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To: ari-freedom
I don’t think 2 currencies will work because people will pay their debts in the fiat money and lock up their gold money.

You know, there are many forms of silver/gold currency that are still legal tender. The Federal Reserve even sells a gold dollar. So it's not so radical really.

People can already buy gold in many forms as an investment. I think that offering a silver/gold currency is a nice way for people to hold legal currency that also has value as money. I also still have the silver dollars my uncle gave me as a baby, a nice keepsake for family members to give babies or graduates against a truly rainy day.

Given the fluctuations of the gold and silver market, I doubt most Americans would want more than $200-$1000 of gold/silver currency.

However, a more widespread use of gold/silver dollars would help to hedge against the hidden inflation of a Fed that prints money to deflate savings in order to manage the out-of-control federal debt interest costs.

Voting for Ron Paul is a vote to move toward a sounder currency, not a vote to return to a complete gold-backed currency, at least not in the short run.
17 posted on 07/31/2007 6:58:38 AM PDT by George W. Bush (Rudy: tough on terror, scared of Iowa, wets himself over YouTube)
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To: George W. Bush
well sure anyone can invest right now in gold if they fear inflation. There's e-gold. There are gold etf's.

But nobody is going to spend their valuable gold unless gold money is all there is. And that may ironically require govt enforcement. So that is the big problem I'd like to understand.
18 posted on 07/31/2007 7:25:35 AM PDT by ari-freedom (Never attribute to malice that which is adequately explained by stupidity.)
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