(11 May 2013, 13:45)bigpaul Wrote: yes i agree RW, even if we had a stock of gold or silver in a post civilisation scenario, who is going to decide what the exchange rate is for that tin of beans, or that disposable lighter, or whatever? it will have to be like for like-a straight swap, non of this pussy footing about, do the swap(on neutral ground) and leave-fast, make sure they dont follow you home.
The exchange rate will not be set by one person or a government, but rather by the market itself. 1 can of beans will be worth whatever people are willing to pay for it.
Straight swaps are great if you want a can of beans which I own, and I want the disposable lighter that you own. But what if I want a dozen eggs and the guy with the eggs doesn't want my tin of beans, but roller-gauze bandages, and the person with the bandages wants your lighter, but not a dozen eggs? At some point in time (probably sooner than later), currency will develop. One thing I'll bet with a good deal of certainty though: paper money will NOT be used!
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