-- Posted Wednesday, 5 January 2011 | | Source: GoldSeek.com
You know the arguments for gold as money. So why am I touting gold as the magic elixir to save the transaction processing system of the world? Why not just pass around gold and silver? Why not come up with pseudo currencies to feed into the transaction processing system?
Think of it this way. Our transportation system runs on gasoline. What if someone had been adding water to the gasoline for a long time, just a little at first, but more and more as time went by. Over time, engines had been redesigend to accomodate the thin gasoline, but in the end, people spent a good fraction of thier day and their income filling up the car.
Realizing how broken the system had become, some called for throwing out cars and moving back to horse and buggies. Others called for watering down the gasoline further and pumping it to every home. But the simplest and best solution was obvious, return to pure gasoline.
Transacting business using physical gold and silver coins, would be like returning to horse and buggy days.
We have terrific technology and productive capabilities, but all of it is dependent on a currency system that works quickly and efficiently.
Sure some people may be hoarding tons of gold in anticipation of this. But other people are holding the whole world hostage with their fake money, fake wealth, and fake rules.
Economic freedom is the key to making this work. Depositors must choose their bank carefully. Banks must be allowed to fail if they can not meet depositor demands for metal. All of this should be very easy and efficient in the age of the internet.
voltaire@incitertrading.com
http://www.incitertrading.com
-- Posted Wednesday, 5 January 2011 | Digg This Article | Source: GoldSeek.com