Sunday, October 8, 2023

Fungibility

Money is fungible, which means a dollar is replaceable by another identical item. Breitbart reports the following:

Secretary of State Antony Blinken said Sunday on CNN’s “State of the Union” that none of the $6 billion released by the U.S. for humanitarian aid in Iran was used to help fund Hamas’ attack against Israel on Saturday, which resulted in hundreds of deaths.

In a technical sense this is true, Iran hasn't had the $6 billion long enough to buy arms and ship them to Gaza. In a real sense, what he said is nonsense. Knowing the money was coming, Iran could use funds earmarked for other purposes to buy and ship arms because replacement foreign exchange was en route to Iran.

This is yet another example of how politicians mislead the public by speaking carefully chosen true words which seem to say one thing while the opposite is true.