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Guess what? Dollar bills are made of cotton
CNN Money ^ | Mar 8, 2011 | Parija Kavilanz,

Posted on 03/08/2011 7:09:52 AM PST by KeyLargo

Guess what? Dollar bills are made of cotton

The record run-up in cotton prices is making it more expensive to make T-shirts, socks and -- get this -- even dollar bills.

By Parija Kavilanz, senior writerMarch 8, 2011: 9:26 AM ET

NEW YORK (CNNMoney) -- Sure, packs of T-shirts and socks are getting expensive because of skyrocketing cotton prices. Guess what else is made of cotton? The dollar bill in your wallet.

In 2010, the cost of making one note jumped 50% from what it cost the government in 2008.

The government produced 6.4 billion new currency notes last year. Each one cost 9.6 cents to produce, including the cost of paper and printing.

In 2008, it only cost 6.4 cents a note, a tiny bit more than it did in 2007, according to the U.S. Bureau of Engraving and Printing.

With the price of raw cotton at a 140-year high, things could get worse.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: cost; cotton; money; printing

1 posted on 03/08/2011 7:09:56 AM PST by KeyLargo
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To: KeyLargo

Personally, I could live without paper dollars. The presidential coins are a very attractive alternative. And there are millions of $2 bills which could fill cashier’s drawers in the far right slot.


2 posted on 03/08/2011 7:12:45 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: KeyLargo
Coins are worth more for the metal, than the value.

Will dollars be worth more for the cotton, then the value?

3 posted on 03/08/2011 7:13:00 AM PST by Lazamataz (IMPRISON JOE PRO BONO!)
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To: KeyLargo
First time I've seen a number for actual dollars. I figured most of it was actually just credits going into the electronic accounts of the few powerful and politically connected investment banks, and that that money generally was not circulating. The greedheads were sitting on it. This cash has to be in circulation, no?
4 posted on 03/08/2011 7:13:09 AM PST by Huck (Fools make feasts and wise men eat them - Poor Richard)
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To: Lazamataz

Obama should be arrested and charged with counterfeiting for printing worthless money.

Counterfeiter sentenced to 27 months prison
By AP News
Monday, March 07, 2011

EAST ST. LOUIS, Ill. (AP) — A southwestern Illinois man accused of using a printer to turn bleached $5 bills into $100 bills has been ordered to spend two years and three months in federal prison.A U.S. District Court judge in East St. Louis also fined 25-year-old Raphael Solomon of Chester $1,000 and ordered him to pay $1,500 in restitution.Solomon pleaded guilty in November to one count of manufacturing counterfeit currency.Authorities say Solomon bought a printer in December 2009 and used it to make the bogus $100 bills he then passed in various Randolph County-area stores.The felony charge had carried a possible 20 years in prison and $250,000 in fines.

http://www.560wind.com/article.aspx?id=4eb54dd5-37e3-4e2f-8851-5f798a9b30d8&catid=-999


5 posted on 03/08/2011 7:15:58 AM PST by KeyLargo
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To: Huck

I also figured it was just digital printing. I check every $20 that goes across my palm and I haven’t found a single one printed after 2007. I don’t encounter too many $50s or $100s...maybe that’s all they’re printing.


6 posted on 03/08/2011 7:19:08 AM PST by ponygirl
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To: KeyLargo

The fact that currency is made from cotton is not really news. The folks at CNN need to get a grip. However, the increase in price is pretty astounding.

The cuurency paper has been made by Crane’s for umpteen years. A while back, a former girlfriend dug out a ‘thank you’ card, made by Crane’s, I had sent her after graduating from business school (1985). Unlike other paper keepsakes that also had been wet after basement flooding, the card was still in one piece.


7 posted on 03/08/2011 7:19:34 AM PST by 12Gauge687 (Extremism in the defense of liberty is no vice)
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To: KeyLargo

When it gets in too much hot water, its value shrinks in the dryer, too.

Maybe, the FED should switch to pre-shrunk cotton.


8 posted on 03/08/2011 7:20:17 AM PST by TomGuy
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To: KeyLargo

A new take on “not worth the paper it’s printed on”


9 posted on 03/08/2011 7:23:28 AM PST by chesley (Eat what you want, and die like a man.)
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To: ponygirl
Isn't how all this fed bank stuff works? Quantitative easing? They flood the banks with liquidity, hoping it will get loaned out into the economy. Pushing a string, it seems to me. If the drive and incentive isn't truly there, the money just sits there doing nothing. Or the greedy banksters eat it for dinner.
10 posted on 03/08/2011 7:25:10 AM PST by Huck (Fools make feasts and wise men eat them - Poor Richard)
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To: Vigilanteman

It’s time once again to trot out my currency and coinage reform proposal.

Given that there has been ample inflation on the order of 10 since the last change, and we have an excessive array of confusing coins and low-value currency, it is time for a practical simplification.

First, denominations need to proceed in a proportional way without large value ratios or crowded ratios. The classic 1-5-10-50-100... progression with ratios of 2.0-5.0 is ideal as a minimum, with denominations of 2, 20, etc. being optional for important valuations.

Second, we want to avoid coins of such low value that they are more trouble than they are worth. Economic waste occurs with the extra time wasted dealing with needlessly small coins. A dime is worth less than a minute of labor at minimum wages, and no currency transaction requires anything smaller than this denomination. The penny and the half-cent served well as the smallest denominations when their values were that of today’s dime. (Note to any economic imbeciles: electronic transactions are often conducted in smaller units than our smallest coin, and that cash registers have been “rounding” - without bias up or down - to the nearest small coin for sales tax purposes for generations. Google “sales tax rounding” if you have doubts and read a few articles).

Third, we want to set the coin/currency transition at a practical level that avoids our wallets being overstuffed with small bills, or our pockets with too many coins. Coins should be suitable for purchases like a magazine, a coffee, a lunch, or a brief cab ride.

Fourth, the ratio between the largest and smallest coin should be limited to a practical factor. Consider that the economy functions effectively with coins at 0.05, 0.10, and 0.25, with pennies treated as trash, and larger coins generally not used. That is a factor of 5 between the largest and smallest coin. A factor of 10-50 may be ideal, and a factor of 100 (as in actual current coinage) is excessive.

Fifth, we need bills of adequately high value for large cash purchases (consider the largest Euro note has a value of about 6.5 times that of the largest US note.)

Sixth, coins should be sized approximately proportional to their value for ease of recognition and use.

The proposal:

Coins:
$0.10 (slightly smaller than the current dime)
$0.50 (slightly smaller than the current nickel, larger than the penny)
$1.00 (slightly smaller than the current quarter dollar, larger than the nickel)
$5.00 (slightly smaller than the current half-dollar) Or it could be set at $2 to avoid overlap with a $5 note.

Currency Notes:
$5 (optional)
$10
$20 (optional)
$50
$100
$500

Our current 6 coins are replaced with 4.
Our current 7 notes are replaced with 4-6.

If you want to talk about making coins out of silver or gold, I’m even more enthusiastic:

$1000 gold coin (1 oz)
$500 gold coin (1/2 oz)
$100 gold coin (1/10 oz)
$20 silver coin (1 oz)
$10 silver coin (1/2 oz)
$2 silver coin (1/10 oz)
$1 copper or base metal coin (1/2 oz)
$0.50 copper or base metal coin (1/4 oz)
$0.10 copper or base metal coin (1/10 oz)


11 posted on 03/08/2011 7:27:13 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: KeyLargo

I can’t even remember the last time I used ‘cash’ to make a purchase.

I use debit cards, credit cards, checks, online bill pay, bank transfers, etc. It is all electronic.

A few years ago, I had to write out a check. I flubbed the first attempt, because it had been ages since I had physically written out a check.


12 posted on 03/08/2011 7:27:39 AM PST by TomGuy
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To: KeyLargo

So, Dollars are racist?.................


13 posted on 03/08/2011 7:31:14 AM PST by Red Badger (How can anyone look at the situation in Libya and be for gun control is beyond stupid. It's suicide.)
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To: Lazamataz

Keep ya’lls cotton pickin’ hands off my dollars!....................


14 posted on 03/08/2011 7:32:11 AM PST by Red Badger (How can anyone look at the situation in Libya and be for gun control is beyond stupid. It's suicide.)
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To: ponygirl

The ave lifespan

Coins - 30 years

$ 1 bill - 22 months

$ 5 bill - 24 months

$ 10 bill - 18 months

$ 20 bill - 25 months

$ 50 bill - 55 months

$100 bill - 60 months


15 posted on 03/08/2011 7:34:42 AM PST by ThomasThomas (it said the speeling was OK)
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To: KeyLargo

16 posted on 03/08/2011 7:35:14 AM PST by Red Badger (How can anyone look at the situation in Libya and be for gun control is beyond stupid. It's suicide.)
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To: Vigilanteman

Try a dollar coin - or a two dollar bill - with the young cashier at McDonald’s sometime......heh


17 posted on 03/08/2011 7:38:18 AM PST by ErnBatavia (It's not the Obama Administration....it's the "Obama Regime".)
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To: TomGuy

I rarely carry cash either.


18 posted on 03/08/2011 7:38:26 AM PST by RockinRight (I once had my identity stolen. Once they got to know me, they gave it back right away.)
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To: ErnBatavia

I rarely carry cash, but I LOVE the $1 coins. I don’t know why other people don’t like them.


19 posted on 03/08/2011 7:41:26 AM PST by RockinRight (I once had my identity stolen. Once they got to know me, they gave it back right away.)
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To: KeyLargo

Modern Marvels episode Cotton. ... Three quarters of “paper” money is actually composed of cotton. Much of this cotton comes from denim scraps left over from jeans manufacturing. ...


20 posted on 03/08/2011 7:43:01 AM PST by faucetman (Just the facts ma'am, just the facts)
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To: RockinRight
Paper currency has been made with rag based paper since I can remember so no news here. But this may help you, those pens that stores use to see if your 20 dollar bills are real are not worth anything and may detect a real bill as a fake. You see they are filled with an iodine based liquid and the detection is based upon the ideal that copier paper has starch in it which will turn purple in the presence of iodine. A rag based real dollar bill has no starch on it and will not cause a color change from the pen mark. However the problem here is that a real dollar bill can be contaminated with starch from many sources leading to a false positive.
21 posted on 03/08/2011 7:55:59 AM PST by Wooly
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To: Beelzebubba
It’s time once again to trot out my currency and coinage reform proposal.

and once again time for me to challenge you on it.

1-2-5-10, lather, rinse, repeat...

22 posted on 03/08/2011 8:03:35 AM PST by null and void (We are now in day 776 of our national holiday from reality. - tic. tic. tic. It's almost 3 AM)
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To: KeyLargo
Abandoning coinage could use the bend over test: If the general population finds that coin on the street, would they pick it up?

This knocks out the penny, but retains everything else... [ymmv]

23 posted on 03/08/2011 8:13:33 AM PST by C210N (0bama, Making the US safe for Global Marxism)
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To: ErnBatavia
I do . . . just for fun.

In fact, I order $250 worth of dollar coins every month or two just for such small cash purchases.

About the only reason I write checks anymore is to pay the kid who mows the lawn or move small sums of money between accounts.

24 posted on 03/08/2011 8:15:50 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: KeyLargo

Mabe they are worth more than the “paper” they are printed on.


25 posted on 03/08/2011 8:27:05 AM PST by upcountryhorseman (An old fashioned conservative)
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To: ponygirl

Got a 2009 Series $20. Youngest $50 I’ve seen is 2006. But I don’t get to see many of those.


26 posted on 03/08/2011 8:28:42 AM PST by AFreeBird
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To: 12Gauge687

Yea, who knows, with the price of cotton going up, a dollar might actually be worth a dollar.


27 posted on 03/08/2011 8:29:58 AM PST by AFreeBird
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To: BabyBMW

post #16


28 posted on 03/08/2011 8:32:27 AM PST by bmwcyle (It is Satan's fault)
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To: Lazamataz

A penny weighs 2.5 grams. A Nickel(coin) weighs 5 grams.
The Nickel has just recently become more expensive to produce than it is worth. This became true for the penny in 1982. At that time, the content of a penny was changed from 95% copper (5% Zn) to 3% copper and 97% zinc, because of the COST OF COPPER. What I find strange is that prior to 1982, Nickels(coins) were composed of 25% nickel(metal) and 75% copper, and after 1982 (until today) they remained composed of 25% nickel, and 75% copper. Go figure.


29 posted on 03/08/2011 8:35:09 AM PST by PENANCE
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To: RockinRight

At present, I have 22 singles in the money clip. It’s a heck of a lot easier, lighter, and quieter to carry, than 22 dollar coins would be.

At present, I have 3 pennies, two nickels, a dime, and one silver dollar.

The dollar coin isn’t for spending. Just for twirling through the fingers.


30 posted on 03/08/2011 8:39:39 AM PST by AFreeBird
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To: Beelzebubba

“$1000 gold coin (1 oz)
$500 gold coin (1/2 oz)
$100 gold coin (1/10 oz)
$20 silver coin (1 oz)
$10 silver coin (1/2 oz)
$2 silver coin (1/10 oz)
$1 copper or base metal coin (1/2 oz)
$0.50 copper or base metal coin (1/4 oz)
$0.10 copper or base metal coin (1/10 oz)”

I offer here and now to buy all of the gold and silver that you can mint at those prices you’ve published. FYI, Gold is now about $1,428/oz. and Silver about $35.80 - and they’re both down a little on the day.


31 posted on 03/08/2011 8:58:11 AM PST by Ancesthntr (Tyrant: "Spartans, lay down your weapons." Free man: "Persian, come and get them!")
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To: null and void

Not sure you conveyed your challenge.


32 posted on 03/08/2011 9:06:00 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: Ancesthntr

I offer here and now to buy all of the gold and silver that you can mint at those prices you’ve published.


You mistakenly assume that these would be convertible against current Federal Reserve Notes.

In my system, a Real Dollar(TM) would be defined as 1/1000th ounce of gold. There would be an exchange rate of FRNs against the Real Dollar.


33 posted on 03/08/2011 9:07:59 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: Beelzebubba
Coins:

You:
$0.10 (slightly smaller than the current dime)
$0.50 (slightly smaller than the current nickel, larger than the penny)
$1.00 (slightly smaller than the current quarter dollar, larger than the nickel)
$5.00 (slightly smaller than the current half-dollar) Or it could be set at $2 to avoid overlap with a $5 note.

Me:



10¢
20¢
50¢
$1
$2
Sizes increasing monotonically with value, alternate values have reeded edges.

Currency Notes:

You:
$5 (optional)
$10
$20 (optional)
$50
$100
$500

Me:
$1
$2
$5
$10
$20
$50
$100
$200
$500
$1000
Sizes increasing monotonically with value, alternate values have 'postage stamped' edges.

You:
Our current 6 coins are replaced with 4.
Our current 7 notes are replaced with 4-6.


Me:
Our current 6 coins are replaced with 8. (Optionally no $1 and $2 coins. It's important to me the revalue the currency to make the 1¢ coin meaningful again)
Our current 7 notes are replaced with 10. (optionally no $1 and $2 notes, $200, $500, $1000 notes presupposes that the WOD no longer needs to criminalize larger value banknotes)

If you want to talk about making coins out of silver or gold, I’m even more enthusiastic:

Gold-silver-copper/base metal?

Consider a universal coin alloy similar to electrum.

In any event, we differ more in style than substance.

34 posted on 03/08/2011 9:39:33 AM PST by null and void (We are now in day 776 of our national holiday from reality. - tic. tic. tic. It's almost 3 AM)
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To: AFreeBird

At present, I have 22 singles in the money clip. It’s a heck of a lot easier, lighter, and quieter to carry, than 22 dollar coins would be.

At present, I have 3 pennies, two nickels, a dime, and one silver dollar.


In my proposed system (not the precious metal one) you’d have maybe a $10 note, 2 $5 coins, 2 $1 coins, 2 dimes.

Or a $20, a $2 coin, and 2 dimes.


35 posted on 03/08/2011 9:41:00 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: Beelzebubba; Ancesthntr
You mistakenly assume that these would be convertible against current Federal Reserve Notes.

As did I.

In my system, a Real Dollar(TM) would be defined as 1/1000th ounce of gold. There would be an exchange rate of FRNs against the Real Dollar.

Why not just call them what they are, ounces, (or maybe better, grams?) and float them against the common currency?

36 posted on 03/08/2011 9:44:42 AM PST by null and void (We are now in day 776 of our national holiday from reality. - tic. tic. tic. It's almost 3 AM)
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To: null and void

It’s important to me the revalue the currency to make the 1¢ coin meaningful again


When you put it that way, you are effectively doing what my proposal does (by eliminating the unmeaningful coins, and adding larger value ones).

However, if you 10x the values (to make the penny meaningful) then your large coin is worth $20, which seems excessive. And your top bill would be worth $10,000, which many might find excessive.

I also think it a mistake to have both $1 and $2 coins and bills. When you overlap, you end up with one being disused.


37 posted on 03/08/2011 10:35:20 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: null and void

Why not just call them what they are, ounces, (or maybe better, grams?) and float them against the common currency?


Because “ounces” doesn’t translate among three metals.


38 posted on 03/08/2011 10:40:56 AM PST by Atlas Sneezed ("If you touch my junk, I'm gonna have you arrested.")
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To: Beelzebubba
When you put it that way, you are effectively doing what my proposal does (by eliminating the unmeaningful coins, and adding larger value ones).

It isn't exactly the same, it allows the language to keep a penny for your thoughts, my two cent's worth, and plug/wooden nickles.

However, if you 10x the values (to make the penny meaningful) then your large coin is worth $20, which seems excessive. And your top bill would be worth $10,000, which many might find excessive.

I also think it a mistake to have both $1 and $2 coins and bills. When you overlap, you end up with one being disused.

Good points.

39 posted on 03/08/2011 10:53:25 AM PST by null and void (We are now in day 776 of our national holiday from reality. - tic. tic. tic. It's almost 3 AM)
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To: Beelzebubba
Because “ounces” doesn’t translate among three metals.

It doesn't need to if they float against each other as well as against the common currency.

Also if we go to a common 'coin metal' (electrum?) it could be a single intrinsic value.

40 posted on 03/08/2011 10:55:50 AM PST by null and void (We are now in day 776 of our national holiday from reality. - tic. tic. tic. It's almost 3 AM)
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To: Beelzebubba; null and void

“You mistakenly assume that these would be convertible against current Federal Reserve Notes.

In my system, a Real Dollar(TM) would be defined as 1/1000th ounce of gold. There would be an exchange rate of FRNs against the Real Dollar.”

Gee, would’ve been nice to say so in the first place. What would be your RD vs. FRN exchange rate right now (so that we can figure out how you value gold and silver right now, so that we can evaluate if your system makes any sense)?

I also like the idea of giving the cent (and the nickel, for that matter) some real value again. This would, IMHO, require essentially removing a 0 from all transactions that we have now (IOW, if a cup of Starbucks swill costs $4.50 now, it’ll cost $0.45 after the conversion. Then your gold and silver prices would make sense (essentially, gold at $10K and silver at $200/oz, respectively, in today’s dollars).

Note that under your system the copper coins would all be worth more than the current price of copper. The $1 would be 32 per lb. (since copper sells in “real” pounds and not Troy pounds), and at the current copper price of about $4.33/lb. the metal value would be $0.135 or so. Your system allows copper to go up as high as $32/lb. without coins being hoarded for their metal content (or $16 with the $0.10 piece, an interesting anomaly).


41 posted on 03/08/2011 1:24:16 PM PST by Ancesthntr (Tyrant: "Spartans, lay down your weapons." Free man: "Persian, come and get them!")
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