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I’m sure you realize this is an exercise used to make people understand why current monetary system doesn’t work , but is easy to peddle to the masses. At first blush you say great but just a little analysis shows the flaws.
- “Carlos Bondone’s monetary theory clasiffies fiat currency as Irregular Credit Currency, that is, it is a credit where the present economic good that cancels the debt is not specifed or its quality or its quantity or its due date. … -Money: Present economic good used as currency (wheat, gold, silver, etc).”
- So you really think this is valid reasoning? I’m sorry I laughed at you. I will try to explain where you can understand. First point is it’s a zero sum game , each person gave up an asset equal to what they received. If this were their goal they didn’t need the out of towner, they could have worked it out among themselves.
- The most important point is everyone has to do exactly as described. If the butcher had given the money to his mistress to keep her quiet the hotel owner would have been arrested for stealing. Government interference in economics lacks the ability to take into account every factor.
we’re no longer in a gold standard. It’s over. Ancient history. New rules apply. If you don’t understand that, then if you qualify for a stimulus check,don’t accept it. Give it to me. I’m afraid this is how the system works, hotel owner had to resort to fraud to get things started and in the end everyone was at risk with breaking even being the best case scenario.
But that’s not the way it ended in the allegory. Everyone is out of debt and optimistic about the future. The fully free floating fiat money system we have is capable of doing that. Give up your superstitions, move into the 21st century, and let it happen.
Everyone one not doing exactly as scripted is s superstition? You can’t be serious when you say it ended that way in the allegory so that’s the way it works. have you been paying any attention to the stimulus the Congress has past. If the deficit system that creates our national wealth, by your thinking, should go insolvent, and interest rates should skyrocket along with inflation and the mother of all depressions should follow. How biblical.