Seeking Answers in an Upside Down World.
Established - 1994
May 9th, 2021
MAIL: The Editor
Upon spying a large jug filled with 1-cent coins the boy asked, "Hey, Dad. Why are we saving all these pennies?"
"Well, first of all they are one cent coins, not pennies. That nickname comes down to us from Colonial days when English and other foriegn coins jingled in our pockets. The English penny got its name from the old Roman denarius, often called 'dennies.' Eventually "pennies" fell into use, but the U.S. system has never minted coins bearing the name "penny."
"Now, the coins in that jar were minted before October, 1982, and most of them are 95 percent copper which is valued at nearly three times the face value of the cent. Today it is $0.291033. That's just the value of the METAL, not the cost of mint production."
"But didn't Ben Franklin say 'A penny saved is a penny earned'?"
"Yes, he did. But that was prior to the establishment of the present U.S. coinage system. At the time English pennies widely circulated in American pockets."
copper cents with the present price of copper per pre-1982 cent nearly
3 cents is a logical thing to do. Don't bother hoarding post-1982
U.S. cents. The are made of cheap zinc coated with a thin veneer
Are any 1982 one cents coins worth saving?
Sure! A cent minted from January through September 1982 is mostly copper. But from October of that year to the present the main metal in the one cent coin is zinc. There is a small movvement afoot to cease minting the pesky cent However, the zinc industry is happy with the present system.
Here. . .a Trillion There."
"During 2020, the federal government provided a total of $3.2 trillion of Covid relief, starting with a mere $8.3 billion, then adding $104 billion, then adding $2.2 trillion, and finishing off the year with another $900 billion.
"We’re now three months into 2021, and the federal government has
provided yet another $1.9 trillion in Covid relief; and, the Biden
administration has just asked for $2 trillion for
Clifford Theis, economist with the
American Institute of Economic Research is reminded of the late Sen.
Everett Dirkson, a long-serving
Minority Leader of the Republicans in the U.S. Senate, famously
quoted as saying a billion here, a billion there, and soon we’re
talking real money. That was back in 1969. At the time, a billion
dollars was about one-tenth of 1 percent of GDP. And, to make it
clear to the average reader, we add that $1 billion is 1,000 million
dollars. It takes 1,000 billion
to equal $1 trillion.
Mr. Theis does a good job of explaining the immensity of the impact of continuous monetary inflation since Mr. Dirkson's "a billion here" remark of more more than a half century ago: A TRILLION HERE...A TRILLION THERE
Franklin Roosevelt overwhelmed Hoover in the 1932 election, called in
the people's gold in 1933 and promptly devalued the U.S. dollar in
terms of gold - which Americans would not be allowed to possess again
for more than forty years. Borrowing continued to rise in the
1930s and the economic depression persisted. By the time the nation got
into World War Two its annual deficit was nearly $50 billion. But
the borrowing went into overdrive when war dragged on. The federal debt
had piled up to $259 billion by 1945...122.75
percent of GDP.
were a few years in which the national government ran budget surpluses,
but the debt pile grew until it reached $995 billion in 1981. Converted into millions that's 995
thousand million. Still quite a lot
of money - - even today.
debt pile began to be measured in trillions in 1982. By 1995 the
accumulated debt was $4.9 trillion!
Politicians have chosen to
ignore the debt accumlation. The Treasury Department says it is
presently more than $28 trillion,
A Sword of Damocles
swings over our heads and something ought to be done about it. But he
main objective is to make
voters happy....and voters have no wish to cough up the thousands of
dollars per capita
pay down this towering national debt. The voting majority knows very
well the politians will never ask them to pay back the debt. They'd be
run out of office at the next election.
So - what happens? Can't the debt be declared null and void and just disappear? No - not without wrecking the lives of all those investors in the US and around the world who have invested in all those IOUs in the belief government will make good on its word to redeem them.