The U.S. Cent, A Perspective, Part I

The United States monetary system can affect the whole world:

The US Cent has been in use for over 200 years, and
has been under attack by a congressman, the question should
be, has all aspects of the cent and it's usage been examined fully.

First, it is pertinent to have an idea of the total commerce
and trade supported by the U.S. Monetary System, with a way
to easily visualize a comparison to other economies using other
monetary systems.

The following web page is a useful graphic representation
for this;

http://www.studentsoftheworld.info/i...rank/PNB2.html

There are reasons why some Americans are uncomfortable
or embarrassed when a chart like this is presented, but it should
be realized that the United States produces more than it consumes
in certain critical consumables such as food.

The chart makes it clear that the economy of the US is
not just a little bigger, and this means that a lot more money
is needed to sustain this economy.
There should be some reluctance to change anything
about an economy or monetary system that supports it.
Taking away any part of the monetary system is a
risk that no thinking individual should contemplate, adding
should be done with study and forethought.

The US Cent has little effect on import and export
trade, ant the two biggest importers of US product are
Canada and Mexico, with Japan and China following.

But any change in the U.S. Monetary System can
have an effect on rates of exchange and the general impression
of the US Dollar.

While much has been said about the massive minting
of US Cents, there is less than one cent per person per week
minted, and less than 40 per year if only the money spending
public is counted.

To put this in perspective, the average American may
drink an average of one or two soft drinks per day, so the cost
of soft drinks for one day is more than the entire production
of the US Cent.

This writer consumes about 10 or 12 cans of diet
soft drinks per day, and feels guilty about this, and also
buys about 80 cents worth of miniature Reese Cups per day.

The sales tax on these two items is many times the
amount of US cents minted on a per person per year basis.

This would seem to illustrate just how trivial the
total production and costs of minting cents _is_.

And with at least 1500 cents per person already
minted, all it would take to force the mint to stop minting
cents is for any national TV personality or politician to
make a sincere and passionate appeal for everyone to
turn in all the cents they do not want to keep, and the
FRB would be forced to stop requesting cents from the mint.

Hey, Jay Leno, are you listening?

Joe Fischer

In article writes:
The following web page is a useful graphic representation
for this;

http://www.studentsoftheworld.info/i...rank/PNB2.html

From this I take it that the amount of banknotes produced in the USA is
about 10 times the yearly GNP of the USA. I would think that is
inflational.
--
dik t. winter, cwi, kruislaan 413, 1098 sj amsterdam, nederland, +31205924131
home: bovenover 215, 1025 jn amsterdam, nederland; http://www.cwi.nl/~dik/

"Joe Fischer" wrote in message
...

The United States monetary system can affect the whole world:

The US Cent has been in use for over 200 years, and
has been under attack by a congressman, the question should
be, has all aspects of the cent and it's usage been examined fully.

First, it is pertinent to have an idea of the total commerce
and trade supported by the U.S. Monetary System, with a way
to easily visualize a comparison to other economies using other
monetary systems.

The following web page is a useful graphic representation
for this;

http://www.studentsoftheworld.info/i...rank/PNB2.html

There are reasons why some Americans are uncomfortable
or embarrassed when a chart like this is presented, but it should
be realized that the United States produces more than it consumes
in certain critical consumables such as food.

The chart makes it clear that the economy of the US is
not just a little bigger, and this means that a lot more money
is needed to sustain this economy.
There should be some reluctance to change anything
about an economy or monetary system that supports it.
Taking away any part of the monetary system is a
risk that no thinking individual should contemplate, adding
should be done with study and forethought.

The US Cent has little effect on import and export
trade, ant the two biggest importers of US product are
Canada and Mexico, with Japan and China following.

But any change in the U.S. Monetary System can
have an effect on rates of exchange and the general impression
of the US Dollar.

While much has been said about the massive minting
of US Cents, there is less than one cent per person per week
minted, and less than 40 per year if only the money spending
public is counted.

To put this in perspective, the average American may
drink an average of one or two soft drinks per day, so the cost
of soft drinks for one day is more than the entire production
of the US Cent.

This writer consumes about 10 or 12 cans of diet
soft drinks per day, and feels guilty about this, and also
buys about 80 cents worth of miniature Reese Cups per day.

The sales tax on these two items is many times the
amount of US cents minted on a per person per year basis.

This would seem to illustrate just how trivial the
total production and costs of minting cents _is_.

And with at least 1500 cents per person already
minted, all it would take to force the mint to stop minting
cents is for any national TV personality or politician to
make a sincere and passionate appeal for everyone to
turn in all the cents they do not want to keep, and the
FRB would be forced to stop requesting cents from the mint.

Hey, Jay Leno, are you listening?

Joe Fischer


What's the point here, Joe? The "perspective" examples leave me clueless, too,
and I'm not all that old yet. If total production and costs of minting cents is
indeed trivial, this information looks like it could be used to support both
those who advocate stopping cent production as well as those who favor the
status quo. The fact remains that most people seem to tolerate the penny on the
incoming end, but consider it virtually useless on the outgoing end. Most
likely would not raise an eyebrow if we stopped making them. As for me, I doubt
the penny supports our economy, literally or figuratively.

We need a lot more money to sustain our economy? So we should avoid changing
anything in our monetary system? I don't get the connection here. If the
natural demise of our half dollar has done nothing to weaken our monetary system
at home or worldwide, I doubt that intentional elimination of our lowly cent
would cause the sky to fall either.

Only those few with a dog in the fight seem to really care about this, one way
or another.

Bruce

On Wed, "Dik T. Winter" wrote:

In article writes:
The following web page is a useful graphic representation
for this;

http://www.studentsoftheworld.info/i...rank/PNB2.html

From this I take it that the amount of banknotes produced in the USA is
about 10 times the yearly GNP of the USA. I would think that is
inflational.

No, please notice that many charts are in thousands or
millions or Billions.

The US GNP is 15 Trillion, the amount of currency
in circulation is now about 750 Billion, and 2/3rds of the
cash is overseas.

GNP = Cash times 12.

Joe Fischer

Joe Fischer wrote:
The United States monetary system can affect the whole world:

The US Cent has been in use for over 200 years, and
has been under attack by a congressman, the question should
be, has all aspects of the cent and it's usage been examined fully.

First, it is pertinent to have an idea of the total commerce
and trade supported by the U.S. Monetary System, with a way
to easily visualize a comparison to other economies using other
monetary systems.

The following web page is a useful graphic representation
for this;

http://www.studentsoftheworld.info/i...rank/PNB2.html

There are reasons why some Americans are uncomfortable
or embarrassed when a chart like this is presented, but it should
be realized that the United States produces more than it consumes
in certain critical consumables such as food.

The chart makes it clear that the economy of the US is
not just a little bigger, and this means that a lot more money
is needed to sustain this economy.
There should be some reluctance to change anything
about an economy or monetary system that supports it.
Taking away any part of the monetary system is a
risk that no thinking individual should contemplate, adding
should be done with study and forethought.

The US Cent has little effect on import and export
trade, ant the two biggest importers of US product are
Canada and Mexico, with Japan and China following.

But any change in the U.S. Monetary System can
have an effect on rates of exchange and the general impression
of the US Dollar.

While much has been said about the massive minting
of US Cents, there is less than one cent per person per week
minted, and less than 40 per year if only the money spending
public is counted.

To put this in perspective, the average American may
drink an average of one or two soft drinks per day, so the cost
of soft drinks for one day is more than the entire production
of the US Cent.

This writer consumes about 10 or 12 cans of diet
soft drinks per day, and feels guilty about this, and also
buys about 80 cents worth of miniature Reese Cups per day.


And I thought I was the only one who drank that much soda. (Pepsi)

I am of the opinion that eliminating the one cent coin could be a very small step to
eliminate waste in government. As the old saying goes a Penny saved is a Penny earned. We
need to start somewhere and this is as good a place as any. Of course the boat has to keep
moving and not stop here.

On Sun, 06 Aug 2006 01:28:46 GMT, George D wrote:

And I thought I was the only one who drank that much soda. (Pepsi)

It has become a habit for many, thankfully there are
diet sodas and caffeine free sodas.

I am of the opinion that eliminating the one cent coin could be a
very small step to eliminate waste in government.

As the old saying goes a Penny saved is a Penny earned.

Maybe not, if the price of zinc falls as new mines are
started up and production ramps up in existing mines in
response to the higher prices/profits, the mint might
begin to make a profit on the cent again, as it has done
for many years.
It is poor planning to only think of one year, and
it isn't realistic to think prices will continue to rise, as
there is no shortage, almost 194,000 tons are in warehouses.

We need to start somewhere and this is as good a place as any.
Of course the boat has to keep moving and not stop here.

A better place would be to roll back the $30,000 per year
the congress has raised their own pay since the last increase in
the federal minimum wage.
That $30,000 _raise_ is 3 times the earnings of a person
working for minimum wages.

The mint generates a profit of 700 million for the
government, and the interest on the loans made by the
FRB made possible by the printing of money has
amounted to possibly more than 100 Billion, so
both the mint and the printing of money more
than pays for itself.

People come to expect exact change just as banks
and credit card companies expect exact amount in
payment.
With the exception of Japan, the US economy
is 10 times the size of any other country (not counting
the bartering and undocumented transactions), and
in my opinion it is folly to make any changes in such
an exceptional and dynamic system.

One thing the mint could possibly do is go back
to making the planchets instead of contracting so many
things out. And just relax production of cents some,
and that would make the price of zinc come down.
I don't understand how anybody can claim that
the metal in a cent is worth more than face when the
price of zinc is about $1.50 a pound, and it takes more
than 170 cents to make a pound.

Joe Fischer