Thanks Paul, if people really understood that in the modern marketplace credits are actually better than money if measure by money we could all transact fee free or nearly free for sure.
Thanks for teaching me the importance of barter. We accept Southern Barter Exchange trade units at my local Domino's. At first I was like "wtf", then I remembered Money as Debt 3. Now, I want to start 'stacking' trade units of my own, to diversify out of federal reserve notes and precious metals. The enemy of my enemy is my friend makes for good economics and prosperity for everyone the world over!
These trade units aren't like Anton's bread vouchers. Domino's gift cards would be more like Anton's vouchers, if Anton went out of business then holders of Anton's vouchers would be shit outta luck. A whole lot of businesses would have to go out of business in order for the SBX trade units to become worthless, perhaps if all of them went bankrupt all at once then maybe. Southern Barter Exchange themselves would have to go under, that'd be my biggest concern.
My German grandfather kept the cement factory where he worked near Hannover going during the Weimar hyperinflation by knowing the builders who would be around a few months after they were given cement on credit. I don't know how the cement was monetarily denominated for this purpose ( US dollars maybe or cement kilos ? ) as the German official exchange was adding zeros at regular intervals to the number of Marks needed to to buy a loaf of bread at that time.
What if the bread guy catches the plague and dies, or he suddenly got drafted to go on the crusade to the holy land, how much would his vouchers be worth then?? 😁
If a significant supply of coins were horded, and therefore made them more rare, wouldn't that make them more valuable? And what if Anton's vouchers were all redeemed in the same day, would he be insolvent and lose his credibility?
I sorry Paul, but this isn't really valid when it comes to sovereign money. I loved your videos for all these years, but chartalism has been around since the beginning of civilization. A nation sovereign in its own currency can never run out of the currency it alone issues.
Paul Grignon And bronze coins? In the end, all money is chartal. If the imprinted value of sovereign money is equal to or less than the trade value of the material that carries the state seal, people would just melt it down and trade it as a commodity, right?
@@GenghisVern a nations currency in itself can most definitely run out if what you are using as currency is in limited supply. Inflation is the living proof of that. that's also the reason why countries have to print new money. And also the reason why we mainly use paper money: print 1 or 2 extra zeroes on it and the value climbs 10 or 100 times, but the amount of actual material can stay the same. for silver coins however you'd need 10 or 100 times the amount of coins, which can easily run out because silver and gold are rare. But the population grows and keeps producing more ressources everyday, thus the amount of stuff to buy increases faster than the amount of coinage to pay with. this caudes deflation, and once the smallest amount of money (a single coin) becomes worth more than what a person earns in a day (due to deflation) that person cannot really be paid. in the video's example antons bread was only worth 1/4 of a silver coin. how do you pay that if the smallest unit is 1 coin? you would have to buy 4 pieces of bread everytime.
@@XpVersusVista If you're using a foreign currency, or gold or whatever, then yes you will have a limited supply. But it is IMPOSSIBLE for the US government to run out of US dollars. You can fear inflation, but not "bankruptcy". Deficits create excess reserves in the banking system. These reserves are then swapped for TSYS, effectively draining the excess reserves that were created by federal spending.
This is so awesome, my mind was blown when the term "virtual money" came up.
Thanks Paul, if people really understood that in the modern marketplace credits are actually better than money if measure by money we could all transact fee free or nearly free for sure.
Great video. Its interesting how the coin hoarders created a block in the flow, that required another solution.
Why trickle down economics doesn’t work
Thus the products and services based economy was born. What an amazing video.
This could be a way private citizens could combat hyper inflation in the future.
Whereas royalty had theirs like nobility and medieval gentry
They didn't teach me nothing in school
They just want to teach you the basics.
+Hiraeth Ephemral real basics
neanam m Pretty useless basics now with calculators because just use a calculator to do it :3
+Hiraeth Ephemral I know that's right I whip the calculator out real fast
+Hiraeth Ephemral 😂😂whip that out too if need be.
Thanks for making this video, great job! Money is made by "US" not governments.
Exactly
Thanks for teaching me the importance of barter. We accept Southern Barter Exchange trade units at my local Domino's. At first I was like "wtf", then I remembered Money as Debt 3. Now, I want to start 'stacking' trade units of my own, to diversify out of federal reserve notes and precious metals. The enemy of my enemy is my friend makes for good economics and prosperity for everyone the world over!
One company going bankrupt wouldn't entirely disrupt the Southern Barter Exchange network, SBX has local, regional, and national companies.
These trade units aren't like Anton's bread vouchers. Domino's gift cards would be more like Anton's vouchers, if Anton went out of business then holders of Anton's vouchers would be shit outta luck. A whole lot of businesses would have to go out of business in order for the SBX trade units to become worthless, perhaps if all of them went bankrupt all at once then maybe. Southern Barter Exchange themselves would have to go under, that'd be my biggest concern.
My German grandfather kept the cement factory where he worked near Hannover going during the Weimar hyperinflation by knowing the builders who would be around a few months after they were given cement on credit. I don't know how the cement was monetarily denominated for this purpose ( US dollars maybe or cement kilos ? ) as the German official exchange was adding zeros at regular intervals to the number of Marks needed to to buy a loaf of bread at that time.
What if the bread guy catches the plague and dies, or he suddenly got drafted to go on the crusade to the holy land, how much would his vouchers be worth then?? 😁
Great video
Basic ly money isn't essential if you don't trade you don't barder you don't have precious metals if you take all that away what would you have???
5:40 ish
One more time again...
For the kids in the back
If a significant supply of coins were horded, and therefore made them more rare, wouldn't that make them more valuable? And what if Anton's vouchers were all redeemed in the same day, would he be insolvent and lose his credibility?
Hey, Paul? Why'd you upload this video twice?
Better quality video in the 2014 upload. The 2011 version has over 18,000 views so I keep it up.
Holochain will make this scalable.
Pre food stamps eat cards yum artisan medieval market
London economics school teach this
Who knew?
And that is why crypto currency is crap
I sorry Paul, but this isn't really valid when it comes to sovereign money. I loved your videos for all these years, but chartalism has been around since the beginning of civilization. A nation sovereign in its own currency can never run out of the currency it alone issues.
The rich didn't run out of silver coins. Only the poor did.
Paul Grignon And bronze coins? In the end, all money is chartal. If the imprinted value of sovereign money is equal to or less than the trade value of the material that carries the state seal, people would just melt it down and trade it as a commodity, right?
Vern Etzel I'm not sure what your point is. Barter credits aren't made of a material and don't need the stamp of a sovereign government.
@@GenghisVern a nations currency in itself can most definitely run out if what you are using as currency is in limited supply.
Inflation is the living proof of that. that's also the reason why countries have to print new money. And also the reason why we mainly use paper money: print 1 or 2 extra zeroes on it and the value climbs 10 or 100 times, but the amount of actual material can stay the same. for silver coins however you'd need 10 or 100 times the amount of coins, which can easily run out because silver and gold are rare.
But the population grows and keeps producing more ressources everyday, thus the amount of stuff to buy increases faster than the amount of coinage to pay with. this caudes deflation, and once the smallest amount of money (a single coin) becomes worth more than what a person earns in a day (due to deflation) that person cannot really be paid.
in the video's example antons bread was only worth 1/4 of a silver coin. how do you pay that if the smallest unit is 1 coin? you would have to buy 4 pieces of bread everytime.
@@XpVersusVista If you're using a foreign currency, or gold or whatever, then yes you will have a limited supply. But it is IMPOSSIBLE for the US government to run out of US dollars. You can fear inflation, but not "bankruptcy".
Deficits create excess reserves in the banking system. These reserves are then swapped for TSYS, effectively draining the excess reserves that were created by federal spending.