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 Replies: 17 / Views: 2,410 |
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Rest in Peace
 United States
9104 Posts |
Not only does it cost more to produce a cent than $.01, but it costs another $.002 every time it's handled.
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Moderator
 Australia
16867 Posts |
Quote:
That #1 threat is inflation, or even worse, hyperinflation. Hyperinflation does indeed make coinage go away until the hyperinflation ceases, but ordinary inflation does not. It makes specific denominations of low face value go away, like the 1 cent and 5 cents, but usually, new denominations at the upper end appear to replace them. Look at Australia. In 1966, there were six coin denominations in circulation here: 1c, 2c, 5c, 10c, 20c, and 50c. In 1991, the 1c and 2c coins were eliminated. How many coin denominations do we have in circulation now? Six. Because we introduced two new denominations, the $1 and $2, a few years previously. Australia "should have" replaced the $5 note with a coin by now, too, but we chose instead to introduce a new longer-lasting paper substitute for the banknotes. America is an anomaly in this regard. It "should have" abolished the 1 cent and 5 cent coins long ago, and introduced practical circulating $1, $2 and $5 coins by now. The fact that this has not yet happened simply indicates that logic and common sense are not major factors in determining US monetary issuing policy. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Bedrock of the Community
United States
20753 Posts |
I still think electronic systems will eventually wipe out all types of currency. No need for coins or anything soon enough. Already many people use plastic for everything. And now with organizations like BOA giving back from 1 to 3 % of what you spend, that too makes more amd more people swiching to plastic. I use that one and get a real lot of cash back on everything so I already have basically stopped using cash of any kind. My Son told me he hasn't used hardly any currency or coins for years now and he runs his own buisness.
With so much intercontinental trading going on, electronic monitary systems is the only possible end to money. In the near future anyone will be able to go to any country and buy or sell anything without the use of a paper or metal coin system. All done electronically. Fast, easy, accurate rather than trying to figure out what you have to spend in Russia, Germany, Japan, etc. Just plastic in a machine and POOF, it's done.
Even now our government is trying to go all electronic. For example I received a notice to go to the internet for the Sensus info. I called and said I don't have the internet so now what? A person on the phone said "HUH, you don't have the internet? Everyone has the internet or access to it somewhere." See, even our government thinks all electronic is the way to go.
Edited by just carl
11/09/2011 11:10 am
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Moderator
United States
189767 Posts |
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America is an anomaly in this regard. It "should have" abolished the 1 cent and 5 cent coins long ago, and introduced practical circulating $1, $2 and $5 coins by now. The fact that this has not yet happened simply indicates that logic and common sense are not major factors in determining US monetary issuing policy. I agree completely. It would be just as accurate to say "Logic and common sense are not major factors in determining US policy." Quote:
I still think electronic systems will eventually wipe out all types of currency. Whether we like it or not, this will eventually happen. When it does, I believe it will be evolutionary, not revolutionary. That is, it will happen over time because "more and more" people will prefer electronic transactions to cash. There will be no need for any government to make it happen, it just will. Governments will continually decrease production as demand decreases; eventually realizing there is no longer a need for cash. |
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Pillar of the Community
United States
7197 Posts |
In a perfect world electronic spending would be foreseeable, but we do not live in a perfect world. With all the "identity" theft going on let alone issues with natural, and man made disasters, we will still need a means of exchange not dependant on electricity. We have made our lives so dependant on electricity that we cannot function without it. I for one have usually had some kind of back up. I maintain a cash reserve besides my PM's and if the lights go out for an extended period of time I will stay warm in my house with wood heat and not freeze like the people in Connecticut. Lastly I do not want someone to be able to track my spending; big brother has too much on us all with tracking cell phones, GPS, and facebook to know about most of our goings on.
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Valued Member
United States
320 Posts |
Electronic money is easier to track, so as long as there are criminals in positions of power, there will be a definite governmental preference toward real money and not electronic. I am not making a political statement about anyone or any party, etc---- just a generalization.
Think of all the drug lords for instance. How would it impact their business, both on the money-laundering side and on the consumer's side. Or think of how difficult it would be to take a bribe in e-credits. Or how hard it would be to cheat on your income taxes if every byte is accounted for.
Money and political power go hand in hand- and those with lots of money who want to hide it for nefarious purposes will use their power to make that happen. Which will ensure "real" money is always available-- at least until the criminal element figures out how to make e-money invisible.
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Bedrock of the Community
United States
10045 Posts |
Interesting conversation.  As much as I like the (older) Lincoln cents, the cent should have been abolished years ago, like in the 70s, when they were toying with striking it in aluminum. However, I think that there will always be a need for physical money, because not all purchasing venues are set up for electronic transactions--and may never be. |
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Rest in Peace
United States
7075 Posts |
I think the transition will be very much like electronic books. I was editing for an electronic book publisher twenty years ago. But no one I talked to back then wanted an electronic book. And they didn't want to shop online, or trust the system enough to pay bills, etc.
But now it is common to see people reading books off of all kinds of devices, including phones. So it just takes time.
As for me, well I love my Lincoln pennies and here in Illinois you can still put pennies in the toll basket. Also, I grew-up paying cash for everything so it is what I am used to -- you should see the reactions at hospitals and hotels....they don't know what to do!
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Pillar of the Community
Australia
2830 Posts |
I think thgat there is at least one other thread on this topic in the last year or so.
The most effective cash-less society that I have seen is Hong Kong, which uses the "Octopus Card", for even the smallest transactions. The card is not swiped: it need not contact the reader; so ladies wave their handbag near the reader; while young men athetically spin to bring the card with range, without removing the wallet from the pocket.
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Pillar of the Community
United States
3283 Posts |
I always thought the #1 threat to coins was harsh cleaning fluids.
Another topic altogether.
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Pillar of the Community
1028 Posts |
Very interesting conversation here about the pros and cons of going to a cash-less society as well as the logistics of the situation. On topic, but off on a tangent to some extent. I think if we eliminate all coins from society, and certainly if we eliminate all cash, the coin collecting hobby will essentially die and all our collections will lose a great deal of value. Coins will become just an antique. Proportially speaking, antiques are worth far less than collector coins and have very small market demand. Somebody might want to just buy "an interesting Indian Head cent" for $5, but nobody will be trying to put together a set. I'm talking a 100 years in the future where new generations never saw coins growing up...no incentive to collect them. The thought makes me sad considering the love I have for my hobby as well and thinking that if and when I pass my collection down, it may actually lose value in the super long run. |
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Bedrock of the Community
United States
20753 Posts |
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Electronic money is easier to track, so as long as there are criminals in positions of power, there will be a definite governmental preference toward real money and not electronic. I am not making a political statement about anyone or any party, etc---- just a generalization.
Some years ago there was a million dollar robbery at a place called the 1st National Bank of Chicago. The money was not taken by crooks in masks. Not taken at a tellers window by a gunman. The money just VANISHED. All suspected done electronically but to this day, never found out how. For every method of monitary systems, there are criminals that also have the ability and/or education to do something about taking it. Some time back a story, not sure if true, was about a bank person that realized when computers gave you a percent in interest, it is always rounded either up or down. This means there is always a discrepency of either +0.00X or -0.00X placed out in electronic space somewhere. So that person started to move the +0.00X into her own account. Did that for ten years and if not so greedy, should have stopped since the IRS wandered how a bank person could amass millions of dollars. A neighbor of mine is a mechanic and has to go to school for all the new stuff on cars. One thing they are taught is how to override security systems. HHMMMmmmm. Think all mechanics are honest? All in all in the future there will no longer be coins, currency, paper notes of any kind. Of course there will always be Wampum.   |
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Rest in Peace
United States
9104 Posts |
Civilized countries already have cc with power, leds and video screens. Want to know your balance or remaining credit? Press a button and it appears on the screen. Need a one-time password? No problem.
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Moderator
United States
189767 Posts |
Quote:
Some time back a story, not sure if true, was about a bank person that realized when computers gave you a percent in interest, it is always rounded either up or down. This means there is always a discrepency of either +0.00X or -0.00X placed out in electronic space somewhere. So that person started to move the +0.00X into her own account. Did that for ten years and if not so greedy, should have stopped since the IRS wandered how a bank person could amass millions of dollars. http://www.snopes.com/business/bank/salami.asp |
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Valued Member
United States
350 Posts |
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In a few countries, low value notes have been replaced with high value coins a twenty dollar piece would be awesome. I suspect the penny would be the first to get the boot...  |
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Posted 11/09/2011 09:03 am
