Comments on: why is the US currency system so screwed up? http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/ Discussion of Forex Trading and Currency Trading Thu, 24 May 2012 03:23:24 +0000 http://wordpress.org/?v=2.3.3 By: Nate http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27540 Nate Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27540 The United States periodically redesigns currency to combat counterfeiting. After a few years, counterfeiters learn how to copy bill designs more accurately, and this is when the U.S. tends to redesign bills. The reason that $100 and $50 bills have been redesigned, while $1 bills havent, is that counterfeiters don't usually waste their time printing fake $1 bills. $100 bills are much more profitable for them. The government talks about eliminating the $1 bill from time to time. Same with the penny. Yes, it is expensive to print $1 bills. But the reason the $1 bill is still around is that people like them. Remember the Susan B. Anthony, the Sacagawea coin, and the Presidential dollars? Every time the U.S. government tries to make a dollar coin, it never catches on with the public. American people just seem to prefer dollar bills. As for the conspiracy theories... it's pretty much a good idea to just ignore every single conspiracy theory you hear. They tend to be created by paranoid people who don't know what they are talking about. Now, there are certainly reasonable people who argue that the Federal Reserve could be replaced by a better system. But the fringe nuts who spread conspiracy theories are not reasonable. The United States periodically redesigns currency to combat counterfeiting. After a few years, counterfeiters learn how to copy bill designs more accurately, and this is when the U.S. tends to redesign bills. The reason that $100 and $50 bills have been redesigned, while $1 bills havent, is that counterfeiters don’t usually waste their time printing fake $1 bills. $100 bills are much more profitable for them.

The government talks about eliminating the $1 bill from time to time. Same with the penny. Yes, it is expensive to print $1 bills. But the reason the $1 bill is still around is that people like them. Remember the Susan B. Anthony, the Sacagawea coin, and the Presidential dollars? Every time the U.S. government tries to make a dollar coin, it never catches on with the public. American people just seem to prefer dollar bills.

As for the conspiracy theories… it’s pretty much a good idea to just ignore every single conspiracy theory you hear. They tend to be created by paranoid people who don’t know what they are talking about. Now, there are certainly reasonable people who argue that the Federal Reserve could be replaced by a better system. But the fringe nuts who spread conspiracy theories are not reasonable.

]]> By: Bored Goblin http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27541 Bored Goblin Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27541 There is no conspiracy, just laziness and cost-benefit balance. Rolling out a $1 coin would mean a lot of new work for government employees, so they are being lazy. Higher-denomination bills were redesigned to make faking them harder. But faking $1's and $5 is not worth the effort, so there is no point redesigning them. There is no conspiracy, just laziness and cost-benefit balance.

Rolling out a $1 coin would mean a lot of new work for government employees, so they are being lazy.

Higher-denomination bills were redesigned to make faking them harder. But faking $1’s and $5 is not worth the effort, so there is no point redesigning them.

]]> By: Scott Stevenson http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27542 Scott Stevenson Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2011/04/21/why-is-the-us-currency-system-so-screwed-up/#comment-27542 This one gets planted right at the feet of the American public. Since the denominations of coins and currency are set by law, the Treasury Department and the Fed can't drop the cent and the dollar bill without congressional approval. Every time the idea has been floated, public reaction has made the trial balloon look like the Hindenburg. I've spent quite a bit of time in both Britain and Canada, and it amazes me that people in those countries can figure out how to use a dollar coin, but it seems to be beyond a fair percentage of Americans. Of course, one thing they did when they introduced the coin was to get rid of the paper denomination. People are creatures of habit, so if you give them a choice between doing what they've been doing and doing something new, they'll pick the familiar, and justify it as being somehow "better". This one gets planted right at the feet of the American public. Since the denominations of coins and currency are set by law, the Treasury Department and the Fed can’t drop the cent and the dollar bill without congressional approval. Every time the idea has been floated, public reaction has made the trial balloon look like the Hindenburg.

I’ve spent quite a bit of time in both Britain and Canada, and it amazes me that people in those countries can figure out how to use a dollar coin, but it seems to be beyond a fair percentage of Americans. Of course, one thing they did when they introduced the coin was to get rid of the paper denomination.

People are creatures of habit, so if you give them a choice between doing what they’ve been doing and doing something new, they’ll pick the familiar, and justify it as being somehow "better".

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