Epic EAS.v (formerly Epic ERB.v and Safari SIR.v) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Epic EAS.v (formerly Epic ERB.v and Safari SIR.v)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Chip McVickar who wrote (1726)	3/29/1998 9:10:00 PM
From: Henry Volquardsen	of 3335

Off Topic to Chip and CLK very interesting post again. Having traded currencies under various types of monetary regimes since the late 70s I have a perhaps more jaundiced view of currency backings. I believe hard, soft and flexible are all irrelevant. In the final analysis there is no such thing as a dependable backing to a currency as any government can and will abandon the currency regime when it it threatens their own agenda. Looking at a pile of assets held by a central bank, especially for the larger economies, is a distraction. The real backing for the US dollar is the productivity of the US economy, the dependability of our legal structure in protecting assets and the willingness and ability of US taxpayers to support the currency. This is the only real backing that ours or any currency really has. It is very instructive to watch the debate over the currency crisis in Asia. Steve Hanke, a man I have some respect for, has proposed a currency board for Indonesia. Under this system all Indonesian currency will be backed 1 for 1 with foreign currencies or gold, most likely the dollar. Hanke believes this will have a marvelous restorative effect. He bases his opinion on the benefits such a system have had for Hong Kong and Argentina. Many people have argued vociferously against a currency board for Indonesia. The arguments are not based on whether such a system is viable, most concede currency boards can work. The argument against a currency board fo Indonesia is based on the corruption of the Indonesian government and the liklihood it will be used to allow connected Indonesians to get assets out of the country. In other words, the backing of the currency is irrelevant. It is, in this case, the lack of dependability of the legal system trumps the backing. Henry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next