Re: Energy currency

["MV" <maxv@vsnl.com>]

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> From: prakash chandrashekar
>
> the Labor theory of value also faced a problem which the energy currency
> will face. It is that this theory does not consider the demand side of
> things at all. It does not take into account the marginal utility of
> consumers into consideration. The marginal utility theory states that
> consumers will choose the products that give them maximum maginal utility.
>
> to illustrate this,
>
> the famous mud-pie problem. This states that it takes a lot of labor (and
> in our case, energy) to make a mud-pie, but how will that determine its
> price ? nobody will buy it. Its price will remain zero.
>
> My contention is that the energy currency concept will provide only a
> "minimum price/floor price" for an object and even that only in the case
> that the object satisfies a human demand.
>
> The price of the object will continue to be determined by the
demand-supply
> interaction.
>

I agree fully with you, the price of an object will be
determined by the demand-supply interaction.

Let us be clear about the defnition of money/currency
it is a mesuring tool to represent the *value* of goods
and services like Meter for length, Kg for weight.

We know from our discussions that this *value* is the
nothing but the energy/effort deployed to produce the
goods, that is the basis of demand supply interaction.

What i am sugesting is to use energy as a common base
unit to caliberate currencies. This caliberation was
achived with gold backing of the currency till recently,
now in the free flot currency system there is no
caliberation.....

MV.








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