[e-gold-list] Re: e-gold's "moral" attackers

[Pete Chown]

Paul Davis wrote:

> Then again, if more oil sellers unlink from the dollar, it's not hard to
> imagine things getting completely out of hand very quickly and the
> dollar finding its true value down there somewhere with the money issued
> by those other debtor nations -- such as banana republics.

Sterling used to be the international currency of choice, and when we 
lost that role, we did go through some difficult economic times.  
Inflation reached 20%, for example.  Someone who put his savings in notes 
at the end of the war would have seen them lose about 95% of their value 
by 2000.

Although this was bad, it wasn't economic collapse.  If as a Brit, you 
had invested in the stock market, or gold, the value of your savings 
would have held up.  You would probably have had a job for most of this 
period, which would have paid a reasonable wage, though economic growth 
was lower than in other Western countries.

America has a lot going for it.  There are lots of educated, enterprising 
people.  They will tend to keep the economy going, even if you're let 
down by the politicians, so I don't see a complete meltdown.  In Britain 
we had the education but not the enterprise (the socialists didn't hold 
with that sort of thing) so in some ways you're better off.

Having said that, our trade deficit wasn't too bad until the 1980s, so 
things are a bit different this time round.  I'm not sure how big a 
difference that makes.  One thing is for sure, the people who bought 
dollar (and sterling) denominated assets are not going to want to see 
hyperinflation.  They have as much to lose as us, if that happens.

> "Honey, grab that suitcase full of C-notes, would you?  We need to go
> get a few groceries down at the store."

Something I've never understood about hyperinflation is why anyone 
accepts the money at all.  In a country like Zimbabwe, there are laws 
stopping people using foreign currency, or presumably e-gold.  I'm 
surprised, though, that people don't just end up bartering.  Does a 
currency that inflates at 100,000% a year give better value than a swap: 
some groceries for a chicken off the farm, say.

Pete



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