Tag Archives: currency

Happy Canada Day- Remembering Canada’s Penny

Twelve years ago, the Canadian mint circulated fresh pennies for the very last time.

Back then I looked out the window at my favorite Café , I noticed one of the employees was sweeping the pavement. He had one of those stand-up dust pans in one hand, and a pole-like brush in the other. In the dustpan were wrappers, cigarette butts, and coins. I couldn’t believe it. Yes, it was money! I watched with disgust and dismay as pennies (which were the majority of the money) and nickels and dimes were swept into the waiting dustpan.

Brief flashes of light came from the dust as the sunlight reflected off the coins’ surfaces.

The employee was very efficient and obviously had done this before. He walked around to the side of the Café where he emptied his dustpan filled with garbage and the “change” into a larger plastic container. “I can’t believe it!” I said out loud. “Give me a break. How can anyone just throw away change?”


The local Humane Society had a campaign asking for pennies. This was a fundraiser toward building a permanent structure for the stray animals they house, feed and adopt out. While running their campaign a few years ago, they had a large old trailer as their “shelter” and office. The fundraiser  “Pennies for Paws” was successful and with the end of the penny it may be difficult to find a replacement. With the news that the government has decided to stop minting pennies, it is even more important and applicable to see the importance of what “small change” can do for others.

Instead of throwing away all those pennies that I felt had no worth, I just put them in a container with a lid and added the label “Pennies for Paws” that I printed off from the Society’s website. I started collecting pennies in January of 2012  when I first heard of the campaign and had filled one coffee container and was working on my second one by June. My father-in-law had one at his house in Hamilton. Somehow soliciting friends and neighbors for pennies isn’t as daunting as asking for donations for other causes but with the end of the penny, charities have seen a downturn in contributions.

A friend of mine only uses paper money to pay for things.

He saves all his change which ranges from pennies up to Toonies. He deposits this money into jars and cans. When his vacation time comes around in August, he has enough money to take his wife and four kids away for much needed “family time.” He has accumulated $1,500-$2,000. Making a habit of saving “change” not only helps with expenses later, but it makes you feel as if you are getting a “bonus” every year from your work.

A few years ago, I parked at the end of the large parking lot of my favorite grocery store and was walking toward the front door. As I neared the entrance, I noticed people going in the store seemed to be streaming to the left or right of the main entrance. I soon saw why. A group of kids in their early 20’s were standing with their backs to the center of the front entrance flipping quarters, dimes and nickels onto the payment. These kids were throwing away all their loose change as if they were playing “Tiddly Winks” or “Beer Pong”.  “Are you throwing them away?” I asked as I got closed to this group. I’m sure I sounded upset and looked very bewildered.

“It’s only change man,” the larger kid replied to me unaware of why this would draw attention. I swooped down and picked up two handfuls of coins in front of them.

“This is stupid!” I declared. “Didn’t your parents teach you about the value of money?” As soon as I said it, I realized I sounded just like my parents. The response from the group was shrugs as they walked quietly away unaffected by my actions and questions. I counted the change and it was almost $8.00.

I had another friend several years back that I stopped associating with because his wastefulness upset me so much. One of his worst habits I witnessed was when my wife and I went over to have supper with them. He threw all the supper leftovers into the garbage along with his change he had taken out of his pockets.

I wouldn’t have believed it if I had not personally witnessed this.

He let his kids play with loose change he took out of his pockets and placed on the kitchen table, then at the end of the week, he would take it and any other coins lying around the house on other tables, floor, or on the couch, and throw it into the weekly garbage he put out on the curb. I was so upset. So, I gave him a large jar to fill and would collect it every week showing him the error of his ways, and how much money he had saved. His reply was, “Blair, you are so silly.”

For months, I would visit weekly and collect the jar of money which my friend put his loose change into, tally up the amount, and tell him the total. He didn’t care and didn’t want the change. I would replace the jar and take the filled one to the local Food Bank. They appreciated this very much and bought baby food which they always had a shortage of for the mothers who came on a regular basis.

Eventually, I felt I could no longer be involved with a person so wasteful in his life, and who set such a poor example for his children.

So everyone out there, keep and collect all your unwanted change.

There are many charities that would gladly take it. It is simple to collect with containers left by your front door, on your dresser in the bedroom, by your flat screen, or other places where you spend a lot of your time. You would be helping others, and teaching your children the importance of giving to others. All money, including “change” has value. For the Silo, Blair Yager.

The Benefits And Disruptions Of Blockchain Technology

It’s safe to say Blockchain technology has disrupted the internet in quite a dramatic fashion.

Despite only being invented about fourteen years ago, cryptocurrency has formed a world of its own and it is now estimated the market will hit well above a $1 trillion USD valuation from four years ago…..

Allowing transactions, alongside other things such as documents and invoices, to be sent across a P2P network, the technology has been praised for its advanced security and anonymity benefits.

The latest infographic crafted by Bitfortune looks into how many ways Blockchain technology impacted the world and various business industries, such as charities and banking.

In the world of cybersecurity, Blockchain can help reduce or eliminate fraud and errors, along with being a more accurate and confidential platform for industry professionals.

For example, REMME is a secure platform that has eliminated the need for passwords and instead uses Blockchain as a form of authentication.

In supply chain management, Blockchain is being used to reduce the number of errors and exposure to potential threats.

The technology also helps reduce time and increase efficiency – a win-win all around, really. FedEx recently announced plans for an internal Blockchain pilot program that will help solve customer disputes while IBM and Maersk are also working together on a new company that will use Blockchain within global shipping supply chains.

Take a look at the infographic below to learn how Blockchain is disrupting other industries around the world for the better and why it’s time to start thinking about how you can incorporate the technology into your lives.

For the Silo, Josh Wardini. 

16 Blockchain Disruptions Infographic

Supplemental- Why some traditional banks are broke: Fractional reserve banking.

This Quiz Tests Your Knowledge Of Paper Money Faces

You’ve likely seen paper money from all over the planet. Maybe you have an aunt living in Australia that sends you dollars in the mail every year for your birthday or perhaps on your commute to work each day you pass by a currency exchange kiosk- you know the type: colorful bills from all over the world decorating the walls. 

But how well do you know the faces of world currencies? Is it the King or Queen on the face of the Swedish Krona or neither? Which former US President is found on the five dollar bill?
Take this fun test and discover some pretty cool facts about paper money faces.

Long live hard cash!


Canadian Money And How Select Banks Create It

Poof!My book, Money: Whence It Came, Where It Went, tells us that “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.

 The process by which banks create money is so simple the mind is repelled.”

Graham Towers, the first Governor of the Bank of Canada, explained the process by which banks create money: “The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all. Each and every time a bank makes a loan, new bank credit is created – new deposits – brand new money.

John Kenneth Galbraith- mystic or curmudgeon? image: poorwilliam.net
John Kenneth Galbraith- mystic or curmudgeon? image: poorwilliam.net

Broadly speaking, all new money comes out of a bank in the form of loans. As loans are debts, then under the present system all money is debt.”

Money created by banks and other financial institutions is interest-bearing debt. They create the principal and expect their money to be returned with interest. We can’t create interest the way they create the principal, so we must obtain it from some other money that was also created as interest-bearing debt. There is never enough of this money in existence at any time to pay off all of our collective debt. More interest-bearing money must continually be borrowed into existence.

In 2013, not so long ago, the ratio of household debt in Canada, including mortgages and consumer debt, was more than 160% of disposable income after mandatory deductions and income taxes and this statistic will keep growing with each year. The federal debt in Canada then was more than $600 billion, and interest payments on the debt in 2011-2012 cost $31 billion dollars or 11 cents of every tax dollar. Now in 2019, the federal debt has grown to $768 billion.

The five largest banks in Canada reported more than $27 billion in combined net income for the 2012 fiscal year.

Canada’s central bank, the Bank of Canada, claims to “regulate credit and currency in the best interests of the economic life of the nation”, and to mitigate “fluctuations in the general level of production, trade, prices and employment”, yet the purchasing power of the Canadian dollar has dropped steadily since the Bank of Canada was founded in 1934. As a store of value the dollar has not performed very well. It should also be noted that Canadian banknotes ceased to be redeemable for gold in 1929.

Bank of Canada notes are fiat money that the federal government declares to be legal tender, and the Bank has a monopoly on the issuance of bank notes. These notes are supplied to financial institutions to satisfy public demand. Chartered banks in Canada are no longer required to maintain statutory cash reserves for the loans they make. According to some estimates, Bank of Canada notes add up to less than 2% of the total amount of loans made by the banks and other financial institutions.

Once upon a time, Canada used real paper bills for one and two dollars. The move away from paper currency is interesting. Is there a concerted effort to 'do away' with physical money? (The recent withdrawal of the penny being an example.) The penny was costing more to manufacture and distribute than its actual physical value...that's partly because it wasn't made out of pure copper- hence it became "expensive". Will the nickel be the next coin to die? Is it even made out of nickel anymore? Check back in ten years. CP

Money created as interest-bearing debt is scarce from the moment it is created, which curtails its effectiveness as a medium of exchange. Every dollar comes into existence as interest-bearing debt, and the overall cost of interest is reflected in the price of everything we buy. This is not to suggest that interest should be banned or that interest rates need to be controlled by a central bank. Anyone should be free to lend his or her savings at a mutually agreeable rate. Equity financing, with shared risks and rewards, is another option.

What is being suggested here is that we ask some fundamental questions about the monetary system and the function of money.

 Are you able to use your goods, services, labour, knowledge, skills and abilities to obtain enough money to purchase other goods and services?

Are you able to obtain credit when you need it and are also willing and able to pay it back? Are you able to negotiate an agreeable price for credit and loans? Are you on a treadmill of debt, no matter how hard you work, how many expenses you cut, or how hard you try to save?

Are your savings secure and retaining their value?

Money is basically credit, like an IOU. Our ability to exchange our goods and services should not be hampered by the price of credit or an inadequate supply of money. Anything physically possible is financially possible. We can extend credit to anyone who wants to purchase anything from us and who is willing and able to provide us with a mutually agreeable amount of his or her goods and services. In essence, goods and services pay for other goods and services.

A mutual credit clearing system is an alternative method that can be used to facilitate reciprocal exchange.

Members of a credit clearing association have a trading account where an ongoing record is kept of their sales and purchases, their credits and debits. Every transaction includes a credit entry for one member and a debit entry for another, but interest does not have to be paid when an account temporarily has more debits than credits. Credit is extended to members from the rest of the traders in the group, and the major benefit of this system is that members can obtain interest-free credit. In the long term every member is expected to provide as much as they obtain. It all balances out within the community of traders. It’s all a simple matter of bookkeeping.

Direct credit clearing systems can be operated on a fee-for-service basis to cover expenses and to compensate those who provide this service. Nobody is ever forced to join any trading group and members are also free to leave when their debts are clear. Anyone can start their own credit clearing service, which allows competition between associations based on quality and price of service. Associations can also cooperate with each other to increase the number of potential trading partners and broaden the range of goods and services that are available.

Credit does not have to be scarce or expensive. We can control our own credit and allocate it as we choose. Are your best interests being served by the money you use?   For The Silo, John Kenneth Galbraith.

Rankings Of One Day Cost At Over 300 Beaches Worldwide

Amsterdam, Netherlands,Online travel specialists, TravelBird, have released their annual Beach Price Index, featuring more than 300 seaside locations from 70 countries around the globe. On a year-to-year basis, the price of holiday beaches can change substantially when you take into account factors such as currency fluctuation and inflation. As a company which prides itself on inspiring travelers, TravelBird ranked the beaches in order to provide holidaymakers with the information they need to make a smart decision when booking.

TravelBird first examined an extensive catalogue of the world’s most popular beaches, before reducing this to a final shortlist of just over 300 locations, ranked on the cost of spending a day at each. To calculate their affordability, the price of five essentials were then researched for each destination: the cost of a bottle of sun cream (200 ml), a bottle of water (500 ml), a beer (33 cl bottle), lunch (including drink and dessert for one person), and an ice cream. The sum of these five essentials determined the final affordability ranking of each seaside location. All prices were calculated by standardizing the sizes of products, and with monetary transactions true to exchange rates on 1st June 2017.

Steve Klooster

“It is very interesting for travelers who are planning their trip to see how much the price of spending a day at the beach varies across the world. There are many useful tips in here. One to easily forget, currency fluctuations can make a big difference in the actual cost of your holiday, so keep those in mind. For example, beaches in the UK have become almost 10% more affordable for continental European visitors due to the decline of the pound after the Brexit referendum.” Said TravelBird CEO Steven Klooster. “Also, if you are keen on enjoying local food on the beach, pick Vietnam for instance, where you can enjoy delicious local food on the beach that is very affordable. Another one: in some places you pay a lot for sunscreen, up to 3 times more than you would pay in The Netherlands, so make sure you take some with you!“

The study reveals the 10 most expensive beaches are:

#

Beach

Country

Sunscreen

Water

Beer

Ice-cream

Lunch

Total (USD)

1

Kristiansand Beach

Norway

$21.58

$2.65

$8.48

$4.53

$27.37

$64.61

2

Huk Beach

Norway

$20.67

$2.97

$8.83

$5.09

$24.38

$61.94

3

Solastranda

Norway

$20.14

$2.83

$7.63

$4.71

$25.02

$60.33

4

Mareto Plage Publique

French Polynesia

$21.96

$2.01

$7.30

$3.99

$23.43

$58.69

5

La Plage de Maui

French Polynesia

$20.88

$2.01

$7.49

$3.53

$24.49

$58.40

6

Åkrasanden

Norway

$22.26

$2.57

$8.47

$4.24

$20.44

$57.98

7

Hamresanden

Norway

$22.97

$2.39

$7.42

$4.35

$20.01

$57.14

8

Ribersborg Beach

Sweden

$17.38

$2.12

$6.79

$3.31

$25.73

$55.33

9

Anse Vata

New Caledonia

$15.33

$1.82

$7.42

$2.28

$28.29

$55.14

10

Anse Georgette

Seychelles

$26.63

$0.94

$6.89

$1.24

$17.66

$53.36

Most expensive beach according to study- Kristiansand Beach, Norway. image: kristiansand.norway.com

In contrast, the study reveals the 10 most affordable beaches are:

#

Beach

Country

Sunscreen

Water

Beer

Ice-cream

Lunch

Total (USD)

310

Cua Dai Beach

Vietnam

$1.95

$0.50

$2.04

$0.88

$7.81

$13.18

309

City Beach

Vietnam

$2.32

$0.33

$2.14

$0.88

$8.23

$13.90

308

Long Beach

Vietnam

$2.57

$0.43

$2.09

$0.99

$8.34

$14.42

307

Marsa Nayzak

Egypt

$6.61

$0.21

$1.96

$0.83

$6.83

$16.44

306

Sunken City

Egypt

$7.12

$0.20

$2.02

$0.84

$6.64

$16.82

305

Varkala Beach

India

$3.98

$0.37

$3.32

$0.73

$9.21

$17.61

304

Benaulim Beach

India

$4.65

$0.31

$3.20

$0.61

$9.15

$17.92

303

Palolem Beach

India

$4.65

$0.24

$3.13

$0.67

$9.52

$18.21

302

Cavelossim Beach

India

$4.65

$0.37

$3.41

$0.83

$9.15

$18.41

301

Sharm El-Naga Bay

Egypt

$7.12

$0.21

$1.96

$0.84

$8.44

$18.57

Most affordable beach according to study- Cua Dai Beach, Vietnam. image: vietnamguidenews.com

Click here for the full results: https://travelbird.nl/beach-price-index-2017/

4 Canadian beaches appear in the Index, with the following results:

#

Beach

Region

Sunscreen

Water

Beer

Ice-cream

Lunch

Total (USD)

118

Grand Beach

Manitoba

$9.15

$1.61

$3.59

$2.89

$20.90

$38.14

121

Brady’s Beach

British Columbia

$9.28

$1.74

$3.65

$3.00

$20.00

$37.67

136

Wasaga Beach

Ontario

$9.15

$1.70

$3.59

$3.38

$19.08

$36.90

149

Parlee Beach

New Brunswick

$8.87

$1.66

$3.57

$2.95

$18.87

$35.92

Grand Beach, Manitoba. image: travelmanitoba.com

Other findings from the study include:

Sun cream is most expensive when bought from beaches in The Seychelles, costing $26.63 for a 200ml bottle. In comparison, Cua Dai Beach in Vietnam has the world’s least expensive sun cream, costing just $1.95 per bottle.

The seaside location with the most expensive bottle of water is Huk Beach in Norway, costing $2.97 for a 500ml bottle. The beach with the least expensive bottle of water is Sunken City in Egypt, where the same sized bottle costs just $0.20.

The beach with the most expensive beer globally is Huk Beach in Norway, where a 33cl bottle costs $8.83. In contrast, Soma Bay in Egypt is the seaside destination with the least expensive beer, available for just $0.63.

Norway’s Huk Beach also has the world’s most expensive ice creams, at $5.09 each. Egypt’s El Gouna is the beach with the least expensive ice creams in the world, costing just $0.52.

West Palm Beach in the American state of Florida has the world’s most expensive seaside lunch, costing $28.61 for one person. Egypt’s El Gouna is the beach with the most affordable lunches, available for just $5.63.

About our friends at TravelBird: TravelBird is an online travel company offering a curated collection of holiday and travel experiences – from short inspirational breaks to international get-aways. TravelBird’s passionate local travel advisors work directly with tour operators across the world to offer a selection of travel experiences that invite travellers to discover something new and immerse themselves in different cultures. For more information, please visit: https://travelbird.nl

Methodology:

The study has 310 of the most visited beaches in 70 countries based on local tourism board numbers and data from the UNWTO.  

Total Price = $ Sunscreen + $ Water + $ Beer + $ Ice-cream +$ Lunch

Sunscreen costs calculated by taking an average cost from a store in local resort/hotel, a hostel and local pharmacy or supermarket (all where available). We searched for SPF 30, 200 ml.

Lunch costs calculated by taking full meal cost, including a drink and dessert, for one person from a walking distance of maximum 10 minutes from the beach or the closest establishments to it (largely within tourist areas), outlets include hotels and restaurants.

Beer costs were calculated by taking an average of the biggest local beer brand along with the retail cost of Heineken, Budweiser, Becks, Guinness and Fosters at local prices, where available. Where sizes were not available, calculations were undertaken to make serving sizes equal.

Water calculations were found by taking the three largest local brands and calculating an average of these.

Ice-cream costs calculated by taking an average prepackaged branded ice-cream price in the capital city of each country and applying consumer produce cost differences to each area, where applicable.  For the Silo, Ricky Sutton.

Featured image- Wasaga Beach, Ontario courtesy of expedia.com

World First Magnet Operated Coin From Canada Mint

OTTAWA, June, 2018 / CNW/ – The Mint continues to tap in to its creativity and innovation to further unleash the potential of coin manufacturing and transform the coin collecting experience.  Such is the case with the 2018 $50 Fine Silver Coin – Antique Carousel and several other head-turning coins in the June 2018 numismatic catalogue.

In a world-first, the Mint’s Research & Development team has meticulously created a 6 oz. silver coin featuring a miniature, functional carousel that rotates with the help of a magnet.  This timeless attraction at countless Canadian carnivals and fairs is the crowning piece of artist Calder Moore’s design, selectively plated in gold, much like the gilded carousels of the past.  Even the horses move up and down on this dazzling creation which is limited to a world-wide mintage of only 1,000.

Another impressive 3D design element can be found on the 2018 $200 Pure Gold Coin – 30th Anniversary of the Silver Maple Leaf.  This 1 oz. gold coin is enhanced by a “high intricacy casting” of a silver maple leaf that literally pops from its reverse proof surface.  In another Mint-first, we have launched the 2018 $250 Fine Silver Coin – Maple Leaf Forever: a one kilo 99.99% pure silver coin, our largest convex coin to date, featuring the artwork of senior Mint engraver Stan Witten.

Finally, two new coin sets stand out as memorable additions to an exciting line-up of classic and unique numismatic products.  The 2018 Fine Silver 3-Coin Set – Beneath Thy Shining Skies features a complex design by artist Rebecca Yanovskaya. Two rectangular coins flank a maple-leaf shaped centrepiece to compose a panoramic tableau that links scenery and famous Canadian landmarks to illustrate the story of our nation and its people.

History takes centre stage on a four-coin set celebrating the “Colonial Currency of the Atlantic Provinces”.  Struck with dies mimicking the wear of well-circulated coins and hand finished with an antique patina, these icons of early Canadian numismatic history are beautifully reproduced in 99.99% pure silver.  In order to bring out the elegant features of each period design, each coin is larger in diameter than its original.

Other collectibles available this month include:

  • The 2018 $20 Fine Silver Coin – First World War Allied Forces: Canada, the first coin in a new series commemorating the contribution of the major Allied forces that brought fighting to an end with the Armistice of November 11, 1918. The design featuring the Canadian cavalry is the work of artist Pandora Young;
  • The $100 Fine Silver Coin – Keepers of Parliament: The Unicorn, the first of a series of 10 oz. silver coins, designed by Patrick Bélanger and showcasing stonework figures watching over the front doors of Parliament;
  • The 2018 $30 Fine Silver Coin – Fireworks at the Falls, featuring a Tony Bianco colour illustration of the natural landmark, with a hidden nighttime fireworks scene only visible under black light;
  • The 2018 $500 Pure Gold Coin – Predators of the Wild, an impressive 5 oz. designed by Emily Damstra;
  • The 2018 $30 Fine Silver Coin – Zentangle® Art: The Great Horned Owl, designed by Jori Van Der Linde;
  • The 2018 $30 Fine Silver Coin – Canadian Canopy: The Maple Leaf, designed by Emily Damstra;
  • The 2018 $20 Fine Silver Coin Frozen in Ice – Scimitar Sabretooth Cat, designed by Glen Loates;
  • The 2018 $3 Fine Silver Coin – The Thirteen Teachings from Grandmother Moon: Strawberry Moon, designed by Frank Polson; and,
  • The crystal-enhanced 2018 $5 Fine Silver Coin – Birthstones: July, featuring a mandala-inspired ruby design by artist Pandora Young.

Mintages, pricing and full background information on each product can be found on the “Shop” tab of www.mint.ca. Coin images can be viewed here.

All of these products can be ordered directly from the Mint at 1-800-267-1871 in Canada,
1-800-268-6468 in the US, or online at www.mint.ca.  Please mention The Silo when contacting. The coins are also available at the Royal Canadian Mint’s boutiques in Ottawa and Winnipeg, as well as through our global network of dealers and distributors, including participating Canada Post outlets.

About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for the minting and distribution of Canada’s circulation coins. An ISO 9001-2008 certified corporation, the Mint is recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high quality coinage products and related services on an international scale.