Subject:
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Re: A hypothetical economics question...
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Tue, 5 Mar 2002 10:22:20 GMT
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Viewed:
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497 times
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In lugnet.off-topic.debate, Christopher L. Weeks writes:
> -- why the 20:1 ratio? It seems like a bad idea to have a ratio instead of
> just gold certificates and silver certificates and maybe a daily exchange rate.
> Do you know the thinking behind the ratio?
You raise an interesting point -- I gather you think the true value is best
determined through daily market forces. I am pretty sure the point of a
ratio rather than certificates traded for daily value has to do with making
the value static. If one trades X ounces of gold for a thing, one wants to
be pretty sure one is always getting the precise value one imagines.
Allowing the figure to be traded daily would perhaps needlessly burden users
of such a currency system with having to daily watch the commodities
markets. Think of all the prices that could fluctuate daily if that were an
issue -- certainly high priced items, but also smaller ones I should think.
But again, would there even be gold and silver traded as commodities in such
a market -- why would anyone do that when one could just go score some metal
by trading in one's certificates?
-- Hop-Frog
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Message has 1 Reply:
 | | Re: A hypothetical economics question...
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| (...) rate. (...) Unless there's a reason that I'm missing, that's kind of my default thought. (...) Got that, but in a global economy it's a phantom concept. I could always trade across the border. Maybe it made more sense way back when before (...) (23 years ago, 5-Mar-02, to lugnet.off-topic.debate)
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Message is in Reply To:
| | Re: A hypothetical economics question...
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| (...) Completely aside from the issue of how it's supposed to be, I've been wondering -- why the 20:1 ratio? It seems like a bad idea to have a ratio instead of just gold certificates and silver certificates and maybe a daily exchange rate. Do you (...) (23 years ago, 4-Mar-02, to lugnet.off-topic.debate)
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