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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (55610)	4/11/1999 5:36:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 132070

Mike; Re they want the security blanket of some store of value when all these govts. that's what they want all right but it wont work. The security of Gov. curreny back by gold is an illuision. As Gov, if it so choose can not only fix the price of Gold ( we tried that once ) but they can fix the price of anything else if they so choose, so it turns out to be less security than if you own the gold and the Gov owns none. Then the Gov currency has to float on the Governments Stability, and ability to collect taxes , and pay interest on the currency they issue, ( which they do by selling currency at a discount within a certain window of time you will agree to hold it.) This lets you vote with Dollars as to how stable you think the Government is. If Government or their agent Banks hold gold it's only to manipulate currency on a level that leaves the majority of the people still holding a bag of promises that may be nothing but empty words. The idea that Government should back it's currency with gold just leads down a dead end road and inadvertently into them then controlling the price of everything. A market economy and the Government in the Gold Business do not go hand in hand the latter defeats the first and they are not compatible. It amounts to wishful thinking leading to Government must furnish cradle to death security for every one, an ideal that just can't be met, every thing will eventually stagnate, and I'm sure that price controls would become a permanent fixture. BTW for the record the last major price controls ( ceiling prices ) we had were given to us by the Republicans. The so called advocates of a free market. At the time I'm afraid ( IKE ) had no choice but that's was a sample of Government price fixing , which must happen if they are to hold gold enough to back the currency makes it unavoidable no matter what rules they try to put in place. Get them out of the gold business, then if you don't want their funny money you can buy and trade gold in a free market with out Competing with the Government, as it is now it's a mess, and the little guy will get shafted either way he goes. There just has to be somethings that the Government can't buy and sell so that you and I can agree on the price. ( They may buy only the Gold they can or intend to use for strategic parts and such , but they must not sell any or every thing eventually turns into a Government controlled racket playing to certain select cronies. I want them out of the Gold and silver business completely. Let em auction off every once they got and lets see what the funny money is really worth, then keep em out of it. The illusion that it affords security is part of the problem, and the ones who expect or dream that it will work can't see past the plate in front of them. Jim