| gabriel rosenkoetter on Fri, 3 May 2002 17:29:33 -0400 |
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[This has been pretty much beat into the ground by now, I'm sure, but forgive me for just catching up now.] On Fri, Apr 26, 2002 at 01:41:10AM -0400, Jon Galt wrote: > Give me a break. Stick to computers, Gabriel. I'll refrain from a reply to that. > When the USA was on the gold standard, it was not possible for the price > of gold to fluctuate in terms of dollars, because the definition of the > dollar was in terms of gold. Ever hear of a 20 dollar gold coin? Of course not. They were tied to each other. Ever hear of a $20 apple, though? (I'm not talking about a computer.) The point is not what the value of the dollar is relative to gold, but what the value of each is relative to the real world. > Before they began eliminating the gold standard, one could walk > into virtually any bank and exchange between gold and paper > dollars at a fixed rate. I believe it was 20 USD per ounce. So what? Both of those are imaginary quantities. The issue is how many apples I could buy for those $20 US. And that changed. A lot. -- gabriel rosenkoetter gr@eclipsed.net Attachment:
pgpznAGnZS6W0.pgp
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