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Gold as base currency
One respondent noted that using currency as distinct from gold
has led to trading in equities and allowed a few to benefit in accruing
wealth without producing an end product (other than personal gain)
If we were to revert to gold as the medium of trade, many equities
would return to book value, ie what the Company (represented by the
equitty) is worth in terms of it's tangible (saleable) assets. Today most
are valued not only on their actual assets but (and in many cases principally)
on their percieved profits. I know of at least one manufacturing engineering
tool company in the US that traded at 5 times it's real book value One wonders
what Microsoft and the like are actually worth in therm of tangible assets. If
all Microsoft licencees and software purchases were to stop now it would be
like a pin into a baloon (not a bad adea either !)
The Euro whilst once a good idea is just another currency and does not remove
the need to value things for their material rather than percieved value, which is
at the root of our present problem.
When will the world wake up to the fact that most of us are subsidising
American debt - some trillions of dollars that they can never repay. Gerald.
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