Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20
Global "Debt Mountain": Beware of This "New Peak" - 13th Nov 20
Overclocking Zen 3 Ryzen 5600x, 5800x, 5900x and 5950x to 4.7ghz All Cores Cinebench R20 Scores - 13th Nov 20
Is Silver Leading Bitcoin or is Bitcoin Leading Silver? - 13th Nov 20
How Elliott Waves Simplify Your Technical Analysis - 13th Nov 20
How to buy Bitcoins using debit/credit card? - 13th Nov 20
Will COVID Vaccine Kill Gold and Silver? - 12th Nov 20
Access to Critical Market Reports - 12th Nov 20
Stock Market Dow Futures Reach 30,000 on News of COVID-19 Vaccine Trials Success - 12th Nov 20
8 Terms & Conditions You Must Know Before Asking For Life Insurance Policy Quotes - 12th Nov 20
Gold Stocks Post 2020 US Election Outlook - 11th Nov 20
Champions’ League Group Stage Draw: All You Need To Know - 11th Nov 20
Stock Market Secular Trend - 11th Nov 20
Stock Market Correction Curtailed by US Election - 11th Nov 20
What Causes a Financial Bubble? - 11th Nov 20
Ryzen 9 5900X RTX 3080 - Scan.co.uk vs Overclockers.co.uk UK Custom PC System Builder Review - 10th Nov 20
Killing Driveway Weeds FAST with a Pressure Washer - Saving Block Paving from LOTS of WEEDs - 10th Nov 20
Trump Fired, Biden Hired, What Next?  - 10th Nov 20
Looking for a Personal Loan? Here Is What You Have To Know  - 10th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Making Sense of U.S. Money

Politics / Fiat Currency Apr 15, 2013 - 07:30 AM GMT

By: Stephen_Merrill

Politics

What possibly has happened to the finest invention in the long history of nation-states?

With the Greatest Depression grinding along the deepest of cliffs, with America’s Afghan wartime ally Harmid Karzai accusing US forces of homicide bombings to spread terror in his country and with our President no better able to stage-manage the federal sequester than he has accomplished with the general economy, the present state of affairs seems dire for the US monolith, a quite Soviesque look actually.


What though can still prove our President’s greatness and rejuvenate America and the remaining world? What could Obama’s finest legacy quickly become?

It would be to finally make sense of money.

No, not abolishing the Federal Reserve System and returning to a value-backed monetary standard, heck no.

No, no, not even a Rooseveltian call to to drone-hit the big bankers (supposedly) while “safeguarding” all tax-deferred US retirement accounts with a mandate to buy US Treasury bonds. No, not quite yet for that option.

This new policy change in mind here in this article is something much more historic, but even more importantly to our President and Congress, splendid from a mass optics point of view over time.

US Coins Presently in Circulation

The Coinage Act of 1792 was passed by the First Congress of the United States establishing the US Mint under the authority of the Treasury Department. All of the present relative denominations of coins in circulation today were launched by the mint in the following years, all bearing silver or gold content, except for the penny. Since this early origin in US history, only one US coin once in wide use by the public has disappeared entirely, the lowly half-cent. Some of the US Mint’s metal-money creations, past and recent, the half-dollar, the dollar, the two-dollar coin and the much older five-dollar coin, lost most of their usage over time and some never caught on in the first place.

Long ago robbed of their intrinsic value and now made mostly of cheap zinc, US coins today still have the same general, bulky look going back twelve generations now. While the US dollar has depreciated by 97% against the price of gold during the century of central banking, the customary sidelong looks from George Washington and Thomas Jefferson have always been there to greet Americans as they paw through their loose change.

Nationwide, American businesses and consumers spend millions of man hours over time fumbling with pennies. The US Mint presently spends $.0126 to create a penny coin. It is believed that more than two-thirds of the overall store of US pennies is stagnant, lying in vases and drawers and especially between seat cushions. The majority of people do not bother to pick up a penny or even a nickel in the street when they see one.

Indeed, the penny has been denounced by many throughout our lifetimes as useless and bothersome. Nothing changes. It is whispered state sales tax collection is the diehard core for the US penny.

So, it is well past time by now for an even much longer leap in money to be made.

It is breathtakingly simple. Abolish the penny and the nickel along with the present half-dollar coin while increasing the value of a quarter to a half-dollar.

Only two change cups per cash register needed now. No need to factor in an odd five in mathematics of ten-multiples. The ever-present metal lump in your pocket is only half as big now. There will be no pennies and nickels littering the streets soon. Mega-tons of metal becomes available as vases of pennies and nickels leave their isolation all at once, all bound for the smelter. American retailers will prosper no longer trading nickels and pennies with customers. The US Mint should enjoy a 50% plus reduction in coinage production costs. Americans can spend a couple of hours a year longer watching mindless programming while munching away instead of getting change for a nickel hundreds of times.

And once central banking economics reaches full flower sometime soon the US will also be poised to eliminate both the one-dollar and the five-dollar paper bills, replaced by the one-dollar dime and the five-dollar quarter, keeping a memory anyway of a coin’s natural value.

The cost for this revolution in coins is near zero, nominally speaking that is. Those absent costs are alongside, of course, the substantial economic gains, though the gains benefit mostly the common person and small business. The coins would still be zinc, not worthy of the faces of the substantial figures they bear. No large downsides are visible to this author.

But why should Obama, of all, stop at nickels and pennies? Our President is much, much more grandiose in his policies than settling for greatly effective bottom up economics only.

When the US dollar loses another 97% of its value again there will be a need for a new paper currency edition. Obama is hell-bent on having it become his Presidential image now staring out of the wallet of every American needing to pay for a tank of gas.

Just Four or So Years Away

Central bankers’ needs for real cash though are on a completely different scale now with the "new normal" in place. One never knows when a secret bailout of big banks or of foreign countries might be needed, so a good stash of cash on the side for the Fed is a quite necessary policy accommodation in looking after the public welfare, just like President Obama also does for the people. No need for the awful digital money trail when the transaction is made by the Fed in cash.

The new large denomination US bill will commemorate the reign of the greatest (sic) prince of US money.

Courtesy of the Maestro

So, so long to the metallic images of Thomas Jefferson, Abraham Lincoln and JFK! A new era in money has dawned.

Mr. Merrill served in the Navy Judge Advocate General’s Corps and as a Navy Reserve Intelligence Officer.

Mr. Merrill is the editor of the Alaska Freedom News, formerly the Hampton Roads Freedom News

© 2013 Copyright  Stephen Merrill - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Stephen Merrill Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules