Home » Posts tagged 'money value'

Tag Archives: money value

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

In The Fed We Trust – Part 1

May 15, 2019

In The Fed We Trust – Part 1

This article is the first part of a two-part article. Due to its length and importance, we split it to help readers’ better digest the information. The purpose of the article is to define money and currency and discuss their differences and risks. It is with this knowledge that we can better appreciate the path that massive deficits and monetary tomfoolery are putting us on and what we can do to protect ourselves.   

How often do you think about what the dollar bills in your wallet or the pixel dollar signs in your bank account are? The correct definitions of currency and money are crucial to our understanding of an economy, investing and just as importantly, the social fabric of a nation. It’s time we tackle the differences between currency and money and within that conversation break the news to you that deficits do matter, TRUST me. 

At a basic level, currency can be anything that is broadly accepted as a medium of exchange that comes in standardized units. In current times, fiat currency is the currency of choice worldwide. Fiat currency is paper notes, coins, and digital 0s and 1s that are governed and regulated by central banks and/or governments. Note, we did not use the word guaranteed to describe the role of the central bank or government. The value and worth of a fiat currency rest solely on the TRUST of the receiver of the currency that it will retain its value and the TRUST that others will accept it in the future in exchange for goods and services. 

 …click on the above link to read the rest of the article…

ENERGY-MONEY EQUILIBRIUM: THE VALUE OF MONEY IN THE AGE OF OIL

March 3, 2015

ENERGY-MONEY EQUILIBRIUM: THE VALUE OF MONEY IN THE AGE OF OIL

Trying to figure out exactly how Money achieves and holds its value is very difficult. In all but the simplest systems, which are little more than Barter, you quickly develop a level of complexity which is confounding mainly because it is always so self-referential. In this exercise I try to elucidate the process used over the centuries to not just create money, which is primary, but also to control money once created. I have some basic ideas here, but I have no idea how this post will come out in the end. It’s a very difficult problem.

Starting Point: You cannot have Money without a surplus in basic needs, but neither is surplus by itself sufficient. You also must have control over at least one basic conduit of wealth, which is in the beginning food. Why is this so?

First let us look at a pre-agricultural Hunter Gatherer (H-G) society. Said society can be in surplus, but they don’t need or use money because each member of the society can take from the surplus as much as he or she needs. You may barter things, but you do not need an intermediary of money to do that. It’s a very simple system, but it allows for virtually no savings and none are necessary so long as you always have and expect surplus. A small group of H-Gs in a large territory who are not competing with others are always in surplus. So no money develops in such a society.

 

…click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress