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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (43005)	9/10/2002 7:58:23 AM
From: LindyBill	Read Replies (1) \| Respond to of 281500

Overall I prefer a money system that governments and bankers can jigger with the least. I worked on the problem of money back in the '70s, when I was taking some course from a guy on social theory. I realized that all Governments would inflate if they had control, to give them money to spend and pay their bills, and to keep the voters happy. This has settled out today, after we went through some major inflation, to a major attempt by the Fed to hold inflation under 2%. Even the 3rd world Govs now realize they will be put out of power if they inflate too much. The key I came up with was the realization that all human production can be explained in terms of Physics as energy exchanges. This lead me to understand that money was an attempt to ease these exchanges, and provide a way to "store" these exchanges. This lead me to the Axiom, "Money is credit good for future delivery of energy." To put it another way, "Money is credit good for future delivery of productivity." We have done this in the past using all types of commodities, from grain to tobacco to shells. Metal was the easiest to use, because of storage and portability, so gold and silver came to be the most common money. The Fed using this type of standard now, on an 'artificial" basis, with "Fiat" money, by keeping the money supply in line with the increase in productivity. The US has the additional benefit that it can increase it's money supply faster than US productivity, because of the International demand for it.