What debts could be paid by PM's?
KUCH
Posts: 1,186
Yes, we've heard here that contractor jobs have been settled through gold and/or silver payments, but how about
Mortgage debt
Capital Equipment
Car Lease/Debt
Taxes
Could these debts be settled with a shipment of 1 oz?
Mortgage debt
Capital Equipment
Car Lease/Debt
Taxes
Could these debts be settled with a shipment of 1 oz?
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Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
The question itself really isn't fair because you could get those PM's converted in cash at very close to spot in less than an hour as PC suggested above. And that difference in mailing out the product itself or cash is essentially irrelevant. Bottom line is those PM's are like cash except for a one hour delay to visit your local coin shop and cash the check at their bank. That sure beats the liquidity and easily defined liquidation value offered by most other tangible assets. Even if you carry a brokerage/money market account with your stocks many of them put a 3 day hold on your cashed out stocks before releasing the funds. I know they do on my USAA brokerage account. In that respect gold in my hands is 72X more liquid than stocks and other investments in my acct (24 hrs x 3 days)
Of course in the future the situation might just be reversed as it has in many foreign nations during times of currency crisis. That is, your gold will be kept, but your fiat bills might just get returned....
With the dollar plunging below .80 it's about time for the supermodels of the world to start passing on dollars in favor of gold and silver. They just might pass on the Euro as well this time around. .
roadrunner
<< <i>Of course in the future the situation might just be reversed as it has in many foreign nations during times of currency crisis. That is, your gold will be kept, but your fiat bills might just get returned... >>
Interesting....can you name one major Industrial Country where this actually occurred in the last 100 years, other than the Weimar Republic? Of hand, I can't think of any.
Click on this link to see my ebay listings.
<< <i>I know a good Mexican restaraunt that will give you $10 off your meal if you bring in a silver dollar.
That was a good deal at one time but not anymore.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>I know a good Mexican restaraunt that will give you $10 off your meal if you bring in a silver dollar.
That was a good deal at one time but not anymore. >>
True enough. I asked him about the signs one time and not a single person had turned one in for trade.
Melt at the time was $14 or so....
Click on this link to see my ebay listings.
<< <i>
<< <i>
<< <i>I know a good Mexican restaraunt that will give you $10 off your meal if you bring in a silver dollar.
That was a good deal at one time but not anymore. >>
True enough. I asked him about the signs one time and not a single person had turned one in for trade.
Melt at the time was $14 or so.... >>
I wonder how many people tried to give him an Ike dollar.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
You just named one!
We've posted a chart of all the major currency inflations of the past 100 yrs on here several times. But in case that slipped your mind there are several dozen events. The currency doesn't care if the nation in question is a major industrial nation or a lesser nation with a small but growing industrial base. Either one is just as susceptible to a currency crisis as the next one. As far as I'm concerned all but maybe one of these is an industrial nation. You can research the details further if you like. Brazil was close to being on the list but worked their way out of it.
These 4 reached daily inflation rates of from 10%-200%: Hungary, Yugoslavia, Greece, Taiwan, Zimbabwe, Germany.
Other notables: Argentina, Brazil, Bulgaria, Chile, China, Israel, Japan, Peru, Phillipines, Poland, Romania, Ukraine.
And last but not least: Our own states during the revolutionary war and the United States during the Civil War.
roadrunner
<< <i>Interesting....can you name one major Industrial Country where this actually occurred in the last 100 years, other than the Weimar Republic? Off hand, I can't think of any.
You just named one!
We've posted a chart of all the major currency inflations of the past 100 yrs on here several times. But in case that slipped your mind there are several dozen events. The currency doesn't care if the nation in question is a major industrial nation or a lesser nation with a small but growing industrial base. Either one is just as susceptible to a currency crisis as the next one. As far as I'm concerned all but maybe one of these is an industrial nation. You can research the details further if you like. Brazil was close to being on the list but worked their way out of it.
These 4 reached daily inflation rates of from 10%-200%: Hungary, Yugoslavia, Greece, Taiwan, Zimbabwe, Germany.
Other notables: Argentina, Brazil, Bulgaria, Chile, China, Israel, Japan, Peru, Phillipines, Poland, Romania, Ukraine.
And last but not least: Our own states during the revolutionary war and the United States during the Civil War.
roadrunner >>
That's not what I questioned....I questioned your statement that: "Of course in the future the situation might just be reversed as it has in many foreign nations during times of currency crisis. That is, your gold will be kept, but your fiat bills might just get returned"
None of the countries that you listed, as far as I know, refused to take their "fiat" bills during the inflationary periods and demanded gold instead.
The fact of the matter is that no major Industrial Nation in last 100 years, other then the Weimar Repblic, refused to take their own currency and demanded gold instead.
That does not mean that it could not happen, but the odds are against it.
The fact of the matter is that no major Industrial Nation in last 100 years, other then the Weimar Repblic, refused to take their own currency and demanded gold instead.
That does not mean that it could not happen, but the odds are against it.
You're not serious are you? With 200%/day inflation occuring in Hungary in July 1946 a regular citizen would have prefered to get a bank note rather than a gold coin in payment for something knowing that by the hour that note was becoming worthless? Meanwhile as soon as that person got gold in their hands in exchange for services, goods, etc...they were set and could go to bed at night knowing that in the morning they'd wake up the same purchasing power rather than 1/3. If was the one giving up goods I'd hold out until the person with hard money showed up to buy my goods. The goods weren't depreciating but once I had those hot little notes in my hand I'd have to immediately try to transfer them into something tangible. Sorry, but I don't buy it. Any sane citizen (citizen sane?) would try to demand gold instead of currency. And if there was some local law against refusing currency, then I'd only offer my goods in the black market (ie not publically for sale). Zimbabwe got up to 100% inflation per day or about 1% every 15 minutes. That meant you had to be fast on your feet to exchange whatever currency you were given for something tangible within minutes. Darn right I'd refuse to take bills or else I'd take my item off the market for the time being. The industrial nation is made up of its citizens and you can bet your bottom fiat that they'd be as selective in what they would accept in payment for services or goods. I'd venture to say that in every example of serious inflation as I listed above that a significant percentage of the nation's citizens wouldn't take currency. I doubt that during our own Civil War that citizens would take greenbacks if they didn't have an alternative.
roadrunner
<< <i>Do you mean directly? Because you can always convert your PM's to whatever medium (i.e. USD) necessary. >>
After the government gets their part of it from taxes.
<< <i>I know a good Mexican restaraunt that will give you $10 off your meal if you bring in a silver dollar.
Excellent! And, how much is a 40% silver ike really worth? Hmmmmm
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<< <i> With 200%/day inflation occuring in Hungary in July 1946 >>
RR I can't believe that you considered Hungary as a Major Industrial Nation in 1946? That's like calling the defeated Axis Countries, "Major Industrial Nations" right after the war. Give me a break..Most of the defeated Countries subsided on Allied handouts in 1946, and as far as their Industrial base, well, it no longer existed. And just in case you forgot, Hungary was part of the Axis powers during the war and in 1946 was occupied by the Russians.