Claude, Thanks again for your thoughtful reply.
> But in today fiat system, central banks foreign reserves exist only > to show other countries that the local currency can be surpported if > needed by market intervention. The larger are one central bank's > reserves, the better it. That's all there is to it. That makes some sense. Thanks for explaining that. > Groups cannot think. Only individuals. You are right, of course. It is poor practice to use such collective metaphores. > That is why Central banks > can easily foll the people with their fiat system. It is individuals who think these crazy things. > Isn't it exactly because a currency is a reserve currency that it > starts to circulate worlwide. What other currencies circulate > worlwide but the USD. The fact that other central banks accept and > keep as reserves the USDs is probably the main reason why the > foreigners accept the USD as an equivalent to the local currency. I don't think so. I think the two qualities are virtually independent and just coincide in the Dollar by accident. For instance, people in South America use the dollar for such things as real estate and appliances because it is more stable and less subject to manipulation than their local currency. They use the dollar not as an equivalent but as a superior currency. The reserve stuff is irrelevant to them and they probably don't even know about it. Best, CCS ------------------------------------------------------- - Virtual Phonecards - Instant Pin by Email - - Large Selection - Great Rates - - http://speedypin.com/phonecard/start.mhtml?af=743 - ------------------------------------------------------- *************************************************** * Craig Spencer * * [EMAIL PROTECTED] * *************************************************** --- 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.
