bobbartop
bobbartop
Joined: Mar 15, 2016
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August 18th, 2016 at 10:29:27 PM permalink
In the 80's, inflation was so bad in Argentina that they just dropped a zero and changed the name of their currency to "astral" or something like that. Obviously this was not a cure because the disease is printing unbacked fiat money. It should be noted that pennies and nickels were never supposed to be money, gold and silver were to be money and pennies and nickels were convenient denominations that represented money. We need to first stop the runaway train of debt. Then reverse the trend and somehow start paying it down, and eventually returning something of value to back our currency. Gold and silver has worked for thousands of years. There's a finite amount of it on the planet. Once we restore integrity to our currency, we will need pennies and nickels again.
'Emergencies' have always been the pretext on which the safeguards of individual liberty have been eroded.
billryan
billryan 
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August 18th, 2016 at 11:25:26 PM permalink
Nuclear bombs and the 101st Airborne are all the backing our currency needs.
Joeshlabotnik
Joeshlabotnik
Joined: Jul 27, 2016
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August 19th, 2016 at 2:19:12 AM permalink
Quote: billryan

Nuclear bombs and the 101st Airborne are all the backing our currency needs.



That's a breathtakingly dumb thing to say.

In point of fact, the dollar does not HAVE any backing, meaning that federal currency cannot be exchanged for something else of equal value (as it could have, at least in theory, before we went off the gold standard). It is, like almost all modern currencies, "fiat money." "Fiat" means "let there be." In other words, the dollar is worth what everybody thinks it is; it has no intrinsic value.

And one way we could make the dollar's valuation plummet is by tossing around rhetoric about invading and dropping nuclear weapons on other countries. If we behave like Trumpish bullies, the world will neither treat nor trade with us, meaning no one will want our dollars in exchange for their goods. Bellicose, childish rhetoric may appeal to the playground bully persona of the Orange Orangutan and his followers, but it's anything but constructive.
billryan
billryan 
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August 19th, 2016 at 11:04:08 AM permalink
Our currency is backed by the full faith of our Government, which is supported by the world's strongest military.
Would you rather have the world's strongest military at your back or a piece of rock?
The gold standard is gone forever, and should have been gone about the time the last dodo departed.
What is the intrinsic value ofgold? Can you eat it? Does it grow? Does it provide shelter?
It's only worth what someone will trade for it? Just like our currency.
odiousgambit
odiousgambit
Joined: Nov 9, 2009
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August 19th, 2016 at 11:23:17 AM permalink
there are problems with tying a currency to any commodity

in the case of gold, there's too much speculation

has anybody notified Pacomartin about this discussion?
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
bobbartop
bobbartop
Joined: Mar 15, 2016
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August 19th, 2016 at 11:38:26 AM permalink
Quote: billryan

Our currency is backed by the full faith of our Government, which is supported by the world's strongest military.
Would you rather have the world's strongest military at your back or a piece of rock?
The gold standard is gone forever, and should have been gone about the time the last dodo departed.
What is the intrinsic value ofgold? Can you eat it? Does it grow? Does it provide shelter?
It's only worth what someone will trade for it? Just like our currency.




Ha! The full faith of the government, in other words, trust me. And while it's had the full faith of the government, a candy bar that used to cost 15-cents now costs $1.40.

Here's the deal, though, Einstein. There is a finite amount of gold, its scarcity is part of what makes it valueable. If you tie the dollar to gold, (on demand), then the government cannot have a free license to print $20 friggin TRILLION of it and devalue it by doing so. What the government is doing is the same thing a small criminal counterfeiter is doing. No difference. Creating money out of thin air.

God I'm glad I didn't go to school, I might have ended up as brainwashed as you are.
'Emergencies' have always been the pretext on which the safeguards of individual liberty have been eroded.
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
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August 19th, 2016 at 11:46:43 AM permalink
Quote: bobbartop

...a candy bar that used to cost 15-cents now costs $1.40.


We got 10 for $4.35 recently. You've got to shop around!
DUHHIIIIIIIII HEARD THAT!
777
777
Joined: Oct 7, 2015
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August 19th, 2016 at 11:55:11 AM permalink
Quote: AxelWolf

Of course everyone will get screwed if they eliminate the penny(a chance I will gladly take) there goes all the 99 cent store's. No more 99 cent super big gulps.



Price still can have penny denomination, and tax still can be in multiple decimal places. For example, 7.545% sale tax, or $1.959/gal, or $1.68/lb of apple. What really matters is the final rounded sum at the cash register.

The elimination of penny may not hurt zinc supplier that much if only small part of their business depends on the production of penny. One entity could be hurt greatly by the elimination of penny is CoinStar manufacturer. You could short CoinStar stock (if it is publicly traded) because it highly depends on consumers to exchange pennies for cash, gift cards or other bartering transactions (CoinStar accepts all coin denominations -- penny, nickel, dime, quarter, dollar, but I think penny is the most popular coin denomination in CoinStar transactions).

On a side note, the private prisons stock fell big upon the announcement of the U.S. is ending private prisons for federal inmates.
777
777
Joined: Oct 7, 2015
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August 19th, 2016 at 12:00:36 PM permalink
Quote: Doc

So maybe we should pay cash when we can save a cent or two with a round-down and use a credit card to avoid a round-up?

Don't think I'll go to that trouble.



I think in order to maintain uniformity and consistency and to avoid confusion, all transaction should be rounded to an established federal, state or local standard.
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
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August 19th, 2016 at 12:01:26 PM permalink
If you think the Fed will save money by eliminating the penny, you're sadly mistaken. They'll just waste this saved money on some other stupid thing.
DUHHIIIIIIIII HEARD THAT!

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