At current metal prices it costs 2.4 cents to make a penny and 11.2 cents to make a nickel. This week President Obama asked Congress for permission to change the mix of metal that goes into these coins, because apparently the zinc and tinfoil they’re made of now is just too expensive.Read more »
Among the silliest things that people say about gold standard systems is that under them, the “money supply” grows about 2% per year, due to mining. This is demonstrably false – not only that, but so utterly wrong as to induce falling-off-the-chair guffaws from those who understand such things. For an example in the United States in 1775, the total amount of currency in circulation (primarily gold and silver coins) was an estimated $12 million. In 1900, it was $1,954 million – an increase of 163x!Read more »
The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. But, an increase of 2% a year over a period of 20 years will lead to a 50% increase in the price level. It will take 150 (2032) dollars to purchase the same basket of goods 100 (2012) dollars can buy today. What will be called the “dollar” in 2032 will be worth one-third less (100/150) than what we call a dollar today.Read more »
In a round of extremely volatile trading, Bitcoin hit $6.00 today and is now up 200% from the November 17th low of $1.99, and up 27% in only the first four days of 2012.
24 hour volume on the Mt.Gox USD market is in excess of 151,000 BTC, representing a very busy day on the Japan-based exchange.Read more »
Up and coming investment guru, Kyle Bass recently disclosed a conversation he had with a senior Obama administration official. The official admitted the government’s economic strategy was to “kill the dollar” which Bass called “a dead answer.”Read more »
The last time we wrote about Bitcoin, in October, the currency's future looked grim. A series of security incidents had created an avalanche of bad press, which in turn undermined public confidence in the currency. Its value fell by more than 90 percent against the dollar. We thought Bitcoin's value would continue to collapse, but so far that hasn't happened. Instead, after hitting a low of $2, it rose back above $3 in early December, and on Monday it rose above $4 for the first time in two months.Read more »
Your Money in Transition
A series of 1934 $100,000 gold certificate. This is the highest-denomination note ever issued by the United States. These notes were only used in transactions between Federal Reserve banks up until the early 1960s. The largest notes ever to circulate publicly were $10,000 gold certificates and Federal Reserve notes.Read more »
man tries to redeem a 100 dollar bill at the federal reserve bankRead more »
Are physical Bitcoins legal?
Bitcoins aren't just an abstract financial instrument living somewhere in the digital ether anymore. They're now a physical currency capable of taking a ride in your pocket or scratching off your lottery tickets.
The physical Bitcoins, called Casascius Bitcoins and created by a guy in Utah named Mike Caldwell, are made of brass, with gold electroplating on the 25 Bitcoin denomination. And, of course, they're tied to the peer-to-peer, open-source digital currency that's been exchanged on the Internet for a while now.Read more »
The bursting of the Bitcoin bubble
BITCOIN, briefly the world’s favorite cryptocurrency, is in trouble. It plummeted from a peak of around $33 per unit in June to just $2.51. In May Rick Falkvinge, the founder of the Pirate Party in Sweden, famously blogged that he was converting all of his Swedish-crown savings to Bitcoins. Five months on, he tweeted that after “hoarding” Bitcoins until they hit $18 or so, he had moved to a “buy-and-sell pattern”. Mostly sell, it seems. “I currently don't hold any,” he admitted.Read more »
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