Your example of the transaction is idiotic due to basic economics.

1: Okay, McDonald's has a shortage of potatoes in this scenario.  How do potato credits solve that?  I understand that a potato credit has the equivalent of one potato, but:
A: There are different grades of potatoes.  The potatoes I grow may be different from the potatoes you grow.  It's a specialized field.  The average person may be able to grasp the difference between certain potatoes, granted.  However, this distinction applies to EVERY commodity. 
Examples:
US oil is valued higher than Iranian oil.  When people talk about oil prices, it is generally referring to US oil, known as light, crude oil.  There's tons of different grades of oil, based on the region it was mined.
Diamonds are valued highly differently based on cut, grade, etc.  I would NEVER buy a diamond credit in my life, even if I wanted a diamond, because I guarantee you that I would get screwed.  The value of diamond credits would thus be based not on the value of the diamond on hand, but on the average value of all diamonds in the country.  That means people with good diamonds will get screwed, and people with bad diamonds are getting more money for pieces of garbage.
Beef: Cornfed beef?  Grassfed beef?  Organic beef?  How about fat concentration?
Cement: Mineral composition makes a big difference.

And these are just a few examples, and just a few examples of which I know.  But it comes down to a simple conclusion: Most resources have a diversity of what they actually encompass.  We just don't see them on face because the field is so specialized that the experts know what resources they want.

B: McDonald's needs to obtain the potatoes.  Hmm... where do I get the potato?  Who am I getting this potato from?  Am I getting potatoes from this guy who just bought that hamburger?  If so, where does he live?  I need to send a truck over there!

C: How the hell do you sell 1.247137 potatoes?

2: Then you get into the crazy economic issue.  Let's assume your scenario happens: McDonald's is asking for payment in all the crap you listed.  I want to talk specifically about the disparity.

Your disparity is impossible.  That would mean scenarios like this would be possible:
Assume there are three resources: A, B, and C.
You can trade 2 As for 1 B or 1 C.
You can trade 1 Bs for .5 As or 2 Cs.
You can trade 1 C for .5 Bs or 1 As.

Scenarios like this, when happening at one instant in time, allow people to just spend their time trading throughout the disparity, making tons of money doing nothing (not even taking a risk at this point, since, at this instant, there is guaranteed profit).

This just is not the case, as is empirically shown by the currency market.  I can't trade Euros for Dollars, Dollars for Yen, and Yen for Euros, and end up with more currency overall than I originally had.  Now, you can trade Euros for Dollars, then watch the Euro's value fall temporarily, and sell your Dollars for Euros again.  However this isn't the same because there is the added risk speculation issue attached.  Prices are determined not relative to each individual product you can trade it for, but instead valued simultaneously against all other goods.

This thread is done. You have no answers to very basic questions. Go to school.

Spam.

That he doesn't understand that his "that's how rich people make money" statement is just supporting your critique even more is embarassing. We point out that his proposal would be even more exploitable than our present system which he hates so much and he openly admits it, because he has no idea what's going on.

At least he knows he's got nothing. I'm gonna rest in peace now. For the love of god, so let this thread rest too.

Somebody's gotta do it! It's for his own good! It's for all of us!

Besides, this is just reinforcing beliefs that people from third world nations aren't real people.

Wow he now wants 'credits' which sounds a lot like 'currency'

Hehehehe

Actually I'll respond to this "K. William Fancsali" idiot one last time:

I'm not going to stop this thread until long after you have gone away, because I know I'm right, and because I know there will always be people wanting to discuss this topic.

Why you care so much that this thread be closed is amusing to me.  Why do you care so much?  Actually don't bother answering that.  I don't care.

give it a rest xeno you know you're wrong. I rubbed it in enough. You made it very clear you have NO idea what you're talking about. "So you just do exchange this credit for that credit at a 1:1 ratio and get a better deal!"

You know you're young. There's nothing wrong with that. You know you know nothing of economics. There's nothing wrong with that. You keep posting retarded nonsense while not responding to VERY SIMPLE questions asked of you. That's just stupid. Like this thread.

> Maybe because he gets pwned by someone and feels disgraced, I suppose.

Haha, pwnd. Good work xeno .

> xeno syndicated wrote:

> People don't need to understand why different grades of different resources cost different amounts in order to trade them.  They can just buy and sell at the different grades' average prices.

Okay, then, xeno.  Hypothetical situation

I want to sell you land in Florida.  You don't need to know what this land is.  It's land.  And you know the approximate area of it.  What's the worst that could happen?

Answer: Swampland, valued at about $5.00

Therein lies the problem.  Since not all resources are created equal, you have to know the details of the particular resource you are buying.  My argument is that, for some resources, the amount of grades is so diverse that you can't make credits for each one because if, for example, there were a trillion diamonds in the world, there would need to be a trillion different credit grades.

"Yaaaaaawwwwwwwnnnnnnn

Huh?  That qualifies as an answer now?"

By showing how tired I am at having to point out the obvious to you again and again.

Fair enough, the organic argument is answered in the above statement, so this is redundant.

"That creates the problem:..."

No, it creates a deflationary trend in prices, which is good for the vast majority of the human race.

1: What?  You are now arguing that you cause deflation?  Please, please, PLEASE tell me you are advocating this, because then this will be the easiest open and shut debate ever.
2: You didn't actually ANSWER the argument.

"Now how do you sell 1.24732173 diamonds?"

Same way you sell 1.247.. potatoes.  When I said 'mashed' I was making fun of you.  How do you trade 1.56875 dollars?  Can't you fathom the notion of having resource-based 'credits' and fractions thereof?

1: Yes, I can fathom it.  However, then you create the problem of redeeming the credits for the good itself.  If I can't go back to someone and say "I want my 1.24732173 diamonds," then my resource-based currency is nothing more than fiat currency anyway, because since I can't redeem it, there's nothing backing it up.

"but it has something to do with the way the oil was produced in the ground."

Lol.  Oil is oil.  The only difference is the expense associated with extracting or refining it.  The reason why American oil is more expensive is because the wells are drilled deeper, or is extracted in less accessible areas (like the ocean floors).

http://en.wikipedia.org/wiki/Light_sweet_crude

"Sweet crude oil is a type of petroleum. Petroleum is considered "sweet" if it contains less than 0.5% sulfur,[1] compared to a higher level of sulfur in sour crude oil. Sweet crude oil contains small amounts of hydrogen sulfide and carbon dioxide. High quality, low sulfur crude oil is commonly used for processing into gasoline and is in high demand, particularly in the industrialized nations. "Light sweet crude oil" is the most sought-after version of crude oil as it contains a disproportionately large amount of these fractions that are used to process gasoline, kerosene, and high-quality diesel. The term "sweet" originated because the low level of sulfur provides the oil with a mildly sweet taste and pleasant smell. Nineteenth century prospectors would taste and smell small quantities of the oil to determine its quality."

http://en.wikipedia.org/wiki/Petroleum#Classification

The petroleum industry generally classifies crude oil by the geographic location it is produced in (e.g. West Texas, Brent, or Oman), its API gravity (an oil industry measure of density), and by its sulfur content. Crude oil may be considered light if it has low density or heavy if it has high density; and it may be referred to as sweet if it contains relatively little sulfur or sour if it contains substantial amounts of sulfur.
The geographic location is important because it affects transportation costs to the refinery. Light crude oil is more desirable than heavy oil since it produces a higher yield of gasoline, while sweet oil commands a higher price than sour oil because it has fewer environmental problems and requires less refining to meet sulfur standards imposed on fuels in consuming countries. Each crude oil has unique molecular characteristics which are understood by the use of crude oil assay analysis in petroleum laboratories.

Now excuse me while I go and find The Yell's "you got owned" web page.

"but fancsali, spam! the love of spam compells yuo to post more, of and being able to beat up some little kid...."

Exactly the reason I have stopped responding to that twit.  He's an almost entirely unintellectual intellectual bully - not worth anybody's time.

Agreed. 

This is funny. Both conservatives and far-left socialists are bashing Xeno.

But to be fair, I think Xeno has some intellectual potential. His problem is that he obviously hasn't experienced life. The treatment I suggest he use is stfu until he gets out of his ivory tower and has experienced life for a few years. Life will shape him up.

> Justinian I wrote:

> This is funny. Both conservatives and far-left socialists are bashing Xeno.

Yeah, I love that.