The Quality of Money

By Swithun Dobson

What is the purpose of money? Where does it come from? Inequality generates trade and specialisation creates the need for money .  A good money is widely marketable and must function as a genuine store of value, thus paper money should be consigned to the board game Monopoly.

Inequality Leads To Trade

In a state of subsistence farming money need not exist,  since a family, for example the Robinsons, might produce all the requirements for survival (food, shelter, clothing, water etc) and so have no reason to trade; however as soon as they come into contact with another family, the Andersons, group trade is possible and thus money could arise. Yet, why would anyone bother trading with another group in the first place? Mises cites three reasons:

  1. The natural inequality of man regarding their abilities to perform a task.
  2. The geographically unequal distribution of natural resources.
  3. Certain tasks require more than the labour of one man.[1]

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Major Douglas and the “Social Credit” cult

John Ray

I see that there are still some people around who believe in the “Social Credit” movement founded in the 1930s on the madcap ideas of Major C.H. Douglas. Douglas was a clever engineer with an enquiring mind. He did not restrict his reading to engineering. And one day he made a most interesting discovery: There was far more money in circulation than the government had ever issued. How come? He could have asked economists and bankers why but instead he made up his own explanation for it.

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“QEen” Zoe Williams is ignorant or dishonest

Mustela nivalis

Zoe Williams is a mainstream (Guardian) journalist and she is either ignorant or dishonest. (Spot the tautology.) She supports a “People’s QE”. About a month ago, even before Jeremy Corbyn was elected as Labour leader, one commentator on the LA blog under the name of “Peter” predicted that exactly this would happen. He said that Corbyn’s ideas will repulse far fewer than his party-political rivals hope – and attract more than they think. The reason being that often his policies are simply a logical extension of whatever crackpot policies they, the Tories and others, are already pursuing!

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