Notes on "paper money collapse" (Detlev S. Schlichter) (Unfinished)

Today’s mainstream view on money:

the abandonment of a system of hard money, of money with a fairly inflexible supply

a paper money system under political supervision that can inject new money into the economy more easily

modern monetary system:

soft money

paper money

elastic money

private have always managed to issue new forms of money and bring them into circulation

but their ability to create money still is not unlimited

the privilege is reserved for the state central banks, which, at least conceptually, control the entire money creation process, and which can, in extremis, inject new money in unlimited quantities

hyperinflations are conceptually impossible in hard money system 

there are no market mechanisms by which the banks could be encouraged and directed to create precisely the quantities of money that deliver the desired overall moderate price rises.

Extensive division of labor is feasible only in a market economy, that is, in an economy based on the voluntary contractual exchange of goods and services on markets.

 money is the medium of exchange

it is obvious that in a barter economy people would pretty soon start to accept certain goods in trade, not because they want them but because these goods can be traded very easily for other things.

credit came from money

The term intrinsic value is meaningless in economics

all value is subjective, meaning it is the result of acts of valuing by people

electronic money is not only immaterial; it also has no other, non monetary function whatsoever. it is evident that this does not preclude electronic money from being used as money.

Once a commodity or any other asset is accepted as a medium of exchange, its usefulness as such cannot be enhanced by an additional supply.

Money is different from any other good. To the extent that a good is used as money, its usefulness lies exclusively in its marketability, in its general acceptance as a medium of exchange, as a facilitator of trade. its value to its owner lies in its exchange value, not its use value. Money is valued because of what you can buy with it.