Message:

<p>[QUOTE=&quot;NorthKorea, post: 1573685, member: 29643&quot;]I snipped most of your quote since it was essentially a political rant.</p><p><br /></p><p>Anyway, the problem with the argument above is context. In 1892, one Japan yen was either silver (26.96g 90%) or gold (1.67g 90%). At this same time, 50 sen (1/2 yen) was silver (13.48g 80%). Now, why would there be this disparity in silver composition between 50 sen and one yen? Essentially, a yen had more actual silver in it than two 50 sen (one yen equivalent). The difference was 12.5%.</p><p><br /></p><p>In 1906, this was somewhat exacerbated by the 50 sen piece being reduced further to 10.1g 80%. At that time, the full yen coin was still a 26.96 90% piece. This brought the difference over 50%.</p><p><br /></p><p>In 1922, the 50 sen piece was reduced to 4.95g 72%. This hung around until 1938... and... WORLD WAR TWO!</p><p><br /></p><p>As a result of losing the war, Japan was bankrupt as a nation. The yen, formerly 26.96g 90% silver was now a 3.2g brass coin. The 50 sen piece transitioned twice in the four years after the war, first to a 4.5g brass piece, then to a 2.8g brass piece.</p><p><br /></p><p>Then came the Korean War. Due to the Korean War, Japanese goods saw a spike in demand, which helped reboot their economy. The money supply needed to be updated and increased, and Japan witnessed its first aluminum yen in 1955. In 1955, the United States was still using the 26.73g 90% standard dollar.</p><p><br /></p><p>1957, Japan issues a 100 yen (4.8g 60% Ag) coin.</p><p><br /></p><p>Equivalent values based in silver gives us:</p><p><br /></p><p>1957 100 yen = 2.88g Ag</p><p>1957 50 cents = 11.25g Ag</p><p><br /></p><p>In 1957 dollars, $1US (silver based in half-dollar equivalents) would have purchased 781.25 yen (silver based in 100 yen equivalents).</p><p><br /></p><p>In 1965, the United States changed the silver content of its 50c pieces (11.5g 40%) to contain 4.6g Ag. At this exchange rate, $1US (silver based in half-dollar equivalents) would purchase 159.72 yen (silver based in 100 yen equivalents).</p><p><br /></p><p>So, in a decade, the US saw 79.556% of its purchasing power (in silver equivalents) vanish. It&#039;s even less time if you want to be technical about when the 40% clad half was actually introduced.</p><p><br /></p><p>The point is that quantitative easing an the negative interest rate policies of Japan aren&#039;t the only reason for Japanese inflation from 1892(1897)-2012. It&#039;s not even the main reason. World War 2 was the primary culprit.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in