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Energy Backed Money instead of Gold?

Just an idea I think I came upon somewhere once. Perhaps dollars could be exchanged for energy, since that is so much more universally useful than gold. Any ideas about this?

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I believe the canadians

money is backed by their oil.They call it petro- dollar

Am I suppose to use paper

Am I suppose to use paper FRNs to light the alcohol. Do you honestly believe we will have minted gold coins to trade with? I doubt it, since if anything they will just offer us paper certificates or e-gold.
George Washington killed Revolutionaries because they used Whiskey as a form of money in the Whiskey rebellion. All I am saying is let the market and people decide what we want to use for currency and money, not the government. Unfortunately Marx may be right. We have gone from being capitalists to socialists. The only light at the end of the tunnel is when the people destroy the state and all that is left is communism. You do know that socialism and communism are complete opposite economic systems, one controlled by the state and the other a system of anarchy?
grant

A Great Idea

While gold make sense for international settlements, the US does not produce enough to keep up with population growth. And that assumes we even have enough gold to cover the dollars already in circulation.

A kilo watt dollar would promote conservation and domestic renewable energy. If a domestic gold kilo watt exchange were available, this might be the answer. By eliminating 700 billion dollars a year in energy trade imbalance, perhaps we could have a positive trade balance.

why do you want to

drive your savings away?

--------------------------------
"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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Arthur C. Clarke mentioned it.

In the book "Imperial Earth" (1975), there's a passing mention of a currency called the "solar" which is backed by kilowatt-hours.

If we revert to a constitutional monetary system, there's no reason to have a monopoly for money. The government would be restricted to issuing gold or silver coinage, but private parties could issue any kind of currency that people would accept. Private money could be redeemable in kilowatt-hours, bushels of corn, gallons of gasoline, what have you.

-jcr

"The problem with trying to child-proof the world, is that it makes people neglect the far more important task of world-proofing the child." -- Hugh Daniel

I read a couple of his

I read a couple of his books. Rendezvous with Rama was pretty fascinating. I think I have Fountain of Paradise on my list too. That book, I'll have to look into as well.

How about an Alcodollar.

Of course most enlightened people know that the real reason for prohibition was to protect the petroleum industry from competition with alcohol. So this would definately be a way to spread the wealth. Farmers can produce the crops, local refineries can produce the alcohol and then trade it locally to generate local economies. No need to maintain a military in the middle east to protect worthless petroleum.
grant

Kaboom!

Physical stability and durability are important characteristics of "real money". Place a gold coin and a gallon of alcohol in a fire for a minute or so, and see what you have left.

Oh, and stand back when you do the alcohol. ;>)
_________________________
Moobi

"In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution." -- Thomas Jefferson

not so good

Having a money supply that is consumed as fast as it is produced is not a good idea. The money supply needs to be stable. Also, how would the backing work in reality? Could I go to the bank and have my paper money redeemed in oil? When gold was money, even when fractional reserve banking was in full force, you could take your bank notes to the bank and walk away with gold. THAT is a backed currency. Any paper that cannot be redeemed for the commodity that backs it is not truly backed.

Yea, its called the Petrodollar

http://en.wikipedia.org/wiki/1973_oil_crisis

Now that you understand this, perhaps you will understand why it was that Bremer's first action in Iraq was to put Iraq oil back into trading only on the dollar. Perhaps also you will see why Iran, not trading its oil in dollars, pisses off the powers that be.

In Peace and Liberty,

Treg

Yes, please BUY this wonderful libertarian BOOK! We all must know the History of Freedom! Buy it today!

"The System of Liberty: Themes in the History of Classical Liberalism" ...by author George Smith --
Buy it Here: http://www.amazon.com/dp/05211820

do a google search for

do a google search for petrodollar and look where that got us with saddam and the iranian's with their bourse.

I think they did this back

I think they did this back in the early 1900s, if I'm not mistaken. Ah... I found it, yes, they did exchange their paper money for energy back in 1923: http://en.wikipedia.org/wiki/Image:Inflation-1923.jpg

;-)

...

Haha, yeah, I love that pic.

Haha, yeah, I love that pic. I showed some people that recently. I guess paper is energy backed after all!