re:backing

>workable barter currency?

Aug/Sept 93 Mother Earth News has an article "The Ultimate Barter" about
"A currency based on time-hours is a boon to a rural community."

>poorly-backed digital currency will win out over e.g. U.S. dollars?

Depends on legal tender status (see post by Perry).  Note too his
point that digital currency needn't be poorly backed.  However, also note
that government issued dollars would circulate in preference to gold
backed digital currency issued by someone else according to Greshams 
law (which was stated in reference to metal coins, but applies to
other forms as well).

Solution might be to denominate digital currency in something other
than $ (e.g. gold grams) & have parallel monetary system develop.

F_GRIFFITH@ccsvax.sfasu.edu says:
> point that digital currency needn't be poorly backed.  However, also note
> that government issued dollars would circulate in preference to gold
> backed digital currency issued by someone else according to Greshams 
> law (which was stated in reference to metal coins, but applies to
> other forms as well).

This is not what Gresham's Law says.

Gresham's Law is that if there are two kinds of coins that are stated
by law to have equal value, the one thats actually worth less because
of metal content will be the one that you spend first. It doesn't
apply in this instance at all.

Perry

> This is not what Gresham's Law says.
> 
> Gresham's Law is that if there are two kinds of coins that are stated
> by law to have equal value, the one thats actually worth less because
> of metal content will be the one that you spend first. It doesn't
> apply in this instance at all.
> 
> Perry

I think Gresham's Law applies to authority-influenced currency.  I'm
trying to get a hold on this quote so hold on.

-Alex

Alexander Reynolds says:
> > This is not what Gresham's Law says.
> > 
> > Gresham's Law is that if there are two kinds of coins that are stated
> > by law to have equal value, the one thats actually worth less because
> > of metal content will be the one that you spend first. It doesn't
> > apply in this instance at all.
> > 
> > Perry
> 
> I think Gresham's Law applies to authority-influenced currency.

Precisely what I said -- coinage stated BY LAW to ahve a certain value.

Perry

> Precisely what I said -- coinage stated BY LAW to ahve a certain value.

Ok, fine.  I'm listing the quote to add further detail to the topic:

	"Gresham's Law, like most of the 'laws' taught in State-supported
public schools, is not quite true (at least, not in the form in which it
is usually taught). 'Bad money drives out good' holds only in
authoritarian societies, not in libertarian societies.  (Gresham was
clear-minded enough to state explicitly that he was only describing
authoritarian societies; his formulation of his own 'Law' begins with
the words 'If the king issueth two moneys . . .,' thereby implying that
the State must exist if the 'Law' is to operate.)"
				-The Illuminatus! Trilogy
				Leviathan, pg. 766
				Shea and Wilson
 -Alex