They Redid the PENNY, too?!

[ccbatson]

Craftmanship can be copied, improved upon, etc...not a limited commodity.

[d.mcc]

Craftmanship can be copied, improved upon, etc...not a limited commodity.

That's where my basement Alchemy hobby comes in

[ccbatson]

Keep working on that alchemy....let us know how that works out for you.

[d.mcc]

Keep working on that alchemy....let us know how that works out for you.

DYes will be the first to know. So far my experiments with lead have been promising.

[ccbatson]

You do know that lead is a toxic substance don't you? Hmmm, that could explain a lot right there.

[d.mcc]

You do know that lead is a toxic substance don't you? Hmmm, that could explain a lot right there.

Yes, its right up there with satire. That might explain more...

[East Detroit]

Actual Fabrege eggs are a perfect example of gold as a value.

Meanwhile, land seems a better investment than gold. Finite and known quantity [[versus gold), has both direct and indirect value to people and can't be destroyed.

[Detroitej72]

Gold...or other relatively scarce commodities that cannot be generated allow a way of establishing a consistent standard [[the "gold standard") so that value is, well, consistent.

And then the conservatives took our country off the gold standard, how nice.

[elganned]

Actual Fabrege eggs are a perfect example of gold as a value.

Meanwhile, land seems a better investment than gold. Finite and known quantity [[versus gold), has both direct and indirect value to people and can't be destroyed.

Really? Seems the last two years didn't hear about that...

[ccbatson]

DetroiteJ72...I could not agree more that coming off the gold standard was a huge mistake...not entirely [[or even mostly) a conservative mistake.

[Retroit]

It costs 1.38 cents to make a penny and 8.83 cents to make a nickel.

[[2008 figures)

[East Detroit]

Really? Seems the last two years didn't hear about that...

If you're only making 2 year investments, you might want to think longer term.

Just like all the people who sold off stocks when they were low.

[oladub]

Actual Fabrege eggs are a perfect example of gold as a value.

Meanwhile, land seems a better investment than gold. Finite and known quantity [[versus gold), has both direct and indirect value to people and can't be destroyed.

Land and faberge eggs would work as a means of exchange to a limited extent. However, unlike coins made of gold, silver, copper, nickel or platinum, faberge eggs are not as durable. If some coins melted into a glob, the glob would still be worth almost as much. A smashed faberge egg would lose more of its value. Ten 1964 Roosevelt dimes are worth $13.67 because of their silver content whether bent or melted. Land is also a commodity but unlike coins is not easily divisable or transportable so coins usually work better as money.

[DetroitDad]

How is it, in this fallen empire now entirely out of cash and gold, that we can find the money to redesign ALL of our currency and coinage?

"Because that is someone's full time job, to redesign our money and keep changing it".

That is what DetroitMom said to this one. I read her all your posts Gannon, you really need to meet her. She shares so many of your conspiracy and other views, it's scary [[not all, but enough). She also started talking about 9/11 after the penny thing, and is trying to convince me that it was some conspiracy by our government, and is going to make me watch a video on how the penny redesign and 9/11 are related, or something like that.

[DetroitDad]

You do know that lead is a toxic substance don't you? Hmmm, that could explain a lot right there.

Then why would they ever use it for paint and water pipes, smart guy!?

[Detroitej72]

DetroiteJ72...I could not agree more that coming off the gold standard was a huge mistake...not entirely [[or even mostly) a conservative mistake.

See, that's yet another thing we agree upon!!!

Wow, we seem more alike by the day.

[DetroitDad]

http://video.google.com/videoplay?do...eitgeist&hl=en#

For you Gannon. You guys around here always make me remember that everything I know is wrong. It never fails. Thank you.

[ccbatson]

So why have we not formally had a debate as a country regarding returning to a standard? Neither Republican nor Democrat would even entertain a discussion thus far.

[elganned]

Because it would be stupid. Which is probably why you think it's a good idea.

[slick]

Then why would they ever use it for paint and water pipes, smart guy!?

and that is why it is not used for paint and water pipes and not in gasoline anymore.

[elganned]

I think maybe DetroitDad ate some paint chips when he was young...

[oladub]

Because it would be stupid. Which is probably why you think it's a good idea.

So you think that our current fiat monopoly money, printed and shoveled out to suit the needs of the rich is a better idea than backing money with commodities to prevent the government from further inflating our money supply?

[elganned]

So you think that our current fiat monopoly money, printed and shoveled out to suit the needs of the rich is a better idea than backing money with commodities to prevent the government from further inflating our money supply?

There exists currently not enough gold in the world to back the expansion in money supply required to support a constantly expanding economy.

Which is why we went away from it in the first place.

If you want to create hyper-deflation, return to a gold or silver standard. Then watch the world economy collapse. Should be great fun. Make sure you have plenty of popcorn ready.

[Retroit]

So why have we not formally had a debate as a country regarding returning to a standard? Neither Republican nor Democrat would even entertain a discussion thus far.

Having currency based on a gold standard is really just an arbitrary way of preventing the over-printing of money by a government that can not control its spending. If we had a gold standard, there is nothing to stop the government from depleting Fort Knox in order to pay for our federal spending binge. The ultimate fiduciary goal of a good government is to keep spending under control so as to have a balanced budget.

What is happening now with our growing federal debt is that in order to pay it off, the government will have to borrow money by issuing more treasury bonds. This becomes a vicious cycle of creating more dollars to pay interest on the dollars that were created/borrowed by the treasury bonds.

A review of German monetary history of 1923 is in order. After WWI, Germany was required to pay reparations to the allies. To do this, they simply printed money. But the more money they printed, the less valuable their money became. So they printed more...and more...and more.

People are hoarding gold now because they believe that if the value of the dollar collapses, they will have something valuable to sell [[gold). Unfortunately, if the value of the dollar collapses, the only money that will be available to purchase the gold will be of diluted value.

The gold hoarders will further argue that they can simply barter for necessities with their gold. But who is going to trade a loaf of bread for something that has such limited utility [[gold)?

On an international level, a large hoarder of gold could possibly exchange the gold with a foreign nation. But with countries so interconnected economically, it is unlikely that a collapse of the dollar wouldn't bring down the global economy.

The rising price of gold will have no advantage for the low quantity hoarders who are now buying the stuff thinking it will help them if we have a collapse of the dollar. Gold is only an instrument of value like stocks or land, and will become just as difficult to sell if the dollar collapses.

[elganned]

Finally, a voice of reason. ^^