Any silver stackers on the board?

[PolarBear]

Originally Posted by vintagetoppsguy

Check out this $20 bill from 1960. What does "REDEEMABLE IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK" mean?

What is lawful money? Wasn't this $20 bill lawful money?

If so, how can you redeem it for lawful money if it's already lawful money?

It's a series 1950. The "lawful money" clause is one of the steps to the full fiat currency we have today. The earlier Federal Reserve notes were redeemable in gold, which changed with the series 1934 notes since FDR made gold ownership illegal. "Lawful money" in this case would be silver. Now they're just paper.

[vintagetoppsguy]

Originally Posted by PolarBear

It's a series 1950. The "lawful money" clause is one of the steps to the full fiat currency we have today. The earlier Federal Reserve notes were redeemable in gold, which changed with the series 1934 notes since FDR made gold ownership illegal. "Lawful money" in this case would be silver. Now they're just paper.

Thanks, Don. It may be a 1950. I pulled the image from eBay and the seller's description said 1960, but they may have mistyped. I'm not familiar with paper currency.

Either way, it was a rhetorical question. I knew the answer. I wanted to see who else knew and wanted to spark a conversation. Your answer is correct. It was one of the steps to a fiat currency system.

However, that's not what our forefathers intended. In fact, they were very much opposed to paper currency. Shortly before Washington's second inauguration, Congress passed the Coinage Act of 1792. They intended for our currency to be in the form of coins which were made of 90% gold and silver. The value of the coins were based on a fixed price of gold and silver. There was no fiat currency.

This worked great until the Civil War when Lincoln started issuing promissory notes to pay the union soldiers. That's was the start of the fiat currency system that we have today. However, our currency was still tied to gold and silver reserves for many years later.

So what changed to bring us into today's fiat currency system? What is our money backed by today? Why aren't coins still made of real silver and gold anymore? Who is going to pay our 23 Trillion dollar debt? Can our government just keep printing money over and over and over again and expect everything to be ok? Something has to give, right?

Whether it's a 1950 or 1960 note, y'all really need to take another look at the wording on that $20 bill and open your eyes to what it happening in the US with our fiat currency system. If you still don't know, just ask someone from Venezuela what happens when the paper currency becomes worthless.

Glad to say that my wealth lies outside of the banking system.

[packs]

Are people in Venezuela trading each other precious metals for food and water?

[vintagetoppsguy]

Originally Posted by packs

Are people in Venezuela trading each other precious metals for food and water?

I'm sure there are many ways to barter.

[packs]

I can't see trading someone food for silver or gold unless I've got access to some kind of enormous stock pile or insider information on when the shortages will end. Like others pointed out, you can't eat or drink silver and gold.

[vintagetoppsguy]

Originally Posted by packs

I can't see trading someone food for silver or gold unless I've got access to some kind of enormous stock pile or insider information on when the shortages will end. Like others pointed out, you can't eat or drink silver and gold.

Why would there be a shortage of food and water? That makes no sense. My point is that no one will want the currency if it is worthless. Food and water (and other supplies) will still be available, it's a matter of what it's going to take to acquire them.

Silver and gold has been used as currency for thousands of years.

As I pointed out, the words "silver" and "money" are the same word in many different languages.

As was also pointed out, you could purchase an entire city block in Germany for an ounce of gold right after WW2.

[packs]

You brought up Venezuela, a place where hyperinflation has consumed all currency and created a shortage of food and water. I don't know how much food or water a person can expect in exchange for gold, unless the people with gold have some kind of unfettered access to basic survival staples.

I don't know where the block of land for an ounce of gold story comes from. I've never heard that before.

[PolarBear]

Originally Posted by vintagetoppsguy

Thanks, Don. It may be a 1950. I pulled the image from eBay and the seller's description said 1960, but they may have mistyped. I'm not familiar with paper currency.

Either way, it was a rhetorical question. I knew the answer. I wanted to see who else knew and wanted to spark a conversation. Your answer is correct. It was one of the steps to a fiat currency system.

However, that's not what our forefathers intended. In fact, they were very much opposed to paper currency. Shortly before Washington's second inauguration, Congress passed the Coinage Act of 1792. They intended for our currency to be in the form of coins which were made of 90% gold and silver. The value of the coins were based on a fixed price of gold and silver. There was no fiat currency.

This worked great until the Civil War when Lincoln started issuing promissory notes to pay the union soldiers. That's was the start of the fiat currency system that we have today. However, our currency was still tied to gold and silver reserves for many years later.

So what changed to bring us into today's fiat currency system? What is our money backed by today? Why aren't coins still made of real silver and gold anymore? Who is going to pay our 23 Trillion dollar debt? Can our government just keep printing money over and over and over again and expect everything to be ok? Something has to give, right?

Whether it's a 1950 or 1960 note, y'all really need to take another look at the wording on that $20 bill and open your eyes to what it happening in the US with our fiat currency system. If you still don't know, just ask someone from Venezuela what happens when the paper currency becomes worthless.

Glad to say that my wealth lies outside of the banking system.

You should read "The Creature From Jekyll Island" if you haven't already.