Re: Backing

["Perry E. Metzger" <pmetzger@lehman.com>]

Not a cryptography message -- sorry but I thought I had to discuss it...

Peter Baumbach says:
>  Isn't a finite source of backing a problem since it rewards those who
> hoard it?  

No. It punishes those who hoard it -- they don't get interest on their
money.

>  If neither Alice or Bob have a backed currency, does that mean they
> cannot trade?

Depends if they consider what the other has to be of value. Its all up
to them.

>  Has anyone invented a workable "barter currency"?

I don't see what the point would be. Why not just deal in a medium of
exchange? 

> Can I.O.U.'s be created such that they work like money?

Sure. Thats what banknotes are.

Perry