From: hummingbird 
Newsgroups: rec.travel.air uk.finance
Subject: Re: D Tel: Travellers with over ? must tell taxman
Date: Wed, 27 Jun 2007 02:05:55 +0100
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On Wed, 27 Jun 2007 00:18:23 +0100  'John Boyle'
posted this onto rec.travel.air:

>In message <5ecp4kF37nmolU3@mid.individual.net>, hummingbird 
> writes
>
>>Personally I'd prefer that we all went
>>back to the gold standard and did away with fractional banking, which
>>is what lies behind bank profits (and of course inflation) methinks.
>
>How would that help?  Why pick Gold?

Pls forgive me, I'm not a banker. But gold was historically the
standard used for currency valuation and stability. The move away 
from it and towards fractional banking and the printing of money has
created a situation whereby banks lend money that they don't have
deposits to cover, which was not possible under the gold standard.
The result has been precarious bank stability at times and of course
much inflation. The *too much money chasing too few goods* syndrome.

If the gold standard was re-introduced, inflation would disappear
(I mean really disappear) soon after. The current inflation measures
are well known to be a gigantic hoax and deliberately intended by
western govts to devalue money. EG in the UK true retail inflation is
closer to 7-8%, not 2.5% that the CPI reports. Monetary inflation
- M3 - is also high which some say is the true measure of inflation.

About inflation:
http://www.financialsense.com/stormwatch/2005/0624.html

THE PETRO-DOLLAR & PROTECTION RACKET:
http://www.financialsense.com/fsu/editorials/willie/2005/0406.html

About the US Fed Reserve:
http://www.apfn.org/apfn/reserve.htm

>>The very notion that banks lend money which they don't have is wrong.
>
>?? I dont understand your post. Are you saying that banks should only 
>lend a proportion of the gold they hold subject to it not exceeding 100% 
>of that?

Banks should only lend a proportion of the deposits they have and 
the central bank should not permit the printing of money that is not
supported by gold. The current system is purely inflationary and
intended to be so.