Fish Or Man

Sunday, July 02, 2006

Under-Reported Inflation

This news article tries to put a funny spin on the fact that pennies are costing more to make then they are worth, (a fact that has likely been true for awhile, but was finally admitted to this year by the US Mint).

The cause is inflation caused by government producing worthless money almost as fast as they can spend it. Via Wolfesblog I found this article on the subject of printing money and the reasons for taxation, (hint: it's NOT to give the government money to spend--they only need to print more worthless money to do that, something government does whether or not they receive your income tax payment on time).

Now, going back to the article on pennies, the last paragraph of a very long story reads:
"By the way, the Mint says nickels are also costing more to produce than they're worth. Pity the poor nickel?"

So, in one years time the penny AND the nickel now cost more to produce than they're worth??? Yeah right. But IF that is true, we must ask ourselves the serious question--how close are we to hyperinflation?