DEFINITION OF MONEY All money is an accounting record of trade imbalance
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@andersostlund I am talking about why money exists, not how it is legally represented. -
@andersostlund Assume you have 5 chicken and I have 4 kg of whet. Market price is 1 chicken for 1 kg of wheat. -
@andersostlund We make a trade but you have two options: Exchange 4 chicken for my 4 kg of wheat. -
@andersostlund Or give me 5 chicken and get my 4 kg of wheat along with a legal promise on paper that I will give you one more kg of wheat -
@andersostlund That legal promise is ...money -
@andersostlund That assumes that you trust rule of law, that the law will punish me if I don't fulfill the debt I signed for. -
@andersostlund If you don't trust the law, then you demand gold, or silver, or barrel of oil etc etc etc.
End of conversation
New conversation -
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