Thursday, July 02, 2009

California scrip

California is about to create printing presses and start producing it's own scrip... almost. Unfortunately, the California IOU does not seem to be capable of extinguishing a California tax obligation. I'm not sure why this is the case. If it was, a simple step, then the ArnieDollar would be a full fledged currency, and put paid to all those silly arguments about "what is money". Money has the ability to extinguish a tax obligation. A tax obligation is a creation of a sovereign entity. You charge a hut tax, and then invite the natives to work your fields in return for scrip which will, magically, if returned, keep their huts from burning down. The only requirement is that you can, honest to goodness, burn down huts at will. Does this sound like a "store of value" to you?


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