US going Penniless and without a Nickel

US going Penniless and without a Nickel

This might be a good thing for elementary school students, so when the teachers ask the student how much five is pennies? the kid can answer “nothing” and technically they would still be correct…

How much is your money worth?  How much can you really buy with what you have?

The disappointing answer is that if you have as much money and equivalent values this year as you did last year, that only means it’s all worth much less this year.  “What??? How could that possibly be?”, you may ask.

Well, it’s all sadly true.  Thanks, or no thank you to the magic of inflation, the cost of living in the United States is accelerating faster, and wage growth and average standard incomes don’t seem to be catching up fast enough.  So, anyone remember ever buying a twenty-five-cent bag of potatoes chips, if you do than you have been around for at least the past two decades.  Just don’t think you’ll be as lucky for the next two decades, if you think is already a mystery on how many chips are in those bags anyway? As you know most bags of chips today are mostly the bag itself, full of air and what seem be a few crumbs.

Now, if talking about bags of potatoes chips got you all worked up, here’s something to make you think twice whether you have enough pocket money or change before your next stop at the grocery store, or like most New Yorkers have come familiar to say, “the bodega”.  There are talks in the Federal Reserve about eliminating pennies and nickels from the U.S. currency and rounding every transaction made in the economy to the nearest dime.  Yes, it’s true, you may wake up one day realize that one cent and five cents are a thing of the past.

There is no longer a need to imaging that your money is worth less each day.  But for those who are a little deeper into the economy and stuff like that, we need to ask ourselves where is the US dollar is really heading? When the value of US currency can disappear like the horror stories you hear common to some of the poorest of third-world countries.  Makes one wonder even more the how crypto currency and block chain will play into the future of currency.

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