Incredible.

D. Jay Newman wrote:
>> D. Jay Newman wrote:
>>     
>>>> Rome was destroyed by mob rule. The mob simply voted themselves funds
>>>> from the public chest
>>>> until theren't enough gold left to pay the troops to protect the empire.
>>>> This is what is happening in
>>>> the USA now.
>>>>     
>>>>         
>>> Sort of. The problem is that money is like stock: it only has value
>>> because people believe it does.
>>>   
>>>       
>> er, actually, no. Roman coins had intrinsic value of gold or silver. The 
>> VALUE can't be changed
>> with gold or silver.
>>     
>
> That's also a myth. Usually the state sets the value of gold and silver.
>
> And gold and siver have very little real value in and of themselves.
>
>   
>>> And why should currency be backed with gold? Can you eat gold?
>>>       
>
>   
>> Sure you can. Take a look at what happened to Germany after WW I. A 
>> wheelbarrow of currency
>> could not purchase a loaf of bread. Adolph Hitler became a hero when he 
>> returned the German
>> Mark to the gold standard. When the German Mark became redeemable in 
>> gold, its value returned.
>> 'course, he got the gold by force from rich Jewish  families, but that's 
>> another story.
>>     
>
> That is because the people *believed* in the value of gold, not because
> gold has any real value.
>
>   
>>>> The present US system is a "Ponsi" scheme; new funds are used to assuage
>>>> new investers, so that
>>>> nobody notices that there is no depth. When the real war breaks out
>>>> against an oil-funded nuclear
>>>> Iran, Pakistan, and No Korea, there will be no funds available to  
>>>> fight it.
>>>>         
>>> All currency schemes are Ponsi schemes.
>>>   
>>>       
>> If they are not backed by specie, I agree. Specie-backed currencies 
>> rarely lose value. Look at the Swiss.
>>     
>
> Again, this is a belief thing, not anything real. The only advantage of
> backing currency with something real is that it encourages the government
> to not overspend.
>   

-- 
http://www.piclist.com PIC/SX FAQ & list archive
View/change your membership options at
http://mailman.mit.edu/mailman/listinfo/piclist