<<what happens with a gold based currency when at some
point in the future all the gold runs out.>>
aj, rather than no more gold, how about just the opposite.
After I get my initial investment in a Mogolian gold mine returned to me
I will publish on the internet the simple process I discovered, using salt
and water and peanute butter, change each oz of peanute butter to 1 oz gold.
Now will each government on this planet earth that has a gold reserve get
together at the UN and force upon us all a new law that only Central Banks
are allowed to hold peanutes ? The growing will be restricted, and the
eating of peanute butter will not be allowed, as it will equate to the
destruction of a countries money supply.
Now something is wrong here, or not.
If the governments controls the amount of preanutes growned by those
farmers licenced by governments, then the governments can easily control
the amount of gold available, its supply, and done very cheaply and at a
constant set cost of US $1 per oz gold since thats all that needed for the
one oz of peanuts and the salt and water is near free.
So this will satisfy Zeev's concerns about the amount of gold available,
and the cost of mining it. The governments simple make as much as needed
to equal the growth or contraction of its economy.
Peanute butters lovers like myself will cry tho.
Has anyone tried cashew or another nut-butter, as a substitute ?
The only problem I see here is that this easy and cheap way to make gold
to represent the countries wealth seems like as easy and cheap as making
that paper money.
Maybe the fact that without my secret way to produce all the gold you want,
that a paper money tied to present day gold, a 100% gold standard, would
as Zeev say, makes it very difficult to keep a 1:1 balance. Now if all
the governments were run by people with good manners and ideas and none of
them were evil or corrupt, then a gold standard would hurt their efforts
to accomplish what they want to do, the good for its citizens.
Along same thoughts, a gold standard would hurt the opposite types from
doing damage to the economy thru their bad ideas.
Guess the present day gold environment and business only has a damping effect,
for either good or bad policy, if gold used as a paper backing.
I wonder if a person from Mars could tell us if the governments of present
and past have been good or not.
Doug |
