{"id":36124,"date":"2018-07-21T09:23:59","date_gmt":"2018-07-21T14:23:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36124"},"modified":"2018-07-21T09:23:59","modified_gmt":"2018-07-21T14:23:59","slug":"are-you-prepared-for-the-end-of-fake-money","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36124","title":{"rendered":"Are You Prepared for the End of Fake Money?"},"content":{"rendered":"
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Are You Prepared for the End of Fake Money?<\/a><\/h3>\n<\/div>\n
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What Is Money?<\/strong><\/p>\n

Today we begin with a fundamental question: What is money?\u00a0 This, no doubt, is an important question.\u00a0 And we ask it with clear intent and purpose.\u00a0 Namely, we want to better understand how it\u2019s possible for America to rack up such a massive trade deficit with China.<\/p>\n

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\"\"<\/a>China-US imports and exports of goods. It has to be stressed that the most often cited figure is the trade deficit in goods, which is the \u201cscariest\u201d figure. The US surplus in services with China has grown rapidly in recent years. It was $33 billion in 2015, doubling from $16.5 billion just four years earlier. By 2017 it had grown to $38.5 billion. The idea that a trade deficit is somehow \u201cbad\u201d is highly dubious. \u201cCountries\u201d do not trade with each other anyway \u2013 individuals and companies do, and they obviously do so because they deem it advantageous for both sides. Moreover, these aggregate statistics obscure more than they reveal. The global supply chain is extremely complex \u2013 a single $3 t-shirt \u201cMade in China\u201d will contribute to the incomes of people in some 15 to 20 countries before a consumer in the US plucks it off a shelf at Wal-Mart. If we were to talk incessantly about the US capital account surplus \u2013 <\/em>which offsets the trade deficit \u2013 would anyone complain? [PT]<\/p>\n

America\u2019s trade deficit with China, in 2017 alone, was\u00a0$375 billion<\/a>.\u00a0 That\u2019s a gap of over $31 billion a month \u2013 or $1 billion a day.\u00a0 We believe having a better grasp on what money is will bring clarity to the nasty trade deficit that\u2019s motivating today\u2019s burgeoning trade war.<\/p>\n

With respect to our initial inquiry we turn to Victorian economist William Stanley Jevons for edification.\u00a0 In his 1875 work,\u00a0Money and the Mechanism of Exchange, Jevons stated that money has four functions.\u00a0 It\u2019s a medium of exchange, a common measure of value, a standard of value, and a store of value.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Are You Prepared for the End of Fake Money? What Is Money? Today we begin with a fundamental question: What is money?\u00a0 This, no doubt, is an important question.\u00a0 And we ask it with clear intent and purpose.\u00a0 Namely, we want to better understand how it\u2019s possible for America to rack up such a massive […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,130,20952,11763,536,805,827],"class_list":["post-36124","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-china","tag-fake-money","tag-mn-gordon","tag-money","tag-trade","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36124"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36124\/revisions"}],"predecessor-version":[{"id":36125,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36124\/revisions\/36125"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}