> > And when it comes to e-sugar, e-rice, etc, the base denominator could simple > be a basket of commodities. > But that basket would still need a denominator or 'unit'. In essence you could say that the sugar portion of the basket is 10% of the basket and hence sugar costs 0.10 baskets. But then you might just as well call the baskets Dollar and everything stays the same ;o) > > 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. > The current planning is actually much more sophisticated than that. The idea is to use gold as the denominator - but - to calculate the exchange value of goods and commodities in their gold value and then issue a gold credit to the producing countries (interest free) for which they can order goods abroad. The system then is expected to include quarterly settling by a central banking system, which makes adjustments between country accounts and pays out surpluses in actual gold. Hence would the value of the gold of gold producing countries be simply one gold unit, and this would do away once and for all with fluctuations in the gold market. Instead all other currencies would rise and fall in terms of gold based on supply and demand of the commodity, rather than gold.
The above is simplified and the mechanism is indeed far more complicated, but at the same time astoshingly equitable. The only real problem is that there won't be any inflation and no hyper-interest per say. This is because the supply of gold - including the gold still in the ground is finite and charging interest would result sooner or later in more gold being in circulation than gold does exist in reality. Instead the system proposes for equitible participation of creditors. Meaning, rather than you borrowing money from me to buy a house, I will buy the house and let you use it for a set amount of rent for a set period at the end of which the house is yours. As there is no inflation, it is between you and me at what 'monthly rental' you will pay the house off. This might all be a huge shock for our western minds were we are used to earn interest - but don't forget "they" are in the majority and "they" control the commodity supply, while "their" people are often living below the poverty line. Who could blame "them", if "they" pulled it off? In other words, if you want to profit from investments under the new system, you invest in stocks, cause there ain't no bonds... > It also removes the argument of the anti-gold economists, that using gold as > money there will not be enough liquidity in the system. That argument is based on artificial growth, which itself is built on inflation. If you take inflation out of the equation and only allow for growth in actual commodity production, which indeed is finite then that argument bites it's own tail. Of course, we are a lot of world-wide hardship away from such a system. Cheers, Robert. budget & privacy website hosting http://www.cyberica.net budget & privacy domain registrations + mail http://www.u2planet.com/cfdomaintrust.html --- 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.
