[e-gold-list] Re: Clear thinking

[Listsf245]

> If the gold standard is in place, what stops the government simply
> borrowing the money/gold at interest?

To which Venkat replied:

"Availability. You cannot borrow more gold than exists without becoming a
fiat currency."

It reminds me of one of the profound realizations I had while
reading "Eumeswil" by Ernst Junger.

The fictional city state of "Eumeswil" had a two currency monetary system.

All 'energy', including labor,  was paid for by a form of fiat currency.

All tangible items, like food, were paid for in a currency 100% backed by
gold.

The fiat currency was interchangeable for the gold backed
currency.

Vast amounts of gold were located in vaults under the fortress held by the
dictator.

Each day the government's central banking authority determined
how much fiat currency was needed to purchase gold backed
currency.

Of course, during times of civil unrest the central banking authority raised
drastically the amount of fiat(energy/labor) currency required for
exchanging to gold backed(tangibles/food)  currency.

I don't know what kind of affect the above scenario has on
anyone else, but I certainly know the kind of affect it
had on me. I guess that's why my savings tend to make a
distinctive clinking sound when they land on a table somewhere;-)

I wonder how the author of "Eumeswil" came up with this model?

I wonder how a dictator would view privately owned and operated digital
currency 100% backed by gold?

Sometimes I am chistised by others for doing too much thinking. But I can
never seem to stop thinking for too long,
so I tend to live at odds with people who are more popular.

Based on my own experience and observation, DGC's are there for those who
have the intelligence to use and endorse them,
regardless of who legitamizes or illegitmizes them.


I guess that would make DGC's there for those who, as Gordon put it so well,
are commited to practicing freedom.

Armed groups have been trying to prevent freedom and free enterprise since
recorded history.

This link elaborates on a transaction model that pre-dates
DGC's but does not predate totalitarianism:

http://www.fiducite.com/Fiducitations/Fiducitation%20-%20Hawala%20Traditional%20Asian%20Banking%20System.htm

In my present inability to stop thinking, I wonder what a
bunch of financial minded crypto geeks, like the ones who hang
out on this list can come up with that would facilitate practicing freedom
and free enterprise despite the
eternal efforts of armed groups trying to stop them?


William Maderas
Personal Protection Specialist
www.william-maderas.com


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