On 2006-Aug 05, at 15:33hrs PM, 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.   ^ What has real value ?  AGSC ^

>>> 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.   ^ What has real value ?  AGSC ^
-- 
D. Jay Newman           ! Author of:
jay@sprucegrove.com     ! _Linux Robotics: Programming Smarter Robots_
http://enerd.ws/robots/ ! "Heros aren't born, they're cornered."
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