"Hey Honey...Would You Hand Me a Roll of Dollar Bills, Quickly Please...
http://money.cnn.com/2009/10/19/news/economy/low_rates_savings.fortune/index.htm?postversion=2009102010
The above article details how prudent savers are getting hosed by the government and the Federal Reserve. Deflation is an absolute windfall for savers with low debt. Your dollars, in short supply, go much further.
Inflation is an absolute windfall for those who failed to save and have high debt levels. They are servicing their debt with essentially free money. That is what the bankers are doing now.
The government/politicians hate deflation. People with debt whine. Debt laden bankers don't make campaign contributions or offer interest free loans. They love inflation. Fiat currency. Backed by nothing. Paper.
In fact, as I stood in a local grocery store the other day, eyeing the cheapest sandpaper style toilet paper at 3.99 for a package of four rolls, I asked a man doing the same, "when did toilet paper get so expensive?" He looked at me and said that it may soon become cheaper to wipe your backside with dollar bills.
I got a visual. Paper cuts. That sort of thing.
Now a couple of days ago, I stumbled onto a very interesting thing. A guy saving pre 2006 nickels and pre 1982 pennies. You see as it turns out, a penny is worth two cents in melt price. A nickel may soon be worth 7 cents. As it turns out, 100% and 40% respectively are pretty good returns.
It costs more to produce and replace copper and nickel than it does paper. Frankenstein figured this out in 2006 and passed laws preventing the hoarding and melting of coins. Frankenstein is telling me what I can do with my money. Fascinating. He says it's his money.
Copper and nickel are commodities. They have value. Paper, except that used for personal hygiene, has very little value.
Frankenstein artificially devalued my paper by printing, flooding, and giving it away. But it can't do this with metals. All it can do is mint coins out of the most worthless pot metal it can find which of course- it will do soon.
And pass laws that prevent me from hoarding and recapturing the lost value of MY dollars by melting down MY coins. Frankenstein of course maintains that they are his coins. Imagine sitting in some federal joint-telling your murdering cell mate that you are in for melting nickels. That will undoubtedly get you all kinds of respect. Grow an eye in the back of your head, wear pants in the shower.
http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm
Make sure you read the part where the Mint guy says hoarders are robbing taxpayers. That part brought tears to my eyes.
Hey Franky I got an idea. Just pass a law requiring all countries to use our dollar as the reserve currency even if it completely collapses. If those countries don't comply and insist on using a currency with value, we'll pass some more laws and give them a fair trial. Stick them in prison. If that doesn't scare them, or they resist, hell... we can always start a war with them.
The above article details how prudent savers are getting hosed by the government and the Federal Reserve. Deflation is an absolute windfall for savers with low debt. Your dollars, in short supply, go much further.
Inflation is an absolute windfall for those who failed to save and have high debt levels. They are servicing their debt with essentially free money. That is what the bankers are doing now.
The government/politicians hate deflation. People with debt whine. Debt laden bankers don't make campaign contributions or offer interest free loans. They love inflation. Fiat currency. Backed by nothing. Paper.
In fact, as I stood in a local grocery store the other day, eyeing the cheapest sandpaper style toilet paper at 3.99 for a package of four rolls, I asked a man doing the same, "when did toilet paper get so expensive?" He looked at me and said that it may soon become cheaper to wipe your backside with dollar bills.
I got a visual. Paper cuts. That sort of thing.
Now a couple of days ago, I stumbled onto a very interesting thing. A guy saving pre 2006 nickels and pre 1982 pennies. You see as it turns out, a penny is worth two cents in melt price. A nickel may soon be worth 7 cents. As it turns out, 100% and 40% respectively are pretty good returns.
It costs more to produce and replace copper and nickel than it does paper. Frankenstein figured this out in 2006 and passed laws preventing the hoarding and melting of coins. Frankenstein is telling me what I can do with my money. Fascinating. He says it's his money.
Copper and nickel are commodities. They have value. Paper, except that used for personal hygiene, has very little value.
Frankenstein artificially devalued my paper by printing, flooding, and giving it away. But it can't do this with metals. All it can do is mint coins out of the most worthless pot metal it can find which of course- it will do soon.
And pass laws that prevent me from hoarding and recapturing the lost value of MY dollars by melting down MY coins. Frankenstein of course maintains that they are his coins. Imagine sitting in some federal joint-telling your murdering cell mate that you are in for melting nickels. That will undoubtedly get you all kinds of respect. Grow an eye in the back of your head, wear pants in the shower.
http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm
Make sure you read the part where the Mint guy says hoarders are robbing taxpayers. That part brought tears to my eyes.
Hey Franky I got an idea. Just pass a law requiring all countries to use our dollar as the reserve currency even if it completely collapses. If those countries don't comply and insist on using a currency with value, we'll pass some more laws and give them a fair trial. Stick them in prison. If that doesn't scare them, or they resist, hell... we can always start a war with them.
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