Inflation – Here’s The Proof: No More Pennies Or Nickels Next Year in the U.S.A.
“Mr. Geithner has been busy lately. Amongst his many other pressing tasks, he took the time to announce that the U.S. Mint will be removing the penny and nickel from circulation in the U.S. starting early next year. The reason is clear. It now costs the mint $US 0.048 to make a penny and $US 0.162 to make a nickel. They are still just above the breakeven point on the dime, which costs them $US 0.092 to produce. That won’t last, according to Mr. Geithner, so the dime will be the next to go – probably in 2014.” – Bill Buckler, Gold This Week…01 December 2012
If this isn’t proof of inflation, what is? When a unit of currency no longer purchases what it used to purchase, and is removed because it no longer has any utility, it’s only because those goods and services now require more and larger forms of currency in order to be purchased. Alternatively, the [fiat] currency has been diluted to such a point that these coins have lost their former utility.
Remember, inflation is not an increase in prices. Rather, it is an increase in the money supply that manifests itself in the form of rising prices. Money creation equals inflation creation. It’s that simple.
All Things Considered – John’s Commentary:
Question: “If you had a money printing press in your basement, how often would you use it?” Guess who has such an arrangement?
Quote of the day: “…Money holds value so long as it is in limited supply; gold will always be in limited supply… Paper and printing ink are not in limited supply. The gold system is much closer to an automatic control system than the crude and relatively unstable system of paper.” – William Rees-Mogg
