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<p>[QUOTE="C Jay, post: 1632476, member: 13184"]The Chinese will be fine as long as the new billion dollars will buy what a trillion does today. The value is shifted on both sides of the ledger, but only the marker changes. If the problem is: A.) Nickels and cents cost more to make than face value, and B.) Paper dollars are less economical than coin dollars, but no one wants one, then a decimal shift makes perfect sense. It provides a currency that people are used to, in denominations that they are used to. The cent will have the purchasing power of a dime. If a cent cost 2.5 cent to make now, then revalued it would cost a quarter cent to make. New paper currency will need to be printed, but could be traded out in short order. A new $1.00 Hamilton, new $2.00 Jackson, new $5.00 Grant, and new $10.00 Franklin note would reduce the confusion. Loose and circulating coins would increase in value, but this would be more than offset by the reduced cost of having to maintain only 10% of the current circulating currency, and not having to honor the stacks of cash that didn’t make it to the laundry mat on time in Columbia. If doing away with the cent and nickel is what you want then fine. That leaves us with 2 circulating coins that people are willing to accept, the dime and the quarter. One day when no one is willing to pick up a dime, then I guess the only coins we’ll see will be in mint set.[/QUOTE]</p><p><br /></p>
[QUOTE="C Jay, post: 1632476, member: 13184"]The Chinese will be fine as long as the new billion dollars will buy what a trillion does today. The value is shifted on both sides of the ledger, but only the marker changes. If the problem is: A.) Nickels and cents cost more to make than face value, and B.) Paper dollars are less economical than coin dollars, but no one wants one, then a decimal shift makes perfect sense. It provides a currency that people are used to, in denominations that they are used to. The cent will have the purchasing power of a dime. If a cent cost 2.5 cent to make now, then revalued it would cost a quarter cent to make. New paper currency will need to be printed, but could be traded out in short order. A new $1.00 Hamilton, new $2.00 Jackson, new $5.00 Grant, and new $10.00 Franklin note would reduce the confusion. Loose and circulating coins would increase in value, but this would be more than offset by the reduced cost of having to maintain only 10% of the current circulating currency, and not having to honor the stacks of cash that didn’t make it to the laundry mat on time in Columbia. If doing away with the cent and nickel is what you want then fine. That leaves us with 2 circulating coins that people are willing to accept, the dime and the quarter. One day when no one is willing to pick up a dime, then I guess the only coins we’ll see will be in mint set.[/QUOTE]
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