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Gresham's Law - Start Of High Inflationary Period

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I recall reading this article on hpc about 1 and 2 pence pieces being melted down and disappearing. Copper 1p and 2p are now replaced with steal coated copper.

http://news.bbc.co.uk/1/hi/business/4766897.stm

Is this an example of "Gresham's law"?:

http://en.wikipedia.org/wiki/Gresham's_law

I understand this is seen as an indicator of high inflationary periods - would be interested to know thoughts?

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Is it worth so much? Bloody hell, hang on a minute while I rip all the pipes out of my central heating system and exchange them for a full size sapphire studded gold plated copy of the Taj Mahal.

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Guest DissipatedYouthIsValuable

I recall reading this article on hpc about 1 and 2 pence pieces being melted down and disappearing. Copper 1p and 2p are now replaced with steal coated copper.

http://news.bbc.co.uk/1/hi/business/4766897.stm

Is this an example of "Gresham's law"?:

http://en.wikipedia.org/wiki/Gresham's_law

I understand this is seen as an indicator of high inflationary periods - would be interested to know thoughts?

Significant general inflation would cause too much starvation for the large numbers of people on fixed incomes.

There's not much in the way of a young demographic boom coming up.

Houses will have to come down. I can't see much sign of wage inflation.

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I recall reading this article on hpc about 1 and 2 pence pieces being melted down and disappearing. Copper 1p and 2p are now replaced with steal coated copper.

http://news.bbc.co.uk/1/hi/business/4766897.stm

Is this an example of "Gresham's law"?:

http://en.wikipedia.org/wiki/Gresham's_law

I understand this is seen as an indicator of high inflationary periods - would be interested to know thoughts?

Gold sovereigns used to be in general circulation.

until 1920 our silver coinage was sterling (92.5%) but had to be debased to 50% to pay our war debts.

in 1948 all silver was removed from our coinage as we couldnt afford it.

in 1992 we couldnt afford to keep copper in our coinage......

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Some great points made in this thread. Its blindingly obvious whats going on. Do not be mislead by the apparently slow time frame. The pace of devaluation is accelerating. Money is Gold, Silver & copper. First they removed the gold, then the silver and now the copper. Digital money is next (now)with no limits.

Edited by endgame

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It looks like the prerequisite for debasement mineral value increase of Coltan has started

Guns, Money and Cell Phones

The demand for cell phones and computer chips is helping fuel a bloody civil war in the Democratic Republic of Congo.

The offer turned up a few weeks ago on an Internet bulletin board called the Embassy Network. Among the postings about Dutch work visas and Italian pen pals lurked a surprisingly blunt proposal: "How much do you want to offer per kilogram? Please find me at least 100,000 U.S. dollars and I will deliver immediately."

The substance for sale wasn't cocaine or top-grade opium. It was an ore called Columbite-tantalite - coltan for short - one of the world's most sought-after materials. Refine coltan and you get a highly heat-resistant metal powder called tantalum. It sells for $100 a pound, and it's becoming increasingly vital to modern life. For the high-tech industry, tantalum is magic dust, a key component in everything from mobile phones made by Nokia (NOK) and Ericsson and computer chips from Intel (INTC) to Sony (SNE) stereos and VCRs.

http://www.globalissues.org/article/442/guns-money-and-cell-phones

Tantalum is a particularly fine material for making capacitors. But it's not irreplaceable. In the past when Tantalum has been in short supply, the electronics industry has simply substituted another material. It's only a dielectric afterall. You can use air - but you need to use quite a lot of it :D

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Tantalum is a particularly fine material for making capacitors. But it's not irreplaceable. In the past when Tantalum has been in short supply, the electronics industry has simply substituted another material. It's only a dielectric afterall. You can use air - but you need to use quite a lot of it biggrin.gif

How about paper and wax? Or metal vanes with air between them?

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Significant general inflation would cause too much starvation for the large numbers of people on fixed incomes.

There's not much in the way of a young demographic boom coming up.

Houses will have to come down. I can't see much sign of wage inflation.

Dave's got it all under control. We're going to import them from India. They're got millions of them they don't need.

Got to keep feeding the banksters.

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How about paper and wax? Or metal vanes with air between them?

No. Tantalum caps have a high capacitance per unit volume and have something called a low ESR. You couldn't sub with paper and wax or metal vane caps, unless you wanted your mobile a lot bigger.

There are starting to be caps made from Niobium Oxide that are on the market. I haven't tried them in any of my designs yet.

This is the deal with rare materials. People use them because they are good at their job and cost effective. If the material becomes expensive people switch to something else, which may not perform quite as well but still does the job.

All the scare stories about tantulum, indium silver etc running out are just that - scare stories.

Of course there is a difference between this and a short term squeeze if someone decides to try to restrict the market, as often these things are only mined in a few places (eg NdFeB).

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From the link....

Gresham's law is named after Sir Thomas Gresham (1519–1579), an English financier during the Tudor dynasty. However, the law had been stated forty years before by Nicolaus Copernicus, so in parts of central and eastern Europe it is known as the Copernicus Law. The phenomenon had been noted even earlier, in the 14th century, by Nicole Oresme.

Is the paper a £10 noteis printed on worth £10?

Seems to me he was talking about the arrival of paper money.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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