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If some resource (say, energy or water) would become an obvious bottleneck for "civilized" living, "indespensible" technology, or just survival, wouldn't that resourse become de facto hard currency?

That is the Austrian position (Misean regression).

The Austrian position is wrong.

What makes currency currency is that contracts and tax liabilities are enforced in terms of the currency.

Money is not a store of value. Money is a tool of contract enforcement. The state of scarcity or abundance has the next best thing to nothing to do with the rules for contract enforcement.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Jun 26th, 2014 at 06:13:41 PM EST
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Contracts do not exist in an abstract paradise. If their implementation is the unconditional priority regardless of real world limits (particularly, in resources) you soon have some austerity, factual opression in whatever dressing. Thus, what's your prefered endgame when the contracts, exponential obligations meet definite limits of the physical reality?
by das monde on Fri Jun 27th, 2014 at 09:00:47 AM EST
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Bankruptcy is a beautiful alternative to debtors prison. In the US they have an even more helpful solution, called Chapter 11.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Fri Jun 27th, 2014 at 10:12:46 AM EST
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This is the problem that inflation solves for you.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jun 27th, 2014 at 06:07:15 PM EST
[ Parent ]

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