The Penny

You hear a lot of talk these days about getting rid of the penny. Short sighted at the least of course. All though the dollar is money it is based on the decimal system and this makes a lot of cents. You get rid of the penny and it wont make cents anymore.

The reason the penny is in a quandary is because the fed believes that a little inflation is good for an economy. Translated this means that it is acceptable so the fed can print more money than is necessary so this means that a lot of free goodies can also be acquired with no more effort than printing. The draw back is that eventually you're going to have to fork over a $100 bill one of these days just to get a jug of milk. The same kind of thing is currently happening with the yen and lira and some South American banana republic currencies.

The thing is South America has shown us a better solution for this problem. That is government mandated devaluation of everything at the same fixed rate. Let's say for example divide the price of everything in America by 10. A gallon of milk would be about $.40 as would a gallon of gas but this also means that if you make $100,000.00 a year you would end up making only $10,000.00 a year. All the same relatively of course. Then the penny would have value and a decimal based money system would be kept intact. A better solution than scrapping the penny.