Came across this tidbit in What has government done to our money
"For government to use counterfeiting to add to its revenue, many lengthy steps must be travelled down the road away from the free market. Government could not simply invade a functioning free market and print its own paper tickets. Done so abruptly, few people would accept the government's money. Even in modern times, many people in "backward countries" have simply refused to accept paper money, and insist on trading only in gold. Governmental incursion, therefore, must be far more subtle and gradual."
It reminded me of this video I saw very recently
[View:http://www.youtube.com/watch?v=GuqZfaj34nc]
My brother, a navy pilot and fellow austrian, sent the video to me in an email, saying:
"I had heard something about this before, but didn't quite piece it together. This report makes alot more sense about why we would have had to go in there."
My father, an oil broker and a republican who, by no means is an austrian, replied with this:
"Interesting but I doubt they could have pulled it off because they want to sell their oil and other goods to foreigners who will not want to pay in gold. Even if they were willing, eventually they would spend it all, and then there would be no way for Libya to sell their goods any longer."
My brother then responded
"I guess that just depends on the price of gold... if gold was $8000-10000 an ounce you could buy a lot more oil."
What do you guys think?