Goodbye. (Photo by Lambert/Getty Images)
In 2013, I wrote a Forbes column This became one of my most read and most mentioned, “don’t dare to eliminate the penny”. In this I considered the views of the elites of knowledge that the United States wanted to stumble on the monetary unit of the lower bias, Penny. They said they would save money to get rid of things because copper costs more than a minute now.
Do you remember copper thieves? They would hide around the construction sites and pull wire from the framework of a building and then resell things in the black market for big dollars. Wondering why copper became so expensive. You wonder why gold did. In the 2000s, he had perfectly kicked the Tush of stocks. Gold was selling at $ 266 in 2001. Now it’s at $ 3300. This is about how well Microsoft’s stock, Mister Softee of the reputation of the 3 trillion dollars of the market has done at this time. The indexes? Forgotten. Gold is twelve times since 2001. Industrial Dow is four times.
Back when the United States had a large economy, in the nineteenth century, in the 1920s, in post -war prosperity after World War II, the dollar itself was redeemed not only in copper (100 pieces in a dollar) but in gold (1/35th of a ounce). Again, how did we do it, as an economy, when we had a currency that would be redeemed in precious metal as an old -fashioned turns? We developed and prosper like crazy. How have we done with modern, serious, professional fiat money? Slow growth, inequality-wracted 2000s! But we are so sophisticated that it makes me blush.
Yes, now we eliminate the penny. This seems to be the essence of the news last week. Federals will hit the old bird. This will make circulation pens very rarely and valuable from a monetary and copper and everyone will leave circulation. Sellers, in turn, should round the prices to multiples of five cents. This is due to the fact that we are still hitting half-dimes, which by the law of 1792 the Congress must still be coins in silver.
Oops, we don’t have half dimes anymore. At the Civil War Congress, they gave them to Nickel because Nickel was cheaper. The United States in this war began printing portfolios that were not redeemed in gold and everyone accumulated silver. Like today!
Penny’s decline is yet another further weakening of classic monetary systems of the past-Read about this Free money– Responding to the whole gold standard we had with us only in 1971. You can do yourself – Washington and Academia Do – that the gold standard is crankcase and so on, or you can get real and note that classic monetary systems accompany the industrial revolution. The candy that gold caused the great recession is a joke. We had the most complete tax system suddenly since the early 1930s and people say something else – captain! gold! The rich! – They did the disaster.
If we had severe economic growth, no one would give the penny and the copper would fall in price. What did Gold do when Reagan took economic growth seriously? It fell from $ 840 all the way down to $ 260. No one wants precious metals – included – when the real investment environment is excellent. We get rid of the penny because we have not taken full seriously to have a big economy again. If we had a big economy or expected to have one, there would be no reason to believe that people would give money.
The penny costs too much to do? Then it costs less, having people wanting to get rid of inert metal for real development projects.
The shame to get rid of the penny is that the respectable copper, “found a penny on my feet”, like Joni Mitchell multiple lineIt is still a hacking away from links with hard money systems that really delivered growth. Yes, we still have another pocket change, but you know that inflation on the wings comes for the rest. Dry your houses, strange, as they have been done with all the weird new “works of art” that makes Augustus St. Gaudens (not to mention tr) roll in his grave. The quarters look bad now because they want to soften us to get rid of them completely.
Bing Crosby was singing the old carolRedient of times of prosperity when “goose gets fat” for poor peoples who had nothing. ‘If you don’t have a haypenny’ -what half-Understanding? -“Then God bless you.” Well, the United States no longer has half-penny or a penny. This means that they are a poor people. Then God bless it, I guess.
