Publisher's Synopsis
This book explains the nature of money, trade and theft.
The analysis draws upon the Libertarian economic theory called G.O.L.D., which uses trade, supply and demand, the correspondence theory of money, and the choice theory of value, to understand the economy. The book presents the "XYAB" idea of economics, otherwise known as the "Triangle of Trade" theory of economics. The XYAB theory uses X, Y, A, and B as variables in a theoretical framework of economics. Person X makes value Y, and Person A creates value B. In a line trade of goods for goods, X trades Y to A in return for B. But, in a division of labor economy, there are many people, each making many different things and desiring to consume various values. So they trade using money to represent value.
The moral of this story is that "to make money" really means "to create value that self or others can consume." XYAB defines the ratio between the amount of wealth (value) in an economy and the number of units of money in the economy as the money supply ratio. The key to poverty eradication is policy and laws that will create more value in an economy, by maximizing creation and trade. Government printing money or redistributing value does not create new value, hence is pointless, but it raises the money supply ratio, thereby inducing inflation.
If you want to understand what money is, read this book.
