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I got an interesting link, Ron Paul vs the Steel Penny..
While I sympathize with the aim of Section 4 of this bill to save taxpayer dollars by minting steel pennies, it is disappointing that our currency has been so greatly devalued as to make this step necessary. At the time of the penny’s introduction, it actually had some purchasing power. Based on the price of gold, what one penny would have purchased in 1909 requires 47 cents today. It is no wonder then that few people nowadays would stoop to pick up any coin smaller than a quarter.
HR 5512 is a sad commentary on how far we have fallen, not just since the days of the Founders, but only in the last 75 to 100 years. We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard. Paper money inevitably breeds inflation and destroys the value of the currency. That is the reason that this proposal is before us today.
http://www.lewrockwell.com/paul/paul440.html
hi sherry
Some time back you mentioned something about the gold standard coming back.
I personally think gold could be a little out of reach for that,based on 1000 dollars an ounce.But silver might be doable, if you make it a one ounce note ,that is the note is redeemable for the price of one ounce of silver.For instence if you cash a $500.00 check in the bank and you want silver notes ,and silver is worth $15.00 an ounce you would get 33 silver one ounce notes and the remainder would be $5.00 in fiat.Now as a hedge against inflation they would fluctuate with the comodity price of silver since they are not in a denomination but in a one ounce format.So if you go to the store and you bought something for $25.00 and price of silver was $18.50 an ounce that day, you would pay one silver note and $6.50 in fiat .The only problem is to get current commodity silver prices,but with the internet anything is doable,even if it’s 15 minutes delayed .Then some people might say why bother, well a hedge against inflation maybe,more stability, a currency based on substance reather then perception of a nations economic wellbeing. One thing for sure there wouldn’t be any fear of all this crazy devaluation that’s been going on in second world contries from time to time.There is one drawback and that is,if you got those 33 notes at $15.00 each and the price of silver dropped to $12.00 you lose $99.00 of puchesing power.So you would definatly would want to get them at as low a silver price as possible.It’s sort of like having silver coins in paper notes.WHICH THEN COULD BE REDEEMED IN RON PAUL LIBERTY SILVER DOLLARS. HA,HA,(i had to say that ,check out youtube ” Quick! hide your ron paul dollars”)
This one ounce note might idea be a little bit better then when we had that denominated money based on silver in the 60′s i think they were called “silver backs”.Reason being that thuogh the silver price was increasing to $50.00 an ounce they were still worth only at face value.So if you had a $10.00 bill it was still worth $10.00 at the store but i guess if you wanted to convert it to silver and silver was worth $50.00 an ounce you would have to settle for 1/5 of an once of siver.I DON’T THINK THAT WAS DOABLE!
Then again if all money was backed by silver in some way or another, (open for sugjestions) that might force the powers at be to regulate the supply and the demand for the silver comodity within a price range of let’s say .50 cents,and thereby stablize most of the worlds economies at least at the subcontious level and inflation might not be such a big problem . Or would that make it another regulated comodety that wasn’t keeping up with inflation HMMM
Anyway, wheather it’s one ounce notes or denominated it would have to be in circulation as a normal everyday currency not something you put away in a safety deposit box.
P.S. speaking of the powers at be, check out George Carlin’s take on them on youtube
“America is tyranny – george carlin”
DC: I think Gold at any level would work just fine. They would probably use a fractional amount of an oz of gold for every USD.
hi tom
yeah i think you’re right,it’s just that the word ounce sounds a little more substantial then the word gram.Though some people will always prefer goild over silver,at any level.
The only other thing left is supply and demand.World gold production per year is about
2500 tons.World silver production per year is about 31,000 tons.
Majority of that gold is probably used up quickly on jewalry and industrial use,so they may have to increase production.Though there are a lot of dorment gold mines with good deposits not working their claims,it’s just a matter of getting it out of the ground.
As far as silver goes mexico could drive down the price of silver all by itself.It has more then ample supply to be able to do that.Then there is peru that comes in a close second in the supply catagory.So i was thinking that maybe there wouldn’t be a future supply problem to worry about with silver,it’s just a matter of implumenting the currency as an alternative, to function along side of the fiat currency and were off and running. HOPEFULLY TO MORE PROSPEROUS TIMES.