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

To: orkrious who wrote (99494)	11/8/2008 6:22:58 PM
From: Robin Plunder	1 Recommendation Respond to of 110194

visual history of gold certificates and modern federal reserve notes in US...the gold certificates were redeemable in gold...the Notes are redeemable for ..er...more notes.. the-privateer.com why were gold certificates abandoned? not because gold failed as a currency (ie, it held its value)..but because we had a decline in business and the govt deemed it desirable to take the gold and use it for ..stimulus programs? Robin

To: orkrious who wrote (99494)	11/8/2008 8:52:47 PM
From: bart13	Respond to of 110194

Here's Fekete's piece which Robin Plunder mentions. Damn fine piece. One of the main items that Fekete does not clearly cover is that real bills and what he describes did exist at one time. It no longer exists. Detailing the reasons that they no longer exist and why will illustrate some of what the real problems are in my opinion.

To: orkrious who wrote (99494)	11/8/2008 10:13:04 PM
From: Hawkmoon	Respond to of 110194

Here's Fekete's piece which Robin Plunder mentions. Damn fine piece. Fekete makes a truly important point that the problem is the clearing mechanism malfunctioning. This is the case with the current Credit Default Swap turmoil, the lack of a centralized and internationally recognize clearance process. Regardless of whether its gold or any other medium of exchange, what it's important to entire financial system is the soundness and transparency of clearing operations which maintains the confidence in the entire financial exchange system. This is what has proven to be the undoing of the CDS markets, and the shadow banking system. Hawk