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« Rationalizing - the abduction of abduction! | Main | What is market regulation - really? »

March 25, 2008


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One important function of money - not addressed in the article - is the ability of certain participants in the economy to commit legal frauds. Most frauds are illegal and are therefore called crimes. However, in the financial world, the creation of innovative financial products very often aims at taking advantage of those "players" who lack access to information or if they do have access to that information, they do not understand that information. Because the product is so complicated, even sophisticated experts have great difficulty to understand what is going on. No wonder that in such situations it is impossible to prove that the products in question constitute fraud. Hence the name "legal fraud".

The purpose of every financial system is to accumulate capital. In other words, to separate the fools from their money (=life energy). That is the ultimate purpose of money.

Sepp Hasslberger

"And given that energy is measurable and consistent in terms of both quantity and quality, it should be recognized as the only real currency."

I would like to draw attention to a potential difficulty with this.

While energy as such is well defined and consistent, this is not the case with the price of energy.

We are living in a time of energy monopoly (the "black gold" kind) which means prices of energy are highly unstable. There is also a highly volatile situation with energy technology, since new ways to produce energy have been systematically nixed in favor of the existing fossil fuel tech.

Once the suppression comes off progress in energy tech, the cost of energy production will come WAY down, an I could imagine that this would wreak havoc with the stability of any monetary system linked to the price of energy...

Hazel Henderson

Good discussion. Check out on our Reforming Global Finance page and our videos on MONEY at

George Mobus


I've written considerably more on this topic since this post. You might want to check out the general heading "Biophysical Economics" to see more about money and energy.


Will do.

Thank you, George,

for pointing me to your further writings on Biophysical Economics. I have been reading some of the articles and have found quite some points of agreement.

You are doing some very interesting work and I only hope that your thoughts on our energy use and the availability of energy will sink in in time for us to avoid that bottleneck that seems to be arriving.

I've found value ;) in your writings...

viagra online

wow!!! interesting blog, I never though about money before read this information. Thanks.

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