[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: Re: Free trade - a debate

Please help make the Manifesto better, or accept it, and propagate it!

------------- Original Message --------------
Padmanabha Rao <kvprao@igidr.ac.in> wrote:

The money system is a rotating circle,
where each agent **believes** in the validity of the fiat issued by the
government. i.e. every agent trusts the government's word. A 100 rupees is
a 100 rupees as the government defines it. 


True enough..
Inflation is therefore
cheating, if it happens without one's concurrence. On the otherhand, if
everyone concurred, the very word "inflation" is meaningless. But again,
the RBI governorship itself is suspect. Why should it exist ? 
You are right, sir. we have givern away too much power to the governments
and this is an example.
If we see
properly the government itself exists because Agent A doesn't *trust*
Agent B. When there is this mistrusts in a community, every agent in that
community reliquishes some power to an acommunal force called the
government which ensures the sanctity of contracts and non-violence as
well among the agents in the community. In the absence of mistrust and
violence among people there would be no governments and of course no fiat
Yes, but does everyone in the community sign this social contract ? Did you
agree to a central government with practically unlimited powers to tax you
? The government should be assessed all the time. The system should be
assessed all of the time. Democracy is meaningless without the powers to
recall candidates and right to information. We are fortunate to have a
medium like the internet which will make true democracy possible.
The money could be issued by anybody in the community, for a fee,
as an occupation in itself. Indeed there are thousands of communities in
the world today who are doing just that. The problem of course comes if
that community is not self-sufficient. I am not sure you need gold/etc to
have a money system.

For more information on local currencies, check out the website


It is full of information about local currencies and their benefits. All
sorts of currency forms are dealt with.


Chat with your friends as soon as they come online. Get Rediff Bol at

This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/