New cent and nickel composition?

edited: lets keep it family friendly

 

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Welcome to the United Statres of America - soon home to aluminum coinage!

 

edited: lets keep it family friendly

 

Um, please change the subject guys. Family site.

 

Yep it is a paper profit (though back by the coins in storage) but it is that paper profit they are spending and now it is gone.

Oh and a lot of people say that the Mint can afford to lose money on the cents and nickels because of all of the profits from the other coins. According to the 2010 Mint report (most recent one) 94% of the Mints seigniorage profits come from the dollar coin. We have a "company" here that has trashed the product that they make most of their money on and kept the ones they lose the most on.

 

noooo - not THAT company!

Why, they're part of the most efficient, best managed company ever!

 

It's my understanding that the mint does make money on the golden dollar coins because they sell them to the Federal Reserve for $1 each and not only that, but the Federal Reserve who stores them, eats the cost for storage as the Fed does not receive tax payer money to cover its operations (such as purchasing of coins and their storage).

 

They need to simply stop using the Fed's $1 notes and replace them with the mint's $1 coin.

 

Of course the taxpayers pay for this. Always remember the taxpayers gave the Fed the privilege of earning all of this banking profit. Every year they return most of the profits back to the taxpayers. If the Fed had to pay $10 million for storage of dollar coins, then that is just $10 million that they will not return back to us. Basically like a payroll deduction. You don't write a check for the expense, but you sure as heck lose money either way.

To those who say we should abolish the dollar bill, I agree 100%. Its simple and saves a lot of money, that is why they probably don't do it.

 

Before 1933, gold metal WAS 'money' in the USA. 'One Dollar' was defined as about 1.5 grams of gold metal ($0.70 or so/g). As of Friday, the price of gold was USA$51.96/g.
Some of the basic items where the constant works between 1912 and 2012:

Decent room in a downtown hotel:
1912 - $2
2012 - $150-175.
A really nice room?
1912 - $3
2012 - $200-300.

Good beer in a bar?
1912 - 5¢
2012 - $4 and up

Daily newspaper:
1912 - 2¢-3¢
2012 - $1.00-2.50

Decent restaurant meal for the family:
1912 - 40-60¢
2012 - $30-50

First Class letter:
1912 - 3¢
2012 - 44¢ (Mail is a BARGAIN today! If adjusted for true inflation, a letter stamp would be about $2.50 now)

Etc.

I also agree, over the last couple of decades, changes in the the (M-2?) money supply is a better inflation measure (gotta love fiat money!).

Mike

 

I am speechless.