>Q: How would you go about abolishing the Federal Reserve? Almost all >USD in circulation are debts to the Federal Reserve. How would you >replace this debt-backed currency with an other type?
Since 'backed' currency is the most desire money, and the total amount of gold (silver, platinum, palladium) is limited, perhaps a multi-metal backing would be useful. I think it is obvious that denominating value in dollars will require a much higher unit price than we current enjoy. $300 per ounce gold is only the beginning. The actual process of replacing fiat dollars (FRN's) with non-debt backed money will probably by done by popular demand, rather than government decree. Both currencies will exist side by side, with a more or less gradual changeover to 'backed' currencies as the public learns their true value. Initially, we may go the route of the Wiemar (sp?) Republic and carry fiat money in wheelbarrows. I don't expect this change to occur without a great deal of opposition from the US Federal Reserve and any of the central banks which continue to support fiat currency, but they may have little choice as fiat value drops lower. They actually accelerate this process by adding 'liquidity' to prevent immediate failure. If e-currency payment systems are in place when the population asks to use them, there will be no good reason to sell e-metal for fiat. This suggests a great need for a simple method of bailing in physical PM's. Those gold coins and bars being bought by mom and pop are difficult to spend unless they can be easily deposited into an e-currency account. I hope the exchange providers are listening, because they are the logical place to bail in hoarded gold and silver. Of course, the CB's and their governments have a vested interest in keeping control of money creation and that's why they oppose 'backed' money. National governments (and the UN) will take some action to support fiat money, either make it cheap (happening now) or legislate against owning PM's and e-currency. The second option may happen in the next few years, but is unlikely to be popular and could topple governments which attempt it. Finally (sorry about the length here), has anyone else noticed recent announcments about gold and silver currency minting by the US goverment? I don't know where they plan on getting the metal to do it with, but the legislation has been requested. Read the news quote from GATA 9/28/2001 "Gotcha, Gold Cartel, gotcha!" http://www.bricksofgold.com/goldnews.php Dave Brooks Editor / Bricks of Gold Website & eZine --- 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-metal is a wonderful holiday gift? Avoid the hassle this year!
