On Thu, Dec 4, 2008 at 2:56 PM, Michael Torrie <[EMAIL PROTECTED]> wrote: > This is fascinating in light of what you have said about how gold would > work as an economy grows. Since the answer to the keynsian argument > that there's only so much gold to go around lies in the idea of > arbitrarily dividing the gold, then in reality, having gold-backed > currency is no different than using leaves for currency. While there > are not an infinite number of atoms of gold, there probably are at least > as many as leaves in a forest... And it solves none of the problems of > fiat currency since the division of gold is arbitrary and artificial. > No wonder they threw it out back in the day.
It also doesn't solve the problem of inflation* because a gold-backed dollar (assumed to represent one "division" of gold) would still become worth less and less as the standard division of gold became smaller and smaller. -DTC * as I understand it /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
