Shane Anthony Mele found himself on a troubling path many years ago. A series of poor choices led him to a dark place, and he soon became entangled in shady dealings.
Over time, these choices accumulated, magnifying his underlying flaws – namely, his propensity for theft and his lack of intelligence. Recently, the culmination of these traits resulted in a sordid incident that exemplified the chaos of his character.
Mele made a disingenuous error, failing to grasp that he was not the only deceptive individual in a world rife with dishonesty. He misunderstood the distinction between face value and intrinsic value.
In a misguided attempt at gain, he stole a rare coin collection, oblivious to its true worth. All he perceived was a stash of coins stamped with a face value of one dollar. Greedily, he exchanged these coins for cash. According to Zero Hedge, the details reveal:
“After stealing a rare coin collection from an elderly and disabled retiree, Shane Anthony Mele dumped what the owner claimed was at least $33,000 worth of collectible coins into a Coin Star machine at a Florida supermarket, receiving only about $30 – barely sufficient for a couple of 12-packs.”
A Downright Disgrace
Mele is undeniably a thief and lacking in wisdom. Yet, he is also a product of a flawed understanding. While his actions are reprehensible, the world he inhabits operates on similar deceptive principles.
Transforming someone else’s property valued at $33,000 into a measly $30 payout is certainly an astonishing feat. Mele’s Coin Star transaction resulted in a staggering loss of over 99.9%. However, he is not unique in his folly.
The Federal Reserve, alongside the U.S. Treasury, has engaged in a prolonged campaign of currency debasement for more than a century. According to the Bureau of Labor Statistics’ own inflation calculator, the Fed has diminished the dollar’s value by approximately 96%. In practical terms, this means that what a dollar could purchase a century ago now requires a dollar today.
This pattern of wealth erosion, when viewed as a percentage, echoes Mele’s Coin Star experience. Yet, on a broader scale, the Fed’s efforts to devalue the dollar represents the grandest act of theft in history.
While Mele embodies a mere thief and fool, the Federal Reserve operates with an intentional knowledge of its actions, redistributing wealth to the U.S. government and major banks. This behavior is undeniably disgraceful.
The Fed’s currency debasement not only siphons off the savings of Americans and global dollar holders, but it also disrupts commerce and the accumulation of personal wealth. Let’s examine the circumstances that led to Mele’s unfortunate encounter with face value.
Fake Money’s Face Value Deceit
The Morgan dollar, minted in the U.S. from 1878 to 1904 and again in 1921, bears a face value of $1. Its reverse side explicitly states “One Dollar.” However, with a silver content of 0.7734 ounces, this coin possesses a melt value of approximately $11.70 at today’s silver price of about $15.14 per ounce. Collectible Morgan dollars can, of course, command much higher values.
This highlights the core principle: the Morgan dollar is real money with tangible value that cannot be manufactured at will.
Thanks to the Fed’s overproduction of dollars and the enforced usage of legal tender, genuine money has been supplanted by counterfeit currency. Although the One Dollar bill declares itself as such, its true worth is closer to $0.04, with the remaining $0.96 having been appropriated by the Fed to serve governmental interests.
Mele, the thief and fool, stood little chance against the Fed’s dishonest maneuverings. Unfortunately, even the honest individuals find themselves at a disadvantage.
The reckless spending habits of Washington, encouraged by the Fed, have deteriorated over several decades. The march towards insolvency is accelerating as the fragile veneer of fiscal responsibility crumbles, leading to a parabolic rise in the national debt.
For instance, the national debt doubled from around $5.5 trillion at the turn of the millennium to about $11 trillion when President Obama took office. It then doubled once more to about $22 trillion today. Currently, the debt increases by over $1 trillion annually, and projections indicate possible $2 trillion deficits as the economy may enter decline later this year. Here’s the reason why…
Congress prioritizes immediate gains and re-election over the principles of responsible governance. Over the last 50 years or more, their modus operandi has been to procrastinate on pressing debt issues.
As economic growth slows, Congress will likely respond with reckless increases in stimulus spending, heaping more debt onto an already precarious situation. Only a complete collapse will halt the relentless expansion of government and soaring debt levels.
In the meantime, much like encountering a war veteran with lost limbs, the deceit of fake money’s face value serves as a daily reminder of the moral decay wrought by today’s monetary system.
Sincerely,
MN Gordon
for Economic Prism
Return from Fake Money’s Face Value Deceit to Economic Prism
