free money

I am working on an idea that will add value to the Australian Government’s stimulation package which as a significant event will in April this year be giving away free money to most of the Australian population over the age of 18. The average family will be receiving $1900! (How good is that?)

My proposal to the Government is that they commission the Mint to prepare dies for a new circulating coin commemorating the special event to the denomination of $50 to be minted to coincide with the stimulation. Those members of the population, who wish to redeem their reserve bank stimulation cheque at the mint instead of their bank, would then have money, not only to spend at their will but something marking the event. Working nearby the Royal Australian Mint I have become informed by their displays and publications in all things numismatic and from this point of view, the coins would be significant and collectable as it’s very rare that governments give away free money. Actually it’s the second time within 12 months our government has given away free money but just because it’s free, it doesn’t mean that it should become a mundane event, quickly forgotten in people’s minds.

The standard design of Australian coinage with a marsupial of some sort on the reverse face would not be suitable as it should not be confused with the money that we work for- for instance. Other Ideas are welcome but the memorable slogan; “Free Money 2009” keeps popping into my head. In case people may think the title too flippant and mark down (at least in their minds) the excellent standing of our currency, the coins should be minted in metal of value such as gold or silver. As such the value of the coins themselves would surely overcome such fears. We know demand around the world for gold and silver coins especially has skyrocketed this last year as people have lost trust in some traditional financial instruments of the 21st century, so the alternative offer would be very popular with financially-savvy voters. Fortunately silver from a historic point of view is very cheap at present at only $19 Aus per ounce. The historic value ratio of silver to gold has varied from ratios of 50:1 to 80:1 so the current ratio of 75:1 marks silver especially outstanding value for such a production.

Discussions emanating from all around the world (as evidenced on Hot Copper) as to the value of gold & silver to stable economies are most visible in these times of extreme financial interruption. The lost role of precious metals as money over time is an economic theme that I am sure the largest central banks will be revisiting before long, lets hope our Central Bank doesn’t miss the boat.