Debasement

The U.S. penny is being phased out. The U.S. Treasury Department announced yesterday that it has placed its final order for penny blanks, and production of the one-cent coin will cease once these supplies are exhausted, likely by early 2026. Production of the 1 cent coin costs now 3.69 cents. This is yet another sign that the U.S. dollar is being debased. This phenomenon has happened in the past. In fact, all fiat currencies ever printed have been debased. Famously, the silver percentage of the Roman denarius, shown below, was diluted till it was not accepted, because it didn’t have enough silver to be a valid medium of exchange. It didn’t have any intrinsic value any more. When money supply grows exponentially due to big spending by governments (wars, etc) financed by debt or money printing by central banks (or both), fiat money gets debased, and the way to check that process today (as well as through history) is to look at the dollar value of gold/silver (and now ,bitcoin). They’re close to all time highs (in every fiat currency) and will probably keep going up in price.

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