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To: Ancesthntr

Putting a gram of silver into a coin would level set the dollar just a bit upwards and fix it to the price of silver. So long as a paper ten dollar bill could be exchanged for ten such coins at the bank, we will have real money for the first time in about 45 years.


101 posted on 02/02/2012 7:46:30 AM PST by muir_redwoods (No wonder this administration favors abortion; everything they have done is an abortion)
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To: muir_redwoods
Putting a gram of silver into a coin would level set the dollar just a bit upwards and fix it to the price of silver. So long as a paper ten dollar bill could be exchanged for ten such coins at the bank, we will have real money for the first time in about 45 years.

I disagree. We had that system in 1964 - you had X number of grams of pure silver in each dime, quarter and half dollar. They were all freely exchangeable for paper dollars. Yet, Gresham's law has caused the hoarding of virtually all of them (a very few are still out there). This is because we printed too many of the bills (among other sources of monetary creation), causing the price of silver to climb above $1.29/oz., at which point the metal content of those pre-'65 silver coins became worth more than the face value of the coins themselves. Setting the price at $31.10/oz. (the implied price if a dollar coin has 1 gram) would be just as meaningless, just at a significantly higher level. You MUST have the number of dollars created under control (i.e. no growth except that which reflects the growth in productivity) if you want to maintain a stable price for silver, and thus have the coins staying in circulation.

102 posted on 02/02/2012 10:16:56 AM PST by Ancesthntr (Bibi to Odumbo: Its not going to happen.)
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