Trump Just Ended The Penny (Prepare For A Cashless Society)
Published: 2025-06-20
Status:
Available
|
Analyzed
Published: 2025-06-20
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 7
Prediction
Topic
Status
The elimination of the penny is predicted to initiate a trend towards modernizing the economy, resulting in taxpayer savings and a gradual shift towards a cashless society.
"This could be the beginning of a movement to modernize our economy, save millions in taxpayer dollars, and even condition us toward a fully digital cashless society."
Correct
Donald Trump aims to eliminate the penny.
"President Trump wants to make the penny extinct."
Incorrect
There is a question about whether existing pennies and loose change will lose value or become collectible.
"So, the next question is how does this actually affect us in real life? Like what happens to the pennies we already have? Are those jars of loose change going to be worthless or are some of them going to become collectibles?"
Pending
The US Mint has made its final order for penny blanks and will cease production once current supplies are exhausted.
"The Treasury says the US Mint has made its final order of penny blanks. It will stop making pennies when those run out."
Incorrect
Cash transactions will be rounded to the nearest nickel due to the discontinuation of pennies.
"cash transactions at stores will soon be rounded to the nearest nickel."
Correct
The elimination of the penny is the start of a trend towards a fully digital, cashless society.
"this could be the beginning of a movement to modernize our economy, save millions in taxpayer dollars, and even condition us toward a fully digital cashless society."
Correct
The elimination of the penny is seen as a potential catalyst for modernizing the economy, saving taxpayer money, and moving towards a cashless society.
"This could be the beginning of a movement to modernize our economy, save millions in taxpayer dollars, and even condition us toward a fully digital cashless society."
Pending
Based on Canada's experience, rounding of cash transactions is expected to balance out over time, with no significant increase in overall customer costs.
"studies from countries like Canada, which also got rid of their penny in 2013, found that rounding usually balances itself out. Half the time prices round up and half the time they round down, meaning customers overall don't end up paying significantly more."
Correct
Taxpayers are losing $85 million annually on the production of pennies.
"each year taxpayers have been losing $85 million just to make the pennies."
Correct
The nickel is likely to be eliminated because its production cost exceeds its face value.
"Guess what else is on the chopping block? The nickel. Because it costs more to make a nickel than the value of the nickel itself."
Incorrect
The discontinuation of the penny and subsequent rounding will not impact users of digital payment methods such as credit cards, debit cards, Apple Pay, or Venmo.
"if you're someone who pays with things like credit cards or debit cards or even apps like Apple Pay or Venmo, this change will not affect you at all because digital payments still count every penny. There's no rounding happening in digital payments."
Correct
An estimated $68 million worth of coins are discarded annually.
"statistics show on average every single year we throw away $68 million worth of coins."
Pending
The cost to produce a single penny is almost four cents, making them not cost-effective.
"Pennies are just not cost effective to make because in order to make just one penny, it costs almost four pennies."
Correct
The transition away from physical pennies will not impact transactions made with digital payment methods like credit cards, debit cards, or mobile payment apps.
"And keep in mind, if you're someone who pays with things like credit cards or debit cards or even apps like Apple Pay or Venmo, this change will not affect you at all because digital payments still count every penny. There's no rounding happening in digital payments."
Correct
The process of using and counting pennies in cash transactions is estimated to cost the US economy $1 billion annually in lost productivity.
"Every single day, millions of Americans spend extra time at the checkout, counting pennies, dropping coins, and waiting while the cashier counts them all out. And a Harvard economist actually estimated that this process cost the US economy about $1 billion every year in lost productivity"
Pending
Previous attempts by the government to eliminate the penny occurred in 1989, 2001, 2006, and 2017.
"And the penny is something the government has tried to get rid of as early as 1989, 2001, again in 2006, and again in 2017."
Correct
The elimination of the penny is viewed as a potential initial move by the government towards phasing out cash entirely.
"getting rid of the penny might just be the government's first small step in getting rid of cash entirely."
Incorrect
The Fed Now program, launched in July 2023, is a real-time digital payment system designed for instant, 24/7 processing and settlement of payments.
"The Federal Reserve launched its Fed Now program back in July 2023. And that's a real-time digital payment system that's designed to process and settle payments instantly, 24 hours a day, 7 days a week."
Correct
Cash transactions will be rounded to the nearest 5 cents due to the absence of pennies.
"if you pay with cash, a lot of transactions will now be rounded up to the nearest 5 cents because there's no more pennies."
Pending
The Fed Now system is viewed as a precursor to the Federal Reserve developing a central bank digital currency (CBDC).
"Now the Fed now is not a digital dollar yet, but a lot of people see it as a stepping stone toward the Federal Reserve eventually creating a fully digital currency or what's called a CBDC, a central bank digital currency."
Correct
Nickels are predicted to be phased out next, as they are also more expensive to produce than their face value, similar to the penny.
"The nickel already costs even more money to produce than the penny. About 14 cents per coin, which is almost three times its face value. And if we're getting rid of pennies because they lose money, it makes sense that nickels will eventually follow."
Pending
The move away from physical currency like the penny is seen as a sign of a gradual transition towards a fully digital economy.
"This might also be signaling that we are subtly conditioning ourselves toward a fully digital economy."
Correct
The Federal Reserve is actively exploring the creation of a digital dollar.
"Even Jerome Pal, who is the guy in charge of America's main central bank, the Federal Reserve, has openly said that the Fed is actively exploring a digital dollar."
Correct
The removal of cost-ineffective coins like pennies and nickels, combined with the development of digital currency infrastructure, signals a historic shift towards a fully digital economy.
"So what's happening right now is we're removing coins that are not coste effective while at the same time we're building the infrastructure that's needed for this digital currency. So it might not just be about pennies and nickels. This could be the beginning of a very historic pivot towards a digital economy, which would be a huge change to how we spend money, how we save money, and how we think about money completely."
Correct
The nickel is also being considered for elimination because its production cost exceeds its face value.
"guess what else is on the chopping block? The nickel. Because it costs more to make a nickel than the value of the nickel itself."
Correct
China aims to digitize its entire monetary supply within a few years, with active testing of its digital yuan underway across millions of people.
"China introduced a digital version of their own known as the digital yuan. And they are actively testing it across millions of people and their goal is to digitize their entire monetary supply within just a couple years."
Incorrect
The Federal Reserve's FedNow program, launched in July 2023, is a real-time digital payment system designed for instant 24/7 payment processing and settlement.
"The Federal Reserve launched its Fed Now program back in July 2023. And that's a real-time digital payment system that's designed to process and settle payments instantly, 24 hours a day, 7 days a week."
Correct
Physical currency may become obsolete in the future, potentially only existing in museums for educational purposes.
"Maybe our kids or our grandkids will go to a museum in the future sometime and they're going to see dollar bills hidden behind a glass wall and study how we used to use physical money. That's probably going to happen sometime in the future."
Pending
The FedNow system is considered a precursor to the Federal Reserve potentially developing a central bank digital currency (CBDC).
"The Fed now is not a digital dollar yet, but a lot of people see it as a stepping stone toward the Federal Reserve eventually creating a fully digital currency or what's called a CBDC, a central bank digital currency."
Correct
Jerome Powell has stated that the Federal Reserve is actively researching the possibility of a digital dollar.
"Even Jerome Pal, who is the guy in charge of America's main central bank, the Federal Reserve, has openly said that the Fed is actively exploring a digital dollar."
Correct
Over 114 billion pennies, valued at more than $1 billion, are estimated to be in circulation.
"there's over 114 billion pennies still in circulation. That's more than a billion dollars worth of pennies scattered across the country."
Correct
The elimination of the penny could mark a significant shift towards a digital economy, fundamentally altering how people spend, save, and perceive money.
"This could be the beginning of a very historic pivot towards a digital economy, which would be a huge change to how we spend money, how we save money, and how we think about money completely."
Correct
Pennies minted before 1982, made of 95% copper, are worth approximately 2 to 3 cents each due to their metal content.
"pennies minted before 1982 were made from 95% copper, and those pennies are already worth about 2 to 3 cents each because of the metal content alone."
Correct
Physical money, like dollar bills, may eventually be displayed in museums for future generations to study.
"Maybe our kids or our grandkids will go to a museum in the future sometime and they're going to see dollar bills hidden behind a glass wall and study how we used to use physical money. That's probably going to happen sometime in the future."
Pending
Cash transactions will be rounded to the nearest nickel.
"cash transactions at stores will soon be rounded to the nearest nickel."
Incorrect
Totals ending in 1 or 2 cents will be rounded down, while totals ending in 3 or 4 cents will be rounded up to the nearest nickel.
"If your total ends in 1 or 2 cents, the cashier rounds down to the nearest zero. But if it ends in three or four cents, it rounds up to the nearest 5 cents."
Correct
Studies from Canada indicate that rounding prices after penny elimination typically balances out, with no significant overall increase in customer spending.
"studies from countries like Canada, which also got rid of their penny in 2013, found that rounding usually balances itself out. Half the time prices round up and half the time they round down, meaning customers overall don't end up paying significantly more."
Correct
The time and effort spent counting pennies at checkout is estimated to cost the US economy $1 billion annually in lost productivity.
"A Harvard economist actually estimated that this process cost the US economy about $1 billion every year in lost productivity"
Pending
The cost to produce a nickel is approximately 14 cents, which is almost three times its face value.
"The nickel already costs even more money to produce than the penny. About 14 cents per coin, which is almost three times its face value."
Correct
Globally, countries like Sweden are moving towards cashless societies, with over 90% of transactions being digital and some stores no longer accepting cash.
"governments around the world have already started going down this path. Sweden, for example, is quickly becoming cashless. Over 90% of their transactions are digital and a lot of stores are not even accepting cash at all."
Correct
China is actively testing its digital yuan and aims to digitize its entire monetary supply within a few years.
"China introduced a digital version of their own known as the digital yuan. And they are actively testing it across millions of people and their goal is to digitize their entire monetary supply within just a couple years."
Incorrect
The Federal Reserve's FedNow system, launched in July 2023, enables instant, 24/7 real-time payment processing and settlement.
"The Federal Reserve launched its Fed Now program back in July 2023. And that's a real-time digital payment system that's designed to process and settle payments instantly, 24 hours a day, 7 days a week."
Correct
The FedNow instant payment system is now live, allowing for immediate transfer of funds between households and businesses, eliminating delays associated with check holds and payment clearing.
"Federal Reserve announcing it has gone live with its new Fed Now instant payment system. A system that should allow households and businesses to send payments and receive money immediately without those troubling 3-day holds on checks and waiting for payments to clear in the sender's account."
Correct
FedNow is considered a potential precursor to the Federal Reserve developing a Central Bank Digital Currency (CBDC).
"Now the Fed now is not a digital dollar yet, but a lot of people see it as a stepping stone toward the Federal Reserve eventually creating a fully digital currency or what's called a CBDC, a central bank digital currency."
Correct
Jerome Powell has stated that the Federal Reserve is actively exploring the possibility of a digital dollar.
"Even Jerome Pal, who is the guy in charge of America's main central bank, the Federal Reserve, has openly said that the Fed is actively exploring a digital dollar."
Correct
The elimination of the penny might signal a significant shift towards a digital economy, impacting spending, saving, and the perception of money.
"This could be the beginning of a very historic pivot towards a digital economy, which would be a huge change to how we spend money, how we save money, and how we think about money completely."
Correct
Physical currency may become a museum exhibit in the future, studied by future generations.
"Maybe our kids or our grandkids will go to a museum in the future sometime and they're going to see dollar bills hidden behind a glass wall and study how we used to use physical money. That's probably going to happen sometime in the future."
Pending