Perhaps I'm a fool but I can think of two good arguments against that...YiamCross wrote:At last, a currency we can rely on to see us through when the world financial system crashes and burns. Which is definitely going to happen soon. (Courtesey of Peter of England's facebook page, reproduced below for those of you sensible enough not to bother with FB)
"Peter Of England... So if you wish to do yourself a favour then turn paper into gold and only a fool would argue against that...."
1) If I want to convert my worthless paper in to gold I can do that by the simple expedient of buying gold. Why do I need Poe to supply me with gold backed notes which won't be accepted anywhere when I can actually walk in to a shop and buy actual gold.
2) Shops, as a rule, don't accept gold in payment for goods and services. A twenty pound note will buy me an ounce of tobacco, two packs of green rizlas, four tins of dog food, a bottle of reasonable quality red wine and something nice for tea.
What will £20 worth of gold buy me?.. Nothing.
What will a 20 WeAu note buy me?.. Nothing.
I think it has already been revealed that Poe is planning to "back-up" his WeAu notes not with their actual value in gold but with 10% of their value in gold. £10 worth of gold will "back-up" £100 worth of WeAu. You don't need to be a genius to realise that backing a note up with only 10% of its value is as near a "toxic" fiat currency as makes no difference.
Of course the whole plan for a WeAu note falls down in exactly the same way as the WeCheques falls down... Nobody will accept them. It doesn't matter two hoots whether Poe claims they are backed by gold, platinum, depleted uranium or clods of sheep shit... They are still going to be as worthless as me writing "Twenty Quid (Gold)" on a blank sheet of paper and expecting it to be accepted.
Shop-keeper: "That will be £20 please"
Me: "Here you are"
Shop-keeper: "WTF is this?"
Me: "It's a piece of paper with 'Twenty Quid (Gold)' written on it"
Shop-keeper: "What use is that to me?"
Me: "It's OK... I have twenty quid's worth of gold at home to back it up"
Shop-keeper: "That will do nicely sir"
Can't see it happening some how