What is money?

A:

In the absence of a technical definition, money is often presented in more sophisticated terms as "legal tender", a "medium of exchange", or "currency".

Money is nothing more than accounting. When someone possesses $5, it's because they've earned a revenue from another person who simultaneously had an expense—an activity known among accountants as double-entry bookkeeping, and an event known among physicists as a conserved quantity. Money enables members of the public to define their property in terms of numbers, then bookkeep when buyers and sellers agree to swap ownership coordinates after their indifference to such property's value is proven. Encouraging trade through the use of numbers is far more efficient for an individual than maintaining a chart of all the combinations of goods and services where the free market measures its indifference. Furthermore, enabling producers and consumers to record delivered value as a potential—so they have the choice to kineticize it at a later time, liberates producers from having to consume something at the time of trade, and likewise, consumers from producing a good or service—in return—at the time of trade.

In short, money simply empowers us to measure the value of our private property in terms of numbers, then allows us to bookkeep who is owed value after they are scientifically proven to have delivered it to others. Systemaccounting protects an economy by banishing the charlatan's dictionary from economics through the enforcement of a law of conservation of information across a money supply. As a mathematical definition of money is maintained across transactions to disambiguate delivered value from expected value*, "banking", "credit creation", "monetary policy", and the rest of the lexicon of absurdity will undergo summary replacement by private lending, credit earning, and a scientific measure of the cost of capital.

 

*Note: Receiving permission to include one's balance sheet as part of the money supply because they are a "government-chartered lending business" is both scientifically absurd & unjust.

Was this helpful?