Re: New Kinds of Currency Proposed


Ryan wrote:
Now imagine a closed economy using the gold standard and not having anymore
gold resources (depleted). With any new increase in production the wealth
available to society increase but the amount of currencies circulating on
the market is constant. Therefore, more wealth is assigned to the same buck
over time. So, somebody hoarding money is going to see his wealth increased
without investing or producing anything.

How is hoarding gold different to hoarding any other commodity in the
hope that demand for it will increase?

Horading gold currency, not golden commodities,
Because when you hoard gold cuurency, bankers
adapt arbitary and stupid conventions, like Troy Ounces.
And a whole sub-culture industry developes just
around the stupid conventions of weighing, sizing,
and storing, Troy measures.

And it weakens the economy, it's a quite stupid
and insolar convention.



To have any major impact you
would have to hold the gold for a long time, and over that time there
would always be a temptation to spend it.

That;s what's bankers did for centuries, from
1000 BC until 1900 AD. Since Gold keeps,




I'm not suggesting a gold
currency is a good idea, but I don't think the risk of hoarding is the
main problem. I'd bet that supply fluctuations would be a bigger threat
to price stability.

Will it is, That;s why you need often corrupt,
special army trains for gold standard economies.

.

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