Money is undefined currency that holds and gives power!!
I think money can also give freedom and really make you able to do things you can't even imagine if you don't have enough money.
Topic: An Honest Introduction to Money - page 3. (Read 6584 times)
Money is undefined currency that holds and gives power!!
I think money can also give freedom and really make you able to do things you can't even imagine if you don't have enough money. 
Certainly, abusing the issuance of money can occur with totally market-based money too. (Big banks would have enough market power from their size to dictate terms and incur a risky level of debt, to some extent.)
This would be analogous to how a rich person with a lot of real estate can borrow more easily and at lower interest, and thus be more able to create bubbles than the rest of us.
But we would love to have that problem, since the problem we have today is qualitatively worse, where bubbles are created by state power and supported by political and military machinations around the world.
This would be analogous to how a rich person with a lot of real estate can borrow more easily and at lower interest, and thus be more able to create bubbles than the rest of us.
But we would love to have that problem, since the problem we have today is qualitatively worse, where bubbles are created by state power and supported by political and military machinations around the world.
Money is undefined currency that holds and gives power!!
Quote from: Plato, _Euthyphro_, 380 BCE
Soc. We shall know better, my good friend, in a little while. The point which I should first wish to understand is whether the [capital] or [money] is beloved by the [1‱] because it is [money], or [money] because it is beloved of the [1‱].
(Germaneness mine.)
Money is undefined currency that holds and gives power!!
Another common misconception is that there is such a thing as the "nature of money."
The truth is that the power elites have been changing the "nature of money" throughout the modern age.
In addition, there have been at least two "natures of money" at any given time, one being a model the elites would like the public to believe in, and one being the real mechanism of how money works. That's why I had so little to say about this nature in my original post.
I would be very suspicious of a discussion that begins with a declaration of the nature of money. It is usually just a means to justify a pre-conceived agenda or ideology.
The truth is that the power elites have been changing the "nature of money" throughout the modern age.
In addition, there have been at least two "natures of money" at any given time, one being a model the elites would like the public to believe in, and one being the real mechanism of how money works. That's why I had so little to say about this nature in my original post.
I would be very suspicious of a discussion that begins with a declaration of the nature of money. It is usually just a means to justify a pre-conceived agenda or ideology.
For fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further.
The grandeur of the bodies that invest in a fiat currency's success (e.g., those of government and government contractors) inspires confidence in third-parties about that success.
a long time ago humans did barter for took something what they need, but the problem was not at all the things same with other and than the fiat money was born for solution from it and completly used by humans all of the world til now but know our problem is the rate from one curency to other curency is not same and its caused there are rich country and poor country,even corupted system, and than bitcoin was born and being solution for our problem now humans are united, transaction with one curency without limited country without intervention from the bank or goverment,everybody from all of the world can used bitcoin for transaction
cmiiwFor fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further.
The grandeur of the bodies that invest in a fiat currency's success (e.g., those of government and government contractors) inspires confidence in third-parties about that success.
The problem, of course, is that this strength is also the fundamental source of weakness. Since the state has this automatic confidence, its officials have the incentives to maximize issuance and thus destabilize the currency.
So fiat currencies tend to collapse eventually if not quickly. Just look at the values of the currencies of poor countries over time. At the other extreme we have Britain. The value of the pound went from more than $4 to $1.50 today over the last hundred years, even as the dollar buys probably 80-90% less today than, say, a hundred years ago.
It would take a cosmic philosopher to really figure this out, but my strong feeling is that you can cheat nature for a while if you have a lot of power, but eventually you have to succumb. Britain's monetary power must have seemed to last forever, but became clearly unsustainable after World War I started. What you point out is true, but is the very definition of a bubble.
For fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further.
The grandeur of the bodies that invest in a fiat currency's success (e.g., those of government and government contractors) inspires confidence in third-parties about that success.
The problem, of course, is that this strength is also the fundamental source of weakness. Since the state has this automatic confidence, its officials have the incentives to maximize issuance and thus destabilize the currency.
So fiat currencies tend to collapse eventually if not quickly. Just look at the values of the currencies of poor countries over time. At the other extreme we have Britain. The value of the pound went from more than $4 to $1.50 today over the last hundred years, even as the dollar buys probably 80-90% less today than, say, a hundred years ago.
For fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further.
The grandeur of the bodies that invest in a fiat currency's success (e.g., those of government and government contractors) inspires confidence in third-parties about that success.
The problem, of course, is that this strength is also the fundamental source of weakness. Since the state has this automatic confidence, its officials have the incentives to maximize issuance and thus destabilize the currency.
So fiat currencies tend to collapse eventually if not quickly. Just look at the values of the currencies of poor countries over time. At the other extreme we have Britain. The value of the pound went from more than $4 to $1.50 today over the last hundred years, even as the dollar buys probably 80-90% less today than, say, a hundred years ago.
For fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further.
The grandeur of the bodies that invest in a fiat currency's success (e.g., those of government and government contractors) inspires confidence in third-parties about that success.
When you create 1 dollar worth of money using 1 dollar worth of resource/labor, then there is no robbery involved, just fair trade. However, if you write some numbers on a paper and use it as 1 dollar, then that is not fair trade. But still, many people accept this paper and regard it as something with 1 dollar's value. So it involves some trust and time related tricks
(You missed the gist of my post.) What does that matter when any- and everyone may do so?
In that case, the most trusted IOU would still be the IOU issued by US government. Of course you can use airline miles and supermarket coupons to purchase certain goods, but those have limited reach and a higher risk of ruin (Companies can go insolvent anytime)
In fact, for many people the biggest doubt of bitcoin is: Who is going to back its purchasing power? Although it is indirectly backed by merchants who accept bitcoin, but merchants are not responsible for its exchange rate, its value could still easily drop 30% overnight if no one is backing it with fixed amount of tangible assets. Currently the value is backed by the cost, very similar to gold, some kind of psychological support
In contrary to modern monetary theory (and what those academic people believe), USD's value is not decided by supply and demand, but by the value of assets that backed USD when they were issued. FED could easily create 5X more money without affect USD's value, simply because each USD issued are backed by assets of corresponding value (Although this action is questionable "Real Bills Doctrine", it works well to sooth the confidence of merchants)
That backing is psychological. That is important, because all the value is speculative, it means that someone speculate that he can get something of real value (useful) in exchange for the money, in the near or distant future. In reality, the dollar is unbacked. This is no problem for money, it is not needed, in fact it is good, else the money manager will eventually amass all the backing stuff. Still, there is no backing. The variations of value due to the erroneous belief in the backing, can go on for a long time.
It is this kind of psychological backing bitcoin does not have. For fiat money, "it is backed by government bond" is very simple and easy to understand for everyone, so they never question further. But for bitcoin, most of people get panic when they heard that no one is backing it, even they know that mathematics and computer science will last much longer than any government
There are people backing bitcoin with fiat money (they buy when the price drops). But unlike central banks, they are distributed all over the world and do not command large amount of fiat money reserve to stabilize the exchange rate in a reasonable range
In that case, the most trusted IOU would still be the IOU issued by US government.
If a preponderance of a business’ customers should insist that the business accept the G.E. certified money each mints, the business, if it should also wish to maintain their patronage, must comply therewith.
So what is this GEC idea? I haven't had time to check it out (as work is pretty hectic.)
You mint the money, and the (imperial) government certifies it as such.
I've found this video very relevant to this thread. It's an introduction on money and why Bitcoin is the better alternative for the future:
https://www.youtube.com/watch?v=Xkw9t9ShwGc
Very easy and short video, good for newbies to show and spark interest in the Bitcoin world. Usually all videos are about how Bitcoin works, but now why Bitcoin is the next big thing.
https://www.youtube.com/watch?v=Xkw9t9ShwGc
Very easy and short video, good for newbies to show and spark interest in the Bitcoin world. Usually all videos are about how Bitcoin works, but now why Bitcoin is the next big thing.
Your “poor” could appropriate a greater portion of the (monetary) value of the GEC economy to themselves.
I could spend an evening just ranting about that whole "crucifixion on a cross of gold" thing...
So what is this GEC idea? I haven't had time to check it out (as work is pretty hectic.)
When you create 1 dollar worth of money using 1 dollar worth of resource/labor, then there is no robbery involved, just fair trade. However, if you write some numbers on a paper and use it as 1 dollar, then that is not fair trade. But still, many people accept this paper and regard it as something with 1 dollar's value. So it involves some trust and time related tricks
(You missed the gist of my post.) What does that matter when any- and everyone may do so?
In that case, the most trusted IOU would still be the IOU issued by US government. Of course you can use airline miles and supermarket coupons to purchase certain goods, but those have limited reach and a higher risk of ruin (Companies can go insolvent anytime)
In fact, for many people the biggest doubt of bitcoin is: Who is going to back its purchasing power? Although it is indirectly backed by merchants who accept bitcoin, but merchants are not responsible for its exchange rate, its value could still easily drop 30% overnight if no one is backing it with fixed amount of tangible assets. Currently the value is backed by the cost, very similar to gold, some kind of psychological support
In contrary to modern monetary theory (and what those academic people believe), USD's value is not decided by supply and demand, but by the value of assets that backed USD when they were issued. FED could easily create 5X more money without affect USD's value, simply because each USD issued are backed by assets of corresponding value (Although this action is questionable "Real Bills Doctrine", it works well to sooth the confidence of merchants)
That backing is psychological. That is important, because all the value is speculative, it means that someone speculate that he can get something of real value (useful) in exchange for the money, in the near or distant future. In reality, the dollar is unbacked. This is no problem for money, it is not needed, in fact it is good, else the money manager will eventually amass all the backing stuff. Still, there is no backing. The variations of value due to the erroneous belief in the backing, can go on for a long time.
Currency, money can be said, is used as a tool of medium of exchange, the stored value and accounting unit, is specialized in supplies special goods and services in the exchange act as equivalents.
When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the "coincidence of wants" problem. Money's most important usage is as a method for comparing the values of dissimilar objects.
Before money can do that though, it must be trusted to maintain its value. When the incentives for the issuer are always to issue more, and the issuer has the physical power to do so, the system is broken and a new one is called for.
When you create 1 dollar worth of money using 1 dollar worth of resource/labor, then there is no robbery involved, just fair trade. However, if you write some numbers on a paper and use it as 1 dollar, then that is not fair trade. But still, many people accept this paper and regard it as something with 1 dollar's value. So it involves some trust and time related tricks
(You missed the gist of my post.) What does that matter when any- and everyone may do so?
In that case, the most trusted IOU would still be the IOU issued by US government. Of course you can use airline miles and supermarket coupons to purchase certain goods, but those have limited reach and a higher risk of ruin (Companies can go insolvent anytime)
In fact, for many people the biggest doubt of bitcoin is: Who is going to back its purchasing power? Although it is indirectly backed by merchants who accept bitcoin, but merchants are not responsible for its exchange rate, its value could still easily drop 30% overnight if no one is backing it with fixed amount of tangible assets. Currently the value is backed by the cost, very similar to gold, some kind of psychological support
In contrary to modern monetary theory (and what those academic people believe), USD's value is not decided by supply and demand, but by the value of assets that backed USD when they were issued. FED could easily create 5X more money without affect USD's value, simply because each USD issued are backed by assets of corresponding value (Although this action is questionable "Real Bills Doctrine", it works well to sooth the confidence of merchants)
A philosophical discussion is probably beyond the scope I originally planned, but I would just say that we do need some state to uphold some kind of universal values, in practice. Without that, it would be the law of the jungle, or the law of organized gangs.
The law of organized gangs is just another name for states, right.
The state is the violence monopolist. If a gang has enough power in a territory to be unchallenged, then it is the state.
This sounds more of a bank if anything else.
I mean wheres our bail out money, when we they started selling bad AAA graded investments. Even the credit agency giving those grades should be fined.
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