US Money Reserve Penny

The president for the US money reserve, Phillip Diehl, is of the opinion that the US penny has outlived its use. He holds the view that given that the coin costs more to make that its actual value, its manufacturing should be discontinued. Philip further argues that by eliminating the penny, the nation will be saving about $105 million annually.

In an interview with the CNBC Squawk Box, , Philip highlighted the various reasons why he is against further processing of the penny. Apart from being costly and unprofitable, he argued that the coin is just ceremonial and hardly used in the American market. He further holds the opinion that the penny has outlived its use having being in circulation for over 25years.

There is, however, the fear by several economists that the discontinuation of the penny might cause market disruptions that could be injurious to the market including contributing to inflation.

These he said, includes the private companies contracted to manufacture the penny blanks, the zinc companies, the metal from which the coin is manufactured, and the Illinois Congregational Delegate.

Philip noted that of all the transactions carried out in the United States involving money, only less than 25 percent require liquid cash with over 75 percent being non-cash.

According to him, this means that very few transactions will be affected by the dissolution of the penny. He is also optimistic that by eliminating the penny, companies will be forced to round down their company products.

He concluded by stating that, unlike the nickel whose composition can be altered to make its production cost profitable or near profitable, the penny is a lost cause, and nothing can be done to reduce its ineffectiveness.

Amazon Growing In The Fashion Sector

Amazon is an ecommerce giant. No one will deny that. They have a wide selection of buys that range from electronics to games and books. Amazon is now moving into the world of fashion. They have been working for quite some months to manufacture and begin offering their own unique line of clothes.

It seems that there are many venues for this type of offering. JustFab is one such venue that has had quite a bit of success with selling shoes and accessories. The JustFab line offers unique shoes, handbags and even jeans for those who shop on their site.

The choice exists to make one time purchases or sign up for their monthly subscription plan. The subscription plan with JustFab offers new shoes or apparel at cut rate prices with free shipping for one low monthly rate. It is automatically charged to a credit card and will ship within days after the charge is made.

Amazon was already offering apparel, shoes and accessories under about 18 other brands that they personally trademarked. These were average in their performance, but showed great promise in developing into something big. The better part of Amazon offering clothes is that they are tending to stay towards the less expensive price tags for their clothing lines.

This is thought to bring better sales and more interest in the line. Amazon understands that it is in the deal that they will make the most profit and enhance their ability to remain at the top of the ecommerce field. Prior sales strategies has proven that sometimes it is better to forge out on their own than to depend on using other people’s labels to make the dollar.

Another prompt to offering their own label is that sometimes labels have withdrawn their offerings through the Amazon site. This do not however squash the desire of their clientele for those pieces. In response to the demand Amazon developed their own pieces to offer customers that would meet their needs.

The company is confident in offering apparel through its site. Fashion has always remained one of its best, highest grossing sectors. The private label has opened the opportunity for them to explore this sector even better. Full saturation in the apparel and shoe markets not only show great promise but is also pretty high in demand.

The sheer size of Amazon allows it to garner greater levels of informnation. This information can then be used to identify client demand and answer it almost immediately. They also have fast turnover times between making the actual order and delivery.

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