Re: The Value of Money

>
>I understand this much:  there is some gold and other actual metal 
>located in a vault, sitting there as a symbolic standard of wealth, 
>worth, value.  Everyone stakes a claim to it, and they exchange that 
>claim to others in substitution for something else (dog, rifle, gas in 
>the car, baby-sitting).  

>Blanc
>

Actually, there is no connection between the gold and our money.  I.e.
you cannot take US $ to Fort Knox (or any other government location) and
get gold for it.

This is why some posters have referred to "fiat money" - the $ is money
because the government says it is.

                              Reynolds

On Wed, 4 May 1994 f_griffith@ccsvax.sfasu.edu wrote:

> Actually, there is no connection between the gold and our money.  I.e.
> you cannot take US $ to Fort Knox (or any other government location) and
> get gold for it.
> 
> This is why some posters have referred to "fiat money" - the $ is money
> because the government says it is.
> 
>                               Reynolds

Unless of course you have a $ bill that is a specie note.  I have a few ten
dollar bills that state that they are redeemable for specie.

Ben.