Money

Generali

princeofpounds wrote: »

First part very strong, I think you cover fractional reserve banking and the concept of fiat currency too briefly and quickly. I would delay fractional banking until you have stopped talking about money and started talking about banking.

I would also point out that perhaps you are allowing your feelings about fiat money to get in the way a bit. Fiat money is backed by a requirement that it be used to pay taxes and other state-related transactions - there doesn't have to be (and generally isn't) a requirement for third parties to accept it in transactions for goods and services.

I'm sorry, I missed this post.

AIUI, the Legal Tender Act requires that fiat money be accepted in settlement of a debt. Now that's not the same as requiring it to be accepted in transactions for goods and services as to do so would outlaw barter which would be a bad thing IMO as it's perfectly reasonable for me to agree to babysit for my sister's kids on a Tues if she babysits mine on a Friday without any intervention from the State in that private transaction.

Generali

nearlynew wrote: »

The series is a good, simple introduction to what money is and nicely written.


Perhaps though you could explain to people some of the problems inherent in a debt-based money system.

Part 6 of 4 is going to be about default and deflation.

nearlynew

Generali wrote: »

Part 6 of 4 is going to be about default and deflation.

I was thinking more along the lines of explaining that although the bank creates all this credit out of thin air, it doesn't create the interest.
This mean the money supply needs to continually expand thereby stealing our money through inflation.

mark55man

thank you - waiting for the next part with interest - especially if its to explain to my teenagers that unlike the bank each of my pounds can only be spent once