Re: two currencies and Korean war

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Yes, it is a great story, but not exactly bull's-eye.  First of all, Black Swan
dollars were not a currency in the Korean economy.  It was the US military's
currency to insolate itself from the Korean economy.  As such, its appeal to the
Koreans was a vain hope of entering the US economy through it at a time when the
survival of South Korea was an iffy proposition.  Also, the scale of the Black
Swans were very small, so much so that no braod general principle could be drawn
from its acceptance which at any rate was backed more by political power than
economic rationale, which in fact proves the validity of the State Theory of
Money.   Millitary fiat currencies have been used throughout history in occupied
territories.  Their value deteriorate only when the issuers were in danger of
losing the war.

Henry C.K. Liu

"Alan G. Isaac" wrote:

> On Sun, 30 Dec 2001, pdavidso wrote:
> > I have suggested the following (black swan) illustration to tax-based money
> > chartalists several times -- but to little avail.
>
> A great story.  And a bull's-eye as well.
>
> Cheers,
> Alan Isaac