At 12:44 AM 8/28/2001, [EMAIL PROTECTED] wrote:
>(One point .. note that all growth in any DGC comes from bailed in
>bars. Even if the buy-back trade is 10,000,000 billion per day, the DGC
>in question has stopped growing unless bars are being bailed in ... at
>2-4% for e-gold, or 0% for GM. LOGICALLY, when growth rates are very
>high, even if there were any large merchants, it all has to come from
>bailing-in.)
Hmmm what about velocity? You could imagine GBC serving its
vital role only as a lubricant at the point of exchange then being
returned immediately to some settlement lubrication agent. e.g.
Joe buys something on ebay. Joe gets some GBC at very low
transaction cost somehow, uses it to pay the other guy, and
the seller cashes it in, within a few seconds.
Somebody please refute the argument. At least, velocity enters
the picture someplace, I do agree, total reserves is a factor as
well. But wouldn't it be nice if we get the certainty of gold
in commerce, without the cost of unnecessarily large reserves.
Todd
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