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Showing posts with the label social bonds

The Creation Myth of Money

(Originally posted in " The Zen of Value ") Discussions about how money originates often start with the assumption that it evolved to facilitate trade and "store value". Otherwise, so the story goes, you and I would simultaneously want something somebody else had (say, you have more fish than you need and I have extra sheep). There is scant evidence for "cash" arising out of this situation. Evidence for another narrative can be found in human behavior that naturally arises when "cash" is in short supply. Say, you go fishing and catch 5 nice big salmon. It would not be unusual at all for you to show up at my door and offer me a fresh salmon "for free". On the other hand, we would tacitly understand that this establishes a debt. Perhaps at some point, I'd mow your lawn or give you a basket of berries, or jam from my last berry picking trip. The math doesn't need to work out. If I'm in bad shape and have nothing to give in retu...