Space Colonies and Cultural and Biological Diversity

Platinum, even if not explicitly mined, is a byproduct of asteroid utilization. Once
you pull the water and metals out of a typical asteroid, platinum is one of the things
that left in the heap of slag.

Massive importation of asteroidal platinum to earth would in fact lower the price.
With careful management, this might be mitigated, so the price would not drop too
low. However, I don't see any reason for the bulk of the platinum to leave orbit.
Shares of the platinum that is still sitting in orbit can be traded on earth.

De Beers' skillful restriction on the number of diamonds in the world supply keeps
the value of the stones artificially high. Although monopolies are usually bad for
world trade, diamonds have kept their value, and this has been a stablizing
influence on the world economy. As long as the actual amount of platinum brought
to earth is moderated, deflation of the price can be minimised.

The dollar may no longer officially be backed by gold, but it still is in a very real
sense. Everyone in the world knows what Ft. Knox contains (and no coincidence
that it is guarded by heavy armored division), and it is only one of many repositories
of precious metals. This is part of the perception both domestic and worldwide that
retains the value of the dollar. Any currency issued in space colonies will have a
similar perception of being disporpotionally backed by a vast supply of platinum.

Platinum is also a very useful. It is a good catalys for some reactions, which will
likely be needed in the high recycling environment of the space habs. I think it is
also used in fuel cells, and if so, that might be another major product. In any case,
the presence of platinum in the space colonies will have an impact on the types of
goods manufactured, and how the economy operates.

I also don't think that even automated production will continue until the price drops
to nothing. Until the client puts down a deposit, no construction on an SPS will
occur. I don't see that radical a departure from the current economic system for the
near future.

Date sent: Fri, 11 Jul 2003 08:36:55 -0700 (PDT)
Diversity
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> Beamed power on the
> other hand has a multi trillion dollar market, near
> zero transmission costs, and is best produced in
> space.
>
> Therefore the economy of space colonists is being
> self
> sufficient and generating power for the earth.

I often hear the argument of infinite amount of beamed
power making lots of money. However, assuming massive
SPS (10-100s of kms) are put in orbit around the earth
and the energy is beamed back to earth and the
colonies, will there be a point where supply is so
abundant that its price comes down to near nothing, if
not eventually free?

Also, to expand a little further on money in space,
assuming colonies eventually become more and more self
sufficient, will they turn away from a monetary system
in general and move to a more trade based economy?

A reason I bring this up is that currently money is
backed by some kind of resource (often times gold).
Now in space it is possible to find large amounts of
any given resource. The one I've heard most often
sited on this listserv is platinum in the asteroid
belt. Or better yet diamonds that can be mined from
Uranus.

Would this not eventually devaluate the value of a
resource backed currency thus making it obsolete? Or
will another, more practical resource like water
become the resource which backs monetary exchanges?

Ryan Z

danst@...
The horse, the original in 4x4 off road recreation.