I've had the flu for the last couple weeks, (yuk!) so I only saw and was able
to respond to your e-mail recently. I enjoy thought experiments and exploring
ideas like this, so I hope you don't mind the questions... Michael's comment
about gaming the system by deliberately going bankrupt is an interesting one.

> let me start by claiming that yootles do not in
> fact need to be tied to anything of value.

Yes, let me work on understanding this one better before we talk about the
level playing field. So I can ask some questions:

1. Practical usage question: If yootles are not tied to anything of value, how
do I know how much each is worth? I don't know how to come up with a number in
negotiations without having an idea about its value. I.e. is a backrub worth 20
or 2000 yootles?

2. Stabilization of value over time question: If I just start by throwing out a
number, is there an expectation that the value of a yootle will stabilize as
the currency is used over time? Or does the worth of a yootle fluctuate from
month to month?

3. Philosophical, 'how does currency get its value' question: I was given to
understand, based on economics classes that I took that currencies got their
values by being tied to something else of value (a good or service). If yootles
are not tied to anything of value, how do they get their value? Mabye some
economists (Michael?) could chime in here to elaborate or correct my
understanding of this. How do currencies get their value? Do I just have the
wrong idea here? If so, what is the right idea?

Phrasing the question in another way, "why is a dollar bill in my pocket today
valued such that I can buy a cup of coffee* with it, and not a new computer?"
What determines its value?

-Yanni

* Ok, a cheap cup of coffee, not at starbucks.