Mystical Academics Critiquing Mystical Academics

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Carl Menger long ago observed that money was decidedly not a creation of the state. A failure among modern economists to understand this basic truth has resulted in endless waste of ink and mind as the book smart with PhDs next to their names have endeavored to plan so-called “money supply.” This is modern economics, and it has nothing to do with reality.

Back to reality, money is just a measure. It’s what actual producers producing actual goods and services came up with so that exchange could be facilitated with other producers of goods and services. In other words, barter underlies all financial transactions to this day. Money is just the trusted agreement about value that enables the transacting.

Producer A pays $150 for the product or service of Producer B, but Producer B has little interest in what Producer A makes or offers. B longs for what Producer C is advertising. Adding a little detail to the latter, the vintner pays $150 to the…

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