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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (63581)	2/9/2001 11:06:24 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 116796

<However, debt and bank debt is the way that most business is run today. For this reason I feel it will require a major change in philosophy to use gold transfers.> You are certainly right. And I don't think that gold currencies will become the norm. But they will continue to take a larger part of the market. Eventually, in 10-20 years maybe more, paper curencies will no longer exists. All national currencies will be digital. It could well be that private digital gold currencies will have a much greater role in that new digital world. <Perhaps I miss the point here, but one can do that already with existing means of payment.> Hum! I don't think so. Tell me what are existing means of payment that need no clearance and that constitue and instant transfer of an asset. <3) the currency is backed by an asset... not credit OK. But ultimately every credit has to be backed by an asset or else a bank guarantee. > Yes but the banking system is leveraged (fractional reserve banking?). Also bank loans (which banks include in their assets) can and do default in a crisis. <5) Gold currencies cannot be debased. It is my contention that with the continued unbridled production and fall in POG that gold is being continually debased. > Can't be. Growth in gold production is very stable when compared to US money stock inflation (or any other fiat currency). It match the growth in global production of goods and services. That is why you can still buy a small average house with 15000-20000 grams of gold like you could in 1970. Can you still buy a small average house with $15000-20000 USD like you could 30 years ago. Which currency is being debased. <Here you are talking long or very long term. As you mentioned in point 1, the transaction will occur in microseconds. So, the long term stability is really unimportant. > Tell that to the Russians, Brazilian and I don't know how many other countries. The USD will not go the same way of course... but a 20-30% debasement is not out of the question... in the intermediate term. The long term is not really important as you say until the crisis arives.. Why do you think the Euro is 15% backed by fold (unofficially but still) and why do you think many would like this to go to 30%. <They are not likely just to give it up. In fact, it is also the means the paper aristocracy use to wield political power.> You are right... no doubt. <What the gold currency implies is the use of an alternative international currency outside the existing ones... In addition, the gold currency will not have a nationality... So, there will be political implications because the use of gold..... war between the banking system, dominated by the paper money aristocracy, and those who want to return to a "classical" form of exchange.> You are so right... it will be a long process. But in the end, I think that more and more will realize that it is the only way to go... a return to the gold standard but this time a private gold standard. Btw this article on money and private currencies by — Jerry L. Jordan, (former may be ?) President and CEO, Federal Reserve Bank of Cleveland is a very good read: cato.org