tag:blogger.com,1999:blog-8737138830085975606.post6721464707185847760..comments2010-10-08T06:59:51.422-07:00Alan Rosenblithhttp://www.blogger.com/profile/12508818912677197006noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8737138830085975606.post-6789908618748675202009-09-05T17:08:04.407-07:002009-09-05T17:08:04.407-07:00Whenever you link a currency to any &#39;thing&#39;, any commodity, it will rise and fall. You can&#39;t change that. People know when eggs are worth a dollar, or more, or less, and will adjust demand accordingly. <br /><br />The Gold standard is NOT the answer. Modern currency has actually been liberated by being separated from a commodity. Unfortunately, it has also been abused. Electronic entries/exchanges are an innovation that can free the human being, but demurrage is necessary.<br /><br />In Nature, when you have a supply of any commodity, and are storing the value, the natural value is decaying. Grain costs money to store, and some of it spoils, etc. Capital stored as money should mirror this. Per the indications of Rudolf Steiner, there are actually different kinds of money, and the dynamics are different, depending on how we use it. Purchase money, gift money, and loan money. Loans should accrue interest, and are the root of funding innovation through funding people. This develops real economic value. Gifts should not de-value as long as they are consumed and not hoarded (like trust funds). When purchase money devalues in increments, people spend it more quickly, and electronic systems can reset the devaluing timeline every time the currency is used, so everyone has a fresh clock. This is the bright future of electronic transactions, but the real problem is how money is created, through debt. When money is reflective of transactions, AND devalues, this will be a healthy system. However, when you don&#39;t eliminate the currency, it goes on forever, which ultimately will devalue the electronic currency. When people end up accruing it faster than they can spend it, then it will devalue naturally, in the exchange between two people, no matter what anyone else says it is worth.williamhttp://www.blogger.com/profile/05727726960348824106noreply@blogger.comtag:blogger.com,1999:blog-8737138830085975606.post-18470920402901571092009-09-01T23:21:30.988-07:002009-09-01T23:21:30.988-07:00This comment has been removed by a blog administrator.Sarahttp://www.blogger.com/profile/08606540052755481636noreply@blogger.com