And one that is entirely taken out of the air, I might add :o) The argument (without stating it) is based on the idea that people would sit on the gold and not use it, which is a weird idea if you ask me, because people would still need eat and pay rent and gas and things.
Now, if we there was no way to earn interest on gold then it is unlikely that people would deposit it anywhere - especially if a storage fee was applied. And that brings us back to the interest subject. Gold can't really be inflated by more than what is taken out of the ground every year. Hence the charging of interest would actually compliment the hoarding process where in the end the bank goes bust because it owns all the gold on the planet and can't lend it to anyone bacause debtors would need more gold to pay the interest. So, for a gold currency to really and truly work, one has to hammer the laws of physics into the masses and make them see that gold can't be made from thin air and hence, interest has to be outlawed ;o) Cheers, Robert. budget & privacy website hosting http://www.cyberica.net e-commerce & e-business services http://www.cyfrocash.net budget domain registrations http://www.u2planet.com --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
