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domingo, marzo 13, 2011

A Competitive Money

For me a sequence of recurrent world economic crisis comes from a harmful but generalized fiat monetary system impost along the world. A sequence of unobservable evil facts are all results derived from arbitrary use of money. Unfortunately government, and its powerful crony men, always have used the fiat money system to finance their business, augment their wealth, and defraud people. Unfortunately, along of the least 150 years around the world, the economic history of the humanity has been contaminated by this kind of carcinogenic disease: Fiat Money.

I think that Fiat Money is economically inconsistent because it has no economic goods as last support. In the end, anybody guarantees that a certain amount of some economic good can be obtained in exchange for one unit of fiat money. Fiat money isn't supported in an economic good. Eventually, and recurrently along the economic history, will be revealed that fiat money is not an economic good. At those times become crisis. Why?. Because if we want force a not economic good to be economic one, we realize that such good has no value. So, at those times, the artificial value of fiat money eventually evaporates.

A true money consist of, naturally, economic goods which has superfluity and universal interchangeability . So, papers, coins, -and other devices-, which are used as mean of payment or store of value or account unit, should be supported by such kind of economic goods. Then, I think that a natural money system could be a system supported by a basket (set) of economic goods which are both produced and demanded competitively and which keep the properties of superfluity and universal interchangeability. So, these goods would be produced to satisfy the usual human needs, to generate superfluity, and to be universally accepted as a mean to support a representative monetary system. This set of economic goods could be variable -not static.

This system should emerge spontaneously, without violence, without compulsion and coercion. No fundamental economic institution works -as a continuous source of prosperity- when imposed violently. I'm sure that a robust competitive monetary system never would emerge by compulsion and coercion. Compulsion and coercion could be used to protect a competitive monetary system from a race of thieves as those who impose, violently, the fiat monetary system. In this way we'd help to preserve A Competitive Money.

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