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To: muir_redwoods
A dollar coin made out of a silve copper alloy with a gram of silver in it per coin would be accepted overnight.

It would not only be accepted, it'd be taken out of circulation as soon as people could get their hands on it. Why? Because there are 31.1 grams in one Troy oz., and silver is now trading at over $33.00/tr. oz. Any price above $31.10, and Gresham's law comes into play.

FWIW, our monetary system is a farce. Inflation has continuously eroded the purchasing power of our currency, and the metal content of our coins reflects that. It is to the point that the metal value of the large cent introduced in 1792 exceeds the metal value of the current $1.00 coin! I personally favor lopping a zero off of the currency (and every contract denominated in dollars) and then immediately going to some kind of a system that would back our money with something that is beyond the control of government...like precious metals. Of course, we'd have to combine that with a sane fiscal policy, or the exercise would be pointless. However, if we did those things then your proposal would make sense - in fact, we could go back to circulating dimes, quarters, halves and dollars with silver in them to restore confidence in our system. Obviously, we'd need an adjustment in the silver content vs. the pre-1965 system, because that system was based on silver at less than $1.29/oz. Either that, or forget the precious metals idea and just lop off 2 zeroes. That way, there'd be no need to recall existing coins - just use them as is. Yes, it'd be a windfall for a few people with lots of coins, but most people have less than a couple hundred coins sitting around.

99 posted on 02/02/2012 7:07:22 AM PST by Ancesthntr (Bibi to Odumbo: Its not going to happen.)
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To: Ancesthntr

Putting a gram of silver into a coin would level set the dollar just a bit upwards and fix it to the price of silver. So long as a paper ten dollar bill could be exchanged for ten such coins at the bank, we will have real money for the first time in about 45 years.


101 posted on 02/02/2012 7:46:30 AM PST by muir_redwoods (No wonder this administration favors abortion; everything they have done is an abortion)
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