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To: Ilaine who wrote (66)	3/25/2001 10:07:50 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 443

CB - OK, forget value, and concentrate on day to day reality. Money can't be gold. Here are some of the things you need to be able to do with money: 1) Carry it in your wallet. 2) Get it out of an ATM. 3) Mail it or in some other way physically transfer it to someone else via unknown third parties who may or may not be trustworthy. 4) Transfer it instantaneously from one point in the globe to another by electronic means. ... From my post - ...No, let's assume that there are no currencies in the world at all. All that exists is actual gold, to start. Now that we've started we can address your other concerns. Anyone (including governments) who has physical ownership of significant amounts of gold can issue gold certificates for precise numbers of ounces of gold, from say, a millionth of an ounce to a million ounces, subject only to the total of the denominations of the outstanding certificates not exceeding the total ounces of gold held in reserve. Gold can exist in any form, including bars, dust, minted coins, etc., but any gold that backs outstanding gold certificates cannot be used for any other purpose. Token coins made of cheap metals can also be used in place of small value certificates, being essentially certificates printed on metal, and would also be denominated in fractions of ounces of gold. As long as the total amount of tokens is relatively small, there is likely no need for them to have the same gold backing as the certificates. To demonstrate this, when I receive a Canadian quarter in change, it is not of significance that it is worth about 35% less than a US quarter, although its possible rejection by a vending or washing machine may be a cause of frustration. Individuals can hold gold in any form, including gold certificates, but also can have account balances in financial institutions denominated in ounces of gold and maintained and transferred by electronic means. Anything you can do with a dollar can also be done with a gold certificate, except inflate it beyond the level of actual owned gold. See what you think about the above, and then I'll address the other issues in your earlier post #63. Regards, Don