<<so if e-gold has never had an audit then what is the difference between
them and fiat paper money?

Gordon>>

That is indeed the whole point and a very good question. Doesn't mean it's
not back but as far as I am concerned I will treat them as NON-back as long
as they don't show us the proof.

It's still not a fractional currency but in terms of SECURITY if it wasn't
totally backed by gold then it's even less secure than fiat money because
value would ONLY rely on the trust of e-gold which they seem not want to
prove without a doubt.

I say worse than fiat because with the dollar even in a downward spiral, you
still have all the liquidity you want to exit. OsGold is a good example.
Liquidity dried up and value dropped to zero.

In any asset liquidity is the least understood but probably the most
important indirect cost to assume.

The goal for us users is to force e-gold into a corner so they have no
choice but to deliver proof of accountability. The best argument is always
$$$$$. If we as a group start moving our gold to Gold-Money (which by the
way invented the GBC concept in it's actual form)

All we have to do is let e-gold in their little world and vote with our
feet. Their is no doubt in my mind that the ball is in e-gold's camp. It is
them that have the moral, ethical and business DUTY to show us proof by
building an accountability system we can rely on.

As a user it is in my direct interest to build awareness toward other GBC if
"I" want to move to GM for example because greater demand= more liquidity =
overall lower cost to transact with.
(Just look at the different fees for in-out exchanges. Demand is greater for
e-gold hence lower fees)

I would also have to investigate e-bullion but I don't think they have
started delivering Audit for their holdings. If they do then e-bullion and
Gold-money are the best alternative.

Audits do not remove all the risk but it sure is one more step in the right
direction. Governance structure is very important and knowing that the gold
is indeed in 3rd party's hand with no possible access from the DC entity is
essential.

Best to all

Francois Michaud
www.righthedge.com




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