Canadians left PennilessSubmitted by FreedomFighter204 on Tue, 04/02/2013 - 14:12
This may be old, but someones gotta report it!
Today nearly marks the two month anniversary of Canadians being left penniless. On February 4th 2013 the Canadian government made it official that pennies were to be taken out of cash circulation. However the remaining cents to every dollar can still be used through cheque or debit/credit transactions. To some this seemed irrelevant, to others very important. What is a dollar without a penny many will ask; the correct answer, a very inflated dollar.
The penny was taken out of circulation based on a number of different reasons, some of these reasons are valid others not so. The main reason was the cost of producing pennies outweighed their actual worth; according to Canadaonline.about.com it cost Canadians 1.6 cents to create a single penny. Other reasons vary from the fact how the penny has lost purchasing power and are often discarded by the populace. Nevertheless this is a clear indication of the coming inflation; as well as producing the thought of the nickel and dime soon making an exit just like the penny.
Already members of the NDP and conservative party are calling for the exit of the nickel, dime and possibly installing new five and ten dollar coins. However a different picture is painted with the thought of all this; if inflation continues at its present rate we could possibly see the demise of the loonie and toonie, followed by larger denomination dollar bills including 10,000 or 100,000 dollar bills. A sight in which this Austrian economist does not wish to see.
The future looks dim and bleak in Canada's economic woes, however were not the only one in this boat. Though we may be one of "first" western countries to discard our penny, our American neighbors are currently debating the same issue. To point out other short comings, we could possibly see the same with other European countries as their Euro currency can barley hold on with recent events going on in Cyprus. To sum most of this up with an old German proverb "he who doesn't respect the penny, has no concept of the dollar"
In closing it seems this could all be avoided with simple monetary policy that doesn't seem so simple anymore. Yes in times of vast government expansion in the western world we can finally see the result and cost of our socialist governments turning fascist each passing day. with out of control debt from nearly every country one finds himself in a hole and the only way out is to keep on digging. May we all one day reach critical mass and awaken to the horrors of debt based fiat money in the hands of private bankers, as well as our Keynesian policies that have done nothing but failed.