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To: Dawnsblood
Here is an essay by Hayak on the subject: A Free-Market Monetary System. The problem of what to do if there s a big gold or silver strike has been dealt with before. It turns out the only thing that needs to be done is to stop minting coins for a while. Then the existing coins will begin to trade at values above their metal content. When the specie price stabilizes minting can begin again. That may not seem intuitive until you consider that base metal coins (tokens) trade at values above their metal content. When necessary silver coins can do so as well. Specie coins only trade at the specie price as long as minting is going on.
15 posted on 11/29/2008 4:14:14 AM PST by SeeSharp
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To: SeeSharp
Thank you for the link. I have bookmarked it and will read it later. This is a subject I am just introducing myself to. I am looking forward to learning a bit. Hayak is a favorite of mine :)
18 posted on 11/29/2008 4:24:09 AM PST by Dawnsblood
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