Archive for the Silver Standard Category

Musings On Silver (November 21, 2016)

Posted in Banks and Banking System, Gold, Gold Standard, Money, Silver, Silver Standard on November 21, 2016 by e-commentary.org

. . .

_          “First place among the losers?”

_          “Dismissed as the ‘also-ran’ of precious metals?”

_          “Chump change or chump’s change?”

. . .

_          “I view gold as the farm and silver as the crops and the animals.  You do not sell the farm.  You do buy, sell and exchange the crops and the animals.”  

_          “So gold is the store of value and silver is the medium of exchange.  But what is the unit of account – hectares or hogs . . . or flashy pretentious paper with no real underlying value other than faith that is often misplaced by the populace?”

. . .

_          “The historic price relationship between gold and silver is way out of kilter.  Gold should be priced lower or silver should be priced higher.  If you account for the cost of production, gold is not priced too low and cannot be priced much lower without impacting the supply which will . . . drive up the price and further distort the price and the historic price relationship.  Ergo, silver should be priced much higher.”

_          “Everything is out of kilter.  Like so many other ostensible markets, we are dealing with rigged rackets.  Both prices are held artificially low by the powers that control price and sell paper precious metals.  But the prices cannot be held low forever.”

_          “Mr. Supply and Ms. Demand are not in the game.”

_          “Except to the extent that if a miner cannot make any money from mining, the miner will not mine.”

. . .

_          “Gold is for kings and silver is for royalty.”

. . .

_          “And there are some pure silver mines, yet silver is usually a byproduct of other mining for gold and copper.  The economics are intertwined and interdependent.”

. . .

_          “Someone said that roughly seventy percent of gold is used in jewelry and roughly seventy percent of silver is used in electronics and other commercial uses.”  

_          “Silver was once used in large quantities for analog photography.”

_          “Many digital devices use a speck of silver.  Those specks add up to a peck.”

. . .

_          “She reported back to her students that during her field trip to China fifteen years earlier, some shopkeepers exchanged her pre-1965 Washington silver quarters for two dollars and fifty cents in credit for her purchases in the shop that day.  Think about it, on average, the Chinese shopkeepers offered the tenfold premium without even a prod or a prompting.  They are in the know and they know it.”

_          “The Chinese shop keepers’ take on the pre-1965 two bits is revealing.  They will take them in exchange for twenty bits worth of products.”  

. . .

_          “That Series 1935 A silver certificate framed in the den is from a Hong Kong shopkeeper who swiftly slipped the certificate with the lapis lazuli Treasury seal in among the other unpretentious camo-colored Federal Reserve Notes she dealt and dropped in front of me.  She appeared to be sloughing it off on someone who might not notice the outlier dealt to him.  I pulled it out of the stack, stared at it and could hear its story and feel its history.” 

. . .

_          “And silver is shinier than gold.”

_          “Describing a silver salmon as ‘dime bright’ invokes and evokes a clear image.”

. . .

[See the e-commentary at “The Silver Standard:  The Value Of (Sort Of) Real Money (July 15, 2013)”, “Is The Gold Standard Really The Gold Standard? (January 18, 2010)”, “The Gold Standard Revisited (August 15, 2015)”, “‘Fiat Gold’ / Fool’s Gold (May 2, 2011)”, and “The Mandibles, FRNs, SDRs, IMF, G20, WTD! (September 5, 2016).”]

[JFK – May 29, 1917 – November 22, 1963]

Bumper stickers of the week:

Silence is golden; gold is silent

What is the gold standard again?

The Mandibles, FRNs, SDRs, IMF, G20, WTD! (September 5, 2016)

Posted in Book Reference, Collapse, Courts, Debt/Deficits, Dollar - World's Reserve Currency, Federal Reserve, Gold, Gold Standard, Guns, INFORM Act, International Finance, International Monetary Fund, Journalism, Money, Newspapers, Petrodollar, Press/Media, SDR - Special Drawing Rights, Silver, Silver Standard, Special Drawing Rights (SDR), World's Reserve Currency on September 5, 2016 by e-commentary.org

. . .

X          “Some of the folks at the G20 Summit may kick around the future composition of the ‘Special Drawing Rights’ that is emerging as the new world’s reserve currency.  The International Monetary Fund formally sets the composition of the SDRs, yet the major players gathered in China yesterday to discuss such matters.  A thing is now being described as a right.”

Z          “Sounds like they are creating a right to reach first for your gun.”

X          “Or they are sketching a new picture of the economic future based on rights rather than on power and circumstance.”

Z          “Or someone special who has been allowed to have the only gun in the great currency gunfight now must play well with others who are suitably armed.”

X          “Or the one with the big gun is now being disarmed.”

. . .

X          “Felicitous publication really.”

Z          “Timely, even.  The times they are changin’ the way we will make change in the near future.”

X          “In The Mandibles, Lionel Shriver adopts Keynes’ term ‘Bancor’ rather than the new age term ‘SDR’ to describe supplementary foreign exchange reserve assets.  As the U.S. Petrodollar slips as the world’s reserve currency and then as the dominant component of the SDR/Bancor, the United States people will slip to second-world status in the world.”

Z          “The way I describe it, when the Petrodollar is no longer the big dog, the United States is no longer the leader of the pack.”

X          “Prices will increase and perhaps double in short order before more structural disorder devolves.  Our McMansions still will sport baroque brushed nickel bathroom fixtures in the multiple bathrooms, yet in due course the water coursing through the corroding pipes will be increasingly intermittent and decreasingly safe.”

Z          “Many of us have those problems now while everything appears to be dory hunky.”

. . .

X          “Her description of the human consequences is very plausible, yet her explanation for the underlying causes is only partially complete.  Contemporary economic doctrine is exposed as voodoo and a specious secular religion that rationalizes those in power acquiring and retaining wealth.  The entitlement Ponzi scheme receives appropriate blame.  The pernicious involvement of the Federal Reserve is alluded to obliquely, yet the entrenched corruption and incompetence in every quarter are not addressed.”

Z          “She does not describe the institutions that are failing systematically and simultaneously.  Congress, courts, executives and executive agencies, bureaucrats, universities, news outlets, parents, preachers, prophets, you name it.  At some time, a fragile, fractured, fissured and fundamentally weak system of manipulation and intervention will fail with consequence.”

X          “She does observe that the traditional news fashioners are defunct.”

. . .

X          “‘The Chip’ is first described in an e-commentary titled ‘Monitoring The Masses:  The Card And The Chip’ published on January 12, 2015.  She further develops the human impact of implanting ‘The Chip’ to control and corral the masses.  ‘The Chip’ is so much more efficient and effective than the corn chip and football at sating the populace.”

Z          “‘The Chip’ is an electronic lobotomy that is more powerful, pervasive and perverse than fear or drugs.  Technology saves us.  I think that is what one would conclude.  Surely.”

. . .

X          “An empire cannot continue to mimeograph a fiat currency and force it on the rest of the world at great cost and consequence to the rest of the world without the rest of the world demurring at some point.”

Z          “And the rest of the world is becoming restive.”

X          “They are issuing SDR-denominated bonds.”

Z          “And they are selling oil without even acknowledging the Petrodollar.”

. . .

X          “In her novel, the U.S. government confiscates gold and disregards even basic civil liberties while confiscating the yellow stuff.”

Z          “Survey the universe of commentary on the subject and you discover that no one has ever even questioned that the government will confiscate gold when the stuff competes with the fake stuff.”

X          “The people of the United State of Nevada who seceded from the dysfunctional disunion agree that it is ‘dumb’ and ‘arbitrary,’ but they base their currency the ‘Continental’ on the gold standard.”

Z          “She does not see that the government would have eliminated cash of any kind years or decades earlier.”

X          “That is one of the harbingers of great danger.  When the government outlaws or confiscates Au, Ag, Fe, Pb, or even worthless fiat cash, the end of civil rights and civil liberties is near.”

Z          “Or here.”

 . .

[See the e-commentary at “Monitoring The Masses:  The Card And The Chip (January 12, 2015)”, “Brave 1984 Farm:  The Best Of All Possible Worlds (March 19, 2012)” and the e-commentary on the institutional distractions in our society at “Foot Longs and Football (September 2, 2013).”]

Bumper stickers of the week:

G20 > G7; SDR > FRN; World > USA   

In the intermediate run, a Kleptocracy is unsustainable.

The Gold Standard Revisited  (August 15, 2016)

Posted in Book Reference, Dollar - World's Reserve Currency, Gold, Gold Standard, Money, Nobel Prize, Noble Prize, Petrodollar, SDR - Special Drawing Rights, Silver, Silver Standard on August 15, 2016 by e-commentary.org

. . .

M          “You may be right.”

G          “I don’t want to be right.  But you just cannot trust the government.”

M          “It will never seem reasonable, but it is rational.  We must do something to restrain human nature and government excess.”

. . .

G          “Gold is an element.  Gold is a commodity.  Gold is a currency if folks act as if it is a currency.  Gold is what you make it.  The vote is coming in.  The Swiss not so much but who knows what to make about the election.  Those who vote in favor of the dollar or the pound and against gold as a currency may soon be . . . pounding sand.”

. . .

G          “As I recall, Keynes proclaimed that the gold standard, not gold per se, is a ‘barbarous relic.’  ‘Barbarian’ means ‘foreign.’  For example, ‘Barbara’ is a ‘foreign woman.’  So that might suggest that the gold standard, or at least gold, is popular in foreign countries.  And it is.  One point four billion Chinese and one point three billion Indians relish the element.  The Russians embrace it with both paws.”

M          “Seems that Au is A1 in the world today.”

. . .

M          “Tying human activity to an element such as Au seems so . . . confining.  And elemental.  Yet without something tethering human greed, ‘printing money’ is a temptation too great.  If he had known about it, Bill Shakespeare would have written about it.”

G          “You cannot trust the government.  And yet the great irony is that the government is not printing money.  The government has ceded power to the Federal Reserve which sounds like the government and yet is a private business that owes its allegiance to the banks and advances the welfare of the those in the stock market racket.” 

. . . 

M          “Keynes criticized the gold standard because it was a direct threat to his ego and his identity and his desire to make unbridled decisions.  That is the hallmark of what passed for the elite.”

G          “No one in power wants to be restrained by a standard.  Some standard is better than no standard.”

. . .

G          “The rule of law is a civilizing relic yet not one in currency today.  Even with more rules and laws on the books than ever in the history of humankind, the rule of law simply does not apply to those in power.  The law is no restraint.”

. . .

G          “The Nobel gang rewards those who shill for the fiat system and the central banks.  If the Nobel gang gave awards for those who ask probing questions about the viability and consequences of fiat currency and unrestrained debt, there would be more folks asking probing questions about the viability and consequences of fiat currency and unrestrained debt.”

M          “Perhaps the new Noble Prize in Eco-nomics can be awarded to those few individuals who ask probing questions and provide trenchant answers.”

. . .

[See the previous great gold standard debate in the e-commentary at “Is The Gold Standard Really The Gold Standard? (January 18, 2010)”, a discussion of the silver standard at “The Silver Standard:  The Value Of (Sort Of) Real Money (July 15, 2013)” and the observation in “The U.S. And Saudi Arabia:  Not Playing Well With Others (Each Other) (July 11, 2016)” that President Nixon decided unilaterally to cancel the direct international convertibility of the United States dollar to gold today.]

Bumper stickers of the week:

“In truth, the gold standard is already a barbarous relic.”  John M. Keynes, A Tract on Monetary Reform (1924).

“Real gold is not afraid of the fire of a red furnace.”  Chinese proverb

“There are three hundred economists in the world who are against gold, and they think that gold is a barbarous relic – and they might be right.  Unfortunately, there are three billion inhabitants of the world who believe in gold.”  Attributed to János Fekete

In every country, culture and civilization through space and across time, gold is the one thing and the only thing that has been cherished by everyone everywhere at all times.

Eco-nomic SAT Question:  Which statement does not fit:  1) resources are finite, 2) water is finite, 3) gold is finite or 4) money printing is infinite?

The Gold Standard may just be the Gold Standard or at least a standard.

The G20 Leaders Summit is in Hangzhou, China this September 4 and 5.

Convention between the United States and Great Britain (for Canada) for the Protection of Migratory Birds, also called the Migratory Bird Treaty, was signed on August 16, 1916.

Venturing A Few Unfounded And Unwarranted Predictions (July 13, 2015)

Posted in "L" Shaped Economy, Bankruptcy, Banks and Banking System, Collapse, Depression, Elections, Foreign Policy, Gold, Gold Standard, Kleptocracy, Money, Pensions, Quantitative Easing, Recession, SDR - Special Drawing Rights, Security State, Silver, Silver Standard, Supernova Dollar, Zero Interest Rate Policy on July 13, 2015 by e-commentary.org

. . .

3          “Pensions will be even more problematic.”

4          “When the stock markets reset catastrophically, pensions will need to be reset correspondingly.”

3          “We will need to muster the collective intellect and imagination to craft a provision allowing states to file bankruptcy.”

. . .

3          “Interest rates cannot be allowed to rise and will not be allowed to rise beyond a nominal .25 percent.  Any greater rise would result in devastating financial and economic consequences.  Some nominal rise will be imposed to proclaim that interest rates can indeed rise above zero without negative consequence.  Those citizens who planned to fund a retirement with interest-bearing instruments have been sacrificed and will continue to be sacrificed without even a vote or even a debate on the policy.”

4          “Sacrifices have to be made.  Few folks are concerned or even aware that the Federal Reserve rather than the market sets interest rates.  The way I see it the Petrodollar will continue to rise as other currencies decline and those with the wherewithal seek the safety of the Petrodollar.  At this time.  The Petrodollar’s status as the world’s reserve currency and fundamentally weak foreign economies are a double magnet for money.  When the world establishes its own world currency such as a system of Special Drawing Rights (SDR) and circumvents the Petrodollar, the Petrodollar will explode and decline precipitously in value.  As I describe it, the ‘Supernova Dollar.’  The last American export – the Petrodollar and resulting inflation – will not be imported by the world.”

3          “Along those lines, the physical dollar will disappear from circulation in the United States before it disappears from the world stage.  The U.S. government and large corporations are slowly discouraging and will ultimately outlaw the use of dollars as ‘legal tender’ and as a medium of exchange.  Possession of gold and silver bullion by private citizens also will be outlawed.  The government will outsource to large corporations the issuance and control of the Universal Electronic Benefit Transfer (UEBT) cards to its subjects.  Current credit and debit cards will be re-purposed seamlessly.  The IRS will send a statement each year or even each month dictating one’s tax obligation and deducting the amount owed directly from one’s government controlled account.  As a consequence, everyone’s inclinations, transactions, and movements will be monitored and manipulated as necessary.”

4          “On the other hand, possession of gold and silver in any form by foreign citizens and governments will be the law and settled practice.  The West has readily abandoned gold and silver to an East that has eagerly absorbed the precious metals at rates that have been manipulated down by the West.  And gold and silver will be a component of the Special Drawing Rights.”

3          “The West will no longer be able to use paper and electronic transactions to manipulate the prices of physical gold and silver.”

4          “If the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system and the Petrodollar are circumvented, the West will be less able to use paper and electronic transactions to manipulate prices.”

. . .

3          “The nations in the oil-producing regions will not fight over the oil they have but over the water they do not have with far less involvement of and intervention by the United States.”

4          “Nation-States will also disappear as thriving and functioning communities and be replaced by Corporation-States that dictate policy.  The United States Congress took the lead and sold out to become the ‘Citigroup-Congress’ recently.  More than just naming rights are involved.  Current nations are just entities that can be manipulated and maneuvered to go to war with each other when necessary.”

3          “Along those lines, shares in United States Senators will be sold more openly akin to shares in corporations.  The news will announce that shares in ‘Senator Larry Jenkins, Inc.’ are up 3.1 percent today on news that he will sell his vote for the Big Project.  The John Roberts Supreme Court has endorsed the two-step business plan.  If you pay a politician directly for a vote, you are in trouble; if you pay an intermediary that pays a politician for a vote, you are blessed.”

4          “Notions of freely-established supply and demand for goods, services and commodities will yield to quotas per subject each month.  Without functioning markets and with regular and systematic market manipulation and intervention, notions of inflation and deflation will be antiquated.  World population will continue to grow and resources will continue to be more precious which under the old paradigm would fuel inflation.  However, people will simply do without.”

3          “Along those lines, capitalism is a system that socializes the costs of activities and privatizes the profits.  The end stage is the emergence of a very small cabal who control all resources and allow the subjects access to just enough resources to subsist in a police state that throttles any debate or dissent.”

4           “The treatment of Cyprus and Greece are intermediate stages in the process.”

3          “The future is not unpredictable.”

. . .

[See the efforts to eliminate cash at http://betterthancash.org/.%5D

[See the e-commentary at Monitoring The Masses: The Card And The Chip (January 12, 2015).]

Bumper stickers of the week:

If you do predict a definite event, do not pick a definite date.  If you do pick a definite date, do not predict a definite event.  Unless you want to.

In the past, if you could predict the future accurately, you could make a fortune.  In the present, you can predict the future astutely, but you cannot do much to protect your fortune or your future.  Even if you want to.

“The best way to predict your future is to help create it.”  Attributed to Abraham Lincoln

There are few warning signs on the off ramp down the road to serfdom.

What about global climate change?

Marital Musings (December 22, 2014)

Posted in Civil Rights/Civil Liberties, Constitution, Courts, Economics, Gold Standard, Kleptocracy, Movie Reference, Radio, Russia, Silver Standard, Society, Sports, Supreme Court on December 28, 2014 by e-commentary.org

. . .

H1        “So she said we had to set aside some time for a conversation.  I knew it would get bad.”

H2        “You don’t get to say anything.”

H1        “Except when spoken to.  So she said she had to confess that she was thinking about someone else while we were in medias res.  And she said that she was now happy to have gotten if off her chest.  I said that was fine.  She could be thinking about Mr. Magoo if it will get us through the night.  From my perspective, if I can handle the kitchen remodel, junior can get braces.  But it ended up not being fine.  I should have been upset.  She was upset that I was not upset.  I was beginning to get sort of upset that she was upset that I was not upset.”

H2        “Nothing about Gina Lollobrigida.”

H1        “She would have exercised the proviso ‘til death do us part’ and parted with me.”

. . .

H2        “She asked if I noticed that she had put on weight.  I had not noticed, so I told her that I had not noticed.  I am thinking that I get 100 points for candor and honesty and being a great guy and for being a little oblivious.  Maybe an MVP award and a hall pass.”

H1        “And she was upset that you were not upset.  And it was Katie bar the door with Katie showing you the door.”

H2        “I didn’t get a pass.  I told her that once she made the cut and was on the team, things like that did not really matter.”

H1        “And she parsed every phrase.”

H2        “‘Made the cut’ and ‘on the team’ are two separate concepts.  Saying that it is like two wrestlers who make weight and then each go off and have bacon cheeseburgers did not assuage her anxiety.”

. . .

H1        “We conversed with a counselor who opined about psychological affairs versus physical affairs and provided few insights to address our financial affairs.”

H2        “Do you think he was safe?”

H1        “She is sure that we only talk about sex.”

H2        “Safe by a mile.  Replay is clear.”

. . .

[See the latest sophistry from the Supreme Court that vitiates the Fourth Amendment.  http://www.supremecourt.gov/opinions/14pdf/13-604_ec8f.pdf.  An illegal stop is an illegal stop and not a legal stop.]

[See the commentary at “Henrietta And Henry O, Two Young Lovers: The Contemporary Gift Of The Magi (December 27, 2010).”]

Bumper stickers of the week:

“Honey, would you rather I were making love to him using your name, or making love to you using his name?”  Annie Savoy, Bull Durham (1988)

Russian Exceptionalism > or = or < American Nationalism

The COMEX is instituting trading collars for the sale of gold and silver.  And the answer to Will Shortz’ “Sunday Puzzle” seeking the correct anagram for “Comex” is . . . “Fraud.”

Gas / Au / Ag / Cu: The Great Commodity / Currency Wars: What’s Up? What’s Down? What’s Really Up? What’s Going Down? (November 17, 2014)

Posted in "Fiat ______", Carbon Surcharge & Dividend, China, Debt/Deficits, Dollar - World's Reserve Currency, Football, Foreign Policy, Gold Standard, Middle East, Money, Peak Oil, Russia, Silver Standard on November 17, 2014 by e-commentary.org

. . .

E1          “Today’s high-tech town criers, LED scoreboards broadcast the news from every street and street corner.  They proclaim that gas prices are down, gas prices are down, gas prices are down.  The most public and publicized scores in our economy are even more prominent than football scores.”

E2          “Is supply up because Saudi Arabia has strategically increased the supply?  Is demand down because the world is in recession?  What’s really up?  What’s really going down?”

E1          “What’s real?  The great trifecta is at play.  Saudi Arabia is advancing American political interests by undercutting Russian oil sales while also underpricing American fracking operators and undermining Iranian producers.  Prices now below about $80 a barrel undermine American competitors who are fracking the production of oil at a cost of typically $85 a barrel.  An American operator who cannot compete and goes down will not later reenter the market.  Saudi Arabia can effortlessly constrict supply and drive up the price.”

E2          “The Republicans will provide tax benefits and government subsidies for the frackers and increase the national debt.”

E1          “That’s for real.  If Russia and Russians can endure the very real impact of the sanctions and continue to circumvent the use of the dollar, they may end up prevailing in the ‘Cold Currency War.’  The public scoreboards provide daily clues to developments on the international battlefield.”

. . .

E2          “Now when the price of oil is down is the time to adopt a carbon premium and dividend program.”

E1          “Never happen.”

E2          “Nothing will happen until it is too late.”

E1          “Not when gas mongering SUVs are flying off the shelves.”

. . .

E2          “The PM markets for elements 79 and 47 are distorted.  Now that the physical quantities of Au and Ag are so tiny in comparison to the exploding paper market, the spot price is another illusion.  Sellers of physical quantities are setting prices that exceed the former ‘spot price plus markup’ formula to reflect the limited physical supply.  However, no generally accepted ‘physical spot price’ has emerged.  In a world of fraud, illusion and dishonesty, the ‘market price’ is not the ‘market price’ and another ‘market price’ must be concocted to provide realistic information.”

E1          “The market is unreal.  However, it is hard to fix the metals market when the metals market is fixed.  Information is sketchy, incomplete and possibly inaccurate.  China, Russia, India, Brazil and other governments and the Chinese, Russians, Indians, Brazilians and other citizens are amassing massive amounts of physical gold.  Manipulating the acquisition price of physical gold lower via machinations in the paper market facilitates the transfer of physical gold to folks who are not always happy with us.”

E2          “That may be the most counter-productive policy in recent memory.  Some countries are rallying around gold to provide a counterpoise to the dollar.”

E1          “That is surreal.”

. . .

E2          “Morgans were minted from 1878 to 1904.  Peace dollars from 1921 to 1935.  Even among those who are not interested in the numismatic value of a coin, the premium for George T. Morgan’s creation is more than the premium for Peace dollars.”

E1          “A hint of aesthetic sensibility among the junk metal set.  Morgans may have been minted again in 1921.”

E2          “One fellow said that he maintains 70 percent of his precious metals inventory in silver to serve as a medium of exchange and 30 percent in gold to serve as a store of value and secondary medium of exchange.  However, the dollar is still the unit of account.  Wonder what he knows.”

E1          “Metals perforce do not pay interest, yet when banks start charging interest to hold funds, metals become the non-interest burdened asset.  What percentage of his assets are in metals?  And why?”

. . .

E1          “The ISIS or ISIL or Islamic State or whatever is proposing to issue their own currency by minting real gold dinars and real silver dirhams.”

E2          “The IS is also in the business of selling oil on the black market at reduced prices which lowers the world price.  Another factor in the analysis.”

E1          “And the scoreboard up ahead proclaims: ‘Unleaded – 3 dinars and 99 dirhams per liter; Diesel – 4 dinars and 49 dirhams per liter.  Free oil check and window washing.’”

E2          “A mecca for the gold bugs.”

E1          “‘27 inch flat screens from China for 99 dinars.’”

E2          “If gold is denominated in dollars, the dollar is king.  If gold is denominated in gold, then gold is king.”

E1          “Aren’t they obligated to field a football team first?”

. . .

E1          “If I couldn’t make light of it, it would get too heavy.”

. . .

[See the related e-commentary earlier this year at “Texas Votes To Secede From U.S. And Join Mexico; Russia Blows Up World In Response (March 17, 2014)“, “NATO: Nations Aggressively Taking Over (March 31, 2014)“, “Distrust But Verify (July 21, 2014)” and “World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014).”  See also the background e-commentary at “The Silver Standard: The Value Of (Sort Of) Real Money (July 15, 2013)“, ““Fiat Gold” / Fool’s Gold (May 2, 2011)” and “Is The Gold Standard Really The Gold Standard? (January 18, 2010).”

Bumper stickers of the week:

He who has the dollars has made the rules; he who has the gold will make the rules.

Folks (and governments) will use Fe and Pb to acquire and protect Au and Ag.

We seek stasis, we get entropy.

The Silver Standard: The Value Of (Sort Of) Real Money (July 15, 2013)

Posted in Banks and Banking System, Economics, Gold Standard, Money, Silver Standard on July 15, 2013 by e-commentary.org

. . .

E1        “The participants in the study are less expensively schooled rural residents who distrust dollars but desperately desire them.  Or their equivalent.  They regard Morgan silver dollars as real money.”

E2        “And Morgans are still a form of legal tender.”

E1        “One invoice stated that it could be satisfied by tendering three (3) Morgans or seventy-two (72) dollars.  Two media of exchange.”

E2        “The Morgan silver dollar is a known quantity made with an alloy of ninety percent silver and ten percent copper.  The local folks adopted a form of the silver standard using government coinage but without any government edict, direction or regulation.”

E1        “In my on-going survey, the value of a Morgan with no additional numismatic appeal is about thirty-three percent more than the assay value of the silver content of the coin.  Those trading in Morgans have no idea what the Dow is that day or even what the Dow is, but they know the exchange value of Ag every day.”

E2        “Their allegiance is not unalloyed, however, because in the final analysis the value of both silver and Morgans is denominated in dollars.  Dollars are still the unit of account.”

E1        “What is revealing and intriguing is the added value of the thing that is made out of the substance.  Information has value and is valued.  The Morgan conveys accurate information and is easy to convey while also providing a store of value which are attributes worth a premium in the market.  The study continues.”

. . .

Bumper stickers of the week:

One Morgan silver dollar =  the price of Ag x .9 x 1.33 = $___ fiat dollars.

Rock-paper-silver; silver rocks paper.