Tuesday, 22 September 2015

An iron standard where iron is scarce as gold

Let's consider this scenario. What if iron - an absolutely seminal resource for industry, commerce, and human life in general, let alone modern or contemporary living standards - was in scarce supply as gold, and governments around the world would operate under an iron standard? Governments would allow their IOUs recorded in paper or electronic entries to be converted into iron on demand. What would happen?
1- I doubt we'd have modern electronic banking in this world/history scenario to begin with.
2- It would be expensive as HELL to use iron in industry, because everyone is using it as medium for debt or money (money & debt are the same thing). Because people are using this seminal & scarce (commodity) iron to pay taxes, to transact, and to save.

1 comment:

  1. "But gentlemen!" Says John "Iron has a lot of technical uses, perhaps someday we may even use it to explore space..."

    "You are deluded." Says Rand Hayek "Everybody knows that value comes from Iron, and Iron is the lifeblood of any economy. There can be no market without Iron. How dare you suggest it be used for such frivolity as a scientific experiment?"