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 Replies: 26 / Views: 3,364 |
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New Member
18 Posts |
" Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy." - http://www.treasury.gov/resource-ce...-tender.aspx What are Federal Reserve notes and how are they different from United States notes?Thomas Jefferson warned of the damage that would be caused if the people assigned control of the money supply to the banking sector, "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. This issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered. I hope we shall crush in its birth the aristocracy of the moneyed corporations which already dare to challenge our Government to a trial of strength and bid defiance to the laws of our country" - Thomas Jefferson, 1791 "SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death." - The Coinage Act Official Documentation |
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Pillar of the Community
United States
1358 Posts |
Haha.. It's the people who don't know it's worthless.
My HS World History teacher (the one who said Lindbergh was the first to sail across the Atlantic) said that the paper money we use was backed by gold.
People just don't know.
Lots of people still think circulating coins are made of silver...
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Valued Member
United States
486 Posts |
This is a very good reason to collect US Paper Money, some day it may all be gone, then the ones that have it can trade it off for Gold and Silver to collectors.   Regards The Bill Collector |
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Pillar of the Community
United States
885 Posts |
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Valued Member
United States
486 Posts |
My Point is collect US Paper Money, some day it may be worth a lot more than the paper it's printed on.
Regards
The Bill Collectors
Edited by The Bill Collector
02/14/2012 9:43 pm
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Pillar of the Community
United States
885 Posts |
Sorry "The Bill Collector" my post was directed to the OP - our posts crossed mid-stream.
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Valued Member
United States
486 Posts |
I know how that can happen. I seems to me that the OP just wanted to "vent" and has no real interest in collecting US Currency.
The Bill Collector
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New Member
 18 Posts |
@PlumCrazy - I was just proving to those who still think the USD can survive that it is worth NOTHING! I find it sad that now the gov is admitting to a failed currency. There wasn't a "point" in my post. I just wanted to share some info with the users here.
@TheBillCollector - Smart Theory. I don't think dollar bills will have any "collector value" for a long long time... But it is still worth saving a few for the great-great-grandchildren...
PS: I do feel that US Silver notes (and gold notes) will be worth HUGE amounts if the US ever converts back to gold/silver standard. Not that you would be able to trade the old Silver bills for physical silver (The US Would make new notes) but the significance of the notes will increase if the US converts back to a standard.
(TLDR: If the US converts back to a gold/silver standard, old standard bills & notes will have a higher premium)
Edited by SinceWhen
02/14/2012 10:08 pm
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Valued Member
United States
162 Posts |
The notes are backed only by the declaration of the United States government - while that may not be as stable as gold or silver, it is not nothing. That same declaration is powerful enough to enforce laws and fight wars.
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New Member
18 Posts |
^
It is backed by a promise... And trust me it is not a fair promise!
I can go to the store and buy $1 in groceries. Next year I will go to the same store and buy the same goods and it will be $1.05. WOW! The promise lost me .05 of my hard earned money. INFLATION! INFLATION! INFLATION! Research Zimbabwe for more info! :P
Silver and Gold (and copper, tin, steel, and even wood and plastic) will never have inflation! EVER! EVER! EVER! 1 Ounce of gold will always be worth 1 ounce of gold! As I showed with my grocery example, a dollar will not always be worth a dollar. :)
Edited by SinceWhen
02/14/2012 10:34 pm
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Valued Member
United States
162 Posts |
Well an ounce of gold is always worth an ounce of gold is the same as saying a dollar is always worth a dollar, which really isn't saying anything. Mild inflation can occur with hard currencies, but Zimbabwe-style hyper-inflation can only occur with a fiat currency, like the USD. We're already trusting the US government not to destroy the world in a nuclear armageddon - trusting them not to destroy the currency seems like small potatoes in comparison. |
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Bedrock of the Community
United States
10038 Posts |
Quote:
The notes are backed only by the declaration of the United States government - while that may not be as stable as gold or silver, it is not nothing. But the reality of the situation is fiat money gives way too much power over everyone's lives as compared to if our money was backed by tangible assets. Which would YOU rather have - a piece of gold or a piece of paper backed by a promise of a government who has not yet been able to manage our money efficiently in any program they dream up (SS, Medicare, Medicaid, US Post Office...) and has been infiltrated by bureaucrats who answer to no one? At any time they wish, the powers that be could declare the money worthless. If I am not mistaken, there also has never been a recorded case in history where a fiat currency succeeded and the nation thrived. Only the opposite has happened (and is happening). |
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New Member
18 Posts |
^ Agreed. I just wish that the Gov. would make our currency FULLY backed. I want the good inside feeling that when I buy something, I am not spending a promise. @ZiggyZ - True! True! But wouldn't you enjoy NO inflation. And wouldn't you want a standard?  I agree with what you say, but my Point of View is very different than yours. I am enjoying this discussion. So... To keep it going... On Topic: What do you guys think about going back to a standard? Gold, Copper, Silver Standard? Ron Paul's opinion good or bad? :D Edited by SinceWhen
02/14/2012 10:48 pm
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Pillar of the Community
United States
2168 Posts |
Yes backed by the faith and trust of the USA that's it.
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Pillar of the Community
United States
1358 Posts |
Quote:
What do you guys think about going back to a standard? Gold, Copper, Silver Standard? I think there just isn't enough material to back the currency in circulation. It would lead to deflation (or something rather...) Deflation is just as bad as inflation. |
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Pillar of the Community
United States
4897 Posts |
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I was just proving to those who still think the USD can survive that it is worth NOTHING! I agree...when you get 50 posts I will email you my address....send me ALL your bills...I will see to it that they are destroyed!  |
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Replies: 26 / Views: 3,364 |
Posted 02/14/2012 8:42 pm
