The Two Kinds Of Money

Published: Sept. 16, 2022, 10:26 a.m.

Inflation and economic development cannot be understood if we do not understand there are two distinct classes of money. Inflation and all our other social ills are attached to only one sort of money. If the money you use is manufactured, if you can hold it, touch it, the money in use is a commodity manufactured and issued for a profit. If you can lose this money, if it can be stolen, eroded in value or is at risk of loss you are using a monetized product. The use of stones, cigarettes, buttons, vouchers, gold, bank accounts or any other commodity is an example of the monetization of a commodity. Regardless of the commodity used, monetized commodities are always at risk of loss and governed by the laws of Supply and Demand. All products are subject to changes in value, meaning the value of a monetized asset will inflate and deflate according to market conditions. The only remedy for this problem is to stop monetizing assets and using the product as a currency. But this requires we understand how to create a new kind of money that has no market value and is not manufactured.