Gresham's Law and Currency of Little or no Value
- Gresham's law is a natural law. Like gravity, it is immune to repeal by
man's written law.
Short version is that currency that carries little value will circulate
while the currency that carries some provable value will stay home.
Like Frog Farmer, I like hand delivered coinage (and for me - the fed
notes) - in either case these enable P2P (person to person) exchange
But observation of people's actions at any cash register (shouldn't even
be called a "cash" register) - payment recorder machine - shows that a
clear majority of people are migrating toward currency of no value.
Electronic records - that in fact do create a record.
I personally don't like electronic money because I don't trust the
machines - too corruptible and failure prone - anyway, to get to the
point - there are scattered all over the world computer geeks whose goal
seems to be the creation of an independent electronic system of exchange
that is immune to centralized authority.
One of the things I keep repeating because I believe it totally true is:
"Centralized money and centralized power form a symbiotic pair. Neither
can exist without the other." And the derivative conclusion is that if
money can be decentralized, a whole bunch of freedom will be returned to
These efforts to create digital encrypted independent currency began
with the personal computer and continue to this day.
So, for the interest of those readers who wish to learn more about
digital decentralized currency:
Click on any episode for a blurb with more links and a way to listen to
the archive or download the mp3 file.
There is more than one way to 'do' money; my preference is for hand to
hand P2P exchange, but the direction of the herd seems obvious.