Money is not a thing. Money is numbers. Money is a way to track values exchanged by people. What we know of as money (paper) is numbers given a physical existence. When we use paper money we still barter. Paper money is an infinitely divisable asset. We barter money for carrots and we barter chickens for money so we can buy more carrots.

The Rational Exchange does not have or use 'thing money'. Our economy consists of numbers in account ledgers. The Rational Exchange is an automatic method of maintaining these accounts.

The Rational Exchange records purchases and sales by entering debits and credits in peoples accounts.

When we use 'thing money' a person with a dollar has a dollars worth of wealth regardless of where he got that dollar from. A person who invents a duplicator device could duplicate unlimited amounts of money and it would all be legal tender. No one can duplicate a value. Our money has no existence. It is just numbers. A person cannot just create credits because credits are created when someone purchases something from someone else.

Nor does it pay Bill to fraudulently give Sue a million credits because he then has a million debits on his account and it would also be obvious that there was no transaction that justified this amount being credited to Sue.

Sue could not walk in and create unlimited debits because it would be in no ones interest to allow her to create debits that could not be offset with credits at some point in time. So the system is self-governing.




Money 3