Pennies and nickels cost more than they're worth!

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Inspector3711

New member
CNN article yesterday stated that pennies cost 1.25 cents and nickles cost over 7 cents to produce. Uncle Sam is looking at using steel again (like WW2). It would save $100,000,000 per year. How much are we spending on the war? Over $300,000,000 per day last I read. Why we could pay for 8 hours of war with that kind of savings! Maybe they should spend time working on real problems? Any savings is good, but is this top priority when they probably waste millions per day? I'm not 100% opposed to what we're doing over there but I am opposed to bad policy that wastes our hard earned tax dollars. Thoughts?
 
That is an old story they drag up every now and then to distract the population. They want us talking about stuff like this instead of things like corruption, the war, etc.
 
The media is missing the point. They should be asking why our currency is being debased to the point that the penny and nickel are worth so little.

Just wait, ATMs are going to be soon stocked with $50s instead of 20's in this keeps up.
 
1) not even remotely gun related.

2) seriously considering avoiding any thread with "!" in the title.
 
1) not even remotely gun related
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Doesnt have to be. This is the Legal and Political Forum.

Personally, I wouldn't mind if we did away with the penny. most prices I see end with a ".09" cent. Round them to the nearest .05 or .10 cent and I'd be happy.
 
Ok, odd question...

Who cares that it costs more to make than they are worth? The cost is EASILY made up in the fact that $100 bills cost as much as $1 bills and both cost pennies (real or copper equivalent, take your pick)

Taken in totality (printing or pressing of all money), why does it matter that pennies and nickels cost more to produce than face value? It only becomes an issue when the VALUE of the metals make it possible for people to buy pennies/nickels to sell copper/zinc/nickel?

i.e. cost to produce is not the same as value of the object which is not the same as value of the underlying metals.

Frankly, we can handle using paper for currency, so who cares if we move to steel, too?
 
That will be one of the reasons why government will take us to a cashless society.
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It will never work. We can't keep credit card machines up 100% of the time. If we have a cashless system and a system goes down somewhere, the economy will grind to a halt. I use my credit card for almost everything, but always keep $50 or so in cash on me for those times where things won't work.

What are people supposed to do during a natural disaster? Sit around waiting for the system to come back online? $50 may not be allot, but when your card doesn't work, that $50 will pull you through most of the time.

You are always going to need a form of cash. If the fed foolishly goes cashless, another currency will take its place. Be it Canadian dollar, euro, or whatever.
 
It will never work.
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Not having an anonymous method of payment means that you are strictly under the government thumb. Your assets will be frozen before the JBT's get to your house mister "there-was-a-neighbor-that-thinks-she-saw-an-illegal-weapon-through-your-window-even-though-it-was-just a broom". Talk about giving too much power to the government..
 
History Repeats Itself

Every time a gov'met has debased its currency through or by inflation to pay for wars or building palaces or what-ever, that gov'mit has defaulted on that currency. History is repeating itself. The U.S. inc. Governmet is already planning to replace the Frederal Reserve Note (Federal Reserve Accounting Unit Device, F.R.A.U.D. for short) with the Amero. The Amero would be a North American Union currency. If you look at what Venezuela did to it's currency last New Years Eve, and what Turkey did at the Millinmum (2000) you will see the plan for the U.S. inc. money. They will "revalue" the "new Amero" at 1 to 1000. If you are holding a paper security, stocks-bonds-bank account-pension-cash etc., it will be exchanged $1000 to 1 Amero. Take all of your statements and move the decimal point three places to the left, that is how much you will have in Amero's.
Now because coins are not "Paper Security's" and because the total amount of coin in circulation is such a small amount of the total amount of currency in circulation. The Gov'mit will decree-proclaim that "they" will accept the "loss" in value to continue using the current coin at the same value as the "new money". What this will do is make the Penny worth $10 of todays purchesing power. Of course everything that you buy will also have a different value but what will happen is things will revalue to the point that gasoline would sell for 5cents, just like it did 70 years ago. You would find 5 and 10 cent stores in town (i.e. Wal-mart five and dime). This process would make everything fall back into proper value, (crooks wouldn't steal your copper plumbing and aluminum siding) because pennys would have real value.
So how do you make a gain from this event? Save your change!! collect coins including gold and silver coins. Holding Silver coins work different than paper securitys, the decimal point moves to the Right. Your $20 Silver coin would become worth 20,000 Ameros while your $20,000 bank account becomes worth 20 Ameros. What would you rather be holding when "they-them" call the next Bank Holiday?
 
The media is missing the point. They should be asking why our currency is being debased to the point that the penny and nickel are worth so little.
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Like when they got rid of the half penny... Which was worth MORE than the current penny is in today's economy.

The penny should have been done away with years ago. Its time is over. Remove the thing and really institute the dollar coin. Loosing the penny would open up the spot in registers. We could then do away with the dollar bill.
 
The U.S. inc. Governmet is already planning to replace the Frederal Reserve Note (Federal Reserve Accounting Unit Device, F.R.A.U.D. for short) with the Amero.
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Purchase aluminum foil futures.
 
Here is why your ammo cost so much!

There be Gold in them Pennies!:eek: None shall pass my house!


One penny has a weight of 3.11 grams
Composition .950 copper.
One gram = 0.03527 0z.

1,000 pennies = $10.00
1,000 pennies = 6.5128 pounds copper

copper was at 3.84/ lb last quote I saw.

So $10.00 worth of pre 1982 pennies,the intrinsic value of the copper of $25.01

BTW 138.5727 pennies are required to extract one pound of pure copper.
 
I wonder if the IRS will want to tax us on the metal value, rather than the face value, of any pennies we receive in change, like they did when they prosecuted that guy who paid his employees in gold and silver issues of the US Mint.

http://www.coinflation.com/
 
Sorry, Homefires. The mint is on to you. From their web site:

The alloy remained 95 percent copper and 5 percent zinc until 1982, when the composition was changed to 97.5 percent zinc and 2.5 percent copper (copper-plated zinc). Cents of both compositions appeared in that year.

http://www.usmint.gov/about_the_mint/fun_facts/index.cfm?flash=yes&action=fun_facts2

You'll have to check the dates on those pennies before you haul them off to the salvage yard.

Edit: Oh, duh! You already know about the dates. Well, the link may be interesting to others.

Tim
 
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