Canadian money to become plastic, coins will be steel next year

Voltaire (1694-1778) Paper money eventually returns to its intrinsic value: zero.

Gold, silver, and copper dominated the world's coinage in the not too distant past. As the intrinsic value of the material became more valuable than its face value, these coins slowly disappeared from circulation.

Silver dollars were once a silver copper mixture. Today's Presidential dollars, a mixture of Cu/Zn/Mg/Ni, seem to find favor with only children. Half dollars, quarters, dimes were also once silver - copper. But they are all gone.

Pennies were once 95% copper, but they disappeared in favor of 97.5% zinc. The copper has become more valuable than its one cent face value. Nickels will soon be extinct, because the copper-nickel mixture is worth more than five cents today.

Canada just announced that it will be introducing plastic currency and steel coins next year. Better security and durability are cited, but these virtues are nothing when people realize preservation of purchasing power is paramount. Besides, when these options are no longer feasible, i.e. nobody wants them or no cheap substitute exists, the virtues of a cashless society will be pushed hard.

It doesn't take much to see an obvious trend. Paper (fiat) money, regardless of the form (paper, plastic, steel, shinny new beads) always returns to its intrinsic value - zero. Why? The custodians of that money have had little incentive to protect it. This is why Thomas Jefferson was so specific about money in the Constitution. I suggest a quick refresher for those that slept through U.S. history in high school.

Source: digitaljournal