Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Gib Bogle who wrote (107415)	2/20/2010 9:24:50 AM
From: FreedomForAll	2 Recommendations Read Replies (1) \| Respond to of 110194

If it takes 10 million Federal Reserve notes to buy a loaf of bread or a quart of milk, then what we commonly call a dollar is worthless. According to the Coinage Act of 1792 a dollar is between 371 and 416 grains (27.0 g) of silver (depending on purity.) The Constitution does not give the government the power to print dollars, only to coin them and to borrow. However, what we commonly call dollars, Federal Reserve Notes, are debt, not dollars. So in common terms the dollar will be effectively worthless someday, probably soon, but legally a dollar is still about 377 grains of .999 silver, and that probably will retain value.