U.S. Dollar Drops Against Counterfeit U.S. Dollar

The Onion is on the scene:

NEW YORK—At the close of trading Monday, the U.S. dollar dipped to a record low of $.60 against the counterfeit U.S. dollar, which also outpaced the dollar against the euro and the yen.
“We don’t even accept regular U.S. dollars anymore,” said Union, NJ 7-Eleven manager Rick Grove, echoing the sentiments of merchants nationwide. “We’ve gotten stung a few times taking in the real ones. I always tell my cashiers, if it feels fake to the touch, and you can’t see both sides when you hold it up to the light, it’s fine.”
Concerned about further devalutation of standard U.S. currency, Federal Reserve Chairman Ben Bernanke has suggested that Congress outlaw counterfeit bills entirely.

As funny as this sounds, there is a real life parallel. In 1869, Jay Gould and Jim Fisk tried to corner the gold market. The price of gold, expressed as a premium to dollars, went to 160. On September 24, Black Friday, the government dumped gold on the market, and the premium instantly fell to 130. Here’s a cartoon.

Posted by on February 28th, 2007 at 12:22 pm

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