Hobbit@Law

Looking carefully at that which is unseen.

Daily Archives: February 8, 2012

Thining about: Money, again

Economists and governments like to make money seem complicated, so that they can pretend that Duh Voters can’t possibly understand what it’s all about. But money is really nothing more than a social convention, a store of wealth accepted by a group, as discussed here.

Cigarettes in POW camps, the “mack” in prisons today, feathers, shells, pretty pebbles – as long as the parties exchanging agree on the value, that’s all there is to it. It really isn’t anything more than a convenient form of barter, as anyone who’s tried to fold a Holstein to fit into a wallet can testify to. And like any other good, if there’s more of it than there is demand, people asked to trade for it will require more to make the exchange – see further examples at “inflation.”