Keith Evans
2 min readMar 19, 2019

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It doesn’t matter how carefully you explain to them why this is clearly nonsense, they refuse to accept that it is.

All of the lessons we learn in life, beginning with our first allowance, are from the perspective of a “user” of currency, not the “issuer” of the currency. People have trouble thinking of anything in two directions. I like to think of currency v. commodities as a jigsaw puzzle.

Money is like a “picture” of the thing we wish to purchase, not the thing itself. The seller determines how many pieces s/he wishes to cut the object into by the value of the picture and denominates the price of the object accordingly. If I have a car for sale and wish to obtain $1000 for it and you need a car we will only achieve mutual agreement when you can offer $1000. One could say that I cut the care into 1000 pieces and each dollar you offer represents one of those pieces. No amount of the pieces of the picture can function as transportation but by assembling 1000 pieces of the picture you can trade them for the transportation I am offering.

If you, like the currency issuing government, can print an unlimited number of pieces of the picture you can buy as many cars as you might want to own until cars became scarce. At that time sellers may realize that you are not the only buyer and you have to compete with others for a limited number of cars for sale. This creates an auction from a simple sale and will likely cause you to pay more for subsequent cars you wish to purchase.

If you are the only one with the ability to produce an unlimited number of pieces of the total it makes little difference to you what the seller demands, but your purchases will cause hardship for other buyers by bidding up the price. However, the printing of pieces of the pictures has no bearing on the price of the actual objects as long as those objects don’t become scarce. With many competing sellers of cars, the supply and its cost will dictate price as long as they have an excess of cars to sell.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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