US takes advantage of Canada’s cost saving move

Coins of the Canadian dollar (Photo credit: Wikipedia)

On the heels of Canada’s announcement of phasing out the penny from circulation, US Secretary of the Treasury, Timothy Geithner, announced a new program to boost the economy, and save taxpayers millions of dollars over the next few years. Today, in a surprise press conference, Geithner announced that the US Treasury will adopt the Canadian penny, and cease production of the current Lincoln cent. Geithner explained: ” While Canada has been producing their penny at a cost of for 1.6 cents, production of the US cent runs 2.6 cents. By stopping production of our own pennies, and buying up the Canadian reserves, US taxpayers will see a savings of one cent per penny, which, ironically, is exactly what our penny is worth.”

In a special arrangement between the US and Canadian Treasury Departments, the US will buy pennies from Canada, at 1.6 cents each, and gradually phase the Canadian cent into US circulation. During the phase-in period, expected to last about six months, both the Lincoln cent and the Canadian cent will be considered legal tender. At the end of the phase in period, only Canadian pennies will be accepted as US tender. At that time, Geithner predicts an even further boost to our economy, as coin collectors and speculators will hoard the Lincoln cents, then buy and sell the defunct coin on eBay, Craig’s List, and at coin shows throughout the country. “This will be even bigger than the Susan B. Anthony dollar,” predicts Geithner. “The demise of the Lincoln penny may just be the answer to bringing the country out of recession and turning the economy around.”

While some question the validity of adopting another country’s currency as our own, Geithner refutes this point. “Americans are used to outsourcing. We have India running our call centers, China producing our iPhones and Japan making our TVs. Why not have Canada produce our pennies?”