Hi Todd, The actual theory is that BAD money chases good money, *out of circulation*. The reason is that you will always try to spend away money that is being debased (that is, devalued), and save (or hoard) money that actually provides a good store of value. I haven't checked the e-gold statistics, but this may even happen here, when people are LESS prepared to spend e-gold (on dollar denominated goods) when the gold price is low (it will buy them less dollars) and they think it will rise, than when the price is high and they think it will fall soon. Ian Green http://two-cents-worth.com/?107242 ----- Original Message ----- From: "Todd Boyle" <[EMAIL PROTECTED]> To: "e-gold Discussion" <[EMAIL PROTECTED]> Cc: <[EMAIL PROTECTED]> Sent: Thursday, August 30, 2001 1:46 AM Subject: [e-gold-list] Re: GoldMoney Bailment <SNIP> > GBC may be good money, better money than national currencies. > In theory, good money is supposed to chase out bad money. <SNIP> --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Did you know that e-gold Ltd. stores more gold on behalf of customers than many countries? See http://www.gold.org/Gra/Gra1.htm and the e-gold Examiner at http://www.e-gold.com/examiner.html for details.
