> > I don't think that we will come full circle or that the new ETF will > replace Coupon currencies because a system that includes e-sugar, e-corn > and e-whathaveyou will still need a base denominator to be quoted in and > exchanged for.
I don't mean the ETF will replace the paper currencies. But somebody can build a DGC with the gold ETF as a backing, and thus avoid the storage costs that normally come with setting up a gold backed currency. And when it comes to e-sugar, e-rice, etc, the base denominator could simple be a basket of commodities. > Hence, it would be workable if everything was quoted in gold - or logs, or > rocks for that matter. Meaning one unit e-sugar is being quoted as 3 rocks > and e-eggs is a rock and a half. I'll swapp you two e-sugar for six > e-eggs. > Know what I mean? > No denominator of quotation and the negotiation between you and me - even > through computers - would take forever, because I might actually not want > sugar, but sure have to get rid of the eggs, because one of them looks as > if it'll hatch any minute. Well, the paper currencies trade without denominator, and it is no problem. You can trade US$- Euro , GBP-Aus$, CHF-Yen, and so on... But, agreed, having a general accepted denominator currency works easier in normal trade... > The only real break through and full circle will really be when the trade > denominator and common store of wealth will once again become gold. I don't think we will go back to gold standard. The reason is that it gives too much power to countries that have their own gold mines, so those countries without gold mines will object. It would be as if only a few countries had printing presses to print money. That's why a basket of commodities will become easier accepted, when it comes to creating a 'value backed' currency. It also removes the argument of the anti-gold economists, that using gold as money there will not be enough liquidity in the system. Using all major commodities in one basket currency, there will be always liquidity enough. Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
