Posted 9 months ago on Nov. 18, 2018, 3:07 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
Ali lives in Gaza 3000 years ago. He owns a ship and wishes to trade with Greeks. He contracts with a local producer, Jamal, for trade goods, which are sold to him on credit. He departs for Greece with the goods.
Jamal trades Ali's credit contract for other goods he wants, needs or can sell or trade.
Ali trades his goods in Greece for a local credit contract, which he trades locally for goods he can take back to Gaza.
When he arrives back in Gaza he can trade his goods for credit that, hopefully, has value twice his original credit device plus all expenses. He trades that to buy back his prime contract and another load of goods. Life goes on.
If all the transactions had taken place in local currencies, each of which had agreed upon standard values, the money used would have been indistinguishable from the credit devices. Money is simply a credit conveyance. There may be a distinction between money and debt but there's no real difference.