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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] gold back currency anyone?
  • Date: Sun, 7 Dec 2008 11:23:45 EST


> >Everything you said makes sense except for one fact. I am holding in my
> hand as I type, a 1 oz. Fine gold (.999) $50 Liberty coin, U.S.,. It is
> Minted by the U.S. gov't and it is legal tender.

Your coin is legal tender only because of its fiat value, not the value of
the metal in the coin. By the way, you'd be God's own fool to pay a $50
restaurant tab with one ounce of gold.

The mechanism by which the government enforces the non-currency use of gold
is by specifying that any contract you make specifying gold as tender is
unenforceable. You could enter into a contract of any kind with someone
specifying
that they pay you in $20 bills, or quarters, or money orders and you can be
forced in court to comply with the contract. But if you specify that you
will
be paid in X oz. of gold, the courts cannot enforce the contract. This law
still stands. What it does is effectively preclude issuing coin based on the
value of the metal.


James






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