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Pillar of the Community
United States
584 Posts |
"When a system like the dollar coin is imposed, it is the little man in day to day life who ends up being taken advantage of (nothing new)" AMEN! Lincoln Cent Revolution Soon to come lol |
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Pillar of the Community
United States
1302 Posts |
My idea is this:
Understand that the 50 cent piece not circulating is the real reason why the dollar coin won't circulate either.
I'd make the zincoln worth 2 cents, eliminating the 1 cent denomination.
I'd change the size and shape of the fifty cent piece, make it golden like a half dollar, slightly larger and thicker than a quarter.
I also think phasing out the $1 bill is necessary to get the $1 coins in wide use.
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New Member
United States
11 Posts |
Im with Jayman931! He seems to have a firm grasp on the underlying problem.
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Pillar of the Community
Germany
1064 Posts |
The gold standard is fake, and benefits those who seek out a metal that to be honest should not represent the total worth of a nation.
Currency at present represents productivity. Say your productivity is 100, and the country next door's productivity is 50, then your currency is going to be worth a lot more than theirs. The more you are productive, the more you can go to less productive countries and have a good holiday. Seems that a capitalist country should really go for that, rather than "let's raid the incas and see how much silver they've got, eh, Pizarro?" "Which one?" "Oh, the one with the beard and the horse!"
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Pillar of the Community
United States
4132 Posts |
Quote:
Sit back and watch our money actually gain value... Deflation (which would indeed be the result of going back to the gold standard) would be an utter disaster for the economy. If money gained value while stuffed inside your mattress, what would be the incentive to invest it and put it to work? |
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Pillar of the Community
United States
2651 Posts |
The Dollar would have more buying power if it was backed by a precious metal. Gold is probably unfesible with the amount of Dollars the Fed has produced but there are many other precious metals...silver Copper and Aluminum.
Deflation Inflation would be the last thing that would happen if we backed our Dollar with precious metals. The only think that is backing it right now is Confidence and that is waining.
Do realize that Silver and Gold really haven't sky rocketed...The Dollar has dropped and is not worth as much so it takes more Dollars to buy the same amount of Silver and Gold (or any goods...Food....Gas..notice how everything has gone up alot?)
The Fed has doubled our money supply in the last 2 years. That deflates a currency which in turn inflates prices for goods and destroys the economy.
Think about this...If you had a choice between a shoebox full of $500 US dollar bills or a shoebox full of $500 worth of gold...you had to choose one and which ever one you choose you can't open it for 5 years....which one do you want?
Edited by Jayman931
12/14/2011 1:46 pm
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New Member
United States
11 Posts |
Wow augsburger so intrinsic worth is now fake and "currency at present" without any intrinsic value is real? I agree with your productivity claim but it seems to me that the ability to determine relative worth of currencies (of equal worthlessness) from various countries would encompass a much wider swath of variables such as military strength, political power, historical alliances, etc... and I must say I disagree that "currency at present represents productivity." As Jayman just said our US currency supply is increasing which does not seem to correlate at all with US GDP (production) in any manner. Does the money supply play any factor in your world, how about a world reserve currency and ability to produce it? Are you near Wiemar Germany by any chance?
Captainfwiffo I could pose an alternate question to yours: If a fiat currency with a constant increase in supply is present and is constantly loosing its purchasing power due to inflation what would be the incentive for anyone to be responsible and save money? And by the way that money in your mattress would not actually be gaining but merely retaining its value.
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Pillar of the Community
United States
4132 Posts |
Quote:
The Dollar would have more buying power if it was backed by a precious metal...Deflation would be the last thing that would happen if we backed our Dollar with precious metals. One of us is pretty confused. Quote:
Captainfwiffo I could pose an alternate question to yours: If a fiat currency with a constant increase in supply is present and is constantly loosing its purchasing power due to inflation what would be the incentive for anyone to be responsible and save money? And by the way that money in your mattress would not actually be gaining but merely retaining its value. This is one of the paradoxes in economics. Sometimes what is good for the individual is bad for the economy as a whole. Yes, it's good for your own finances to save money, but it's better for the economy if you spend it. Spending creates demand which creates jobs. Right now inflation is relatively low, which gives people little incentive to spend. If you expected higher inflation in the future, you'd be motivated to spend money now because your money will be worth less in the future. That's why banks with fractional reserves are necessary. That way part of the money people are saving can be invested in some sort of productive activity. Edited by CaptainFwiffo
12/14/2011 12:54 pm
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Pillar of the Community
United States
2651 Posts |
CaptainWifo- Not confused just wrote the wrong word...I type rather fast and barely ever check spelling or what I wrote.... Edit... deflation => Inflation
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Pillar of the Community
United States
4132 Posts |
But that's my point... Deflation would be bad - it would reduce the incentive to invest and to work, and would increase the burden of debt.
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Pillar of the Community
United States
2651 Posts |
How much is a 1964 Quarter worth? How much is a 2011 Quarter worth? Back in 1964 the cost of a gallon of gas was $.30 and the cost of a new home was $20,500 Skip to 2011 the cost of a gallon of gas is $3.50 and the cost of a new home is $230,000 For ease of explaination lets just say currerent value of silver for 1 1964 quarter is $5.00. You can still buy a gallon of gas for that 1964 quarter (actually you would get more gas now than you would have in 1964) The house that was $20,500.... 4 1964 Quarters would be $20.00..multiply that by $20,500... $410,000 You would have the same purchasing power if US money was tied to Precious Metals...instead it is tied to Oil and Confidence. Less countries are trading oil with the US Dollar and the Fed has doubled the amount of dollars. Prices haven't gone up....the value of our money has gone down. This is the biggest tax on the American people today.. http://www.1960sflashback.com/1964/economy.asphttp://www.census.gov/construction/...ressales.pdf |
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New Member
United States
11 Posts |
Captainfwiffo you obviously are well informed but in an alternate banking system the needs, problems, and laws that currently apply would not remain static. I would agree that the fractional reserve banking system is absolutely essential in a credit (debt) based economy such as ours.
The discussion thus far has been fractional reserve banking vs. commodity currency (another compromise? option of full reserve banking where debt-free fiat currency is issued has not been discussed). You are right though if we did go to a commodity backed currency the pain would be great and soon. However some (me) feel that the growth of the current system is unsustainable and will be a large bubble at some point as has happened elsewhere. Others of a whole different fabric feel that fractional reserve system mandates an always expanding economic growth (jobs and that "productive activity") that will eventually result in depleted resources, increased populations, and devastated ecosystems/environments that will force contraction.
I'm not sure about anyone else elsewhere but my inflation seems to be climbing fairly quickly...Just speaking on my personal level of fuel, food, shelter, utilities and the remaining money that I have to buy barbarous relics with.
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Moderator
 United States
190113 Posts |
I agree with all four steps. No further comment is necessary, most know how I feel from the other threads.  |
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Moderator
United States
190113 Posts |
Quote:
Understand that the 50 cent piece not circulating is the real reason why the dollar coin won't circulate either. Do you know why the 50 cent does not circulate? It is not because there was/is a competing and established paper version (which is the only reason why the dollar coins do not circulate). It is because they were hoarded; whether it was Kennedy worship or the fact that these coins still had silver in them (until 1971) when the other two (dimes and quarters) did not is not important. What is important is that they were scarce in circulation; it was no problem to adapt and use two quarters (a habit that remains today). We can remove the dollar note like we did the half dollar coin (one being by mandate, the other by hoarding) and we will adapt. |
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Bedrock of the Community
United States
10048 Posts |
The main problem with discussions like this is that a lot of the "established facts" are only theories from modern economic "experts." The fact is that when we were on a gold standard people were not hoarding it (in general) - our industry grew and the US became a world power. When the American people are given their own money to spend the way they want to (aka low taxes), they SPEND = business = industry = jobs = more money = everyone is more prosperous = SPEND etc. etc. This is what history records as to how America became what she did from a little set of colonies. Only in relatively recent years has the (non-historically-based) concept of more government involvement/high taxes/fiat money = prosperity been circulating. Look what happens.
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Replies: 20 / Views: 2,783 |
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Posted 12/14/2011 08:44 am
