This is a blog about money and economics with 2 simple rules:
1) Don't write about money
2) DON'T WRITE ABOUT MONEY
That is more sensible than it sounds. For most of its history money was commodity-based, with things of value such as gold and tobacco being traded for goods and services. Today we have a credit-based system where most of our money is issued by banks as debt. So we have moved from money being "Proof Of Work" (since work must be done to acquire or create the money) to money being "A Promise To Work" in order to repay the debt which was incurred when the money was created. Considering that, I think it might be easier to think about the economy in terms of the supply and demand (and the promised supply) of Work rather than in terms of flows of money. So I will do my best not to write about money.
Although I describe debt as "A Promise To Work" I recognise that it can be repaid in other ways, such as a transfer of assets, but it can also be rolled over (which technically transfers the promise to another party rather than repays the debt) or it can be written off. This is understood each time I use the word Work but in general I mean the production of something by one person for consumption by another.
Money is synonymous with wealth and debt with slavery (eg. bonded labourer, debt-slave) so my main interest in this blog is the implications of our money system for prosperity and freedom, and also justice.
June 2010
