Playing with balls today, folks!

Happy Saturday Funds Fans!  Deep, philosophical thinking going on today as I ponder the demise of the penny.  For interests sake (no pun intended), I wanted to know how this scenario compared in the language of physics.  What would a penny represent in the world of “matter”?  WickiAnswer says that:

– an atom is the smallest article of an element that can still be identified as this element, it cannot exist freely.

– a molecule is a bond of two or more atoms, it can exist freely.

If a (penny) is the smallest article of a (dollar) that can still be identified as the (dollar) element, physics says it cannot exist freely.  Yet, a molecule CAN exist freely if it is comprised of two or more atoms.  Therefore, it seems physically possible that a two-cent piece (molecule) could have replaced the penny (atom) rather than just arbitrarily taking the atom out of our reach and providing only molecules (.05 cents), thus short-changing all Canadians for all time (yet again) on many levels.

I also want to point out that it appears financially viable to change the current penny to a 2 cent piece because Grandpa Jim said that it costs 1.6 cents to make one cent so he’d be ahead of the game by .04 cents which would very shortly cover any cost of changing the metal stamping plates at the Mint plus provide a tidy profit to this Crown Corporation.  This way, at least we’d all still get our two cents in on the matter and actually get a Crown Corporation that pays for itself.

“Why should I care about a penny?” you ask.  Well, my lovlies, because it’s really interesting to watch the ebb and flow of money even it’s it’s smallest parts.  The Banks and the Government seem to benefit the most out of this deal because a) if you pay by debit, pennies still exist and there is no rounding up or down, just the cost of the Bank Fees for using the Bank’s debit card (yeah, it’s not YOUR card) and b) regardless of where you live, strong and free, in this beautiful country, the % of tax collected will be maximized on items priced higher, even if by only a cent or two or three.

If you pay cash, suddenly the old rules of math are out the window and the rounding up or down thresholds are subject to a new algorithm as follows:

$XX.01 or $XX.02 = $XX.00 (rounded down to 0)

$XX.03 or $XX.04 = $XX.05 (rounded up to five cents)

$XX.06 or $XX.07 = $XX.05 (rounded down to five cents)

$XX.08 or $XX.09 = $XX.10 (rounded up to 10 cents)

So, can we expect a flurry of consumer items to now have price tags ending in $XX.03 or $XX.08? I’ll bet my two cents on it.

Of course, none of this counts if you pay with plastic (debit or credit).  Pennies still exist in digital/plastic transactions but this benefit of using plastic does not extend to the new plastic $100 bill….weird.

Also, according to the National Post article referenced in this blog, there are 30 billion pennies in circulation.  That’s $300 million dollars.  Apparently, NDP’s Pat Martin is hiding $150 million under his bed.

So, to get to the point of this blog:  Where’s the Money?  Ask Pat!  pat.martin@parl.gc.ca

...and then the Government says "Yeah! And we'll tell you how big your balls can be."

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