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<p>[QUOTE=&quot;calcol, post: 2637293, member: 77639&quot;]Well, the gov&#039;mint can&#039;t just say that on particular day in the future, the present currency and coinage will be worth 10X what it is now.&nbsp; That would lead to massive hoarding of both as the day approached plus plenty conflict between the few who didn&#039;t get the message and others who did when the day arrived.&nbsp; What governments can and have done is issue currency and coinage in a new denomination that is worth some power of ten more than the old stuff.&nbsp; If done honestly, the ratio is set and remains in force for years perhaps forever.&nbsp; The old stuff gradually disappears through attrition or withdrawal as it passes through the banking system. The gov&#039;mint may set a future date after which the old stuff is worthless.&nbsp; This would be done more to simplify money handling than to gain some windfall for gov&#039;mint.</p><p><br /></p><p>Turkey did this about 12 years ago.&nbsp; They issued &quot;new lira&quot; (Yeni Lira in Turkish) that were worth one million of the original lira.&nbsp; I spent some time in Turkey about a year after the transition started. My impression is that it went relatively smoothly.&nbsp; Folks were glad not to have to deal anymore with all those zeroes in commerce.&nbsp; With a million-fold difference, even in bookkeeping where the denomination wasn&#039;t stated explicitly, it was pretty clear which denomination was being used.</p><p><br /></p><p>I think it will take more than one decimal place of inflation though before the U.S. issues a new higher value denomination.&nbsp; Chances are we&#039;ll simply follow Canada and Australia and drop the penny and perhaps the nickel.&nbsp; There won&#039;t be any choice once the penny contains more than one cent worth of zinc.</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>

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