Why did most ancient civilizations debase their currency over the centuries?

Discussion in 'Ancient Coins' started by Gam3rBlake, Jun 19, 2021.

  1. Tejas

    Tejas Well-Known Member

    Some US coins retained a silver content into the 1970s, but that was just tradition. The US was not on the silver standard. Instead, the US had been on a gold standard until 1933, when Rooselvelt demonetized gold and made the possession of gold for monetary purposes illegal. Owners of monetized gold were forced to convert it at the nominal value within 14 days. Afterwards Roosevelt fixed the gold price at 35 dollars per ounce, resulting in a devaluation of the dollar to 59% of its last gold value. Gold holders were effectively expropriated at a grand scale.

    The next strike against gold came in 1971 under Nixon. The US government had promised foreign governments that had pegged their currency to the US dollar a fixed conversion rate to gold. Because of the Vietnam War and large scale social programs, the US government over issued dollars in the 1960s. When the French and Germans demanded the US government to honor their promise, Nixon declined, basically saying "You keep the paper, we keep the gold". The over issuance of dollars in the 1960s and the resultant downward pressure on the USD had forced the pegging countries to expand their money supply to maintain the peg, causing them to import US inflation, which resulted in the stagflations of the 1970s and the suffering of millions of people.

    So, while nobody really cared about the silver content of the dollar coins, the abolition of the gold standard in 1933 and 1971 has caused many people to lose their savings, jobs and livelihoods.
     
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  3. Tejas

    Tejas Well-Known Member

    The US was not on a silver standard. The silver content of some coins was a historical remnant without any consequence. The US was on a gold standard until 1933, when every paper dollar could be converted into gold at the nominal rate. (There was at times also a conversion rate to silver and silver certificates, but that had never really played a big role).
    From 1944 to 1973 the US dollar was on a gold exchange standard. US citizens could no longer convert Dollars into gold, but the US government promised foreign countries that pegged their currency to the dollar a fixed conversion at 35 dollars per ounce. In 1971 Nixon reneged on the promise and in 1973 the gold conversion standard ended formally (Gold shock).
     
  4. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    I think Nixon did the right thing regarding not returning the gold to Germany and France.

    I mean WW2 cost America a fortune to liberate Europe from Naziism.

    Basically giving them dollars for gold could be thought of as a sort of payment for that since America would’ve saved a lot of money had it not been for WW2.

    It’s sad that it cost a lot of people their life savings but it’s also sad how much sacrifice was required from America during WW2 for something that wasn’t our problem and didn’t benefit us but rather was purely a humanitarian act to help Europe.
     
  5. Tejas

    Tejas Well-Known Member

    As mentioned before, real silver standards existed in the middle ages until the 18 century or so. Later bimetallism, with gold and silver as bases were attempted, but what really matters is not any silver content in coins, but full standard gold coins (classical gold standard) or gold conversion at the nominal value.
    The one reason for the existance of the gold standard was that it limits the ability of the government to inflate the money supply. Until the end of the gold standard, price levels have been remarkably stable over very long periods of time. Since the end of the gold standard, the purchasing value of money known only one direction - down. The dollar lost 96% of its purchasing power sind 1913 (i.e. the inception of the Fed).
     
  6. Restitutor

    Restitutor Well-Known Member

    This is so ignorant, I can’t even believe this is a real belief; I thought I read you were some history major? You really need to have a long look in the mirror if you really believe what you wrote, and probably get your degree money back.
     
  7. Scipio

    Scipio Well-Known Member

    USA joined the WWII after Pearl Harbour; that was self-defense, nothing humanitarian. Avoid alternative reality, buy a book of history.
     
  8. kevin McGonigal

    kevin McGonigal Well-Known Member

    It certainly can be debased, that is reduced in value, simply by printing more and more of it. If an increased money supply goes hand in hand with increased productivity the currency retains its value or worth but when the state simply injects more and more currency into circulation without an increase in productivity the result is a fall in the value of the currency. The debasing of paper money is even easier than debasing a coinage by reducing its specie content. look around you
     
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  9. DonnaML

    DonnaML Supporter! Supporter

    Also, in saying that the European theater of World War 2 wasn't our problem and that participation didn't benefit us, she takes a remarkably narrow view. Most people not named Pat Buchanan would disagree.
     
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  10. scottishmoney

    scottishmoney Unwell Unknown Unmembered Supporter


    Well, it did ignore the fact that both Germany and Italy declared war on the USA on 11 December - not the other way around. They were also firing on and sinking US Navy vessels months before that, think USS Reuben James.

    In the madman's thinking, the middle of a multi-front war with your army spread out the breadth of Europe and even soon N. Africa - what better time to declare war on yet another country - one whose ability and resources were inestimable - is just beyond all rational comprehension.
     
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  11. Herodotus

    Herodotus Well-Known Member

    :facepalm:

    Is this what they're teaching kids these days in school?
     
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  12. Ryro

    Ryro The last of the Diadochi Supporter

    Just the kind of thing that a troll that asks questions that they could just Google and do a tiny amount of research, has conversations with themselves under alternate handles and switches photos of people that look nothing like themselves would ask.
    Huh, we've seen this on CT before...
    Wake up folks. It's our same old person. Not a high school football player, old burn out, fisher woman nor more recently a college party bro about to tongue a pie (what a gross and awkward picture that was) or a beautiful lady. Just our same old, button pushing troll.
    20190326_104727_E2F40068-0B5E-4E86-8BDF-145B2E7E9A30-406-0000007D5174E148.png
    (Actual image of the troll)
     
  13. Restitutor

    Restitutor Well-Known Member


    Omg thank you. I thought I was going crazy thinking this account used to be a man. And I don’t mean that in an anti-trans way. I’ve had a feeling this person was a troll, glad to see it’s not just me. Account should be banned.
     
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  14. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    It has nothing to do with what is being taught in school.

    It’s a simple fact.

    Your response is like if I had said:

    “Water is composed of hydrogen and oxygen”..

    & then you replied: “Is that what they’re teaching in schools these days?”
     
  15. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    Go take your transphobia somewhere else.

    Your homophobic & transphobic comment is literally on the verge of resulting in an account ban.
     
  16. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    You just totally missed by point completely.

    Pearl Harbor had nothing to do with the Nazis!

    America could focused on a Pacific War and saved hundreds of billions of dollars.

    Instead we decided to be the heroes and dealt with the Nazis too even though the Nazis were no threat to the American homeland.


    The least Germany could do for causing all that blood and death is pay a fraction of the reparations owed.
     
  17. Ryro

    Ryro The last of the Diadochi Supporter

    My niece is trans. I love her very much. You are not. You are a fake piece of trash. You change your photo get banned, do it again, sometimes in between. Wash repeat.
    What a pathetic attempt to cover up your trolling.
    You are a phony and this has NOTHING to do with your lie that you are transitioning!
     
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  18. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    But you are transphobic and I could have you banned for that transphobic comment as it is a clear violation of the rules.

    But I believe in second chances so I’ll give you a warning.

    If I see any more transphobic/homophobic comments from you though I will report you to a moderator.
     
  19. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    1). I have never been banned.


    2). I have a right to post any pictures of myself that I want to.

    3). I feel bad for your niece for having to deal with a transphobic person like you who pretends to love her.


    I recommend you leave me alone and keep your LGBTphobia out of this forum. I gave you a second chance but any more transphobic harrassment from you and I will report it to a moderator.

    The rules clearly state harassment is bannable.

    & Yes calling someone names while in a transphobic tantrum is harassment.
     
  20. Ryro

    Ryro The last of the Diadochi Supporter

    You couldn't have anyone banned! You are such a fake.
    Oh, but wait. You believe in second chances. I don't. Stop spamming with your trolling questions. You've been banned more times than I can count and are trying to tell an actual contributor that you think that you have the power to ban them???
    Lmbo.
    Why is the sky blue? Why are most coins round? Why am I a liar?
    There are a few of your next few thread posts.
    Now stop with your lies, come clean and get out here.
     
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  21. Ryro

    Ryro The last of the Diadochi Supporter

    I feel sorry for your mother. She has to deal with you. I don't. POS.
    The fact that you would accuse two of us with being transphobic with us not saying anything about it just shows what a fake you are and how you grasp at straws as you try to keep your lie alive before getting banned again.
     
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