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Showing posts from August, 2012

Money versus 'Resource based economics'

There's still mass confusion ruling in the midst of the Zeitgeist movement and the Venus Project zealots. The Zeitgeist movement thinks we do not need money because a fraction of the monetary system we currently have is fractional reserve banking, while the Venus Project thinks it's easy to do a bit of finely tuned central planning and cater for everyone's subjective evaluation of goods and services. Here are some basic questions about money that I tried to answer:

How is money generated?Money is a medium of exchange. It is generated by manufacturing it, just like any other product. Unlike any other product, money (as in currency) has the highest marketability and serves as the greatest store of value. Any currency has to have these 2 properties. I'll illustrate this with an egg:  Suggest that you are an egg farmer.

Highest marketability merely means that everyone is happier when you pay them in money than when you pay them in eggs. On your egg farm, your workers…