palani
3rd August 2011, 05:23 AM
Say there are 2 trillion paper dollars printed and floating around supporting the economy. If my math is correct that would be $6,666 per man, woman and child in the U.S. This might not be realistic in terms of numbers but is merely an example.
Suddenly the U.S. government announces that greenbacks are no longer valid and that any in your possession must be replaced with whalebacks (new currency just invented). The gov gives you 2 weeks to show up at a bank and exchange your old worthless greenbacks for new fully backed whalebacks. They print up 2 trillion dollars worth of these notes to replace one for one with paper dollars known to be on the books.
Now there are some people who don't want to let the gov know they have greenbacks. Pimps, druggies, DB Cooper, counterfeiters, Russian crime lords are several notable examples. There are other FRNs that have been destroyed, lost, stolen, you name it. In other words there is a block of currency that will not be turned in because an accounting would be required into how it came to be in a persons possession.
At the end of 2 weeks the exchange period is over and there will be a pile of whalebacks not claimed. These could be returned to the Fed and used to pay down the national debt.
Think about it. A national debt limit crisis eliminated at the expense of lawbreakers. A win-win solution unless the gov simply needs another crisis to form an emergency around.
The greenback is as much a military script as any ever put out by the military. The military does this sort of action when their script has been corrupted by black markets.
Suddenly the U.S. government announces that greenbacks are no longer valid and that any in your possession must be replaced with whalebacks (new currency just invented). The gov gives you 2 weeks to show up at a bank and exchange your old worthless greenbacks for new fully backed whalebacks. They print up 2 trillion dollars worth of these notes to replace one for one with paper dollars known to be on the books.
Now there are some people who don't want to let the gov know they have greenbacks. Pimps, druggies, DB Cooper, counterfeiters, Russian crime lords are several notable examples. There are other FRNs that have been destroyed, lost, stolen, you name it. In other words there is a block of currency that will not be turned in because an accounting would be required into how it came to be in a persons possession.
At the end of 2 weeks the exchange period is over and there will be a pile of whalebacks not claimed. These could be returned to the Fed and used to pay down the national debt.
Think about it. A national debt limit crisis eliminated at the expense of lawbreakers. A win-win solution unless the gov simply needs another crisis to form an emergency around.
The greenback is as much a military script as any ever put out by the military. The military does this sort of action when their script has been corrupted by black markets.