Dear Hannibal,
> Digging gold out of the earth is about as basic a method of generating wealth as agriculture It certainly does generates wealth, but it doesn't generate value as agriculture does; well, at least I see it like that. Besides, can anyone tell me the difference between those who mine for gold and DeBeers? (I am not referring to the gold-diamonds difference.) > Just curious, no offense intended... did you learn your economics at a state-run school? As one who has lived under communism for many years, I can tell you (all) it is not possible to do that self-government Jim was talking about, everywhere in the world. No private schools, no money to go to one, no freedom... This is why I insisted (to no avail) not to refer to USA as a universal standard. The world does not live in USA. And what about Keynes? Was he a communist? Did the baron learn to a public school? Dear Jim, > I don't agree that the gold is everybody's money. If Patrick Chkoreff has made such an argument, he is either mistaken or you've misunderstood him, or both. I did not say Patrick said "gold is everybody's money". I said gold is everybody's money because if it would be used as currency, it would be used by everybody - hence, everybody's money. > If you think that digital gold is a better system than fiat currency and banking, then why are you promoting inflationary paper money in opposition to the system Patrick was describing? I am not promoting *inflationary* paper money (maybe you would like to show me where I said such a thing). I am saying that paper money makes a better medium (than gold) for exchanging value, and gold for storing value. As you said, when Greenspan kept the inflation under 2%, things were okay. So, if the people who run the system understand what they are doing, one sees that the people are the problem, not the system. I also said that DGCs are different because they (their gold) are transnational systems (as in: they are not used as the currency of a country), so they are not directly linked with the local economies, but with the economy of the entire world. So, changes in local economies don't affect gold, only changes in the world's economy do. > So, how is your paper fiat money trustworthy, then? I already said that paper money is worthless as a *value storage* medium. In that sense, it is not trustworthy since it is at the mercy of those who don't understand the system (as Greenspan understands it). It is trustworthy as an exchange medium because it is a closed system (= it is used in only one country, with a relatively equal economy in all corners), and as long as it has commodity (or economy, as I said before) backing it; by this I mean it is not possible to buy (with it) more commodity than the country contains (I don't want to say "possesses" because someone would tell that people posses). > Am I mistaken in identifying your previous discussion with Patrick as one in which you were opposing his gold only economy and touting an inflationary paper money scheme? Yes. As I asked before, show me where I said I agree with inflation. I was not opposing his gold economy, I just said paper is a better exchange medium than gold, in today's world economy. Of course, some (as Steve) may say that inflation is inherent to paper money. But an inflation / deflation between 0 and 2% is normal because of constant economic fluctuations, with or without paper or gold as currency. I have a question for who believe in an all gold currency... What do you think of shares? Shares, just as you see paper money, have most to nothing backing them. I mean, the value of all shares of a company is higher than the value of all assets of the company. A simple news can make, in a few hours, the value of a share to change dramatically, without any change in the assets of the company. So, are shares just hot air? In such a case, how do you see the average person's investment strategy? Regards, George Hara ------------------------------------------------------- Xnet scaneaza automat toate mesajele impotriva virusilor folosind RAV AntiVirus. Xnet automatically scans all messages for viruses using RAV AntiVirus. Nota: RAV AntiVirus poate sa nu detecteze toti virusii noi sau toate variantele lor. Va rugam sa luati in considerare ca exista un risc de fiecare data cand deschideti fisiere atasate si ca MobiFon nu este responsabila pentru nici un prejudiciu cauzat de virusi. Disclaimer: RAV AntiVirus may not be able to detect all new viruses and variants. Please be aware that there is a risk involved whenever opening e-mail attachments to your computer and that MobiFon is not responsible for any damages caused by viruses. --- 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.
