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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 08/22/2008 : 19:39:14
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You must be logged in to see this link.
Two-Cent Pennies: a Window on Inflation
Daily Article by Tyler A. Watts | Posted on 8/21/2008
....Old pennies are routinely traded at premium prices, sometimes twice or more their face value. This is not because they are rare or precious — they were minted by the tens of billions — but simply because they are worth more as metal than as money.
Because of this "bullion premium" on the older pennies, a small cadre of penny hoarders is actively searching through America's stock of pennies to pick out these undervalued coins.
I never thought I would be part of a cadre, it feels kind of good to be recognized for our economic wisdom.
A bit more from the article showing that hoarding pennies is nothing new-
In 1864, the first year of the small copper cent, melt value per penny stood at 0.3 cents, less than one-third of face value. This low melt value makes sense, given that the small copper cent was born amidst a tremendous episode of unbacked paper-money issuance — the Civil War–era "greenbacks."
The printing of greenbacks naturally drove prices up, and led to hoarding of small coins, which quickly rose to a premium in terms of the new paper money. The small copper cent was issued as a debasement of the heavier, more valuable copper-nickel cent. By 1879, the greenback currency had been (remarkably) completely redeemed in gold, and America was back to a sound, gold-backed money. This return to gold completely wiped out the inflation of the 1860s. The penny's melt value fell, as did the general price level. ..... By 1913, the copper penny's melt value had fallen to one-tenth of a cent, about as far from a bullion premium as it could get, thus precluding the possibility of hoarding.
......Nineteen-thirteen was a turning point, marking the advent of the Federal Reserve Bank, and the rebirth of inflationary currency not backed by precious metals. If the launch of the Federal Reserve didn't open the door to massive inflation, it at least left it unlocked. From 1913, the price level began to rise gradually — and the penny's melt value along with it.
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 08/22/2008 : 19:44:08
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The last sentence form the artice says it all-
"Wise citizens would do well to stay tuned to the penny and observe what it reveals about monetary policy and the future of the dollar."
We "wise citizens" are doing just that. |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 08/23/2008 : 10:17:01
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Cadre (from the French; pronounced /#712;k#593;#720;dre#618;/) is the backbone of an organization, usually a political or military organization. The expression can be in the singular or the plural. Generally it is applied to a small core of committed and experienced people who are capable of providing leadership and of training newer members.
Because cadre are well developed in terms of knowledge, experience, and agreement with the organization's goals, they should be able to adapt and rebuild the organization's structure and ideological direction even if the organization has been weakened, through, for example, other members being killed or imprisoned. For professional revolutionaries the cadre consider themselves subject to the discipline and self-discipline of a political vanguard party model.
Radical Left movements in particular have maintained their minimum program of survival and growth very effectively through the strength of a cadre system. Basic success within a movement in which cadre are the vanguard comes when one core of cadre has gradually recruited and trained another group of cadre to ensure the perpetuation of the movement. This, in theory, both strengthens the movement politically and promotes a culture of emulation over that of competition. The drawback of the cadre system is the inevitable ossification of the ideology as competition is eliminated, and the cadre becoming a separate caste, "a state within a state".
The term is also commonly used in other venues to indicate an "original" or "leadership" group, i.e. the "first set" of users of a system who then will act as the seed-group who gain initial experience with a system, in order to facilitate its later use by a more general population. An example would be the "Initial Cadre" of pilots trained in a new airplane by the manufacturer, in advance of the more formal training that later pilots of the type might undergo at the airline, i.e. "users", level. The term in this case assumes that the group is able to explore a system and determine by experimentation what later standards will be used to train the follow-on users, and further connotates that the original group will then train the instructors who will then interface with the final users group. The term has the additional connotation of "initial" or "original".
Source:
Wikipedia, the free encyclopedia - You must be logged in to see this link. |
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n/a
deleted
84 Posts |
Posted - 08/26/2008 : 11:19:31
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Pencilvanian,
Thanks for linking to this! I was going to do it myself, but I don't like to toot my own horn.
-Tyler |
"Truth is treason in the empire of lies." -Ron Paul, from _The Revolution: A Manifesto_ |
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knibloe
1000+ Penny Miser Member
USA
1066 Posts |
 Posted - 08/26/2008 : 20:00:52
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| Maybe we should call ourselves the indian head Cadre, not cult |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 08/27/2008 : 03:12:51
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quote:
Originally posted by Economist
Pencilvanian,
Thanks for linking to this! I was going to do it myself, but I don't like to toot my own horn.
-Tyler
Hehe - we really are a small cadre. I have yet to find anyone that is active for very long in this activity unless very small scale that is not a member of realcent. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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