The superpowers of China, Russia, and the United States may without knowing it be racing towards reopening their mints to the monetary metals. The governments of these countries are like the heroes of Greek tragedies: they are drawn to their fate by destiny. There is no way for them to avoid Kismet, regardless of what they do. This leads to the question of what is meant by opening the mint to the unlimited coinage of gold and silver free of seigniorage charges.

The mint is a monetary institution far more important than the central bank. It is an ancient and venerable institution. The central bank is a relatively new invention, hardly venerable. It was conceived to make ordinary people absorb the unpaid and unpayable debt of kings.

The importance of the mint is not to be found in its altogether negligible role of coining small change, the so-called subsidiary coinage which people use to make small purchases. The mint is all-important because it is designed to produce real money…….Read Full Article