The Editors’ Quote of the Day:

“Money is different from all other commodities: other things being equal, more shoes, or more discoveries of oil or copper benefit society, since they help alleviate natural scarcity. But once a commodity is established as a money on the market, no more money at all is needed. Since the only use of money is for exchange and reckoning, more dollars or pounds or marks in circulation cannot confer a social benefit: they will simply dilute the exchange value of every existing dollar or pound or mark. So it is a great boon that gold or silver are scarce and are costly to increase in supply.

But if government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this ‘inflation’ of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.” – Murray Rothbard in “Taking Money Back”, in The Freeman (September – October 1995).

One Comment

  1. Money has intrinsic value,substitution of fiat currency is the problem. Had a idea of instead of gold or silver,use a representation of stored energy(Calories,Watts,Joules)as a measure of value. Food,fuel,electricity,productive work,productive capacity of tools,equipment,even farmland could easily be determined and compared.

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