From another conversation held elsewhere:

Question: So are we using Euro's, USD's, Yen, Pesos?

Answer: No. Let's name our product a Kwatloo, for example. It's a Unit Of Exchange. Just like money, say Euro's, USD's, Yen, Pesos, and the like. The difference is unlike other currencies being linked to eachother, as currencies, we would back our "Kwatloo" with assets.

This is much akin to the Old Gold and Silver standards; which are actually not that old. But the lifecycle of any Paper Money which is Not Asset based is typically between 30 and 50 years. As we see now currencies are starting to devalue, or revalue, the price indexes suggest that we are doing fine, but really you are buying less today then you were just 1-2 years ago. Not because of price increases, but because of product quantity decrease by the manufacturer so they can absorb some cost, to recoup as profit; no one wants to pay $5.00 for a KG of Peanut Butter, but you'll bay $3.99 for 650 or 750 mls, as long as the jar looks the same; it's a trick. This means the price actually increased.

Now, let's say that these "Kwatloo's" were not linked to a dollar, or a euro, or a fiat currency; let's assume they were based on 'things of value'.

Let's say that 1 Kwatloo was worth, as the not too recent times, worth X amount of Silver, or Gold.  And that instead of Gold, or Silver, there was an Internation Exchange Unit which acted the same; like a silver certificate, or a gold certificate. It's really no different than any other currency; excecp that the currency has 'real value'; it is 'worth more than the ink on the paper'.

Let's say then that you went out to pay your rent, which is say $1500.00 USD. Let's say this EU1250.00, or let's say it was 2 "Kwatloos"; it's simply a new type of "real currency". Now let's say you travelled to China, or Russia, or Mexico, or Brazil, and they had an open foreign exchanged that recognized, or had added our Internatinol Exchange Unit; you could theoretically use it anywhere.

If the dollar drops, the Kwatloo would not, if Gold drops, the Kwatloo remains balance or neutral against the counterweights used to valuate it, thus maintaining an evin keel, even in choppy financial waters.

It could be 'transfered' by using Bitcoins equivalent to the Unit; For convenience at this point we simply use the Present Currency Labels as a familiar reference point.

Now - Let's assume the dollar hits 50 cents, and let's assume the yen vanishes, and let's assume that the Renminbi, an eventual gold backed currency comes in, and tears up what's left of the precious few cents on the dollar, the euro, and the gbp. The "Kwatloo", is in a postioin that in succh a case it would weather the storm well, and would be worth the 'let's assume for example's sake' the same value as 1 gram of gold.

But instead of hoking and chaining to One Thing, we would use a variety of things; forming a floating "basket".

A good way to think of it would be to see it as a 'private' currency, for the moment.

If you have any other questiosn, or need further clarification please let us know! Thanks for your interst!