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To: Raymond Duray who wrote (40150)	10/25/2003 5:47:20 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Ray, <<issuance of private currencies ... commodities based currency in the U.S. is a non-starter>> ... still generally true, but less so by the day ... TeoTwawKi beckons and TPonRr winks :0) goldmoney.com ... given that one can transfer the value around at all hours of the day to anyone with an account by 'writing checks', then it comes very close to being money. Chugs, Jay

To: Raymond Duray who wrote (40150)	10/25/2003 6:29:31 AM
From: macavity	Read Replies (3) \| Respond to of 74559

Raymond. The idea of an issuer, or a single issuer in particular, is repellant to the true libertarian mind. As I mentioned previously once you have a single issuer you will get the abuse of the currency at some point down the line. Call it coin clipping or inflation, politics will find a way to devalue the currency. This leads to 2 possible approaches. i) Multiple or unlimited issuers. The 'worth' of the currency becomes based upon the 'word' of the issuer of the certificate. Namely that he/she does have the commodities in store for actual exchange. It is this threat of actual exchange - a run upon the commodity/currency warehouse that keeps the bank/issuer/warehouse/storeroom in check. There is no bank of last resort, as this effectively returns us to the single-issuer problem mentioned above. ii) No issuer. We carry around the commodity ourselves, delivered in usuable 'notes'. As stated previously there will be real and practical problems with verifying that the loaf of bread and milk that I buy is really being exchanged for 0.00,000,000,1 Kgs of Gold/Palladium/Silver/Platinum or whatever. This is why I made the 'joke' about mass spectroscopy. I apologise for it not being funny or understood. Solutions: (i) - The Gold is in the multiple privately-owned warehouses, we revert to faith and honesty to guarantee that we can get to the gold. At point of sale we exchange certificates representing the gold belonging to one , of the many, privately-owned non-guaranteed issuers. (ii) - We carry the gold with us like the paper stuff we presently do and rely upon technology at point of sale to verify its existence - quality and quantity. This could be the real benefit of nanotechnology: to produce a note that actually has a currency value approximating its commodity value. Gold-embedded within a polymer substrate with a unique electro-magnetic field signature,perhaps ? - macavity