On December 30, 2015 an interview featuring Philip Diehl, the current president of US Money Reserve, aired on CNBC’s morning show Squawk Box. In this interview Diehl spoke of the benefits of eliminating the U.S. penny from circulation.
He believes the cost of making the penny far outweigh its use. Especially since no one uses the penny anymore to make purchases.
Diehl was quoted as saying, “If you bend over and pick it up in the street, then you’re getting paid less than minimum wage for your trouble.
There are of course those who strongly disagree with Diehl’s position. According to Andrew Ross Sorkin, there are some economists who believe removing the penny from circulation can lead to prices being distorted and inflation sweeping across the nation.
In response, Diehl points out the fact economists have been using that argument for years. In today’s economy, very few transactions are cash based. Close to 80% of all transactions are now done electronically. Based on these facts, its clear to see very few transactions would be affected should the penny no longer be in circulation.
Diehl actually believes such a move would be good for the marketplace as companies would not longer feel the need to constantly raise prices. On top of that, discontinuing the production of the penny has the potential to save American taxpayers $105 million per year.
About U.S. Money Reserve
Based in Austin, Texas, U.S. Money Reserve is one of the largest private distributors of U.S. government-issued gold, silver and platinum in the nation. They have clients all over the country who rely on their services to help them diversify their assets.
One thing that makes U.S. Money Reserve stand out is their highly trained team. They have coin researchers and numismatic professionals who have years of experience and know exactly what products will produce the highest profits for their clients.
When it comes to customer service U.S Money Reserve sets the standard. Their number one goal is to establish a healthy, long term relationship with every client.
To learn more about investing in precious metals visit U.S. Money Reserve online at USMoneyReserve.com.