> The actual theory is that BAD money chases good money, *out of circulation*. Actually, Todd Gresham's Law only happens in countries with legal tender laws. Bad money drives out good when the government forces an exchange of debased money for good money. People hide all the good money and the government gets whatever doesn't get tucked away fast enough. Since the government cannot take digital gold off the market like it can with gold coins in circulation, fiat money cannot drive out digital gold. To read an absolutely fascinating article on this subject click here: http://www.goldbankone.com/article.php?sid=71 In a free market, good money drives out bad. The economist Doug Noland actually proved this in his doctoral dissertation. That's why the dollar has become the international savings and commerce currency of choice. The dollar has had a higher staying value than the currencies of most countries. It is natural that digital gold will eventually replace the dollar in that funtion in international commerce. It is like gravity. It will happen, just give it time. If digital gold is better money then merchants will give a discount to customers who pay in gold, because they prefer the better money. While it is true that presently people who accept payment in digital gold quickly convert it to fiat money, eventually people will want to convert their fiat currencies to digital gold. It may be a decade or two before that inflection point is reached, though. Use dollars to pay your taxes. That's all legal tender is good for. Ken --- 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.
