Kilowatt/hour currency

Dear Mike,

I appreciated your enthusiasm for the idea of a currency based on the kilowatt/hour standard. Nor was I surprised by your concern that the currency’s “value” would be reduced if the underlying commodity, here electricity, became more abundant.

Snarky reply: The US Dollar is currently backed by the full faith and trust of the US Government. That commodity seems to be decreasing. Does this mean that the dollar is worth more now than it was in 1971?

Wonky reply: are you looking to create a “store of value” or a “medium of exchange”? Which monetary function to optimize?

+glenn

“Capital is not a free gift of God or of nature. It is the outcome of a provident restriction of consumption on the part of man. It is created and increased by saving and maintained by the abstention from dissaving.”
-Ludwig Von Mises

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Posted on December 8, 2011, in Uncategorized and tagged . Bookmark the permalink. Leave a comment.

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