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September 2, 2014

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Letter to the editor:

Minting money will undermine the nation

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Each year, 4 billion $1 bills are printed. Keep the presses going by printing $1,000 bills instead of $1 bills.

This would created a surplus of $4 trillion and enough to cover the deficit for three years. As a result, you could stamp dollar coins and do away with pennies and nickels.

Inflation is coming anyway, so let’s give it a kick start so the U.S. can move toward Third World status sooner. I’m 80 years old and now believe I will live to see the demise of the dollar. Congress will see to it.

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  1. US minted money, coins and bills, once had intrinsic worth and value. Coins had precious metal content. Bills were gold certificates. No more. Coins and bills are worthless except for the backing of the full faith and credit of the US government. Sadly, we have a Federal Reserve Chief and Treasury Secretary who have played politics with fiscal and monetary policy, ala Paul Krugman and keynesian economics, and devalued the US currency by their actions.

    CarmineD

  2. I could be wrong, but it appears to me that Future and many others want to minimize the spending, the low taxes and the deficits under former President Bush and Republicans.

    I could be wrong but it seems to me that Mred and others like him want to minimize the spending, the low taxes and the deficits under President Obama and the Democrats.

    And that's the real problem isn't it? Half of us fail to acknowledge that 'our' side was in large part responsible for creating this financial mess and the other half fails to acknowledge that 'their' side is responsible for not properly addressing the financial mess that exists today.

    Bin Laden was intent on destroying America with the attack on 9/11. Initially it looked like he failed, but a closer look might reveal that he was more successful than he ever dreamed possible. We now seem more divided than ever, unable and unwilling to take responsibility and unable to unify and take tough and unpopular actions.

    Michael

  3. Geez Carmine, stick to facts please. The United States, five years through a serious recession and a poor recovery is by far the strongest economy on the planet. Other countries buy our debt and our currency because it has value and stability. In small amounts the debts trades at zero or sometimes negative interest. Our inflation rate in minimal, subject primarily to energy and agriculture cost swings. The currency has been devalued in comparison to what? Go back to the 1890's and argue your ludicrous free silver-gold arguments. Honestly, when I read your comments I'm reminded of Eyeore from Winnie-the-Pooh.

  4. Carmine won't get this or the writer, much less the editor who picked this uninformed letter but:
    http://www.theatlantic.com/business/arch...

  5. Future,

    You are wrong. There are many people on the Republican / Conservative side that DO dismiss the spending under Bush.

    It won't make any difference to people like Mred, but the counter argument to Mred should not include pointing out that Bush deficits were less than Obama deficits. That cheapens and lessens the argument.

    What Bush did was totally irresponsible and that should always be pointed out and admitted. Then, we should go on to say that what Obama is doing is totally irresponsible. This foolish 'equivalency' argument should not be part of the discussion.

    That's all I am saying. I certainly do not agree with Mred, who thinks Obama is doing a great job, but when Mred criticizes Bush, he is .... correct.

    Michael

  6. George, HELLO. What do you think the Federal Reserve has been doing? Ever bother to look at the "value" of the dollar--keeps shrinking next to the EU--even with Greece and other challenges. Gee, how can that be happening?

  7. Jeff,

    and I quote 'We will get our side to behave too, when it makes logical sense.' Well, isn't that great! Both houses of Congress now routinely allow their leadership to prevent bills that they don't like from coming to the floor for debate and a vote. That practice really does promote debate, compromise and an up and down vote, now doesn't it?

    I am pro-choice and I would not support bills banning abortions, although I am not in favor of most abortions that happen because people act stupidly and irresponsibly. That said, if a group of our representatives passes 31 bills to ban abortion, my view is that they should all come for a vote in the Senate and be defeated. The same is true with any bill in the Senate. All bills should at least be brought to each chamber. I am not a big fan of using committees to kill bills either.

    We have two armed camps, one in the Senate and one in the House. You at least acknowledge that the Senate doesn't do what they should do, but until we demand that both houses actually bring all bills (even ones they consider not worthy) up for consideration, we are all screwed.

    Michael

  8. "Geez Carmine, stick to facts please. The United States, five years through a serious recession and a poor recovery is by far the strongest economy on the planet" @ Pat Hayes

    That's not saying much according to the facts. Europe has unemployment of 12 percent. Persons in Europe under 25 has an unemployment rate of 25 percent. And the PIGS, Portugal, Italy, Greece, and Spain, are worst. US is headed in the same direction as Europe.

    CarmineD

  9. "Go back to the 1890's and argue your ludicrous free silver-gold arguments." @ Pat Hayes

    Check the prices of gold and silver lately. All time highs. Why? Flight to safety: precious metals.

    CarmineD

  10. "Carmine won't get this or the writer, much less the editor who picked this uninformed letter but.." Mark Schaffer

    I read it and others like it. I can quote chapter and verse of articles and opinions that say just the opposite. Like I posted to Hayes above: Check the prices of gold and silver.

    CarmineD

  11. Jeff,

    I may forget and if I do, please forgive me, but I am going to make an effort to not respond, directly, to your comments going forward. To communicate with you serves no useful purpose. You are of course free to comment on what I write, but I'll most likely not respond directly to you.

    Michael

  12. http://finance.yahoo.com/echarts?s=FXE+I...
    Let's put some facts on the board regarding this topic also. Look at the above chart and go back 10 years. Roslenda says the dollar keeps shrinking versus the euro. Bull! The dollars is at about the same spot it was in 2007 versus the euro.

    The letter writer says inflation is coming. 70% of inflation is wages. When you start seeing double-digit wage increases you will see strong inflation. Wages have been stagnant for decades. Inflation has been the weakest that it has been since the end of the depression. Social Security recipients like my wife have been lucky to get any cost-of-living increase whatsoever because inflation has been so muted. I think she just got a $22 bump. I told her not to spend all of her new found wealth in one place.

  13. Europe and the United States are dealing with the exact same problems. Aging populations, very long life expectancies and costly entitlements. Mainly medical care! Debt is being created at an astronomical level to cover the costs of these entitlements and keep taxes low to promote business activity.

    That being said output in Europe and output in the United States is at an all-time high. Technology like robotics and machines used in manufacturing are keeping costs low and margins high. Companies the world over are doing fine but unemployment is high by historical standards.

    This is likely to be the trend going forward. Higher than trend unemployment. Decent corporate profits and high productivity and output. The downside is very high deficits. They will be dealt with through monetary manipulation in the next 50 to 100 years.

  14. @Carmine...dissembling again. Your two posts do not refute the facts: the United States continues to have the world's strongest economy; our currency and our debt is highly desirable to the extent that it is routinely purchased and used as reserves;our inflation rate is minimal with swings primarily attributable to commodities. No one disputes that it would be better to have a more robust economy...actually, that isn't quite true. There are folks who believe that our current economic conditions drive down wages, discourage trade unions, reduce the size and influence of the public sector and transfer wealth to "creators"....they really like this economy.

    You cite EU17 unemployment and refer to the PIGS as worse. While your Southern European brethren are notoriously corrupt and inefficient, the more industrialized European nations [that's the crummy Commie Socialists of Jerry's fevered delusions] seem to be doing better like 5.4 to 8% range, same as or slightly better than us.

    Inflation...what inflation. Six months ago I was paying 4.25 a gallon for gas, last week I paid 2.99; my propane cost 2.09 a gallon delivered out here in the boonies; fresh veg, fruit and especially meat is always on sale; our power company [PUD] held rates firm again though we pay a storm damage surcharge to replace 5000 poles blown down in a storm.

    Really, I have no clue as to where you guys get your information. Five minutes of simple research blows most of your underlying data right out the door.

  15. The smaller European countries that are often mentioned Peaked as economic superpowers hundreds if not thousands of years ago. Don't forget Greece gave us Plato, Aristotle and Socrates. Greece gave us the first institutions of higher learning as well as medicine. They have all played their part in world history.

    It's not easy for a small non-industrialized nations to compete against countries like the United States and China. They're doing the best they can given the circumstances.

  16. I find it amusing how many people consider themselves to be experts in macroeconomics.

    One would be tempted to believe that to earn a Ph.D. in the subject, all one has to do is read The Wealth of Nations and then sit around with other econ grad students and talk about the book for the next six or seven years.

  17. "@Carmine...dissembling again. Your two posts do not refute the facts: the United States continues to have the world's strongest economy; our currency and our debt is highly desirable to the extent that it is routinely purchased and used as reserves;our inflation rate is minimal with swings primarily attributable to commodities." @ Pat Hayes

    If what you say is TRUE, and not just that you believe it is, precious metals would not be at all time highs on the world markets. And US Treasuries, despite the Fed's action to devalue the dollar with QE to infinity, would be yielding better rates of returns than the unemplyment rate. Last I checked, the demand for 10 year Treasuries, US Notes, was so low the auction was cancelled and not rescheduled. While prices of precious metals are staying high along with demand. Why?

    CarmineD

  18. "Let's face it, right-wingers should stay away from making predictions.
    Remember when some posters on this site predicted gas would cost $6 a gallon before the November elections, and that it would sink Obama's reelection chances? LOL, I remember." Last Throes

    You forgot it was former Governor Palin and other GOP oil watchers who told the president for months, while gas prices were going through the roof, to increase the margin requirements on futures. Rather than keep them at zero and allow speculators to bid up prices. What happened? Obama issued an Executive Order to do it. And oil/gas prices came down precipitously.

    Go back here and note where I posted that the President should do this [raise the margin requirements] for weeks before he did. And when he FINALLY did, I praised and applauded him for doing so AND STILL!

    CarmineD

  19. "Cash is still king.

    And the dollar will be here until the end of
    time.

    Try to buy gas or food with gold and see what
    happens." @ Teamster

    I don't deny you're right. But....value is minted paper is printed.

    CarmineD

  20. Zippert: Cart before the horse AGAIN. Wage increases are often COL's and the result of inflation. The Federal Reserve is playing with inflation--by keeping interest rates so low the inflation morphs into decreased dollar value. And, you don't think a 10% decline in the dollar in the last year or so is of note. Well then focus your mind on something else. Interesting how we devalue production (manufacturing and individual output) and go blind at the natural results--weaker dollar, inflationary pressures, degradation in standard of living....

  21. Precious metals at all time high? Carmine is wrong about gold specifically:
    http://inflationdata.com/Inflation/image...

  22. "Precious metals at all time high? Carmine is wrong about gold specifically..." Schaffer

    You're splitting hairs. In 2003, gold was $200 an ounce. Today it is $1670 an ounce. That's not because the dollar is a safe haven. Just the opposite. When investors lose confidence in the dollar, as they have over the past two presidential administrations, they flee to safety. That's precious metals. Value is minted, paper is printed.

    CarmineD

  23. if you all want to save tax dollars, tell incoming presidential cabinet secretary's not to remodel their private bathrooms for a quarter-million bucks...