Dear JP,

Well, you dig this big hole in the ground in a
country I know in East Africa, and you fill it
with gold bars backing your DGC.

And, if the security around the mountain, provided
by a million or so heavily-armed qat-chewing 
enthusiasts of private property aren't able to
keep the USA/UN out of the mountain, and if the
vault doors set in granite don't deter them,
then before they can get through the last line
of defense (about which I won't say much), a
few thermite charges go off under each stack
of bars of different metal, and the metal is
melted and piped away through a slant-drilled
hole in granite some hundreds of yards, after
which the vault they came from detonates on
entry...killing everyone who tried to break
in.  And they report that after they dug into
the rubble, there was no gold there, after all.
Your DGC, meanwhile, has recovered the gold
and spirited it away to yet another place in
the planet's crust.

If your DGC isn't thinking about this issue, 
mebbe they should be.

> Let's say Japan follows Argentina the way of 
> the Dodo, 

Can you say, "The Euro is trash?"  A great many French
people can, and they say it in French.  "Euro est merde."

> Doom!

Excellent game!  Though, for my taste, Castle Wolfenstein
was the best-in-genre.

> Where the hell do we put out wealth?  

Like that's going to be our biggest worry. <grin>

> Nobody's gonna trust DGCs (governments will just 
> steal the 400 oz bars from the vaults). 

Yeah, pesky, that, having all these heavily armed
men rushing the secure facility in Dubai....

> You can have actually gold bars in your house -- great.

When it works, it works.

> I think real estate, held clear of all mortgages, 
> would be good to hold.  

This depends dramatically on what real estate, and
what happens.  For example, in 1936, holding real
estate in downtown Hiroshima seemed like a pretty
good bet.  In 1946, it seemed like a less good bet.

Lysander Spooner, though, agreed with you.  Around
1870, if I recall correctly, he designed a land bank
that had a currency based on the unimproved value of
land on deposit with the bank.  If you like, I could
search the [EMAIL PROTECTED] archive and find
where the pages describing the bank are archived.

> Real Estate actually has value, 

Yeah, and real estate in Tokyo can only go up in value.
<grin>

> and assuming your local government does not simply 
> steal it from you (quite likely) it is 
> something of real, tangible value.

Local, regional, and national governments steal land
a lot more often than they break into vaults in
London, Idaho, and Dubai to clean out DGCs, I think.

See the case of Donald Scott at:
http://www.ezez.com/free/deaths.html
 (find "Donald Scott" within the page)
As I understand it, his survivors are fighting off the
land grab which is now being handled by the IRS.

> so let's set them aside...

What, land doesn't end up with a buy/sell spread?
It is hugely illiquid.  And not everyone is going to
want land in downtown Houston if it ends up under a
mushroom cloud.  Or a bio-war cloud.

> What about the good old Swiss Franc?  

An excellent store of value.  I have an agent who
travels to Switzerland quite often for several
clients.

> What about shares in major companies (MSFT, GM, etc)?  

Yeah, what could possibly happen to Microsoft or GM?
<grin>

> What about the Euro?  

Oh.  Yeah.  What was that you were saying, JP? <grin>

> What about "bonds" and the like?

Bonds can be good.  Depends on the bond maker.

> Who can answer the question?  

"Futureman!"  He knows the future with blinding
arrogance.  Trust in Futureman!  He can guess not
wrong! <smile>

> If the USD starts to collapse on Monday, where's the 
> best place to hold wealth?

GoldMoney.com and 3PGold.com both seem to have 
sensible ideas about how and where to store gold,
how and where to operate offshore servers, how and
where to domicile their businesses.  It may be, and
I am willing to risk it, that there is nothing safe
anywhere in the universe.

What is a truly, perfectly, convincingly *secure* store
of value?  Nothing.

Look at your secure transactions.  The best you can
hope for is that a security failure means that no
transaction occurs.  Security means the system 
fails to safe.  Nothing happens, which is best, because
it includes nothing bad happens.

Where can you go to be safe?  Really, truly, perfectly
safe, against whatever the powerful people who live
on this planet might wish to do to you?  Nowhere.

You aren't safe.  The best you can hope for is that
you don't fall afoul of the Chinese curse:
  "May you live in interesting times and come to
   the attention of powerful persons."

Security is an illusion, and financial security
doubly so.  ("Time is an illusion, and lunch time
doubly so," per Douglas Adams.)

What is security, really?  It is an illusion that
you, as a property owner, wish to create in the minds
of thieves and bureau-rats that suggests that your
private property is secure and remote and safe and
guarded by killer dogs, razor wire, heavy vault
doors, and a whole bunch of guys with guns.

But, even if you have all those things, you aren't
really safe.  And, indeed, if the illusion of security
is one that takes place in your mind, then you are in
really big trouble.  Because, the fact that you think
you are safe causes you not to be on guard, and if you
drop your guard, you are vulnerable.

So, sure, lock your car doors when you leave your
car parked on the street.  But don't imagine that a
determined thief can't or won't slim-jim the door
or break a window or tow the car off.  Use a car
alarm, but don't imagine it cannot be defeated.
It is far cheaper to drive a less stylish car and
leave it knowing that it won't be that hard to
replace if it gets stolen.  Or drive a big motorcycle,
because people for some reason don't mess with 
motorcycles as much.

Sure, carry concealed and, if you think it helps, get
a license to do so.  But, you get almost as much
protection living where concealed carry is legal
as you do from actually carrying.  If you live where
concealed carry is illegal, you should not assume
that your prospective assailant thinks you are armed,
and you should act accordingly.

But, heck, JP, this one is getting off topic, and
I don't want to vex Jim Ray more than three times
a week. <grin>

I can see where e-gold has a few deficits as a
store of value, which is why I've tied up some
of my e-gold in a 1mdc Term Lodgement. (You
rock, JP!)

But, have you considered what one atmospheric burst
of nuke-fire over the USA's Eastern Seaboard would
do to the root name servers in Fairfax, Virginia?
Even if they are deep, have remote backups, and
such, the power grid is going down for a while.
Admittedly, the Internet remains designed to survive
loss of nodes.  But, it isn't going to be pretty.

There is no security.  The best you can hope for
is eternal vigilance.  If you are very lucky, you,
a few close friends, and some dogs can spell each
other on watch.

Get some sleep.  There's no use worrying about the
fact that you really aren't safe.

Old New Yorker cartoon shows a king on his throne,
palm in hand, elbow on throne, with the thought
balloon, "I'm paranoid.  I know I'm paranoid. But...
am I paranoid enough?"

Regards,

Jim
http://www.two-cents-worth.com/?101468?EG


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