How Any Government Can Issue Silver as Currency

[webmaster]

Subject:How Any Government Can Issue Silver as Currency
By: Jason Hommel, Silver Stock Report

Overview: There are basically two ways for a government to issue silver as currency. One relies on force, or government decree, and is easier and more profitable for the government. The other way is the honest free market way.

Link: http://news.silverseek.com/GoldIsMoney/1237294416.php

[valerb@bellsouth.net]

Originally Posted by webmaster

Subject:How Any Government Can Issue Silver as Currency
By: Jason Hommel, Silver Stock Report

Overview: There are basically two ways for a government to issue silver as currency. One relies on force, or government decree, and is easier and more profitable for the government. The other way is the honest free market way.

Link: http://news.silverseek.com/GoldIsMoney/1237294416.php

I wish our Silver analysts would pick a side and stick with it.

The general consensus has been that we are in a silver shortage. Many have been predicting any day now. Then many of these same analyst turn around and talk about issuing physical silver as money. Come on, either we have a shortage and this would be an impossibility or you really believe there are billions of ounces out there so that a program like this could actually get off the ground!!

Lets assume that the most conservative silver analyst we know, Ted Butler is correct and that there really is as much as one billion ounces available. (His message this week doesn't seem to be leaning in that direction.) That would cut off Silver for every source in the world and be enough to supply every legal citizen in this country approximately 3 ounces of Silver. I'm sorry, but there is no extra for all of the other tens of millions of illegal citizens or we would have to share our 3 ounces. Nothing for the Silver users, so all manufacturing will have to shut down and I'm sure the rest of the world is going to just stand idly by and watch us. Who makes more Silver blanks than Sunshine and it takes them a year to pump out a whopping ten million. Does anyone actually believe England would allow all of the Silver in SLV to be shipped to the US for this grand scheme?

Make no mistake about it, I would love to see something like this happen anywhere in the world. I am a long time Silver bug and I have never read a single article of this Nadler guy. It is simply pandering when a post like this appears.

I'm sorry Jason, but you have to decide rather we are truly in a Silver shortage or we have a huge amount of excess to pull something like this off. You can't go from one extreme one day and the opposite the next.

[Ardent Listener]

Well said, so what is it Jason?

[akak]

Valerb, that is EXACTLY the same point I was trying to make, apparently not too successfully, in my thread "The Monetary Future of Silver". It seems to me that there is simply not enough accumulated silver left in the world to bring it back into the monetary system, at least in any semblance of its past function as money. Gold, yes, of course --- but are we going to value silver ABOVE the value of gold in order to reintroduce it into the monetary system? I just can't see that happening.

[other1z]

Originally Posted by akak

Valerb, that is EXACXTLY the same point I was trying to make, apparently not too successfully, in my thread "The Monetary Future of Silver". It seems to me that there is simply not enough accumulated silver left in the world to bring it back into the monetary system, at least in any semblance of its past function as money. Gold, yes, of course --- but are we going to value silver ABOVE the value of gold in order to reintroduce it into the monetary system? I just can't see that happening.

Actually, your point was there, and well-made.

I don't know if you guys read James Cooke, but he said the same thing in the March update, which also has Ted Butler's speech from the Phoenix Silver Summit.

The silver pundits have turned into the mirror images of their wall street counterparts. One day UP, one day DOWN.

[valerb@bellsouth.net]

You have to admit that a fiat currency is the cats meow for any country, especially one that holds a lot of Gold. You do whatever you want and if it all goes to hell in a hand basket, you simply replace it with a new fiat currency and you get to keep all your Gold. The people may suffer, but the country still has a pocket full of Gold.

I was in Moscow in 1998 when they were going through that. A new Ruble was 6 to the dollar and the old Ruble was 600 to the dollar. Problem solved or at least partly solved. It's up to 34 Rubles to the dollar now with a declining dollar. That really has to hurt.

The idea of a Gold or Silver coin with a floating value would never fly either. Business are not going to accept payment with a floating value coin. They have to depend on something stable and consistent in value to re-invest or purchase new meat and buns to make and sell another hamburg tomorrow. The dollar going up and down has minimal impact on a company doing daily business here in the states, unless he is buying his products from another country. Every business would have to discount the coins value to a level they felt comfortable with. Now wouldn't that make everyone happy to be holding a Gold coins. But I was just paid with a one half ounce Gold coin for my weekly salary yesterday and now your telling me it is only worth 90% if I want to buy anything in your store! I'm sorry, but Gold dropped down 10% last week, I can't take a chance on it doing that again this week. It's the best I can offer you! How about being told by your employer that they don't have to pay you as many gold coins this week because the value went up 10%.

[akak]

That is the crux of the issue, Valerb --- in a REAL PM-backed monetary system, the currency would have to be denominated in gold ITSELF, not in some fictional fiat "Dollars" or "Ameros" or whatever. If the currency denomination was oz. of gold, or grams of gold, then everything would be bought and sold in those units, so there would not be any daily or weekly fluctuations as you describe. Gold only fluctuates today in relation to the dollar, and because of relative changes in perceptions and worries regarding the dollar and the economy. But you probably already know that --- don't want to sound condescending to you.

[valerb@bellsouth.net]

Originally Posted by akak

That is the crux of the issue, Valerb --- in a REAL PM-backed monetary system, the currency would have to be denominated in gold ITSELF, not in some fictional fiat "Dollars" or "Ameros" or whatever. If the currency denomination was oz. of gold, or grams of gold, then everything would be bought and sold in those units, so there would not be any daily or weekly fluctuations as you describe. Gold only fluctuates today in relation to the dollar, and because of relative changes in perceptions and worries regarding the dollar and the economy. But you probably already know that --- don't want to sound condescending to you.

Even at the much higher value of Gold, there is only enough gold in our reserve to provide something like 3/4 of an ounce of Gold for every person in this country or about $750 for each of us. If our gold reserve is really there. We might be able to exchange dollars for Gold if we value gold at $1,000,000 an ounce. We then make sure the Germans are the first ones we settle our debts with in this new exchange rate and ask them how it feels???

I can just see a McDonald's employee lining up for his weekly allotment of Gold. He holds out his hand and they drop two tiny specks of gold and tell him to spend it wisely. The employee looks at his hand in amazement at states, what the hell am I supposed to do with this, I couldn't even figure out how to make change for a dollar. I would be working up front where it is cool if I could, instead of boiling my ass off in the back, flipping burgers all day long!!

The question of the day is, how many micro specks of Gold do you receive in change after buying a happy meal with a speck of Gold and how do you tell if those micro specks are really gold or just a few small parts from one finely ground grain of sand???????