RE: Paper money
June 3, 2009 at 8:37 pm
(This post was last modified: June 3, 2009 at 8:40 pm by Oldandeasilyconfused.)
Not so much stupid,but ignorant ,based on a misunderstanding of the nature of money and our economic system. He's also partially right. Governments have over centuries tried to get out of trouble by simply printing more money. (classic cases;Zimbawe,today,Germany after WW1) The result; at worst the economy collapses at best,inflation..
A money economy is based on the notion that objects have an intrinsic value. Karl Marx and I disagree with that notion..
Gold,silver,copper, has value while people think it does. EG C16 Spain actually devalued its currency be releasing so much silver into the economy from the "New World that it lost much of it's value.I don't know if this is true;I saw the claim on a recent documentary "the ascent of money"
http://en.wikipedia.org/wiki/John_Hawkwood
One of the most successful civilisations in history,Ancient Egypt had an economy based on barter.A money economy was introduced by the Greeks after the conquest of Egypt by Alexander The Great in the C4th BCE
The current crisis occurred when credit collapses. This in turn was caused by a collapse of the basis of credit,which is trust.The euphemism is "a collapse of confidence in the market". I'm sure it's more complex, but that's my take.
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Wiki
http://en.wikipedia.org/wiki/Intrinsic_theory_of_value
A money economy is based on the notion that objects have an intrinsic value. Karl Marx and I disagree with that notion..
Gold,silver,copper, has value while people think it does. EG C16 Spain actually devalued its currency be releasing so much silver into the economy from the "New World that it lost much of it's value.I don't know if this is true;I saw the claim on a recent documentary "the ascent of money"
http://en.wikipedia.org/wiki/John_Hawkwood
One of the most successful civilisations in history,Ancient Egypt had an economy based on barter.A money economy was introduced by the Greeks after the conquest of Egypt by Alexander The Great in the C4th BCE
The current crisis occurred when credit collapses. This in turn was caused by a collapse of the basis of credit,which is trust.The euphemism is "a collapse of confidence in the market". I'm sure it's more complex, but that's my take.
.00000000000000000000------------------------------0000000000000000000000000000000000000
Wiki
Quote:An intrinsic theory of value is any theory of value in economics which holds that the value of an object, good or service, is intrinsic or contained in the item itself. Most such theories look to the process of producing an item, and the costs involved in that process, as a measure of the item's intrinsic value.
For instance, the labor theory of value - the most influential of the intrinsic theories - holds that the value of an item comes from the amount of labor spent producing said item. For example, if a chair is produced by two workers in 6 hours, then that chair is worth 2 x 6 = 12 man-hours (this is a simplified case; the labor theory of value takes into consideration only the "necessary" amount of labor that must go into the production of an item, which may be less than the actual expended labor due to inefficiency).
http://en.wikipedia.org/wiki/Intrinsic_theory_of_value
