sir noname! yes sir it sounds like a great time to start buying. Hey do they make any Platinum coins? and what is that about a one dollar coin?
sir noname! yes sir it sounds like a great time to start buying. Hey do they make any Platinum coins? and what is that about a one dollar coin?
Yes, they make platinum coins. They're just more expensive than silver.
Now sure what you mean on this.
howdy again sir Bondie! ha..well sir, pocket change was saying this: The One Dollar Face Value Coins will have the same Purchasing Power as 100 Federal Reserve Note Dollars, after the Reset of all U.S. Coinage."
And I didn't know about the coin reset or what he meant by the one dollar coins.
Ahh! Now I'm tracking.
First, background information. The Federal Reserve, which is a privately-owned company is the one that creates the currency for the US government. The US borrows it from The Fed and promises to pay them back with interest. This is why we have the national debt.
The US Mint is part of the US government and mints the coinage for the US. They are separate from The Fed.
pocketechange has a theory that the US government will arbitrarily increase the value of the US coinage so that $0.01 minted by the US government will have the same purchasing power as $1.00 printed by The Fed. Thereby the government will be able to pay off its debt to The Fed. The people who are invested in US coinage will see a huge increase in purchasing power (100x) by holding physical US coinage.
Coins such as the US Silver American Eagle have a face value of $1.00, so not only does it contain silver, but in pocketechange's theory, would have the purchasing power of 100 $1 bills as the American Eagle is minted by the US Mint, not printed by The Fed.
Make sense now?
wow! yes sir Blondie, I understand it. Well what do you think, you think that could happen? I mean it sounds a little too good to be true but it sounds like sir pocketchange has expertise and knowledge.
I'm not sure about it. I tend to lean toward going back to a precious metals standard. Part of the reason we're in this mess is that we're using an unbacked, fiat system. The only reason the currency has value is because the government says so.
The main difference between the current system and the one that pocketechange is proposing is that in his theory the currency would be minted by the government itself and not a central bank. Therefore, it wouldn't have to pay interest to itself. However, it would still be a fiat system so it would allow for unlimited currency-printing. That's just going to cause another similar crisis eventually.
oh so you are saying that even if they implemented the method he is talking about it would only be temporary. That sounds logical too, not a permanent fix.
It could be a temporary patch, but any and every fiat currency in history has gone to zero value. So in the long-term it wouldn't work out either.
yes sir Blondie that's why when I heard that Trump's plan to tie the dollar back to a gold standard I was kinda hopeful but I haven't heard anything about that one for awhile.