Tuesday, December 4, 2007

The Cost of Melting a Copper Penny

Let's start with up to $10,000 and add up to five years in prison. That's the base rate in a welfare state.

December 14, 2006
U.S. Mint Moves to Ban Penny Melting
Effective today, the U.S. Mint has implemented an interim rule that makes it illegal to melt nickels and pennies, or to export them in mass quantities.

Violators of these new regulations face up to a $10,000 fine, imprisonment of up to five years, or both.

The Department of the Treasury implemented similar regulations prohibiting the exportation, melting or treatment of silver coins between 1967 and 1969, and 1-cent coins between 1974 and 1978.

This combined with the new restrictions on I-Bonds must mean the welfare state is working overtime lately.

The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. - Alan Greenspan

Surely there must be something we can do. What if I...

There is no safe store of value. - Alan Greenspan

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which — through a complex series of steps — the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion. - Alan Greenspan

Heck, those other purposes might even be an Iraq War over oil. Stranger things have happened. I am SO stagflationist today. Just thought I'd share that.

See Also:

Gold and Economic Freedom, Alan Greenspan, 1966


Anonymous said...

US FED policy in a nutshell. Steal from savers to bail out spenders

Anonymous said...

Stag, I just read the the "Twilight Zone" link. LMFAO. Where do get this stuff?

Anonymous said...

Melting is small potatoes. When I was a lad, kids used to line up pennies on the railroad tracks. After the train came through, the pennies were smashed to the size of quarters. They were called slugs and could be used as quarters in pinball and video machines. Triple A, risk free 25 to 1 leverage. Now that was financial innovation.

Stagflationary Mark said...

abby normal,

If at any point we see a potential safe haven from inflation, the loophole will soon be closed.

Savers are such an easy target.


Where do get this stuff?

I believe we live in the sunlit world of what we believe to be reality. I consider it to be an Illusion of Prosperity. I also believe that there is another place that is not so brightly lit, perhaps some sort of darkside. The dark side is always there waiting for us to enter. Until then I simply try to enjoy the sunlight.

It is unfortunate that so many seem brainwashed by what they see on TV. Fortunately, I'm fairly convinced that I'm immune to any such brainwashing.

Tales from the Darkside (TV Show)

Man lives in the sunlit world of what he believes to be reality. But, there is, unseen by most, an underworld, a place that is just as real, but not as brightly lit..... A DARKSIDE.

The dark side is always there, waiting for us to enter, waiting to enter us. Until next time, try to enjoy the daylight.

Not that there is anything wrong with my television. Others are controlling the transmission. If it needs to be louder, others will do it for me. If it needs to be softer, they will do that for me too...

The Outer Limits
There is nothing wrong with your television set. Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper...

Yep, no brainwashing here! I'm immune! ;)