Tues., May. 6, 2008

On Tuesday Americans were informed of one more indication that times are getting tough - as if a trip to the local grocery store or gas station wasn't proof enough! Headlines informed us that Congress is considering making pennies and nickels out of steel because the cost of making a penny is now 1.26 cents, and making a nickel has risen to 7.7 cents. In other words, these two almost worthless coins cost more to make than their face value - to the tune of $100 million per year!

The slap in the face here is that America's pennies have long ago ceased to be made of pure copper. For years our the Mint has been producing crummy little copper-plated zinc things to keep up the appearance that our nation's economic health is just fine. This is a far cry from 1964 when the value of our dollars was easily redeemable at the local bank. Then, all one had to do was trade a $100 bill for $100 in 90% silver halfs, quarters and dimes. That was 44 years ago. Today, one must go to a bullion dealer to buy silver, where $1 face silver will cost you a little over $12.

Forclosures, bankruptcies, lay-offs, spiraliing business closures, homelessness, food lines, selling off personal goods to make ends meet; America is daily sliding ever deeper into an economic abyss.