Tuesday, December 16, 2014

Is all "real" money just funny money? The Case for Barter Currency

I believe that a significant part of the problem with instability in the global economy is the very nature of currency valuation/devaluation. It seems that the central nature of currency is based on a fixed scarcity of either what the currency is backed by, or the fixed scarcity of a finite amount of printed money. The more money a government prints, the less value it has -- but I question the very nature of current currencies.

For example, during the recent recession, a significant driver of economic damage was caused by highly leveraged investment bankers investing in securitized credit derivatives, which basically make debt more opaque and unstable. The net effect of the house of cards caused suffering in the developing world, as commodity prices spiraled downwards. And already, heavy lobbyist pressure is seeking to remove the safeguards put in place against these derivatives, after so much suffering.

But every one of the individuals in the developing world who suffered from this house of cards, has continued value beyond currency. I believe it is time to seriously consider a barter currency that is based on the immutable value of the individual's skills. This kind of alternative currency could help local economies survive, regardless of the fixed scarcity, and inherent instability, of so called "stable" international monetary systems.

I invite anyone to prove how conventional currency is any better than Monopoly money when you look closely. All money is funny money.

Here's a quiz for you. Which of these is more "real"?

What do you think? Please comment below.

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