by Tyler_JC » Sat 11 Aug 2007, 20:59:17
$this->bbcode_second_pass_quote('Roccland', '
')Exactly!!
I think folks 20 DAYS from now are gonna look back and regret that they blindly trusted the dollar.
(moving along)
Gold is extremely useful because it packs a lot of value into a very tight package.
Unfortunately, that makes it rather impractical as a bartering medium to purchase small items. No one will ever trade a gold coin for a bag of flour. So a better system of trading gold around needs to be developed.
What makes a lot more sense is having a region's gold stock in a single, trusted bank and then issuing paper notes for the gold.
The First Bank of Boise Idaho (or whatever it would be called) would have a vault full of the gold owned by people from Boise Idaho. Notes ranging from 1/128 ounce ($10?) to 10 ounces ($10,000?) would be issued in exchange for the gold.
The local authorities would insure that the bank wasn't printing more gold notes than existed in the vault (we learned that lesson already, right?) and commerce would continue as usual.
In the early days of the United States, we had hundreds of banks issuing hundreds of different currencies. If you believe that the federal government will be replaced by a collection of vaguely allied confederate states, my banking system would work.