Britain ponders dropping its two smallest denomination coins

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PALH1
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Britain ponders dropping its two smallest denomination coins

#1 Unread post by PALH1 » Tue Mar 20, 2018 9:47 am




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Re: Britain ponders dropping its two smallest denomination coins

#2 Unread post by PALH1 » Tue Mar 20, 2018 9:57 am

...........&
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Daniel
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Re: Britain ponders dropping its two smallest denomination coins

#3 Unread post by Daniel » Tue Mar 20, 2018 8:34 pm

Doesn't surprise me, and wont surprise me when we don't use money any more.

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Re: Britain ponders dropping its two smallest denomination coins

#4 Unread post by mhonzell » Wed Mar 21, 2018 6:55 am

America has been threatening to remove the Cent for ages.

Most countries that want to remove their lowest denomination never do. Instead, they eventually reach a reset point (hyper-inflation) and reset the value of all their money making old money non-usable. Amazingly, a form of the low denomination coins remain to suffer along in the new currency. There are many countries that can be looked at as examples.

On a side note, we have the issue of "Is currency still relevant?"
You don't see too many articles on this one, so despite its diminishing use, I'm not sure we are that close to it disappearing.

Money is a belief system.

Up until Nixon, we believed it was backed by hard currency (precious metals). But, think about it... why is a chunk of metal worth anything?
Today, money is arbitrarily assigned value based on how much is floating around. It is based on the national debt and our ability to produce. It's a piece of paper or a chunk of metal that we willingly give in trade for some future promise of exchange. A delayed bartering system.

Making it worse, we place our belief on an even more ethereal system: credit. A system where I promise I will work and eventually collect enough numbers in an account to "pay" for a transaction that occurs today. The other side is hoping that transaction will show a greater profit than the day of transaction through the act of interest. But, it never works. Raise interest... raise wages... raise cost of items... inflation. Yep, credit is based on inflation, which is assumed to never go away. The plastic card, phone, etc are just a medium for transferring those electronic digits that we now perceive as money.

But, people still need something to "cling" onto to make the system real. Will those digits in an electronic file that can be accessed by a plastic card be enough. I don't think we are there.

What's my point?
To remove the Cent is to shake the foundation of the belief system. Sounds simple, but I am not sure we could handle it. The belief system could collapse.

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Re: Britain ponders dropping its two smallest denomination coins

#5 Unread post by PALH1 » Wed Mar 21, 2018 9:27 am

PERFECT M .... :yourock: :trophy:

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