 |
 |
 |
 |
 |
|
Quarter a Gallon Gas What is a USD or United States Dollar? The historic definition of a "dollar" is 412.5 grains of standard ( 90% pure ) silver in coin form. The 412.5 grain figure was an average; the coin weighed 416 when minted. When, through wear and tear, its weight fell below 409 grains, it was no longer a dollar, but could be used in trade for a value in proportion to its weight. In general, banks culled out the worn coins and returned them to the mint to be recast. What a simple system! You can still exchange FRNs for real US silver dollars, at a rate of about 18 FRNs for one ounce of real money silver. Your checks and credit cards actually transfer Federal Reserve Notes ( FRNs) which have no fixed redeemable value. Most of us paid into the Social Security system or into our retirement accounts in real Dollars but are being given SS checks ( if we are old enough ) or are given distributions from our retirement account in FRNs. Inflation implies something is costing more. This is Orwellian 'doublespeak", since it is the FRN getting less valuable , not goods and services inflating in value. A gallon of gas still can be bought today for less than a quarter of a US (actual silver) Dollar. In 1962 I was paying 25 cents a gallon for regular grade gasoline. If today I had a 1962 US quarter I would have enough real money to buy a gallon of gas --- not because the 1962 quarter is old, but because it is real money containing about 6.3 grams of 90% silver. At today's price of silver that quarter is worth about $3.50 ( in todays FRN "dollars" ) so you could buy one gallon of regular grade gasoline if you had a 1962 quarter. Same goes with 1963 and 1964 US quarters ( and older ) which all contained 90% silver. By 1965 the US quarter contained the following: Outer layers - 75% Copper, 25% Nickel Since I know you have access to the internet, I suggest that you watch some of the great videos on www.youtube.com or on the Google video site that you can find by searching on Federal Reserve or Money and Banking.
|
