To: carranza2 who wrote (40493 ) 9/30/2008 8:08:49 PM From: TobagoJack Read Replies (2) | Respond to of 220162 just in in-trayit always comes back to the same problem - the economy , its capital, its production structure, its pool of real funding - all are not properly represented by what we call 'money' nowadays because this money did not arise in a free market process. it only attained usefulness as a medium of exchange because it has been decreed by the state that it must be accepted for payment, and more importantly, because the state accepts it for payment of taxes (similar to the tally sticks of yore, there develops a secondary market in anything that can be used for paying taxes). it is important to remember that money, as such, is not a creation of the state. it originally came about in a free market process via trial and error - the state has usurped it, and disconfigured it beyond recognition (while at the same time, adopting the methods of early counterfeiters and fraudsters and making them legal!). one of the reasons why there is such a big urge to bail out the tottering banking system is that the state rightly fears that at the end of the process of diminishing confidence that is now underway there could come the critical moment in time when faith in this state decreed money concept erodes. the state fears nothing more than honest money, in spite of the fact that honest money would without a doubt lead to greater prosperity. the problem is that the endless expansion of government, the financing of empire-type ambitions abroad, the financing of the welfare state - all would have to be cut back dramatically. individual freedom would increase to an extent no central planner could possibly be comfortable with. the feeding at the trough by favored constituencies would have to end. and so on and so forth. we can't have that.