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Eliminate The Nickel, Launch A $5 Coin: Desjardins


Eliminate The Nickel, Launch A $5 Coin: Desjardins.

coin

The elimination of the Canadian penny was such a success the country should look at eliminating the nickel next, and replacing the $5 bill with a coin, says one of the country’s largest financial institutions.

In a client note this week, Desjardins Group noted it’s been one year since the Royal Canadian Mint began phasing out the penny, and the little rust-coloured coin disappeared “peacefully, quickly and noiselessly.

“We’ve gotten rid of something that was both useless and costly,” the note says, noting the $150-million annual cost of keeping the penny in circulation.

The next step, Desjardins argues, should be to eliminate the nickel and to shrink the remaining coins, reducing the cost of producing them, as New Zealand has done. And the “second phase” of this would be to turn the $5 bill into a coin.

“The goal is to reduce the total number and weight of the coins that people handle and carry,” the client note says.

Jean-Pierre Aubrey, a veteran of the Bank of Canada, argued in papers and presentations for Desjardins last year that Canada should have eliminated the penny in 1982, as that was when it stopped making economic sense to produce the coin.

“This would have kept the Mint from producing some 20 billion pennies, and avoided the handling of hundreds of billions of coins in Canada,” Desjardins says.

The federal government has studied the option of switching to a five-dollar coin before. The Bank of Canada estimated in 2007 that Canada should make the switch no later than 2021.

A spokesperson for the Bank of Canada told the Wall Street Journal the bank has no plans at present to eliminate the nickel.

 


3 Comments

  1. My comment:
    “Just a reminder to everyone that the constant devaluation of our currency is theft by the banks and government. Here is what eminent economist John Maynard Keynes argued about inflation: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.”

    Rather than arguing about whether coinage is relevant or inconvenient in such small denominations, we should be focused on the abuse of the system by the-powers-that-be to defraud us, basically, out of our currency’s purchasing power through a process of continual inflation. My parents bought a bungalow in London, Ontario, for $14,000 in 1963; yes, wages have increased over time as well but not to the extent homes and other ‘assets’ have. This is what happens when banks ‘print’ lots of money and governments work hand-in-glove with them as they take on greater and greater debt, the ‘value’ of which can be inflated away over time.

    We should all be screaming about this creeping theft by the government and banks.

  2. Secondary comment:
    “”…“The goal is to reduce the total number and weight of the coins that people handle and carry,” the client note says….”

    No, the goal is to inflate away debt and steal purchasing power from the people; that’s what inflation is all about and that’s why Desjardins would support more of it. As a large financial institution they benefit from both aspects of inflation.

    While not a religious person, Christ was right to throw the money-changers from the temple; it is they, more than any other cartel on this planet that have created poverty and inequality, have created and funded wars, and steered us towards globalisation and all its negative consequences.

    Get rid of the nickel? No, get rid of the damn bankers and financiers of this world!

  3. Tertiary comment:
    I love this. I’m commenting on getting rid of the nickel and I’m getting the message that my comment will be held up due to the sensitive nature of the article…really????

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