On Thursday, September 18, 2003, at 08:08 AM, FileMatrix wrote:
In conclusion, gold needs paper money so it could be valuable relative to
that.
George:
You have it exactly backwards. Paper money needs gold so it can be valuable relative to that. That's the way it was in the United States until about 1933. The Mint Act of 1792 defined the "dollar" as 24.75 grains of pure gold. So if you presented a Ten Dollar paper note to the US Treasury, the Treasury was obligated to give you 247.5 grains of pure gold. This took the form of an "Eagle" coin, defined in the Act of 1792 as consisting of 247.5 grains of pure gold combined with 22.5 grains of silver and copper for added strength and durability, yielding a coin weighing 270 grains.
I can see that FDR and his intellectual heirs did a good job in re-educating you to accept colored paper as valuable simply because a government worker prints it, and for no other reason whatsoever. You are a good and obedient servant.
You forget one thing in your arguments: paper money can be printed, gold CAN
NOT! Economic value can not be pegged to gold!
You have it exactly backwards. Precisely because paper money can be printed, economic value cannot be pegged to it. You cannot create economic value by putting some ink on a piece of paper. If that piece of paper cannot redeemed for a real asset (e.g. gold, silver, wheat, a haircut, whatever), then printing the piece of paper actually destroys economic value because the person doing the printing is getting something for nothing.
Didn't your mother ever tell you that money doesn't grow on trees?
And even it were possible to make it from led, the day gold will be created
on industrial scale in particle accelerators, is the day gold ends its life
as currency. So, that case is out.
You have it exactly backwards. Paper tokens falsely passing as "money" are now being created on an industrial scale using printing presses, not particle accelerators. This is the day that paper tokens end their life as currency. So, that case is out.
-- Patrick http://fexl.com
--- 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.
