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Thursday, March 12, 2009
Zimbabweans Are Panning For Gold To Barter For Food! March 2009.
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This is why people need junk silver, in a few different denominations. I've also wondered about plain old nickels and pennies, since at one point last year a nickel was actually worth 9 cents and a penny was worth 2 1/2 cents because the dollar had devalued so much against all commodities, including base metals. I can't imagine there is enough 40% and 90% junk out there to keep commerce going in the very worst case scenario. Base metal coins may have some role to play.
ReplyDeleteBy the way there is a very long archive of weekly letters from Zimbabwe here:
http://www.cathybuckle.com/
[Look in the left margin & scroll down for more recent letters.]
It's a fascinating but horrible picture of hyperinflation (but they are also starving there because farming was put to an end by Mugabe). Here's a bit from the Feb 21st letter:
"Municipal charges have gone up by 900 %, in US dollars, and the outrage is palpable. No bills are produced and so we don't know how much of the charge is fact and how much is for someone's back pocket. Residential dustbins have not been collected for ten months. In desperation people have taken to dumping their garbage in the bush, under trees or simply on the side of the road. Most suburban street lights have not worked for two or three years, tar roads are a maze of gullies and cavernous potholes and the grass on street corners is over six foot high."
Hey Freelancer,
ReplyDeleteYou're right. I'll be posting about junk silver and related issues within a week or so. I have heard many people speculate that bartering with precious metals may occur during a collapse of a currency, but until Zimbabwe I wasn't sure if that was a real option to consider. I've heard that in the 1970's some stores in the US during the height of the high inflation had signs preferring junk silver, but I can't remember where I read that so I can't confirm if that is true.
Hmmm, maybe the Mormons, the Amish, The Farm and other self sufficiency believing groups and religions aren't so wacky after all. Calif's govenor just reduced the amount of water that the central valley farmers will be able to irrigate with this summer by declaring a drought emergency. I think it has more to do with a NAFTA favor myself. Californians and the US in general will be forced to import more produce from latin american countries. The well-to-do can still afford "organically grown" domestic produce, but the "little people" will have to deal with bouts of bacteria born illness from contaminated imported food...we swallowed a couple of trillion dollars of debt without a whimper, why not drill another hole in the boat?
ReplyDeleteI find the copper penny and 5 cent nickel analogies to be very interesting! Yes, why not stash all your pennies and nickles for melt value? 100 pct+ return on 100 pennies is still 2 dollars for 1 dollar if the commodity prices don't drop. Ha! what thief wants to haul off with jugs full of pennies and nickels too?
people must buy what they need so there will be a medium of exchange when the current money is no longer accepted.
ReplyDeletehaving some savings in gold or silver is good but it is savings, not income. what will you do when it is gone?
find a way to grow what you eat. raise chickens and a garden or set up a hydroponic garden by a south facing window. stockpile heirloom open polinated seeds and start growing these now so you have experinece at doing it.
this will produce the food you need in bad times.
good luck to you all.
pete
have a plan I'd like to share with you to defeat obama's massive tax plan on the rich and the feds fiat money theft policy that has been ongoing since 1913.
ReplyDeletePresident Reagan has given us a great gift to the Americans to battle this corrupt government.
The Gold Bullion Coin Act of 1985, Pub. L. No. 99-185, 99 Stat. 1177 (Dec. 17, 1985), codified at 31 U.S.C. § 5112(a)(7) through (a)(10), 31 U.S.C. § 5112(i), 31 U.S.C. § 5116(a)(3), and amending 31 U.S.C. § 5118(d) and 31 U.S.C. § 5132(a)(1), has helped the American Gold Eagle to quickly become one of the world's leaders in gold bullion coin. Produced from gold mined in the United States, American Eagles are imprinted with their gold content and legal tender face value.
The act was signed by Ronald Reagan in 1985. One requirement is that all gold used in minting the coins would be from "newly mined domestic sources".
Gold coins as legal tender
The case of Ling Su Fan v. United States[1] establishes the legal distinction of a coin bearing the "impress" of the sovereign:
These limitations are due to the fact that public law gives to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is an attribute of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange.
The case of Thompson v. Butler[2] establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender:
A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them.
Here is what we can do:
I build homes and I would like to build one for you. I need $250,000
to build your home. You and I enter in contract for Construction and I accept $12,500 dollars to build your house. My fixed contract has my overhead and profit $3750.00 which would be my tax liability for the work I've done.
You paid me in US issued legal TENDER $50.00 gold coins.
some of the consequences- Your home cost $12,500 dollars- what would that do to your property taxes?
you lost 237,000 on your gold investment and write it off on your tax return
I only made $3750 on your job I'd have to build over 100 homes to come close to obamas rich man tax rate.
same would work with junk silver I have a used car I'd like to sell for $10,000.00 you and I go into contract for car for $550.00 (Your paying me in silver eagles. or junk silver) or $500.00 in $50 gold eagles.
We take control of our currency. no more money created by debt. our goods and services are protected against government theft though inflation as we control our money. and we beat them at their own game inflation runs backward and hurts the government and empowers the people.
It is good to think and plan for such things but your ideas on the pennies/nickels has already been taken care of by the government. There is very little nickle/copper in the coins. The minerals are more of a coating on the coins. Like a gold PLATED necklace looks nice but not much gold there.
ReplyDelete