Mike; Re they want the security blanket of some store of
value when all these govts. that's what they want all right
but it wont work.
The security of Gov. curreny back by gold
is an illuision. As Gov, if it so choose can not only fix the
price of Gold ( we tried that once ) but they can fix the price
of anything else if they so choose, so it turns out to be less
security than if you own the gold and the Gov owns none.
Then the Gov currency has to float on the Governments Stability,
and ability to collect taxes , and pay interest on the currency
they issue, ( which they do by selling currency at a discount
within a certain window of time you will agree to hold it.) This lets you vote with Dollars as to how stable you think
the Government is. If Government or their agent Banks hold gold
it's only to manipulate currency on a level that leaves the majority
of the people still holding a bag of promises that may be nothing
but empty words. The idea that Government should back it's currency
with gold just leads down a dead end road and inadvertently into them then controlling the price of everything.
A market economy and the Government in the Gold Business do not
go hand in hand the latter defeats the first and they are not
compatible. It amounts to wishful thinking leading to Government
must furnish cradle to death security for every one, an ideal that
just can't be met, every thing will eventually stagnate, and I'm
sure that price controls would become a permanent fixture.
BTW for the record the last major price controls ( ceiling prices )
we had were given to us by the Republicans. The so called advocates
of a free market. At the time I'm afraid ( IKE ) had no choice but
that's was a sample of Government price fixing , which must happen
if they are to hold gold enough to back the currency makes it
unavoidable no matter what rules they try to put in place.
Get them out of the gold business, then if you don't want their
funny money you can buy and trade gold in a free market with out
Competing with the Government, as it is now it's a mess, and
the little guy will get shafted either way he goes.
There just has to be somethings that the Government can't buy and
sell so that you and I can agree on the price. ( They may buy only
the Gold they can or intend to use for strategic parts and such
, but they must not sell any or every thing eventually
turns into a Government controlled racket playing to certain
select cronies.
I want them out of the Gold and silver business completely.
Let em auction off every once they got and lets see what
the funny money is really worth, then keep em out of it.
The illusion that it affords security is part of the problem,
and the ones who expect or dream that it will work can't see past
the plate in front of them.
Jim
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