Should the US devalue its currency?

[bean fidhleir]

Our small change hasn't been worth anything for nearly 50 years. It's not as bad as the Japanese system, where fractional-Yen coins were simply eliminated in the '50s, but it's bad enough. W

Would we be better or worse off if we knocked off a zero or two? It would make the value of a successful counterfeit that much higher, but it would also, by reducing the volume, make looking at each banknote easier. With a careful redesign, it should even be possible to automate the detection of funnymoney.

I started thinking about this because I want to sell my car on ebay or craigslist. It's a 10yo Honda Civic with only 42K on it (I drive about 300 mi/yr these days) and in very nice shape with air and a good sound system, so it should sell quickly. I know that taking a personal check is the height of risk-taking, but it's also the case that crooks are "buying" cars for chop-shops using fake certified checks, too. What if the prospective buyer offers me a bunch of hundred-dollar bills? They're the prime target of counterfeiters these days because they're now nearly as common as the $20 was 20-30 years ago. So I wonder: can I even stay safe if I specify cash only? Is there any way not to be taken to the cleaners by a clever crook?

[MadHound]

1. Devaluing our currency would be economic suicide

Our currency is already being devalued by rising inflation and sinking value of the dollar. Adding even more pressure would crack our economy wide open and lead to economic ruin.

As far as what form of payment to take for your car, well, virtually anything, checks, cash, MO's, can all be forged. The likelihood of that happening in any particular instances is quite low. I would suggest that you take either cash(since that is the currency of note in this country, good for all debts public and private) or whatever form of check, etc that you are most comfortable with.