This will stop when someone does a cost-benefit analysis.
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Not quite true - it already costs more to make US currency than the currency is worth. (cf.http://www.moneyweek.com/news-and-charts/economics/how-expensive-is-printing-money.aspx[^] In actual fact, it can be beneficial to the economy to have the cost of money production exceed the value of the money produced! Dontcha jerst lurve economists?
Did you know: That by counting the rings on a tree trunk, you can tell how many other trees it has slept with.
Interesting article, but I think the argument saying the fact currency is costly prevents government from being irresponsible seems a little fallacious. A very large chunk of currency transactions have been virtual for many years, and it does not look like the decisions made by governments to create (or not) new money is influenced that much by the cost (or lack of cost) of the currencies.
You can't turn lead into gold, unless you've built yourself a nuclear plant.
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Well, lets just say it cost a dollar to create a dollar. It really isn't counterproductive until it cost more than a dollar to create a dollar, because then you wouldn't be able to create enough dollars to pay for creating dollars.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
It definitely is counterproductive to use a currency that costs more than its face value, but it does not make much sense to even use something that costs as much as face value. You'd then be back to the old times when gold was the currency and the amount of money you had was directly linked to the amount of material in your pocket.
You can't turn lead into gold, unless you've built yourself a nuclear plant.
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Fake £1 coin[^] numbers rise. What with the state of the economy and the rising cost of materials we must fast be approaching the point where faking these is no longer economically viable.
Henry Minute Do not read medical books! You could die of a misprint. - Mark Twain Girl: (staring) "Why do you need an icy cucumber?" “I want to report a fraud. The government is lying to us all.” Why do programmers often confuse Halloween and Christmas? - Because 31 Oct = 25 Dec. Business Myths of the Geek #4 'What you think matters.'
Henry Minute wrote:
What with the state of the economy and the rising cost of materials we must fast be approaching the point where faking these is no longer economically viable.
They will just have to start making £2 coins. :-D
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Interesting article, but I think the argument saying the fact currency is costly prevents government from being irresponsible seems a little fallacious. A very large chunk of currency transactions have been virtual for many years, and it does not look like the decisions made by governments to create (or not) new money is influenced that much by the cost (or lack of cost) of the currencies.
You can't turn lead into gold, unless you've built yourself a nuclear plant.
Correct. Counterfeit currency is irrelevant in the macro-economic sense. The one way cost of coins is relevant is governments don't want people to disassemble and melt their coins and sell the metals at a profit, as a shortage of coins would harm the retail businesses. :)
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How about using a modern currency with many built-in security features? :rolleyes: See this: http://en.wikipedia.org/wiki/Euro_banknotes[^] (Might be even more cost effective to use virtual currencies)
You can't turn lead into gold, unless you've built yourself a nuclear plant.
it doesn't fit the splendid isolation concept. :-D
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Please use <PRE> tags for code snippets, they preserve indentation, and improve readability.
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Not quite true - it already costs more to make US currency than the currency is worth. (cf.http://www.moneyweek.com/news-and-charts/economics/how-expensive-is-printing-money.aspx[^] In actual fact, it can be beneficial to the economy to have the cost of money production exceed the value of the money produced! Dontcha jerst lurve economists?
Did you know: That by counting the rings on a tree trunk, you can tell how many other trees it has slept with.
OriginalGriff wrote:
In actual fact, it can be beneficial to the economy to have the cost of money production exceed the value of the money produced! Dontcha jerst lurve economists?
Well, that is because it keeps inflation in check, but almost all money these days are just digits on a computer. It cost virtually nothing to create 1, 100, a million, a trillion, or even a quintillion new dollars.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
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Henry Minute wrote:
we must fast be approaching the point where faking these is no longer economically viable
Our Canadian penny is rumored to cost between 0.8 cents and 1.8 cents. Either way, it doesn't make much cents to keep making it, so our government is trying to have it discontinued.
Here in the land downunder we haven't had 1 or 2 cent pieces in circulation for many years... The smallest coin is now 5 cents, and there's even a rumour that it will go by the wayside in the near future... Funnily enough, rounding only occurs for cash transactions - pay by card and the exact amount (to the cent) is used.
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
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Yet when the central bank creates trillions of new Euros or pounds, its beneficial to the economy.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
CaptainSeeSharp wrote:
Yet when the central bank creates trillions of new Euros or pounds, its beneficial to the economy.
Too bad the poster you're responding to is an Indian living in India.
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Here in the land downunder we haven't had 1 or 2 cent pieces in circulation for many years... The smallest coin is now 5 cents, and there's even a rumour that it will go by the wayside in the near future... Funnily enough, rounding only occurs for cash transactions - pay by card and the exact amount (to the cent) is used.
I don't have ADHD, I have ADOS... Attention Deficit oooh SHINY!! If you like cars, check out the Booger Mobile blog | If you feel generous - make a donation to Camp Quality!!
In India the smallest denomination commonly used is 50 paise. You still see 25 paise coins occasionally, but I don't think anything is priced Rs. X.25 or X.75. 20, 10, 5, 2, 1 paise coins are all history.
Cheers, विक्रम (Got my troika of CCCs!) "cant stand heat myself. As soon as its near 90`F I seriously start to loose interest in doing much." - fat_boy. "Finally we agree, a little warming will be good if it makes you shut the f*** up about it." - Tim Craig.
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Fake £1 coin[^] numbers rise. What with the state of the economy and the rising cost of materials we must fast be approaching the point where faking these is no longer economically viable.
Henry Minute Do not read medical books! You could die of a misprint. - Mark Twain Girl: (staring) "Why do you need an icy cucumber?" “I want to report a fraud. The government is lying to us all.” Why do programmers often confuse Halloween and Christmas? - Because 31 Oct = 25 Dec. Business Myths of the Geek #4 'What you think matters.'
