Octavo Dia

Thursday, January 03, 2008

The Power of Money

I have been thinking about hard currencies lately, and particularly the gold standard. The gold standard is inherently deflationary, because there will almost always be more things which people wish to buy with money than gold with which to purchase it. So what if we sought some other means of backing wealth. It should something widely, if not universally, accepted. It should have inherent value. It should be something that doesn't require storage (the "Dig in up in Johannesburg to bury it in Fort Knox phenomenon"), and something easily transmitted. I propose backing currency with electricity. Don't link your currency to the dollar--link it to the kwh.