Thus said Levi Pearson on Fri, 17 Jan 2014 23:48:43 -0700: > That sounds like a pretty vacuous argument to me.
Is it not simply a deduction from basic supply and demand, market competition dynamics, and monopoly economics? If Economics is at all to be considered a science, does not the same economic logic in one market apply to other markets, including the market for money? > Can you make a reasonable argument for why a variety of currencies > would facilitate the exchange between producers and consumers in a > market better than our current system of national currencies or even > better than a single universal currency? Why do consumers and producers choose a particular money for their exchange? Is it not because that money is the most desirable thing to have in the market, specifically because it has exchange value? And if there were competition in monies, would not those monies which were less desirable---either because they were hyper-inflationary, or easily counterfeited, or whatever consumers perceived as bad in them---be driven out of the market? As long as there is no grant of monopoly by a State, will not the market produce a money that is economically superior (e.g. higher quality at non-monopoly prices)? Or do you believe that a monopoly in the production of money does not follow the same economic logic that says that relative to markets in which open competition exists, monopoly in markets produces a poorer quality good at higher prices? I can imagine a large number of money making entrepreneurs entering the market, and many of them failing. It's also entirely possible, and likely, that market participants will eventually settle on just one or even two monies that are the so-called ``universally accepted'' currencies. How can we know if monies are not allowed to compete? I don't consider the EUR and the USD to be an example of competition in this case, at least not for the majority of market participants (perhaps for well connected bankers, but they are part of the banking cartel). Andy -- TAI64 timestamp: 4000000052da29ae /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
