Mises Canada Launches Sound Money Project
Ludwig von Mises Institute of Canada, is proud to announce the launching of "The Canadian Sound Money Project." This project comes on the heels of the Canadian government's decision eliminate the penny from the national money supply.
Online, April 2, 2012 (Newswire.com) - The Launching of "The Canadian Sound Money Project"
The Ludwig von Mises Institute of Canada, is proud to announce the launching of "The Canadian Sound Money Project." This project comes on the heels of the Canadian government's latest proposed budget which seeks to eliminate the penny from the national coinage system. Though a rational endeavor on the surface as an attempt to save on cost of production (according to Finance Minister Jim Flaherty, it costs a "penny-and-a-half every time we make one), the elimination of the penny is just one more sign of the shaky foundation on which the Canadian dollar lies.
This is a case of the disappearing penny is yet another instance of monetary debasement gone awry; plain and simple. The cost of producing a penny has gone up only relative to purchasing power of the Canadian dollar going down. According to the Bank of Canada, the Canadian dollar has lost 94% of its value since 1914. At the present targeted rate of inflation of 2% per year, the Canadian dollar loses half of its purchasing power to monetary debasement after only 35 years. This means Canadians must work more hours and earn more income just to break even if they ever seek to retire or accumulate any real savings.
In a budgetary release, the Canadian government admits that inflation of the money supply is the culprit behind its decision.
Due to inflation, the penny's purchasing power has eroded over the years. Today it retains only about one-twentieth of its original purchasing power.
Our goal at the Mises Institute of Canada is to have Canada become the beacon of currency freedom for the rest of the world. Under sound money, recessions have been shorter and less frequent historically. When the market chooses the money, it's democracy at its finest and a triumph of the people over the few.
You can visit the Home Page for this Project at
Redmond Weissenberger Interviews Stefan Molyneux on the Importance of Sound Money for Canadians
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Tags: Austrian Economics, copper, CPI, economics, gold standard, inflation, Mises Canada, Penny, Price Inflation, Sound Money, Stagflation, Stefan Molyneux
