Exchange Mediums - Martian Currency-A few thoughts

Hazer · 2004-01-19 18:20:51

This post is the result of my reading the "Means of Production" thread. Enjoy.
Mars isn't Earth. Earth isn't Mars. What we learn on one may or may not apply on the other. But anyhow, so who will control the means of production on Mars?
Likely, it will be the person who is best at managing those means in order to make a profit. But that raises another question, in a hostile environment such as Mars, what would constitute profit?

I suspect that if there is more then one group of colonists arriving on Mars at the same time, the exchange medium will be barter to begin with. Profit initially will constitute real goods and services. Colonists will exchange commodities that they can directly use such as computer chips, earth-goods, tilapia eggs, water and electricity. One settlement might send an electrical engineer over to another settlement so that he might fix the electrical systems of that settlement.
Then, when governments begin to form-or at some other period, a commodity-such as electricity or hydrogen, will be settled upon as a medium of exchange.

"Yeah, I'll wire you a hundred ampere-hours for those drums of water."

"Make it a hundred and ten and you've got a deal."

"Alright then."

Fiat currency will come later, when there are many more people on Mars and a central government or three to enforce contracts. Remember, Earth has used Fiat currency for only about two-hundred years.

jadeheart · 2004-01-19 19:05:29

Nitrogen.

Hazer · 2004-01-19 23:54:58

Another thought, assuming the colonists trade with earth-how would they go about doing it?

<EDIT>
How do you think the division of labor would begin? I mean, you'll probably have a group or a person who sets up a large central powerplant, you'll have your people who do various things to regolith, and you'll have your nitrogen producers/farmers.
If I had a job on Mars, I think I'd like to be a solar-farmer and sell electric power. Of course, I would have to spend my time dusting off panels, electrolysing H20, repairing damaged cells-building fences to keep tumbling rocks from damaging my panels et cetera... Oh yeah, can't forget I'd have to maintain the power transmissions to my neighbors. After all, that food-farmer has got to have power to heat his plants.

What other professions do you think will be characteristic of an early Martian colony?

Mundaka · 2004-01-20 15:03:21

Pendragon · 2004-01-23 09:59:17

It would have to be some form of currency. Straight barter only occurs when you have at least two parties needing something. What if Farmer A needs to be more solar panels but the owner of the factory/latest supply of solar panels has all the nitrogen he needs? Currency facilitates the bartering process because the value of currency is that it has no value (if you had a million dollars but no food, your stuck) and so is readily traded for things we need. Of course it would have to be a currency everyone recognized or else it would fall apart.

Hazer · 2004-02-15 00:19:31

Originally I suggested that early Martian trade would take the form of barter. I still hold that position. The idea of having legal tender (Which means that someone MUST accept it as payment) would be silly during the early colonization/exploration phase.

Of course it would have to be a currency everyone recognized or else it would fall apart

And of course, therein lies the problem with establishing a currency. The proper route is to let people barter goods and services, and then move to a currency when the colonies are firmly established.

Cobra Commander · 2004-02-16 17:13:15

A barter system only works in the very early stages of a society's development. Given the complexities of Martian colonization, it may bypass that stage altogether.

Whatever the medium of exchange ends up being, I would hope that it is at least based on something real.

Until it gets worked out, I'll be the guy wandering around the red plains with a rifle and a sack of Krugerrands.

Yang Liwei Rocket · 2004-03-08 11:41:10

money has been around a long time, the Chinese have used money for thousands of years

the Greeks and Romans also had some of their coins minted ,crafted and named after stars...jupiter ( zeus ) or mars

jupiter coin
[http://www.vroma.org/images/mcmanus_ima … ympia3.jpg]http://www.vroma.org/images/mcmanus_ima … ympia3.jpg

mars coin

[http://www.vroma.org/images/mcmanus_ima … rcoin2.jpg]http://www.vroma.org/images/mcmanus_ima … rcoin2.jpg

more martian money, this time from japan

[http://www.mars-eng.co.jp/products/prd_img/coin_img.jpg]http://www.mars-eng.co.jp/products/prd_img/coin_img.jpg

martian man on the bill

[http://images.google.com.au/images?q=tb … AH8101.jpg]http://images.google.com.au/images?....101.jpg

even batman has to buy stuff
[http://www.planetkilmer.com/rr/january2 … oneybf.gif]http://www.planetkilmer.com/rr/january2 … oneybf.gif

Getting back to reality....> We have nearly always needed money for exchange, Incas, Egyptians, the old Mayans, Chinese, the Greeks, Celts, Romans, Arabs, all used some system silver coins, precious stones, paper notes of promise. Man has always traded, there have been traces of economic activity in our earliest of civilisations, these ancient civilizations show evidence of sheels, silver or trinkets been used as an exchange medium for goods or services.
We have used the standard gold system for a long time on earth, where man has tried to level the value of a currency , such as the dollar, to a certain amount of gold. Diamonds and Gold were sometimes placed in bank reserves and a market value and monetary was then given.

If people barter and exchange things of unequal value it may lead to squabbles, discontent and maybe fights or anarchy. The plan should be to set up a system on mars much like the old ones we used on earth, Mars should use it resources to back up the value of its money, resources like irons, silicates, minerals, bauxites...
and under normal circumstances, because of the relative stability of demand and supply the value should not fluctuate greatly.
[http://www.michaelbrein.com/ufos/alienote2.jpg]http://www.michaelbrein.com/ufos/alienote2.jpg
In order to introduce the martian money, we should also allow a conversion of the "martain-pound", "martian-dollar" or "mars- euros " into the gold. People with martian coins should bee allowed convert their money mineral standard at banks, but this should also be controlled carefully. Mars should have a stable exchange rate and its purchasing power should be measured by its command over goods and services. I don't see why a mars currency would not work. ???

[http://www.brprops.com/assets/props/bad … yen_10.jpg]http://www.brprops.com/assets...._10.jpg

Hazer · 2004-03-08 19:35:10

But unless you have actual hardware on Mars, having hundreds of minted coins or pieces of paper is WORTHLESS. That's why I suggested that the Ampere-hour could be used as a currency.
If you arbitrarily create a currency, then it's value will be arbitrary. I suggested that something real, easily portable, and inherently useful might be used.

If people barter and exchange things of unequal value it may lead to squabbles, discontent and maybe fights or anarchy

Have you ever heard of the diamond-water paradox? The value of anything is in the eye of the beholder

Anyhow, the fastest way to anarchy would be to immediatly adopt a currency and then you'd watch as inflation skyrockets and all your money becomes worthless.

Your currency would be -worthless- on Earth-barring the existence of a government that was willing to accept a HUGE loss, and you would be essentially isolated, given the long transit times that we are currently looking at.

Money as we know it only works when posessing it is more practical then holding onto real goods. If you have un-backed currency and a society that will be oriented towards practical needs (Such as growing food, expanding living space, in essence building a new world) I think that the society in question would avoid the currency entirely.

Electricity, as I have suggested, could be a viable Martian currency. Inflation of the electricity supply would be deterred by the fact that prices and profits would sink if someone decided to flood the markets, and they would rise if someone raised their prices. The key here would be encouraging a state of near-perfect competition with multiple competitors. Since everyone will have a need for electricity, demand will never hit zero-and a market flooding will be avoided as doing so would only hurt the producers of electricity.
Anyhow, I expect the future Martian commodities market to be very interesting.

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#1 2004-01-19 18:20:51

Re: Exchange Mediums - Martian Currency-A few thoughts

#2 2004-01-19 19:05:29

Re: Exchange Mediums - Martian Currency-A few thoughts

#3 2004-01-19 23:54:58

Re: Exchange Mediums - Martian Currency-A few thoughts

#4 2004-01-20 15:03:21

Re: Exchange Mediums - Martian Currency-A few thoughts

#5 2004-01-23 09:59:17

Re: Exchange Mediums - Martian Currency-A few thoughts

#6 2004-02-15 00:19:31

Re: Exchange Mediums - Martian Currency-A few thoughts

#7 2004-02-16 17:13:15

Re: Exchange Mediums - Martian Currency-A few thoughts

#8 2004-03-08 11:41:10

Re: Exchange Mediums - Martian Currency-A few thoughts

#9 2004-03-08 19:35:10

Re: Exchange Mediums - Martian Currency-A few thoughts

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