How money works

[gusl]

How money works

My thoughts: given the diversity of possibilities out there, it's somewhat surprising that nations basically use only one currency.

Comments

[thepublicguy.livejournal.com]

Issuing a popular currency confers a great deal of benefit on the issuer. Not least the opportunity to benefit from inflation, or like the US, to benefit from the advantages of every other country having to hold some of your currency if they want to have liquidity.

It's not wonder governments want all that benefit for themselves.

[spoonless.livejournal.com]

Wow, that site is really cool. I have always wondered about the feasibility of non-government sponsered currencies. I didn't know there were so many already in existence. I have especially thought a lot about a system like www.e-gold.com, but again I didn't know they were already around (since 1996 apparently!).

In the end, it may be necessary to have a strong central authority for some primary system of currency; but it's certainly a good thing to have as many secondary competing currencies around as possible. If only to protect against the possibilities of revolt or collapse of the primary system.

And a free-market pseudo-anonymous encrypted tax-free international system of trade would definitely be cool. But we're probably not quite there yet.

Re:

[gustavolacerda.livejournal.com]

David D Friedman speculates about how anonymity could put an end to some forms of taxation, in a talk he have at the Foresight Institute. In it, he raised some very interesting questions and possibilities. I have a link about 20 entries to it back on my LJ.