The Essence of Money

A Medieval Tale that illustrates the principle of "market money" used in medieval trade fairs. Market money was nothing more complicated than dependable promises of merchandise or services direct from the suppliers of that merchandise or service. This simple invention freed the markets from the tyranny of the "quantity of and ownership of money" and overcame both the limitations of barter and the scarcity of money, which at the time, was gold and silver coins that were often hoarded.

The Essence of Money is the short that precedes Money as Debt III - Evolution Beyond Money, a detailed proposal of how the same principle could be applied today to create a truly liberated global money system.

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[Paul Grignon]

Yes there was such a system in the Medieval Markets, mentioned in books.

As for the reliability of credit, merchants were overseen by market authorities who imposed credit limits, cleared outstanding accounts, (the Coach) and all credits had expiration dates. The value of any credit is what you get for it. A promise of a loaf of bread is DEFINED IN VALUE as a loaf of bread.

[WorBlux]

The failure of businesses is a vital part of restructuring and reallocating capital to more valued uses. If there are many bakers, it could be good from one to go out of business and have the oven sold to a pizzeria. The outstanding vouchers could be cleared as would any other debt.

[Paul Grignon]

It's not mentioned explicitly in this movie, but in my full proposal, all credits are dated, ripen to maturity at a maximum value at the time the issuer desires the products to be bought, and, shortly after, those credits expire if not used. In the movie, the barter coach helps everyone settle then and there with product new credits for the next market or silver. That credits are only good for 1 market is implied. In the real history, it was way more complex.

search david graeber debt 5000 years

[lakingscrzy]

"Third money gains its value in trade though hoarding. People have a demand for a specific amount of cash holdings. If the baker is that reliable, why wouldn't people begin to want to hold onto one or two of his vouchers in case of hard times?"

To be tangential, isn't this a good indicator that it would be in everybody's common interest that the baker stay afloat, and see to it that things run effectively for him? His demand and value secures him from major hardship. He's grafted into society.

[Permafry42]

Have you studied or even looked up what a resource based economy is? The whole point is that it isn't a money-based system in the first place.

[AussiesR1]

wrong, the ONLY TRUE solution to the cause of the cancer of money, is MPE go study it and you'll c why, not like plagarists such as Paul, etc.

[Permafry42]

There also the resource-based economy solutions.

[AussiesR1]

There is ONLY ONE SOLUTION for our planets monetary problems

"MATHEMATICALLY PERFECTED ECONOMY"

NOT PAUL GRIGNONS' VERSION

[WorBlux]

A need to rotate vouchers wouldn't make any less real the demand for cash holding. People would want to keep a definite quantity on hand. It is this demand for money or a money substitute which is responsible for the possibility of cash induced changes in prices. The expiration date make larger holding less practical, but does not eliminate the demand for such holding. (If it did it' couldn't be a money substitute)

The theory is laid out very solidly in Mises's book Human Action.

[Titan360]

Or the people who take your credit have to trade from another form of credit before the end of their life cycle.

This results in people trading "vouchers" not unlike a stock exchange. What, exactly, are people "hoarding" if they keep having to cough up older credit coins for newer ones?

And if their currency gets to the point its on its deathbed, you really do have to trade it all away, even at a discount, or lose everything.

This might cause a short "hiccup" for the supplier, but not really

[WorBlux]

So you have a voucher voucher, which other vouchers float against, which is used as money, is demandedfor cash holdings, thus is liable to cash-induced changes in purchasing power

The system also centers around immediate capacity. IF you want to give voucher for a year from now to fund capital expansion in your bakery, You'd have to offer them at a discount to get people to accept them.