content by: Grant Cagann
At a time when global banks and governments are colluding to sign us on to QUADRILLIONS (that’s “thousands of trillions”) worth of derivative debt, the concept of a single penny of un-backed fiat currency is actually quite the mind-bender.
Here’s a new video on the uselessness of the penny. If the REAL numbers were actually discussed, it would be argued that everything up to the $100 bill be wiped. Beyond that, ALL paper and coined money might as well be abolished, since we can create any amount of digital currency we want with a click of a mouse. SERIOUSY..WHAT HAS HAPPENED TO OUR REPUBLIC?
Digressing….here’s the vid:
It is certainly true that the penny is a waste of resources and human capital. HOWEVER…like other various opportunities to grab value out of nothing, having pennies in circulation offers a wealth-storing opportunity to all Americans. The video above mentions the nearly .02 COST to produce a penny, but what is does NOT mention is the .225 MELT VALUE of those pre-1982 pennies that still represent nearly 20% of pennies in circulation today. Nor does it mention the melt value of a nickel, which is currently only a couple hundred basis points over face value but has been significantly higher than that over the past few years.
Even if you think that all this talk of sound money, gold & silver, and financial collapse is bunk, the simple fact is that there is US currency available right now where the face value is LESS than the current melt value. Can anyone tell me the melt value of a dollar bill?
If you think the US dollar is going to come out of the current malay unscathed, AT LEAST STORE YOUR DOLLARS IN THE FORM OF METAL COINS! If hyperinflation destroys the value of the printed dollar, metals prices will shoot to the moon, then YOU WIN (even if all your money is in nickels)! If nothing happens and you were right all along, then your coins are worth the same face value held by paper currency….YOU WIN.
Since I believe that there is ZERO chance for this fiat money experiment to last through the next decade, I’m taking every opportunity (as small as it may seem today) to prepare my family for success.
Here’s what my kids are working on while NOT watching i-Carly (separating copper bullion):
“money” is supposed to be a medium to store the value of current efforts for future use. If you store your current value in paper, and allow it’s value to be debased with each fresh sheet of federal reserve notes or click of a banker mouse, then you’ll have nobody to blame but yourself when that paper is worth nothing. I’m teaching my kids to store value in assets that have INTRINSIC VALUE; assets that will be around long after paper fiat currencies and the Legal Tender Laws ENFORCING thier “value” are gone.
If ever there was an argument to return to sound money…