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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (49295)	1/9/2006 9:12:34 PM
From: gpowell	Respond to of 110194

I'm pleased to read that you agree with yourself in believing that free markets naturally evolve the use of fiat currencies, and that these currencies of infinite supply are superior -- presumably because it permits everyone to have more money. Actually, I don't believe that fiat currencies are a natural evolution of free markets. Since I know you have long held this belief, it is reassuring to see that you still find your views exemplary. How can you have long known that I believe something that I don't believe? Send me your unwanted valuable commodities and I will gladly pay you with my personal Elroy Jetson currency backed by the free market Bank of Astro. As a fiat currency fan, you will want to collect all five currencies I have created. I believe they're on their way to becoming valuable keepsakes. Each currency is embossed with the motto of the Bank of Astro, "Never give a sucker an even break." I think you will find that the cost to you of convincing the general public that you are a reliable producer of money would prove to be a gross misallocation of resources. .

To: Elroy Jetson who wrote (49295)	1/9/2006 10:25:18 PM
From: gpowell	Respond to of 110194

Oh, I see. You missed an operative word in my post. I said: I am assuming that we all agree that at some point the market, left to its own evolution, will move beyond a point at which a commodity, such as gold, is being used directly as a medium of exchange and that enterprises have been formed that specialize in the production of money. This means that in place of the commodity standard itself circulating - a money substitute, such as a bank note, is used in day to day transactions. That still leaves a commodity as the ultimate object of redemption and, of course, leaves open the possibility of 100% reserves. Hope that clears up the confusion. PM me if you have any other non-relevant questions.