From: f_griffith@ccsvax.sfasu.edu
Date: Wed, 4 May 94 13:50:10 PDT
To: Blanc Weber <blancw@microsoft.com>
Subject: Re: The Value of Money
Message-ID: <9405042050.AA03767@toad.com>
MIME-Version: 1.0
Content-Type: text/plain


>
>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