Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Fiat Ponzi

Reply
 
LinkBack Thread Tools
Old 12-12-2012, 11:33 AM   #1
Super Moderator
 
benjamen's Avatar
 
Join Date: Mar 2012
Location: Migratory
Posts: 1,617
Liked: 683 times
Redenominating a currency

Long technical read if your wish:
http://www.unc.edu/~lmosley/APSA%202005.pdf

A few take aways from the above article...

1) Wow, a lot of countries have had really bad inflation and/or had to redenominate their currencies! Turkey had double digit inflation every year from 1972 until 2004!!!

2) There is some good thoughts on the hazards of having very large denominations of your currency (tens of thousands, millions, ect). This makes me wonder why, despite the inflation in the U.S. over the past 40 years, there is are still no USD denomination over $100 available to the public.

3) Another good section talks about the hazards of letting foreign currencies circulate in your country (for the government). If the choice is available, would you choose to be paid in some other currency? This highlights a major reason I don't the legal tender laws are going anywhere.

4) It is interesting to note that democratic countries are just as likely to have inflation problems as authoritarian countries.
__________________
I drive men mad
For love of me,
Easily beaten,
Never free.

PMBug 101 *** Forum Rules
benjamen is offline   Reply With Quote
Old 12-13-2012, 06:49 AM   #2
Ground Beetle
 
bushi's Avatar
 
Join Date: Nov 2011
Posts: 971
Liked: 554 times
Originally Posted by benjamen View Post:
This makes me wonder why, despite the inflation in the U.S. over the past 40 years, there is are still no USD denomination over $100 available to the public.
Two reasons: a benign one (there's no practical need for bigger denominations of paper, on the broader scale, because for any more significant transactions - people are using these plastic things with magnetic strips on them instead, or indeed, electronic banking arrangements straight away), and a more insidious one (handily, supported by the first): it also helps to stop the word from spreading, that there's something fishy going on with your currency - after all, people would notice new bill denominations coming out every 10-20 years. Without that tangible confirmation of currency debasement, it is easier to commence it. That whole boiling frog thing, you know. Very few have the capacity and mental discipline, to line up all these things together, without being poked right into eye with the facts (and even then, if the facts are "managed" well into Joe sixpack's "normalcy bias", most people will just go into denial mode, and reject them)
__________________
“...the issue which has swept down the centuries and will have to be fought sooner or later is the People versus the Banks.
Lord Acton
bushi is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Libertad Currency Mark Silver Bug 11 12-06-2012 12:37 PM
Iran Currency Collapse ADK Fiat Ponzi 3 11-01-2012 08:57 AM
Global Reserve Currency benjamen Fiat Ponzi 10 07-02-2012 08:25 AM
bis-says-gold-is-currency-not-commodity escobar PM Bug 4 06-27-2012 10:14 AM
Review: Open Currency Standard PMBug Marketplace 5 06-12-2012 02:07 PM


All times are GMT -5. The time now is 12:07 PM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2019 Measuring Up. All Rights Reserved.