about the price of gold.

[Neidermeyer]

[An Old Man]

It’s time once again to trot out my currency and coinage reform proposal.

That proposal of your has the smell of democrat. Are you admitting that you want the current administration to continue their nonsence forever?

[Atlas Sneezed]

That proposal of your has the smell of democrat. Are you admitting that you want the current administration to continue their nonsence forever?

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Huh? Please explain.

[An Old Man]

Ayn Rand wrote "If you want to know when a society is set to vanish, watch the money. Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of moral existence. Destroyers seize gold and leave to its owner a counterfeit pile of papers."

Your proposal does nothing more than to facilitate the destruction of the currency, by making it easier to count change. I would prefer the old way. Although I ust admit that toting $500 or $1,000 in gold coin was a bit much after awhile.

[Atlas Sneezed]

Your proposal does nothing more than to facilitate the destruction of the currency, by making it easier to count change. I would prefer the old way. Although I ust admit that toting $500 or $1,000 in gold coin was a bit much after awhile.

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Pal, the currency is ALREADY destroyed. I just propose that we admit it, and not burden ourselves with ridiculous monetary units.

[An Old Man]

Your proposal does nothing more than to facilitate the Further destruction of the currency, by making it easier to count change.

Are you happy now?

[Atlas Sneezed]

Nothing destroys a currency like being able to count change, huh?