Saturday, September 15, 2007

http://en.wikipedia.org/wiki/Gresham%27s_Law

bad money is money that has less commodity value than exchange value.

that includes money created by fiat.

paper money.

and when we barter services to try to rationalise value in our community we are now committing a crime.

as an aside, i was having a discussion with my oldest boy about "free" energy and the use of water as an energy source by spitting the hydrogen off with electric current and i had to explain that any "free" energy will be priced by tax once it is established and will therefore never be free.

just another proof that we work for government, not the other way around.

5 comments:

X. Dell said...

I don't think that the government would tax, so much as industry will find some way to impose a fee. Whatever government will do will result from the conflict between what the will of the public can assert as opposed to monied interests--who may or may not be able to manipulate government.

dr.alistair said...

industry will charge for services and for whatever product they could provide, and i don`t have a problem with that.......as long as regulations from government escalate industries cost of doing business (tax.)

governments are tax whores.

any industry that becomes large enough behaves indistinguishably from government.

(christ, i posited an economic maxim.......)

by my own logic industry becomes a tax whore also.

we have seen industry become government in situations such as haliburton or raytheon or whichever other industrial mechanism facilitates war.

or the company that provided military for the government in angola recently to fight the rebels who were trying to tae control of the diamond fields, i thin they were called exectutive decisions. they provided mercinaries.

speedbird said...

Gresham's law... very interesting. Especially with regard to qualifications. There are plenty of forces who would make all qualifications equal... at which point, they'd all become worth as much as the paper they're written on...

Anonymous said...

It's spelled, Fait, not the car FIAT...

dr.alistair said...

anonymous, i will assume, for the sake of discussion, that you are refering to the posting about gresham`s law....though you weren`t clear in your comment about what "it" is.

assuming that "it" is refering to fiat then you are wrong.