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To: GOPcapitalist
Use of a commodity as a medium of exchange does not make it money. Money is always the creation of a political entity.

When I trade one baseball card for another it is not money. It only becomes money when it is exchangeable universally.
136 posted on 07/06/2003 11:49:58 PM PDT by justshutupandtakeit (RATS will use any means to denigrate George Bush's Victory.)
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To: justshutupandtakeit
Use of a commodity as a medium of exchange does not make it money.

Nonsense. Money by its economic definition is a medium of exchange.

Money is always the creation of a political entity.

No it isn't. The standard textbook economic definition of money is that which meets the following four characteristics. Money must be:

1. An accepted medium of exchange
2. Easily transportable
3. A store of value
4. A unit of account

Gold commonly fits this definition because it is (1) commonly accepted, (2) of intrinsic value and thus a store of value, (3) easily transported in small portions, and (4) a unit of account since its value is measured in its weight. Nowhere does it say anything about that gold having to be minted first by a government, nor would any credible economist make such a claim.

When I trade one baseball card for another it is not money.

Yeah, cause it's barter.

138 posted on 07/07/2003 12:00:09 AM PDT by GOPcapitalist
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