The Mudcat Café TM
Thread #115371   Message #2469536
Posted By: Slag
18-Oct-08 - 09:29 PM
Thread Name: BS: The Crash of '08
Subject: RE: BS: The Crash of '08
Bobert, I think if you go back and look at my second post you will see in all caps that the money, be it gold or paper or some other form ( I actually have little copper "boats" from Vietnam that indicated that the giver had an actual boat that it represented) that it MEDIATED the exchange of goods and services. The real crux is that it is an AGREED upon medium of exchange.

The problems arise when third and fourth parties get involved and begin to manipulate the value of the medium. Counterfeit is illegal for this reason. Hoarding, amassing, cornering, monopolizing, pyramids, almost an endless list represents attacks against and attempts to steal the medium. If that goes unchecked we revert to barter, as the medium cannot be trusted. I'll give you one gallon of milk for two gallons of gasoline. What? Not fair? Let's dicker. That represents ground zero in economics.