The Politburo Money

A money is something that is a medium of exchange. Money isn’t a creature of the state. It might seem that way because money has come from the politburo our entire lives. The first money was a market determined money. In fact, it’s impossible that it could’ve come from a central committee, social contract, politburo, etc. The idea that the state should only issue money can only come from ignoring economics.

The paper used around the world could never emerge as a money. It functions as a medium of exchange, but not a good money. As Carl Menger pointed out, “Money is not an invention of the state. It is not the product of a legislative act. Even the sanction of political authority is not necessary for its existence. Certain commodities came to be money quite naturally, as the result of economic relationships that were independent of the power of the state.”

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