Don’t Know Much About History . . .
Yeah, volatility is usually considered a “bad thing” in economics. It’s basically the chance that the dollar you leave in your wallet tonight will be worth $0.50 or $1.50 when you wake up in the morning. Makes decision making difficult. Like living on a roulette table.
* Conversion of the U.S. dollar to silver and gold was suspended during the Civil War and discontinued entirely by 1972. Covers the years for which full data are available (i.e., 1820 through 2009).
This analysis excludes, for what I hope are obvious reasons, the years covering America’s wars of existential crisis…
What Do You Want Coins To Be Made Out Of?
Hurry and respond before the April 4 deadline! The U.S. Mint wants the public’s thoughts and suggestions regarding what metals to use for producing the currency of the future. Personally, I’m pulling for tungsten, or anything that glows in the dark, really.
The United States Mint today announced that it is requesting public comment from all interested persons on factors to be considered in conducting research for alternative metallic coinage materials for the production of all circulating coins.
These factors include, but are not limited to, the effect of new metallic coinage materials on the current suppliers of coinage materials; the acceptability of new metallic coinage materials, including physical, chemical, metallurgical and technical characteristics; metallic material, fabrication, minting, and distribution costs; metallic material availability and sources of raw metals; coinability; durability; sorting, handling, packaging and vending machines; appearance; risks to the environment and public safety; resistance to counterfeiting; commercial and public acceptance; and…
Requiem For The Dollar: Mourning The Gold Standard
Here’s a very insightful essay by James Grant, editor of Grant’s Interest Rate Observer. He’s a famous financial curmudgeon … but on this issue I think he’s 100% right, writing in the Wall Street Journal:
Ben S. Bernanke doesn’t know how lucky he is. Tongue-lashings from Bernie Sanders, the populist senator from Vermont, are one thing. The hangman’s noose is another. Section 19 of this country’s founding monetary legislation, the Coinage Act of 1792, prescribed the death penalty for any official who fraudulently debased the people’s money. Was the massive printing of dollar bills to lift Wall Street (and the rest of us, too) off the rocks last year a kind of fraud? If the U.S. Senate so determines, it may send Mr. Bernanke back home to Princeton. But not even Ron Paul, the Texas Republican sponsor of a bill to subject the Fed to periodic congressional audits, is calling for…
