George, Actually the title refers to the argument by paper advocates that there might not be enough gold on the planet to facilitate all the daily transactions, international trade, etc, and that hence a liquidity crisis would follow if gold was used ad only denominator of exchange.
Most here on the list argue that there is more than enough for that purpose. However, the US alone has flooded the planet with paper, and if anyone was to exchange the paper (and the bank balances) from US currency to gold, then the exchange rate would be a high multiple of today's market price. At the same time, it would leave the rest of the planet without gold. The redeemability (or lack thereof) discussion came later ;o) Cheers, Robert. budget & privacy website hosting http://www.cyberica.net e-commerce & e-business services http://www.cyfrocash.com budget domain registrations http://www.u2planet.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.
