Just another Reality-based bubble in the foam of the multiverse.

Wednesday, May 09, 2007

Still Covert at Some Levels

Another blog I read a lot these busy days is Cryptogon.

Check out their take on The End of National Currency from the Company wonks at Foreign Affairs.

Kevin geeks out particularly at this paragraph:

...So what about gold? A revived gold standard is out of the question. In the nineteenth century, governments spent less than ten percent of national income in a given year. Today, they routinely spend half or more, and so they would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system. But private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar’s decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support.

So maybe he just geeked at The Company admitting what many have suspected for awhile now. Your cash ain't nothin' but trash, baby. The Big Boys have their own medium of exchange, and Guvmint's got nothing to do with it, except set the table, clean up, and eat the scraps.


David Wozney said...

A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.

kelley b. said...

You noticed.

Just don't say it too loudly, you'll scare the children.