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<p>[QUOTE=&quot;cphine, post: 712584, member: 20940&quot;]Info Sponge,</p><p>You beat me to it!</p><p>I read the question and immediately went to the handy dandy Wikipedia to grab a more &quot;formal&quot; definition of Gresham&#039;s law than I could come up with off the top of my head.&nbsp; I come back to post it, and, well, you beat me. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p>&nbsp;</p><p>I&#039;ll post it anyway for community knowledge....</p><p>&nbsp;</p><blockquote><p>Gresham&#039;s law states that any circulating currency consisting of both &quot;good&quot; and &quot;bad&quot; money (both forms required to be accepted at equal value under legal tender law) quickly becomes dominated by the &quot;bad&quot; money. This is because people spending money will hand over the &quot;bad&quot; coins rather than the &quot;good&quot; ones, keeping the &quot;good&quot; ones for themselves. Legal tender laws act as a form of price control. In such a case, the artificially overvalued money is preferred in exchange, because people prefer to save rather than exchange the artificially demoted one (which they actually value higher).</p><p><br /></p></blockquote><p>As far along the fiat money path we are on, it would probably take a complete SHTF situation before we ever revert back to money that&#039;s actually worth something...and that&#039;s after the worst is over and we&#039;re rebuilding.</p><p>&nbsp;</p><p>Or...ohhh!...how about a reverse of the 1933 gold confiscation?&nbsp; Soldiers could come break down our doors searching for copper nickel coins, offering the new silver ones in a face value exchange. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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