Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 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