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The Accelerating Economic Death Spiral

March 30, 2012 by Bob Livingston
The Accelerating Economic Death Spiral

Treasury Secretary Tim Geithner wants to change the materials used to make coins and replace paper money with digits on the computer (electronic transactions).

According to Geithner, it now costs 2.4 cents to make a penny and 11.2 cents to make a nickel because rising commodity prices have driven up production costs.

Why are commodity prices rising? Because of inflation created by the Federal Reserve’s money printing. According to an opinion piece in The Wall Street Journal, the Fed bought 61 percent of the total debt issued by the Treasury Department last year.

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It's not just the Fed...

fractional reserve banking is the problem!

Also, it is very primitive of us to still place value in shiny metals. I know...let's back our currency with water or food, something we actually need and whose value is less subjective!

Furthermore, with the sheer volume of currency in circulation, interest rates are orders of magnitude too high and are regressive anyway.

Meant to provoke some thought, flames expected. These are just musings arising from observations.

Pride and greed hold us all back, to the benefit of the few and detriment of the whole.

Let em have at it. The coins

Let em have at it. The coins in production now already look like Chuck-E-Cheese tokens.

Things are only impossible until they are not.
-- Jean Luc Picard

Old saying....

"Not worth the paper it's printed on" really applies here. Or maybe "Not worth the metal it's stamped on"

The beginning of the end. Even the paper will be more valuable..

..than the money it is supposed to represent.

Hard times ahead.

.

The final stage

will be when the lowest denomination FRN in circulation will equal the cost of one piece of Toilet Paper.

Hope Timmy Turbotax makes FRN's softer and more absorbent.

I have an idea.

The pennies could be made from Soylent Banker, and the nickels could be made from Soylent Politician/bureaucrat.

At least that way, they could serve some useful purpose.

That pesky Federal Reserve

that Ron Paul wants to abolish...I can clearly see why THEY are ignoring Ron Paul, maligning his name, and manipulating the election results and caucus proceedings?

It has nopthing to do with foreign policy, drug legalization, Libertarian principles, etc.

It's all about the deep-rooted 100+ years of control that diabolical fingers will not loosen their grasp of.

The law cannot make a wicked person virtuous…God’s grace alone can accomplish such a thing.
Ron Paul - The Revolution

Setting a good example is a far better way to spread ideals than through force of arms. Ron Paul