With the announcement of the new Canadian budget, one item gets to be cut forever more. That item is the Canadian Penny. That coin which only school kids take an interest in the States.
These pennies cost more to produce than they are worth these days. Most consumers would just as well throw them on the pavement.
The real issue at hand isn’t the costs of the penny to society, but the degradation of the currency.
All currencies, including the Canadian and Petro-U.S. dollars have been devalued to a small fraction of their previous worth.
This staggering inflation continues to rise past the stratosphere, and will continue until the ultimate collapse of the whole economic system.
In the States, both the cheaply made zinc pennies and the nickels cost more to make than their face value. Once only reserved for copper pennies with silver and gold coinage , the nickel is now worth more melted down than its face value. Perhaps soon, both of these will fade away into rounding to the nearest dime.
There are many people who actually hoard pennies, especially the copper ones as they are worth over two cents remelted (which is still against the law) . Kyle Bass, a hedge fund manager in Texas, recently acquired Twenty Million Nickels as a hedge against inflation.
That sounds crazy, but soon enough those dollar bills will likely be used to wipe noses or worse. And when that happens, twenty nickels might still buy one that loaf of bread, while a fresh hundred dollar bill may not.