Comment: Money

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Money

Money, if I understand the Austrians correctly, is not made of thin air, nor is it made of cow hides. Lietar's error is not understanding that money is a commodity. Gary North in his essay "Misses on Money" writes " Direct exchange is barter. Barter is associated with a low division of labor. Participants expect to consume whatever it is that they receive in exchange. But in a more developed system of indirect exchange, participants exchange their goods and services for goods that can be exchanged for additional goods and services. Mises then explained why certain commodities become the widely accepted means of exchange, i.e., money." The essay may be found here http://www.lewrockwell.com/north/north83.html