workable barter currency?
Aug/Sept 93 Mother Earth News has an article "The Ultimate Barter" about "A currency based on time-hours is a boon to a rural community."
poorly-backed digital currency will win out over e.g. U.S. dollars?
Depends on legal tender status (see post by Perry). Note too his point that digital currency needn't be poorly backed. However, also note that government issued dollars would circulate in preference to gold backed digital currency issued by someone else according to Greshams law (which was stated in reference to metal coins, but applies to other forms as well). Solution might be to denominate digital currency in something other than $ (e.g. gold grams) & have parallel monetary system develop.
F_GRIFFITH@ccsvax.sfasu.edu says:
point that digital currency needn't be poorly backed. However, also note that government issued dollars would circulate in preference to gold backed digital currency issued by someone else according to Greshams law (which was stated in reference to metal coins, but applies to other forms as well).
This is not what Gresham's Law says. Gresham's Law is that if there are two kinds of coins that are stated by law to have equal value, the one thats actually worth less because of metal content will be the one that you spend first. It doesn't apply in this instance at all. Perry
This is not what Gresham's Law says.
Gresham's Law is that if there are two kinds of coins that are stated by law to have equal value, the one thats actually worth less because of metal content will be the one that you spend first. It doesn't apply in this instance at all.
Perry
I think Gresham's Law applies to authority-influenced currency. I'm trying to get a hold on this quote so hold on. -Alex
Alexander Reynolds says:
This is not what Gresham's Law says.
Gresham's Law is that if there are two kinds of coins that are stated by law to have equal value, the one thats actually worth less because of metal content will be the one that you spend first. It doesn't apply in this instance at all.
Perry
I think Gresham's Law applies to authority-influenced currency.
Precisely what I said -- coinage stated BY LAW to ahve a certain value. Perry
Precisely what I said -- coinage stated BY LAW to ahve a certain value.
Ok, fine. I'm listing the quote to add further detail to the topic: "Gresham's Law, like most of the 'laws' taught in State-supported public schools, is not quite true (at least, not in the form in which it is usually taught). 'Bad money drives out good' holds only in authoritarian societies, not in libertarian societies. (Gresham was clear-minded enough to state explicitly that he was only describing authoritarian societies; his formulation of his own 'Law' begins with the words 'If the king issueth two moneys . . .,' thereby implying that the State must exist if the 'Law' is to operate.)" -The Illuminatus! Trilogy Leviathan, pg. 766 Shea and Wilson -Alex
participants (3)
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Alexander Reynolds -
F_GRIFFITH＠CCSVAX.SFASU.EDU -
Perry E. Metzger