Information Currency

Information Currency:

Knowing the Market

In a little town in South Carolina, USA there are eleven businesses that operate with a license. Call this the Market. In the morning hundreds of cars drive through town on the way to work. In the evening, hundreds go home. These cars are coming from and going to cities all around the Market town. Call every other town the Economy.

In one story the little town, Market, used the dollar to buy and sell and store value. The Economy did too. A good part of the business in Market was brought in by members of the Economy. When the citizens of Market were bored with their stores they would also go out to shop in Economy. One year the cars stopped coming as often through Market. There were lots of reasons why. Gas prices were high in Economy and Market. Jobs were lost. Soon the town of Market was so quiet that a stranger from Economy was a surprise and everybody stared. After a while the businesses in Market never saw anyone come in from Economy. There were less and less dollars in town. Each time a member in Market had to go out to Economy to get something that they didn’t have there were less dollars. No one in Market had a job in Economy. Soon there weren’t any dollars in town.

The local rib restaurant guy, Ray, was really desperate for some Chinese food one afternoon. He walked over to the Chinese restaurant and offered a coupon for Ray’s in exchange for some hot Chicken Wings and fried rice. The Chinese spent the coupon at Ray’s for some ribs. Ray started to give out coupons to all the businesses in town in exchange for haircuts, dollar store, groceries, lumber, and other things. Soon the town was trading well in a community exchange. But one day a stranger from Economy came through town. The stranger stopped at the Chinese restaurant for a big meal and spent dollars. The Chinese realized that they could go out to Economy again with dollars and replenish some very low stock of hot peppers. Ray then realized that he was low on stocks of sugar and the dollar store was out, too. But Ray realized that he could go out to Economy with his coupons.

In the little town of Market in South Carolina, USA, only Ray really knew the Market. Ray knew the products and services in Market and that was just enough information to survive without Economy. Trade can breathe life into any Market (or Economy).