Gov. Seeking To Change Coin Compositions

They'll just do away with the cent before changing the comp. They lose $ everytime they create one.

So instead of cash representing imaginary numbers in an accounting book, cash would again represent deposits of large shiny bricks instead. Why use the bricks when the imaginary numbers do the same thing? Say I have $1000 in my bank account, it doesn't make a difference to me if there is a large chunk of metal that represents my $1000 or an entry in an electronic database that says I have $1000. As long as the bank can give me access to that $1000, whether it be by giving me little discs of metal, or small pieces of paper, or a rectangular piece of plastic, I'll be happy.

Syaoran_2001: Could I buy your house with IOUs? I think you would reject the validity of my slips. I would.

My belief is that money should be based on valuable tangibles and a form of credit, like a portfolio. Basically, your paystubs and assets gets converted into "official" money. But I am novice, if this doesn't actually work I wouldn't be surprised.

Gold is simply the easiest valuable tangible asset, I think. It can be melted and recycled and the purity can be known scientifically. I know it's just a happenstance that this yellow rock appears on our planet, so I wonder how trade is done in far-out worlds.

Going back to that $3 change for $2.10.... I think a better example is a $.10 item plus a $.25, and getting change back from a dollar. People would be forced to carry around a few of each coin just to be able to make a purchase. Perhaps if coins were magnetic to each other they would be less of a hassle for the average Joe and Joanna.

Syoran,

very soon the paper and ink will be worthless, some people burned it to keep warm... The IMF, international monetary fund and world banks are already having talks of globalizing our currencies.

which means for weaker currencies, bad news. Like someone said, back when we were on the metal standard, the US dollar was trying to be the superpower; well, we WERE. what happened? A lot between 1930 and today, inflation, bad choices, bad debt, credit debt, foolish decisions PEOPLE made, etc..

my point is, the current state of the union/economy is not looking good. The FED is using QE, quantitative easing, basically pumping the economy with more money and making money more liquid -meaning that the new money they print does not stay in the US but actually ends up leaving the US for many reasons, but the main few, paying off the US's own IOU'S.. funny, which in-turn creates more inflation, which in turn debases the USD more. Now, as bad as this sounds, US economists are actually wanting this to happen. why? well, by debasing the USdollar, it makes other currencies, i.e the Chinese Yuan, more powerful which in turn, supposedly helps spur more economic growth with increased US exports.


What is happening in our economy is overall, not good. Bottom line, if the US continues to print money it doesn't have, your paper and ink become worth less and less.. which is why almost every single article out there on the matter strongly suggests that you tie up some paper and ink in tangible silver and gold. One economist said it wont be long before you will not be able to afford either metal.

maybe this article will help illustrate where the US could be at..
http://www.zerohedge.com/article/ar...perinflation

I think Syaoran is saying hes an average American and doesn't want to be bothered with.

Nothing wrong with that. I enjoy reading about these subjects, but rarely do I have a staggering opinion about it.

Some people just live and enjoy life for what it is. A short period of time where you consume, replicate, and die. :D

I'm vaguely familiar with what happened in the late 1800s, when the US had coined considerable amounts of silver, followed by a massive dumping of silver by European powers. The silver crash really impacted the solvency of US currency at the time.

In the 19C., when silver prices rose quickly, silver coins disappeared from circulation because it more profitable to melt than use at face value. The same would happen today if the US minted silver $1 in 2006, pegged to the value of silver. Today, at $24/oz. these coins would simply vanish.

interesting thread.
In Austrlia, our 1 and 2 cent coins were withdrawn from circulation 20 years ago.
There was no pain.
Some retailers price everything so that it ends in a zero or a five, so there is no rounding.
Others don't even use fives.
This big retailers promise us that their prices are trimmed to the bone, so their prices might end in 1, 2, 3, etc.
When you pay, the cashier rounds, up or down, according to an accepted formula:
1 or 2 goes down;
3, 4, 6, or 7 becomes five; and
8 & 9 go up.
If you pay by plastic card, the transaction is not rounded.

Regarding gold standard and money supply: the U.S. government has been spending more than it receives for many decades, and it funds this deficit by printing vast quantities of greenbacks, which are shipped offshore. These accumulate in Central banks around the world: CBs like to hold lots of "foreign reserves", especially (upto now) greenbacks. This, plus the fact that the USD is the principal medium of exchange for international transactions, has buoyed the greenback way above its intrinsic value. Some, including me, think that this era will come to an end soon. According to today's news, the U.S. is about to "print more money" as another "stimulus". Right now, the exchange rate between USD & AUD is at its most favourable for Australia (and therefore least favourable for the U.S.) in 27 years. I don't know about the USD relative to other currencies. But, once the world gets tired of seeing their reserves of greenbacks eroded by inflation and declining relativity, then the USD will go into freefall. The question is: when might that be ?

Interesting times ...