> ... But wouldn't it be nice if we get the
> certainty of gold
> in commerce, without the cost of unnecessarily large
> reserves.
Unnecessarily large reserves? Please, let's not talk
about fractional reserves!
Actually, I think your example, (where Joe buys GBC to
pay a seller, who subsequently cashes it in for
currency within an hour), draws upon a false
assumption. When Joe buys the GBC, no new gold is
being bailed-in; rather the gold is being bought from
an exchange service and is being transferred from
their account. Likewise, when the seller sells the
GBC, no gold is being bailed-out; rather the gold is
being transferred to the account of an exchange
service. It is only when gold accounts run low does
new gold get bailed-in.
SnowDog
__________________________________________________
Do You Yahoo!?
Make international calls for as low as $.04/minute with Yahoo! Messenger
http://phonecard.yahoo.com/
---
You are currently subscribed to e-gold-list as: archive@jab.org
To unsubscribe send a blank email to [EMAIL PROTECTED]
Did you know that e-gold Ltd. stores more gold on behalf of customers
than many countries? See http://www.gold.org/Gra/Gra1.htm and the
e-gold Examiner at http://www.e-gold.com/examiner.html for details.
