On Jan 31, 2009, at 11:53 AM, Laurent GUERBY wrote:
In the internet age you can practically move away from fiat currency
if
you want too: buy and sell gold/whatever ETF and keep the strict
minimum
of fiat currency on your regular account (including the right amount
the day you pay your taxes). One click per day.
No you can't.
Yes you can (tm).
Money is used to settle debts (that is what money is--legal tender,
the "medium of deferred payment"). No debt contract has contained a
gold clause since 1932. All you do is make yourself a perpetual
speculator going broke from transaction costs.
Enter debt, earn fiat money to buy gold ETF, sell gold ETF for fiat
money, settle debt.
My point is that's now practical to do this. Ten years ago it wasn't.
And transaction costs are low compared to pla[s]tic money fees.
"plastic money fees" are not low--they're *negative* if you use a
"rewards" card and pay in full by the due date (and of course zero if
you use a debit card). And transaction costs of speculating in gold
are anything but low--you pay the dealers "ask" price every time ("one
click per day") you buy, but get the dealer's "sell" price every time
you buy. The spread is your transaction cost per day, and it aint
peanuts.
Shane Mage
This cosmos did none of gods or men make, but it
always was and is and shall be: an everlasting fire,
kindling in measures and going out in measures."
Herakleitos of Ephesos
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