“A currency, to be perfect, should be absolutely invariable in value.” – David Ricardo
So much time has been wasted, and so much progress has been lost, due to a fundamental misunderstanding about life. Economists think because of the existence of paper money and central banks that we’ve somehow left the days of the “barter economy” in the past. Except that we haven’t.
With trade, it’s always and everywhere production for production. Reduced to the basics, I’ve got bread and I want your wine. Except that you don’t really care for my bread; you really covet the butcher’s meat. Money is the agreement about value that allows the three of us to exchange with one another even though our wants are very different.
All of which explains how money came to be. Precisely because the want of my bread by others isn’t uniform, money was brought into the picture by producers. Not a creation of the State, money was invented as a commonly agreed…