I am like Smitty and Freddy, in that I use cash for everything and I am seeing more and more people revert back to cash in this economy too. Ultimately I see the powers that be working to halt cash altogether as it is hard to track and it prevents a lot of fees from being generated for a multitude of reasons, but I'll be the last one holding on I can tell you that.
I save all the $5 bills I get and put them in a jar, averaging about $40-45 per week in savings, and this was when I was on unemployment. That is not bad, putting $45 dollars into savings every week from a $307 unemployment check. The reason was simple; I did not miss the squirreled away $5 bills because I did not see them. But that is the same reason why people who use debit and credit cards spend more money then they realize; because they do not see what they are spending and are not doing any savings. And of course if they go over on their accounts, they get nailed with a $35 overdraft fee. That is (7) saved $5 bills right there.
But President Obama says through his Treasury Secretary that it is people like me that are killing the economy. But if he thinks he knows the law of economics, then how can farmers like me, who buy everything at retail prices, and turn around and sell it at wholesale prices, make any money? We have been bucking the system for nearly 400 years!
I am not overly concerned with them taking away the penny, but I think the increase in prices will be a lot more then people realize. I have never seen the government do anything yet that they did not royally screw up.