- Capitalism and Alternatives -
Posted by: Flynn ( YeahGetIt Productions, US ) on July 08, 1999 at 10:49:06:
In Reply to: Swift. posted by Red Deathy on July 07, 1999 at 16:32:29:
: Thats a regression to barter, it would still take some form of social authority to decide what was the *universal* unit of exchange, otherwise free markets break down. Just as measurements need authority- Le Grand K in France, for example- so to does money need authority to affix it (else how many pounds of silver to the Gold?).
The market determines the number of pounds of silver to gold, just as it does now on international markets without some "social authority." Free banking has flourished in markets where governments have not opposed it (which they typically do as a way to control the populace.) See the internet for one example, 17th century Scotland for another, the Medici banks for still another.