| "They sound like real money and look like real money. But you can't take them to the bank because they're not made at a government mint. They're made at private mints. "I sell three or four every single day and then I get one or two back a week," said Dave Gillie, owner of Gillies Coney Island Restaurant in Genesee Township. Gillie also accepts silver, gold, copper and other precious metals to pay for food. He says, if he wanted to, he could accept marbles..." |
This is starting to happen because the Federal Gov't has abrogated its responsibility to coin money in quantities that would help support and sustain the general welfare of its citizens! We may be witnessing the birth of a new monetary system because of ignorance and monumental policy failure!
Read full article here.
I am listening to Bizradio now and they are now pushing that Austrian school of Economics ( & Bizradio ) is all over in terms of coverage and notification of the present deflation as if they predicated the deflation.
ReplyDeleteHowever, in the past two years all I heard is inflation inflation inflation.
How can they do their 180 spin on this ?
I agree with Mike Norman’s claim that “home made” currencies arise where a government fails to provide sufficient official currency. This happened on a big scale in the U.K.in the industrial revolution in that there was a shortage of small change, so metal bashers turned out their own coins which were mainly better quality that government produced ones.
ReplyDeleteAlso a distinction needs to be made between an inadequate TOTAL money supply and an inadequate supply of small change. I think there is an inadequate “total” supply in Main Street because government has channelled stimulus mainly to Wall Street. Also commercial banks have got the jitters about their toxic loans and are scared to engage in their usual money creating activities.
Just for discussion - I would support talking about ELASTIC CURRENCY THEORY -
ReplyDeleteremember before October 2008 the Fed swelled the reserve money supply by a huge easily discerned curve upswing to anticipate a run on the banks.
Bernanke did the right thing and it worked.
Mike Norman was ALL over this while the Austrian school Bizradio libertarian chicken necked geeks were in penalty box for being such waltzing goobs.