I saw this reported in the WSJ, now on bloomburg. Proof positive of the devaluation of paper money (note: the penny represents 1/100 th of the paper dollar). Hard to hide when the gov't goes from copper to zinc to steel for the lowly penny. And they say the commodity boom is over?

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May 8 (Bloomberg) -- The U.S. House voted to bring back the steel penny, saying it would be cheaper than the current practice in which the government loses money on every penny it makes because of rising metal prices.

The chamber approved legislation directing the U.S. Mint to begin producing, within the next nine months, pennies made of copper-plated steel -- not the zinc-copper alloy currently used. The measure, passed on a voice vote, also recommends phasing in steel nickels over the next two years.

Democrats, who noted that the government produced steel pennies during World War II when copper demand was high, said the plan would save $1 billion over the next decade. Unlike the gray steel pennies produced during World War II, the new steel pennies would have to retain their copper color.

``This legislation represents a fiscally responsible solution to a situation that grows worse with every penny minted,'' said Representative Zack Space, an Ohio Democrat who sponsored the bill. ``It is an insult to American taxpayers that we are manufacturing coins at a rate more than their face value represents.''

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BK