Gresham’s law not suspended by government regulations

in India, they have coinage made out of stainless steel. While not at Zimbabwe’s level of inflation, it appears that their coinage is worth more as scrap than as coins. The steel coins are being melted down and used to make things like razor blades.

We’ve got the same issue here. Check out Coinflation.com. This site shows the value of coins expressed as the spot price of the coin makeup. Zinc is down this week, but a bit ago, even the copper-plated zinc pennies made since 1982 were worth more than their face value. While I’m not yet buying penny sorting machines and hording rolls of nickels, Every good coin I posses by the end of the day is ending up in a jar.

Below that is a handy listing of all the coins that have silver in them and the value based on spot price.

What we really need to do is to drop the penny and the nickel, and start pricing things in tenths of a dollar. We could also stop trying to make dollar coins the same weight and size as a Carter Quarter, (only the government would fail to figure out by now that no one wants these coins), and instead introduce a new coin about the size of a nickel. Punching a pentagon shaped hole in the coin and adding Twin Towers on the obverse, along with withdrawing dollar bills from circulation will insure that these coins will be used.

We should also scrap those laws that prevent people from doing what they will with their property. I know that’s a radical idea, but we could pretend that people actually own the things they own every once in a while.

This entry was posted in A government of laws and not of men, deranged rants. Bookmark the permalink.

One Response to Gresham’s law not suspended by government regulations

  1. DirtCrashr says:

    Indian coinage also includes aluminum alloy of some kind in the smallest denomination. I wonder what would happen if we did as the Italians do with Lira and moved the decimal the other way? “Hey kid, that video game console is on sale for just Four-thousand two-hundred and ninety-four Cents! :-)

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