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Old 03-11-2010, 05:12 PM   #3
Project Avalon Member
Join Date: Sep 2008
Location: Riverside, ca.
Posts: 898
Default Re: ... on debt as money

"The only problem with gold's intrinsic value is that we can't eat it."

Very true.
It is actually what you'd call a "special use" commodity.

It does have the weakness you mentioned. If you find yourself in a situation where no one will accept it, you can't just go home and eat it yourself.

I had an interesting experience along those lines about 2 months ago.

As an experiment, I tried to make a certain purchase, by offering in exchange a newly minted, solid silver US coin.
Face value: $20 U.S.
Intrinsic value: whatever an ounce of pure silver is going for today.

My coin sat "on the table" for almost 2 weeks, before anyone would accept it. Fortunately I wasn't trying to buy food.

"Life IS mystical! It's just that we're used to it"

Evil cannot be killed. Only redeemed.

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