Re: [Pen-l] Re: Gold money is fiat money too.

[Laurent GUERBY <laurent@xxxxxxxxxx>]

On Sat, 2009-01-31 at 09:49 -0500, Shane Mage wrote:
> 
> On Jan 30, 2009, at 5:21 PM, Laurent GUERBY wrote:
> 
> > In the internet age you can practically move away from fiat currency
> > if
> > you want too: buy and sell gold/whatever ETF and keep the strict
> > minimum
> > of fiat currency on your regular account (including the right amount
> > the day you pay your taxes). One click per day.
> > 
> 
> 
> No you can't.  

Yes you can (tm).

> Money is used to settle debts (that is what money is--legal tender,
> the "medium of deferred payment").  No debt contract has contained a
> gold clause since 1932.  All you do is make yourself a perpetual
> speculator going broke from transaction costs.

Enter debt, earn fiat money to buy gold ETF, sell gold ETF for fiat
money, settle debt.

My point is that's now practical to do this. Ten years ago it wasn't.
And transaction costs are low compared to platic money fees.

And speculator, yes you're speculator if you buy anything with fiat
money, by defintion of speculation.

Laurent

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