Arguments 3.

 In the exchange for commodities, currency measures
the value of labour, past and present. Part of this
measured value renews demand for commodities(1). The
other part renews demand for commodities(2).
Transforming renewed demand into increased demand can
be acheived in several ways. But, in all cases, growth
in demand must begin with commodities(1).
 One way of increasing demand for both categories, is
for currency to circulate faster from exchange to
exchange. New forms of currency, such as bank cards,
or new forms of production, which avoid stock piling,
or new forms of transport, such as containers, all
contribute to this acceleration. But, by its very
nature, this method of increasing demand is impossible
to master and has obvious historical limits.
Uncontrolled, it tends to be inflationary.
 Ever since currency has been used to measure the
value of exchanges, demand for commodities(1) has
increased because profits were not renewing demand for
commodities(2). This insufficient demand for
commodities(2), which are the terminal result of
production, can be solved by borrowing and by a
constant reduction in the value of commodities.
 Demand for commodities(1) can also increase by
borrowing. Borrowing increases the value of currency
in circulation, a currency "creation". All currency
being but promises to pay, gareteed by banks and,
ultimately, by the Central Bank and the State. This
borrowed currency increases demand for commodities(1).
An increased demand which puts into motion more
labour. Extra labour is added to extra labour and, at
each measured exchange, more currency must be
borrowed. And so to the terminal stage of
commodities(2). But, demand for commodities(2) is
always insufficient. As part of the value, added by
labour and exchanged for currency, is sidetracked at
each stage of the production process. This constant
insufficiency of demand for commodities(2) beats down
prices and puts firms out of business. But, when
development is strong, the State may decide to sustain
demand for commodities(2), by garenteeing borrowing to
that effect. The State may do some borrowing itself,
and distribute the extra currency as wages, welfare,
war, etc.
 Currency used to be exclusively backed by gold. Which
ment that increasing the quantity of currency in
circulation depended on an equivalent increase in
bullion. This is no longer the case. At present,
currency is backed by a variety of values, such as
bonds, stocks, foreign currencies, real estate, etc.
Which means that currency creation is virtually
unlimited and the same goes for borrowing.
 Borrowing increases demand for commodities(1) and
sustains demand for commodities(2). But, unlimited
borrowing to sustain demand for commodities(2), means
that an ever greater part of the value added by labour
can be sidetracked. The result is an ever greater
demand for commodities(1) and an ever greater need to
sustain demand for commodities(2).
 Kenneth

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