[e-gold-list] Re: clear thinking

[The Phoenix Dollar]

Hello Craig,

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

> Without a central bank, (and a gold standard cannot exist WITH a central
> bank), there simply isn't the money to borrow. Interest rates would
> start to rise, and then skyrocket if the government continued to borrow.
> With this scenario, they would be competing directly with the private
> enterprises which also need money, so there would be a direct effect of
> disrupting the economy if the government continue to borrow with
> seriously rising interest rates.

I am not sure how this thread became a debate over the gold standard,
but since I am the originator of this thread, I want it on record that
I do not support any sort of gold standard in all variants of the
implied meaning.

Particularly I oppose the word 'standard' and discount its relevance.

The two meanings generally are:

#1. a fixed gold ratio in comparison to some other metal like
silver.

2. A government legalized gold usage to base currency issuance on that
the public must obey by through legal tender laws of some variant.

I oppose both fixed standards of ratio and legal tender laws.

I support open competition in the free market by all parties including
various governments and the individual.

-- 
Best regards,

Gordon


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