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Source link: http://archive.mises.org/10765/money-in-war-ravaged-iraq/

Money in War-Ravaged Iraq

October 5, 2009 by

As this was an agrarian society the villagers turned to a time-tested medium of exchange: livestock. In the villages all households had some sheep, and the more affluent houses had very large herds. Goods were exchanged, debts repaid, and business contracts agreed upon all using sheep as money. FULL ARTICLE by Edward Gonzalez

{ 6 comments }

Pia Varma October 5, 2009 at 8:52 am

This is a great article…made my morning! Just shows the resiliency of the human spirit.

Nate October 5, 2009 at 9:03 am

Taking from your account, the quickest way to abolish the Fed, would be to abolish legal tender laws.

William P October 5, 2009 at 9:39 am

What’s your estimate for GS, Q210, in Marlboro Lights?

nick bradley October 5, 2009 at 12:09 pm

Nate,

I believe that abolishing legal tender laws would be the quickest way get rid of the Fed — or at least tame it. If the Fed followed a loose monetary policy, it would be punished by people who would shift their assets into other currencies. International currency exchanges already perform this — and keep central banks somewhat honest. But if domestic markets could participate as well — the Fed would be faced with the choice of either keeping monetary policy very tight or going out of business.

I once asked Ron Paul what his plan was to get us back to sound money, and he said that all we need to do is “legalize the competition”, with both private money (e-gold, digital currencies, etc.) and foreign fiat currencies. The Fed would be forced to maintain a tight monetary stance or fold.

I believe that Hayek was an advocate of this approach.

Edward Gonzalez October 5, 2009 at 12:26 pm

Nate and Nick,

I also believe that legalizing the competition is the best course to take today. Allowing even just gold and silver to circulate as money would force The Fed to maintain a tight money policy or go under.

Michael Labeit October 5, 2009 at 1:11 pm

Should be emailed immediately to the good people at the Central Bank of Iraq.

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