A very cool and insightful post on the blog CIVILIZATION SYSTEMS
“There’s an ongoing debate between the ‘hard money’ side (gold, commodity-based systems, etc.) vs ‘fiat’ systems (sovereign issuance of currency directly and/or the creation of debt through Central Banks or similar systems…)
BOTH can do no more than seek to direct a significant part (but not all) of the social energy* of the society with which it’s associated.
*social energy refers to the individual and collective decisions which (quite literally) result in the product you see as a civilization. A decision here is defined as an idea + an action.
The total available social energy then within any society has a physical limit. But within that limit it may be highly variable.
In other words, what a society actually has available is NET social energy: A sum of decision vectors never actually in complete harmony.
E.g. A nation in the midst of revolution has a whole LOT of energy… but very little net social energy until a new social contract can arise and begin to better align these decision vectors.”