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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: John Stokes who wrote (879)	11/5/1997 6:10:00 AM
From: Eakole	Read Replies (1) \| Respond to of 1911

Regarding Reply #879 John, Your reference to "The needs of the population" is a phrase that takes the personal element out of a very personal and human equation. I for one do not act or feel as a "population" so allow me to frame the question in the more personal context. ". . . would not the issuance of paper currency be a means by which a (government) could put more paper (money) into circulation for (my) needs . . ." The one similarity between gold coin and paper currency is that they are considered as STORES OF VALUE. In determining which of the two best satisfies ones needs are we must look to the historical relationships of Human Nature, Paper Currency and Gold Coin. Gold is a commodity that has been used for thousands of years as a STORE OF VALUE. Other commodities were tried but none, other than gold, satisfied one's needs and standards for a permanence. Gold is an element that was and still is universally considered beautiful for its color, texture, luster and brilliance. Every civilization in all of man's known history has held it in their highest esteem. Gold, while not plentiful, it is sufficiently scarce and difficult to extract guaranteeing its hard won value. It is found all over the globe, literally everywhere. It is extremely malleable and may be divided and rejoined countless times without losing any value. It is impervious to most all of natural elements and does not tarnish, rust or corrode. No element other than gold fulfills one's desire for a permanent STORE OF VALUE more completely than GOLD. On the other hand we have paper money, an intellectual derivative of gold. <Intellectual, implying without physicalness and therefore devoid of reality.> The maintenance of the value of paper money requires the issuing agency to initiate a policy of intimidation, force and punishment of those not willing to support its fictitious value. Governments need those coercive powers for without them the people would relegate paper currency to the trashbins of history. I for one, as would us all, abide by Gresham's Law that simply says <BAD MONEY DRIVES GOOD MONEY OUT OF CIRCULATION> or in other words <the more rational is overcome by the least rational. . .> because when there is a choice nobody would opt for a worth-less store of value. The second important consideration is the effect of human nature on the integrity of those we empower to guard the national treasury. But because ABSOLUTE POWER CORRUPTS ABSOLUTELY, . . . and because we and our elected representatives have chosen not to preserve, support and defend the Constitution, a corrupted currency is an absolute given. We have seen this identical scenario played and replayed throughout history. This happens because human nature is not mutable, and because human nature is permanent, I have come to suspect all people endowed with extraordinary political powers likely to perform acts in their own interest and against to those of their constituencies . That is why the Constitutions framers provided us with a written Constitution; and that is why our Federal Constitution states that the Federal Government "Shall have power . . . To coin Money, regulate the Value thereof . . .," and that "No State shall . . . make any Thing but gold and silver Coin a Tender in payment of Debts; . . . " or "pass any Law impairing the Obligation of Contracts . . ." which our Constitution is. As for the question <what basis new money should be allowed to be printed by countries>? Only to the extent that it is constitutional and some popularly acceptable commodity of equal value will cover the paper debt. However, the pivotal question should be, <Is there enough gold to answer the demands of a growing population and economy? > I believe there is more than enough, . . . History has amply shown that as our needs expand, supply grows to meet that demand, this falls within the natural design of human condition. It is the profit motive. We have seen it happen throughout history in every age. If the need for gold grows beyond its supply, we will replicate the same pattern of human behavior that brought the scarcity of OIL of a few years ago to the OIL GLUT we have had since. We can best observe the application of the THEORY OF OPPOSITES in the naturally functioning theories involving the LAWS OF SUPPLY & DEMAND. Eakole