[deleted]
Stefan,
The point I try making is that we lose sight of the basis of this money and just treat it as a commodity to be collected, which then requires more to be produced in order for commerce to function. Then those with the large collections have leverage over the economy.
The problem with 'fiat' money is not that it is based on public debt, but that we forget this foundation means its value is directly tied to the health, wealth and productivity of said community. If we recognize that it serves as a contract between the community and its members, then it is no longer simply a commodity to be collected at will, but a contract that has to be respected by both parties.
Money functions as an economic medium. Effectively it is like a road system. We own our cars, businesses, houses, etc, but not the roads connecting them and no one cries socialism over that. Like blood in the body, in order to function is has to be able to flow freely and any clots, unused collections, excess pressure, etc, are extremely unhealthy. Now if we were to view it primarily as a contract between the community and its members, for one thing, there would have to be sufficient leeway for emergencies, etc, because that would seriously reduce the need and function of trying to store excessive amounts. Conversely anyone trying to abuse the system, including storing excessive amounts, would have those stores penalized. This would create the tendency to treat other aspects of life, from social relations to a healthy environment, as stores of value and not just as sources to be mined to create notational wealth. If people really understood and respected the fact that those little numbers on the bank account are not just a pile of coins in a safe deposit box, but a contract with the vast web of society and that its value is dependent on the health of that society, they might be a little less selfish, with regards to the rest of society. They might also appreciate other, more organic forms of exchange and reciprocity. Especially since those currently controlling this system systematically use it to tax any and every possible form of exchange denominated in these notes. That even the ones where people seem to profit, are more come ons, to entice further and deeper participation. This is not to say there shouldn't be a vibrant and healthy economy, based on capital as a medium of exchange, just not one prone to the cancers, tumors and high blood pressures of this version.
So we can respect fiat currencies, but we need to first understand them.
Regards,
John