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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (4850)	3/26/1999 2:30:00 PM
From: john a	Respond to of 81050

Hello All. Was awake late last night worrying an idea, though I might throw it out here and see what comes back. I would welcome comments and/or enlightenment. The idea starts with the premise that when a CB sells or leases gold to someone, I can't believe that a truck shows up, and the physical gold is moved from one location to another. There must be some mechanism to transfer practical ownership of the metal from one entity to another. If we define currency in the modern way, as a medium of exchange, there has to be some form of currency at work in the transaction. Call it electrons or whatever, some form of a currency has come into play. Is this currency then not 100% backed by gold – is this not a true currency? Does this currency then compete with the good ‘ol US dollar for position in these high-end transactions? If there is such a ‘secondary' currency backed by gold, at what point does the recognition that the US dollar is worthless come? If we have an electronic currency in place, and if the FRB prints money whenever it likes, but uses the electronic currency to effect transfers of ‘real wealth', what's going on? Mmmmm John