Comment: Bi-metalism...

(See in situ)


or tri-metalism, quad-metalism or the introduction of non-metal commodities as currencies (poly-commoditism) is not the problem.

The problem is when the govt tries to artificially impose monetary values on any kind of money or declare what money is -- whether fiat or commodities.

Austrian economics says only the market can decide what money is. And that markets will choose commodities. And that history reveals markets usually choose metals -- most often gold and silver due to their unique intrinsic properties.

When markets are left alone the market will introduce, remove and adjust values of currency commodities as needed. There is no reason buyers and sellers might not begin using certificates for platinum, palladium, gems, trees, land, next years crop, finished goods etc.. as needed for currency.

The problem is when Govt steps in and tries to place artificial values on currencies. That is the markets job. It is the only thing the market does ---> discover/assign trade values. If you monkey with it then you get imbalances which are trying to reach equilibrium. The more aggressively the Govt attempts to impose a desired value, the more violently the market will react as it naturally moves back to equilibrium.

The market is people deciding what they will willingly trade for something else. Leave them alone or you get trouble...

~wobbles but doesn't fall down~