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To: long-gone who wrote (53067)	5/21/2000 10:07:00 PM
From: The Vet	Read Replies (3) \| Respond to of 116915

You have made the point which I agree with that the majority of the gold certificates and derivatives really have no basis. They are exactly the same as counterfeit dollar bills - they are as good as real bills for the purpose of settlement of accounts until they are discovered as fakes. The unfortunate last holder is faced with the loss. As far as any intermediate holders are concerned they have suffered no loss. However it is the original issuer who has ultimately made the gain and unless the fake bill (read unbacked gold certificate) is ever presented for redemption and discovered to be fake then in theory it can circulate forever increasing the money supply fraudulently.

To: long-gone who wrote (53067)	5/22/2000 12:52:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116915

Here you state something not my wish. I first want an honest full inventory, random spot assay, & audit of US gold. I think asking for fully backed gold & silver certificates(not dollars or lbs. or....). A true solid audit of US resources is not out of hand! Richard, please reread your comments above. I personally construed them as quite contradictory. On one hand you state that I'm misrepresented your previously stated views about fully backing paper currency with gold and silver. But then you claim that we should offer gold certificates which is EXACTLY WHAT ORIGINAL US DOLLARS WERE before the greenback was issued during the civil war (because their wasn't enough gold available to permit the country to produce the needed war materials). Maybe the North should have just surrendered or let the South go its own way, eh? Why not just buy the friggin' gold instead of purchasing some piss-poor paper subsitute for the real thing. A gold certificate means ABSOLUTELY NOTHING if the govt opts not to honor any demand made against it for the physical gold. If you were smart, you would force the Fed to sell its gold so that it would be cheap enough that all of us could get an inexpensive grub stake and economic insurance policy against future governmental fiscal recklessness. As long as the gold is in the hands of the Fed and other Central Bankers, they hold all the cards and can decide whether or not they wish to honor those gold certificates or not. And btw, before the greenback became commonplace, US banks were able to issue their own currency backed by their supposedly "accurately audited" gold reserves. Unfortunately, many of those reserves didn't exist. And the situation continued to a certain degree until the banking panics of the early 1900's when the US financial system was becoming too large for any of the several large US banks to handle and thus was born the Federal Reserve. Regards, Ron