Hello!
I believe I'm beginning to understand why you're feeling uncomfortable.
> If it is widely known that
> e-gold,/G&SR/omnipay/digigold is the same group of
> guys
> hiding behind four different corporate shells, why are
> you so comfortable when they back out of a transaction
> here and then refuse to back out of a transaction
> there?
> Either they believe in the sanctity of a contract or
> they do not!!!
Their privilege to refuse service, without adequate idenfication, is in
place because the risk of going bankrupt is too great. If you had 1.1
million in your bank account, and you learned one day that your bank had
wired it all out without checking the identity of the person who ordered the
transfers, and without even getting a copy of his driver's license, then
your bank would be held liable when you sued them, and they would probably
go bankrupt. The same is true for G&SR. If they were to honor a commitment
of that size without checking identification, and the instructions were
given due to a breech in security, then they could be liable and could be
forced into bankruptcy. This is why more due diligence is necessary with
larger transactions. Losing $10,000 wouldn't put them out of business.
Losing 1 million might.
The liability issue is one of the key issues which caused them to split the
company into two parts, Omnipay and E-Gold. E-Gold LTD, structured as it is,
has NO liabilities and the likelyhood that it could ever be held liable for
a large amount of money is extremely low. This adds another layer of
protection for the users' gold. If they had kept E-Gold LTD integrated with
G&SR, operating as one company, then if G&SR were sued into bankruptcy, the
gold would be at more of a risk, since it might be considered to be an
assett of G&SR.
> So it is ok to run an unlicensed bank and Digital
> bearer commodities brokerage from a boiler room in
> Florida, owned by a Delaware Shell?
These presumptions are not correct:
1) Who's running an unlicensed bank? Seriously, I don't know what it is
you're calling a bank. To be a bank, you have to pay interest. Private
Digital Currencies do not fall under banking regulations. Look at PayPal.
The only difference between PayPal and E-Gold, in this fundamental sense, is
that PayPal does NOT buy any underlying assets when new PayPal dollars are
put into their system, whereas gold is bailed into the E-Gold system for
each new ounce of e-gold. It didn't have to be built this way; G&SR could
have simply made 'promises' to back their currency and kept the money from
the sale of e-gold in their own bank accounts. They chose not to do it this
way because they didn't believe in it.
2) This is not a Commodities' Brokerage. There is no brokering and there is
no leveraging. You're buying a private digital currency backed by gold. This
is not a regulated industry in the US.
Craig
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