What are you talking about? "Photocopy the contract?" 
Why would an IOU issuer create 8 different $1 IOU's to represent an actual $1 asset?
Why would an IOU issuer create 8 different $1 IOU's to represent an actual $1 asset?You're missing the point, but to answer your irrelevant question for giggles;
It's that your point is invalid. I didn't say it wasn't possible, I said why would they do it? More importantly, why would you do business with them? You're trying to suggest that every gateway must operate in some fractional way. That's just not the truth. You can continue to create your worst case scenarios and live by them, you're certainly entitled but that doesn't make them the norm as it relates to Ripple.