I see the sense in making location and energy the basis for currency, but knowledge?

In my analysis, Labour may be deconstructed as to:

(a) Energy (aka manpower) - which is maybe what Keynes was referring to as 'unqualified labour' - and is of course sustained by kcalories; and

(b) Knowledge - in its subjective form, which is what resides between our ears, dies with us, and consists of knowledge, contacts, skill, wisdom, intuition, common sense and so on.

Both our Energy and our Knowledge have a use value over time, and it is an individual's subjective Knowledge that allows him to deploy his energy to optimal effect. Individuals can and do enter into the more or less formal contractual agreements which define 'enterprise models' and enable collaboration and efficiency gains.

Knowledge also exists in an objective form as recorded data patterns of all types, including bit patterns, sound and video, and we are accustomed to the concept of the legal protocols and claims over these data patterns which combine in the concept of Intellectual Property.

IMHO there is not yet a satisfactory legal model for the intellectual property relationship. The transition into a Knowledge economy has been turbo-charged by the direct instantaneous connections of the Internet,and if we can create new forms of property right - using new interactive protocols - then I think that the result will be revolutionary.

Note finally that our (subjective) knowledge and energy/manpower form the basis of credit simply through the issue - by individuals, not banks - of IOUs to each other within a framework of trust provided by a mutual guarantee.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky