Because of their provable indeterminateness, certain economic values and thus prices are fixed by subjective confidence, beliefs and fantasies loosely bound by market constraints. One may imagine such a monetary system as being " suspended in thought " . Monetization of " (derivative) promises " of any kind, as well as interest levied by banks in return for money created via monetizing future profits systematically reallocates resources toward the financial institutions, and away from industrial and manual production, farming and labor. Unfortunately, the alternatives appear to be even more troublesome than the present state of affairs. Any system based on interest-free fiat money creation , in order to avoid hyperinflation through excessive borrowing of "free" debt, has either to rely on unjustifiable privileges or chance. And any system based on commodity instead of fiat money is heavily depending on the quantity of commodities, and also incapable of waging or defending against war through the effective monetization of future loot or loss .
This review is about the convenience, the benefits, as well as the destructive capacities of money. It deals with various aspects of money creation, with its value, and its appropriation. All sorts of money tend to get corrupted by eventually creating too much of them. In the long run, this renders money worthless and deprives people holding it. This misuse of money creation is inevitable and should come as no surprise. Abusive money creation comes in various forms. In the present fiat money system " suspended in free thought " and sustained merely by our belief in and our conditioning to it, money is conveniently created out of " thin air " by excessive government spending and speculative credit creation. Alas, any too tight money supply could ruin an economy by inviting all sorts of unfriendly takeovers, including wars or competition. Therefore the ambivalence of money as benefactor and destroyer should be accepted as destiny .
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Because of their provable indeterminateness, certain economic values and thus prices are fixed by subjective confidence, beliefs and fantasies loosely bound by market constraints. One may imagine such a monetary system as being
This review is about the convenience, the benefits, as well as the destructive capacities of money. It deals with various aspects of money creation, with its value, and its appropriation. All sorts of money tend to get corrupted by eventually creating too much of them. In the long run, this renders money worthless and deprives people holding it. This misuse of money creation is inevitable and should come as no surprise. Abusive money creation comes in various forms. In the present fiat money system
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suspended in thought
suspended in free thought
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. Monetization of
and sustained merely by our belief in and our conditioning to it, money is conveniently created out of
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(derivative) promises
thin air
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of any kind, as well as interest levied by banks in return for money created via monetizing future profits systematically reallocates resources toward the financial institutions, and away from industrial and manual production, farming and labor. Unfortunately, the alternatives appear to be even more troublesome than the present state of affairs. Any system based on interest-free fiat money creation , in order to avoid hyperinflation through excessive borrowing of "free" debt, has either to rely on unjustifiable privileges or chance. And any system based on commodity instead of fiat money is heavily depending on the quantity of commodities, and also incapable of waging or defending against war through the effective monetization of future loot or loss
by excessive government spending and speculative credit creation. Alas, any too tight money supply could ruin an economy by inviting all sorts of unfriendly takeovers, including wars or competition. Therefore the ambivalence of money as benefactor and destroyer should be accepted as destiny