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To: Claude Cormier who wrote (48308)	8/16/2010 2:55:35 AM
From: E. Charters	Read Replies (1) \| Respond to of 233807

US Treasuries held the inscription "Pay to the bearer on Demand" 1/35th of an ounce of gold. What is the diff? The only diff is with one it's the government and fictional gold and the other is a privco and (we believe) real gold. Read the history of the goldsmiths of England during the time of the Plantagenets until Charles I. That is where scrip money developed. It worked because the goldsmiths had friends and family all over Europe who on their signature would extend credit to bearers of their scrip. That is how paper money developed. And it was worked at a capital ratio of 4 notes to one gold/collateral. The Goldsmiths had a far ranging system that transcended borders and started the idea of an international paper currency that had fixed value. The Plantagenet's credit was zero. They could not be trusted. Routinely they taxed their subjects at 100% tax rates, taking all their wealth for their adventures. Your differentiation is irrelevant. All paper is debt. No matter the collateral. The collateral ratio to debt is relevant however. EC<:-}