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To: Ilaine who wrote (18797)	5/6/2002 1:09:51 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

CB - ...But gold does not work well as money. So, we need something else, and paper and electronic data work well, as long as we are honest about what it is we are doing, monetizing assets to avoid barter.... This is an improper comparison. Paper and electronic data are claims on gold, or silver, or possibly nothing, but are held with the expectation of enabling future purchasing power. The historical use of gold as a physical exchange medium is now almost entirely obsolete. The only remaining virtue of the gold standard is its resistance to being being created out of thin air without time, effort or expense. (ignoring fractional reserve banking which will destroy any monetary system). The broadest definition of money would include everything that someone decides to hold to exchange in the future rather than to consume. It would also include anything that could be borrowed against. All of these things reduce the purchasing power of explicit money as they reduce the need for the holding of explicit money for any given level of future spending. Regards, Don