Speculation Against Danish Euro Peg Proving Relentless

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March 20th, 2015 at 1:40:30 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: petroglyph
It is all counterfeit according to the tenth amendment to the constitution; .


The Coinage Act of 1792, page 248



“the money of account of the United States shall be expressed in dollars or units of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure silver."
March 20th, 2015 at 2:33:49 PM permalink
petroglyph
Member since: Aug 3, 2014
Threads: 25
Posts: 6227
I mispoke.

Quote:
Section 10 Limits on the States>
Clause 1: Contracts Clause >
Main article: Contract Clause
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

States may not exercise certain powers reserved for the federal government: they may not enter into treaties, alliances or confederations, grant letters of marque or reprisal, coin money or issue bills of credit (such as currency). Furthermore, no state may make anything but gold and silver coin a tender in payment of debts, which expressly forbids any state government (but not the federal government[61]) from "making a tender" (i.e., authorizing something that may be offered in payment[62]) of any type or form of money to meet any financial obligation,[63] unless that form of money is coins made of gold or silver (or a medium of exchange backed by and redeemable in gold or silver coins, as noted in Farmers & Merchants Bank v. Federal Reserve Bank[64]). Much of this clause is devoted to preventing the States from using or creating any currency other than that created by Congress. In Federalist no. 44, Madison explains that "... it may be observed that the same reasons which shew the necessity of denying to the States the power of regulating coin, prove with equal force that they ought not to be at liberty to substitute a paper medium in the place of coin. Had every State a right to regulate the value of its coin, there might be as many different currencies as States; and thus the intercourse among them would be impeded."[65] Moreover, the states may not pass bills of attainder, enact ex post facto laws, impair the obligation of contracts, or grant titles of nobility.


I realize that carrying around gold or silver is inconvenient, and would be worse in larger denominations.

Hence the trillion dollar coin: https://en.wikipedia.org/wiki/Trillion_dollar_coin
The last official act of any government is to loot the treasury. GW
March 20th, 2015 at 3:24:51 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
The pound coin is circulated at about 24 per capita and the 2 pound coin at 6.5 per capita, and the US$1 banknote is at 34 per capitaand the $2 at 3.5 per capita. So the circulation rate is similar.

The British pound coin is counterfeited at about 3 counterfeits for every 4 people. So it isn't overwhelming. But it would still be almost a third of a billion dollars if the dollar bill was counterfeited at the same rate.

The dollar bill has never had any modern anti-counterfeiting devices included in its design. Congress actually passed a law forbidding the design to be changed. Partly because it would be expensive, and if the $1 had a strip installed it might be easier to bleach it and get it to pass as a $100.

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The $50 banknote hardly seems worth the trouble. It may be more vulnerable than the c-note to counterfeiting, simply because you don't see it as often. I doubt that anyone would miss it much if it was gone.
March 20th, 2015 at 3:40:51 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: petroglyph
I realize that carrying around gold or silver is inconvenient, and would be worse in larger denominations.



Gold is $38 per gram today, and banknotes weigh about 1 gram. So it would be heavier than $100 banknotes.

Silver is $0.54 per gram so it would be twice as heavy as dollar bills.

But even if we returned to representative currency, then at today's price of $1181.79/troy ounce that would make all the gold mined in human history worth $6.5 trillion. There is a lot of fiat currency in circulation. US, EURO, Japan are well over $1 trillion apiece (just counting physical cash).
March 20th, 2015 at 4:43:33 PM permalink
petroglyph
Member since: Aug 3, 2014
Threads: 25
Posts: 6227
Quote: Pacomartin
Gold is $38 per gram today, and banknotes weigh about 1 gram. So it would be heavier than $100 banknotes.

Silver is $0.54 per gram so it would be twice as heavy as dollar bills.

But even if we returned to representative currency, then at today's price of $1181.79/troy ounce that would make all the gold mined in human history worth $6.5 trillion. There is a lot of fiat currency in circulation. US, EURO, Japan are well over $1 trillion apiece (just counting physical cash).


I get what you are saying.

I know the of "estimates" for the amount of Au/Ag mined. I just don't agree with them. For one thing many many countries over eons did not report allocations, still don't. The largest hoarder, China, doesn't really tell us anything. I have read they are buying ore only from Canada and shipping it because they don't want the ounces reported and smelting the ore back home. They still admit to accumulating 1000's of tons. SGE reports sales [to China] of 508 tons YTD. There are currency wars playing out before our eyes. I don't get that people are not "up in arms over it". Well, actually they are, just not here.

The US, reports around 8400 tons, etc. Part of my point is, when I was born, my parents payed 2400 dollars for a middle class home, big yard +. There is room in the monetary system to have currency backed by something of intrinsic value, that doesn't shrink or fade. There should not be daily swings in the value of a nations currency. The people living in that country and supporting it shouldn't be forced to lose 5% of the value of their lives at the whims of the moneychangers, at the push of a button.

We get killed on the vig, coming and going.

I know you are aware but, a person given 100 dollars in 1913 before the advent of the federal reserve for their retirement today would have appx. 3 dollars of purchasing power for that hundred. The price of gold 1913: 18.13. Obviously had that person purchased 5+ ounces of gold, that would be much nicer. If the fed/wall street wasn't holding the price of gold down using every trick known and unknown, [ some estimates over 5k per oz.] that would be a nice chunk. The difference between 3 dollars and over 25k, that is what the fed. hath wrought. note fuzzy math
The last official act of any government is to loot the treasury. GW
March 20th, 2015 at 5:12:52 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: petroglyph
We get killed on the vig, coming and going.


I am empathetic, and I certainly feel like I have been a huge victim of the whims of people who make arbitrary decisions. You wonder about that gang in 1985 at the Plaza hotel that decided to strengthen the yen and weaken the dollar, and six years later Japan entered into the lost decade.



I just don't think we have the will to return to commodity money.
March 22nd, 2015 at 6:13:24 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
As to counterfeit one dollar bills... I doubt anyone checks but wouldn't banking machines pick it up?

As to two dollar bills.. no merchant has a tray for two dollar bills and so keeps giving it in change. Do they ever make it to deposits?

As to any "pegged" currency, its a bet and depends on whose bankroll is on the other side.

Turkey was the poor man of Europe and had its currency pegged to something... clearly economically unsound.
March 22nd, 2015 at 8:15:07 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: Fleastiff
As to counterfeit one dollar bills... I doubt anyone checks but wouldn't banking machines pick it up?
As to two dollar bills.. no merchant has a tray for two dollar bills and so keeps giving it in change. Do they ever make it to deposits?


I can find no information on counterfeit US$1 banknotes, as most websites make the obvious statement that it isn't worth the trouble. I just thought it was strange that people would go through the trouble of making 44 million counterfeit one pound coins.

On June 30, 1987, 40 million Canadian dollar coins were introduced into major cities across the country. With over 11 billion dollar bills circulating in the USA, it seems like the logical thing would be to close the old Washington DC printing facility and just print banknotes in the new facility in Dallas. Instead of over 40% of banknotes being printed in the $1 denomination, and half the coins being made as pennies, it would make so much sense to make dollar coins instead of pennies.

I think 87% of $2 bills ends up in a drawer somewhere. The fed reports that 1.1 billion notes are in circulation, but if I add up the numbers from the production they sum to 1.27 billion. Presumably some of them have worn out and been destroyed in 4 decades.

Production number of $2 banknotes
057,600,000 2013 series
134,400,000 2009 series
230,400,000 2003A series
121,600,000 2003 series
153,600,000 1995 series
575,360,000 1976 series
1,272,960,000 total 1976-2013
June 3rd, 2015 at 10:33:34 AM permalink
petroglyph
Member since: Aug 3, 2014
Threads: 25
Posts: 6227
http://www.goldcore.com/us/gold-blog/bail-ins-coming-eu-gives-countries-two-months-to-adopt-rules/



The Cyprus bail ins were a template.
The last official act of any government is to loot the treasury. GW
June 29th, 2015 at 1:43:13 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
Iceland, Denmark, Greece..... NOPE...

the real danger is Puerto Rico which seeks to have all its government units declare bankruptcy.
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