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Canadians left Penniless

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 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.

FreedomFighter 204

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It's funny how inflation

It's funny how inflation comes back to bite the policymakers in the ass.

nothing new

the US ended the half penny a long time ago for the same reason.

deacon's picture

if they take them out of

circulation,then the ones that are left will be collectors items
and worth a lot more than face value

Leave an indelible mark on all of those that you meet.
OH... have fun day :)

I heard that at the beginning

I heard that at the beginning of this year, Canada would stop producing the penny and the nickel, and that the US would stop producing the penny.

This what I fear

the disappearance of cash and coin. Thank you for sharing this.
It will truly be a sad day when we no longer can hold our own currency
and must rely on some e currency.

"We can see with our eyes, hear with our ears and feel with our touch, but we understand with our hearts."

The "cashless society" is a concern

That's not what's going on with the Canadian penny in particular. It's more an effect of insidious inflation of the money supply, driving prices higher & higher until there isn't much left on the market that one can purchase for a penny.

Put another way: the penny isn't being replaced by an "electronic penny." The move toward a cashless society won't be incremental like that.

Same here

I've been noticing articles here and there about a "cashless society" and how it would be just "marvelous" and all that jip-jap. I doubt they could achieve that anytime soon but who knows. I read about how some countries have fingerprint pin codes for banks? any speculation on that.