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What Ron Paul Wants: A Quartet of U.S. Currencies
Daily Finance ^
| Jan 3, 2011
| Peter Cohan
Posted on 01/04/2011 9:49:48 AM PST by Toddsterpatriot
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To: Little Ray
Dunno. How would the gold conversion work? In the old days, walk in with an ounce of gold, walk out with $20. Walk in with $20, walk out with an ounce of gold.
Who is going to accept 20 different commodities (or store the commodities to exchange for the $20) when you want to get your $20?
Sounds a little clunky.
61
posted on
01/04/2011 1:37:00 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: BlueLancer
That prohibition is from Article 1, Section 9. The prohibition on Congress issuing paper money is found in Article 1, Section 8.
62
posted on
01/04/2011 1:37:45 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: mnehring
Basing a currency on a consumable is probably not the best way to go, especially during a crisis. Grain is probably the worst. A bad harvest in the middle of a problem, and suddenly you have a financial crisis as well. Oil has the same disability. A flexible currency is best.
A major reason why gold is considered stable is because it isn't really used for anything else. It doesn't tarnish in its purest state, nor corrode. Put it in a fire, and it comes out gold. It does have its place as a store of wealth, but not as currency in an economy of scale anymore.
To: Toddsterpatriot
Its very clunky. But so is gold. I don’t have much use for an ounce of gold, other than its easier to carry than $1400 worth of cheeseburgers.
In any case, even if we used a gold standard, we’ll likely never handle the metal. Same thing for commodities.
All things considered, I guess it work something like a money market account. You have “shares” (dollars) of the commodity basket. If the quantity of that commodity basket goes up, so does the value of the shares.
64
posted on
01/04/2011 1:50:02 PM PST
by
Little Ray
(The Gods of the Copybook Heading, with terror and slaughter return!)
To: Toddsterpatriot
65
posted on
01/04/2011 2:21:22 PM PST
by
kitkat
( Obama: Hype and Chains.)
To: ex 98C MI Dude
That’s a pretty good thought. My thoughts regarding tying it to a different set of commodities is that if you have a real SHTF situation, commodities like grain and oil would be directly bartered, increasing demand and thus, pulling up the price of the currency tied to it. It could actually result in a faster stabilization in one of these situations.
66
posted on
01/04/2011 4:57:58 PM PST
by
mnehring
To: Lurker
The prohibition on Congress issuing paper money is found in Article 1, Section 8. Are you imagining things again?
67
posted on
01/04/2011 5:01:35 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
Prior to 1933 and Roosevelt's gold confiscation we had three paper currencies circulating. A return to this would be a good idea. Let stinking Federal Reserve notes compete against gold and silver backed paper currencies
In 1933 we had circulating-----
- Federal Reserve Notes
- Silver certificates that could be redeemed in silver at the US Treasury
- Gold certificates that could be redeemed in gold at the US Treasury
- they were all green looking money like we have today
- after 1933 we had two paper currencies circulating
- Silver certificates that could be redeemed in silver
- Federal Reserve Notes
- silver certificates were eliminated in 1964 along with silver coinage so all we have left are
- Federal Reserve Notes
- Currency is maybe 6% of our money today
- most money is created out of thin air by the Federal Reserve and supplied to banks electronically
- this money is ledger entries that exist on hard drives
68
posted on
01/04/2011 5:21:29 PM PST
by
dennisw
(- - - -He who does not economize will have to agonize - - - - - Confucius)
To: dennisw
Currency is maybe 6% of our money today Currency is about $917 billion. M1 is about $1824 billion. M2 about $8834 billion.
most money is created out of thin air by the Federal Reserve and supplied to banks electronically
Actually, most money is created out of deposits by banks when people take out loans.
69
posted on
01/04/2011 5:28:12 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
So then currency and coinage is roughly 10% of M2. So much US currency circulates outside of America that this 10% is off too
70
posted on
01/04/2011 5:34:01 PM PST
by
dennisw
(- - - -He who does not economize will have to agonize - - - - - Confucius)
To: dennisw
So then currency and coinage is roughly 10% of M2.Yes.
So much US currency circulates outside of America that this 10% is off too
The 10% is not off. If you want to talk about how much of the money supply in the US is currency, the percentage is lower. I've seen estimates that between one-half and two-thirds of our paper money is held outside the US.
71
posted on
01/04/2011 5:40:22 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
Where exactly in Article 1, Section 8 of the US Constitution is the specific, enumerated power for Congress to print or authorize the printing of paper money?
You do believe in the principles of “enumerated powers” as set forth by our Founding Fathers dont you Todd?
L
72
posted on
01/04/2011 6:04:27 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: Lurker
Where exactly in Article 1, Section 8 of the US Constitution is the proof for your original claim?
73
posted on
01/04/2011 6:08:00 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
Actually, most money is created out of deposits by banks when people take out loans. So when I deposit 100 dollars someone else borrows that 100 dollars and that creates money?
74
posted on
01/04/2011 6:13:05 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: Lurker
So when I deposit 100 dollars someone else borrows that 100 dollars and that creates money? Yes.
75
posted on
01/04/2011 6:23:46 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
So what happens when I take the 100 I deposited out of the bank?
76
posted on
01/04/2011 6:25:15 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: Lurker
Did the bank have excess reserves of more than $100?
77
posted on
01/04/2011 6:28:48 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
No. It only had my 100 dollars.
78
posted on
01/04/2011 6:32:12 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
To: Lurker
Then it couldn’t loan $100 in the first place. Only $90, with the 10% reserve requirement.
79
posted on
01/04/2011 6:35:42 PM PST
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Toddsterpatriot
So if they loan out 90 and I come in and try to withdraw my 100 what happens?
80
posted on
01/04/2011 6:54:19 PM PST
by
Lurker
(The avalanche has begun. The pebbles no longer have a vote.)
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