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I was reading the Federalist Papers and came upon this cool numismatic quote by James Madison. You
wingedliberty
Posts: 4,805 ✭✭
" No state shall coin money, emit bills of credit, or make anything but gold or silver a tender in all payments of debts".
James Madison.
I wonder what he would think of clad quarters and Paypal, or other modes of electronic funds transfer.
I have always touted tangibles. , but if precious metals are finite in their existence, then how can a growing population and demand in credit be backed by gold and silver. I think at the time, the Americas had a combined population of about 5,000,000. Try 280,000,000 people now, with a 6 billion people global economy. I say we pan for more gold!!! Who's with me? Get your pans and axes and lets head for Alaska.!
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I agree , its all about psychology. So is consumer confidence. Thats why 1881S Morgans in the 80's were $300 a pop. Now they are $85
Beam me up my brotha!
The supply of gold has fairly well mirrored the growth of the country but has not done so
evenly. Gold production soared in the 1880's and in fits and starts at other times. Whether
or not fiat money is constitutional there are a couple of relevant considerations; gold based
currencies can be dramatically affected by real or percieved changes in gold supply and small
change like the current quarter has always been made in base metals. Electronic transfers
could be based on precious metals if such a monetary system were still in use.
Some believe Venus may have vast quantities of gold. Its density is much higher than the Earth.
I am all for manned space exploration. Lets go!
That quote has nothing to do with the Federal government. It refers to STATES.
Same with the Constitution. It reads as follows:
Section. 10.
Clause 1: 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.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
LOL
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>Precious metals have no intrinsic value of their own. Value is a culturally agreed-upon principle >>
I agree that this is true, and that people can decide that anything is valuable, even Beanie Babies.
However, these precious metals seem to have gained a cross-generational, cross-cultural degree of value that may have no intrinsic basis but nonetheless exists.
In other words, everyone seems to think that gold/silver have value, therefore it does, and that doesn't seem like it's going to change.
I say, go with the flow!
I am not sure if Venus has a hard surface or if its gaseous. I am starting to remember the scifi novels that I read about terraforming.
fahrenheit. There isn't a real temperate zone.
Mercury is also dense and does have a temperate zone.
if you think you can last in Alaska, i say go for it. the average person would be hard-pressed to last the winter in all but the most southern populated areas.
al h.
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Odd concept isn't it? It's only as good as its promise.
Speaking of gold - I read somewhere that something on the order of 90% of the gold that has ever been
mined in the history of mankind lies at the bottom of relatively shallow water? Now THAT is something that
could get me hopping. Finding an "Atocha"
"Thud"
(annoying sound of reality stepping back in)
Edit: afterthought.
You could substitute "Finding an Atocha" with "winning the lottery" - I think the odds of each are roughly
equivalent of those of being struck directly on the head by an asteroid.
<< <i>The same clause says that states may not coin money or enter into treaties. Therefore, it clearly doesn't refer to the Federal government. >>
Also if you try to assume that it DOES refer to the Federal or "Central " government then it says that the central government should not coin or "create" a money supply! Well then who should create the money supply for the nation? The private sector? No, the quote and clause clearly refers to the individual states, not the Federal government. So clad coinage and fiat paper do NOT violate that clause in the Constitution since there is no requirement that the Federal government must stick to gold and silver. They can make anything they want a legal tender.
As for the gold standard, all that does is limit the amount of money that a government can place in circulation at a certain period of time. That limit may or may not prevent inflation and provide for a stable monetary system. If there were a glut of gold available, as there was in California in the 1850s, inflation would occur. If there were a shortage of gold, there would be deflation, which often results in economic recessions and depressions.
The enlightened modern approach is to regulate the money supply to the proper level that will maintain stable wages and prices. That’s easier said that done, and Alan Greenspan has probably come closer than anyone to doing it correctly, but that is preferred course