Calculating the Intrinsic Value of the US Monetary Base (Physical Currency)

Discussion in 'Political Opinions & Beliefs' started by thediplomat2.0, Feb 13, 2012.

  1. thediplomat2.0

    thediplomat2.0 Banned

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    I thought it would be very interesting to try and calculate the intrinsic value of the United States monetary base. First, it is good to know that each physical currency note is made of 75% cotton, and 25% linen. As of 2009, the value of the cotton in all United States physical currency was just over $219 billion. However, what is the intrinsic value of the entire United States monetary base? I will post my calculations shortly, but I would like to hear all of yours. I am using this exercise as an experiment on hard currency, trying to see if the United States has enough monetary options to adopt such a standard. Unfortunately, a mere gold standard would not be enough.
     

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