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RE: A Surprise @ the Coin Counting Machine!
That's an interesting theory... "Federal Reserve Notes" written on paper but not the coins.
I've got about 60 pounds of pre 1982 pennies in case my heirs see a benefit from the copper value a generation from now.
It's not about the copper value in the Pocket Change I mentioned, just like it's not about the Paper value in the Fiat Currency... It's more about having a standby Medium of Exchange already in place when the Paper and Digital Fiat Currencies Collapse...
Won't paper money serve the same purpose as coins?
Paper and Digital money in the Banks are going to Crash... You might even say Collapse... Coins will become very valuable with an increased buying power of one hundred fold in my humble opinion... If you're holding onto physical cash, the Banks will probably offer you a penny for each paper dollars worth of value listed on the paper... A hundred dollar bill will probably get you a one dollar coin...
Ok, I hear you.
How do you figure that coins will have a greater value than paper dollars?
Paper dollars as you call them are in fact Federal Reserve "Debt" Notes... Each one represents Debt... Naturally, interest has to be paid on most types of Debt... Interest is being paid on every Paper Dollar... I figure that Common Coinage is Debt free , other than the cost of Minting them... When the Paper and Digital Fiat Dollars Crash, the only Medium of Exchange worth anything will be Common "Debt Free" Coinage or as I like to call it, Pocket Change...
A very unique and interesting theory.
I do not agree with your theory because of what the currency, whether paper or coinage, represents.
Both paper and coins cannot be fraudulently manufactured (punishable by felony charge). Thus both have value from similar scarcity relative to their designated value.
IF the population recognized that value as a medium of exchange (regardless of what collapse occurs) then both existing coins and paper would continue to carry value according to their designation.
HOWEVER: In a hyperinflation scenario, I suppose coins could become the 'new' paper when 100 trillion dollar notes are printed and citizens conducting market exchanges between themselves abandon notes and everyone agrees that coins are the new medium of exchange that is mutually agreed upon...
If you can point out any similar episodes in history that reflect this scenario you ought to consider writing a post about it as evidentiary support for your fascinating theory.
Thanks for your comment concerning my Pocket Change Theory... Now, let's say there's a Reset of our Monetary System... Let's say Congress takes back control of our Currency... Let's say we Seize the Assets of the Federal Reserve and kick them the Hell out of our Country... Let's say we restore the buying power of our Coinage to a point where it reaches "Fair Market Value"... Let's say all these things happen... Let's say we give the Federal Reserve a break and offer them one penny for each of their Fiat Dollars... Let's say we come up with a New "Debt and Interest Free" Dollar... As per my theory, it will take 100 old dollars to get you 1 new dollar... But if you happen to have Common (Pocket Change) Coinage, I think 100 Cents will get you that New Dollar... That's where the increase in buying power of a hundred fold comes into play... Think about it for a while... Ponder the Possibilities... Thanks... Pocket Change...