Nate responds with post entitled “Half-Truism”:
“There are those who say that he cure for inflation is deflation.
And… there are those, though they are few, who say that the cure for
the man who has been run over by a motorcar, is to have the same
motorcar run over him in the opposite direction.”
– Ludwig Von Mises, “Lecture on Inflation”, 1968
Broad definition… narrow
definition… it is readily apparent the
broader definition is what I am referring to here. But one must remember that I
am actually no longer using Mises’ definitions at all. I am defining money as
it relates to the commodity competition… not its nature. I call it fiat money not because it has
government force behind it, but because it is that government force that makes
the commodity win the commodity competition and therefore become the
money. Credit money doesn’t exist at all
in physical form and thus doesn’t compete in the competition and is not
As you have noticed by now these responses are coming slower
and slower. That’s because, by the very
nature of the problem, as we drill down, more and more remedial teaching is
required. There is a knowledge base
that is required to understand these points… and we must first make sure the
reader has it.
I shall respond to this within the next day or three, as before.