Final thought (for couple days anyhow I'm going fishing) many ppl owned homes and land before they were able to get "loans" from the Fed. The Fed has existed in other forms before 1913.
I'm not disagreeing, to be clear. For most of American history, the majority of Americans were farmers, many of whom owned and probably built their own houses. And there certainly were mortgages before the Federal Reserve existed. But as I said, the home ownership rate was low in 1913, and the creation of the Federal Reserve System did in fact enable many to buy homes. I pointed this out only because Kynes specifically referred to people saving to buy homes, which the Fed enabled to a substantial degree.
The central planners have done this many times you are just stuck on the relative here and now. Ben Bernanke has openly admitted that inflation is a hidden tax. The fed and its friends are not subject to inflation like me and you as they have the benefit of using newly created "money" before the market (us) knows its there. They buy their goods and services, then stick you with the bill, indirectly, then you sing their praises....at least we'll make great pets eh?
What the devil are you talking about? The Fed buys goods and services with newly created "money" before we know it exists? Tell me, what are they buying...?
It's all good naw the dime never loses purchasing power below 10 cents....but a silver 10 cent piece, unlike a present dime, has the privilege of being inflation proof.....meaning it will give who holds it, the power to not be bothered or affected by runaway government spending......which means runaway government.....indeed the word "support", in legalese, literally means to give money..... which is why The Fed convinced The Congress to take them out of circulation.....the plan is to make us beg.
Seriously thanks for the convo made me think a lot, at least we agree taxes kill jobs.
See, this is why we ran around in that circle previously, because I can't figure out what you're trying to say. You called a silver dime "inflation proof." Except that it wasn't, which is the point I keep trying to make. Your 1913 silver dime bought less goods every single year from 1913 into the 1960s. How can you call something inflation proof if almost 50 years of unfettered inflation eats at the real purchasing power of the coin?
This leads me to another thought. If the silver coins had been losing real purchasing power for decades, why would you care about having silver in the coins at all? The inflation result is exactly the same, except when the price of silver exceeds monetary value. Once that happens, the only way to continue making useful silver coins for general circulation would be to increase the monetary value of them. Then you get the same decades of inflation up to the monetary value. They didn't dump silver as part of some inflation scheme. The simple reality is that non-money demand for silver skyrocketed at the same time that demand for coins skyrocketed. Silver, which had long been used pretty much exclusively to make coins, suddenly had tons of other non-coin uses.
That's what made the price increase: supply and demand. Silver prices today have nothing to do with being a store of value or precious metal--very little silver is actually used for those purposes. Most silver is consumed by non-money, non-investment industrial and household demand. Your silver windfall is based on the fact that useless silver suddenly became very useful, and thus more valuable. This wasn't something people in 1800, 1860, 1900, or 1920 would have considered.
