{"id":60480,"date":"2021-11-17T07:58:53","date_gmt":"2021-11-17T12:58:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60480"},"modified":"2021-11-17T07:58:53","modified_gmt":"2021-11-17T12:58:53","slug":"perversity-thy-name-is-dollar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60480","title":{"rendered":"Perversity: Thy Name is Dollar"},"content":{"rendered":"
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Perversity: Thy Name is Dollar<\/a><\/h3>\n<\/div>\n
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If you ask most people, \u201cwhat is money?\u201d they will answer that money is the generally accepted\u00a0<\/span>medium of exchange. If you\u00a0<\/span>ask Google Images, it will show you many pictures of green pieces of paper.\u00a0<\/span>Virtually everyone agrees that money means the dollar.<\/span><\/span><\/span><\/p>\n

\"\"Image credit: Cildo Meireles<\/p>\n

Breaking Down the Dollar Monetary System<\/span><\/span><\/strong><\/span><\/p>\n

What does it mean to have a dollar? If you hold a piece of paper with green ink on i<\/span>t, which says \u201cONE\u00a0<\/span>DOLLAR\u201d, you may notice\u00a0<\/span>that\u00a0<\/span>it<\/span>\u00a0also<\/span>\u00a0says<\/span>,<\/span>\u00a0at the top<\/span>,<\/span>\u00a0\u201cFEDERAL RESERVE NOTE\u201d. Note is a word for\u00a0<\/span>credit. The dollar bill (bill is also a word for a credit instrument) is a credit of some kind, the credit of the\u00a0<\/span>Federal Reserve.<\/span>\u00a0<\/span>The pape<\/span>r itself has no value, apart from that it is the obligation of a party whose full faith and credit is\u00a0<\/span>beyond question. It would be something like the fallacy of reification, to confuse the green piece of\u00a0<\/span>paper with the monetary value it represents.<\/span><\/span><\/p>\n

Banking<\/span>, Lending and the Fed<\/span><\/span><\/strong><\/p>\n

M<\/span>ost holders of dollars do not hold them in the form of actual pieces of paper. For reasons of\u00a0<\/span>convenience, and safety and security, people deposit them in a bank. That is, they may think of it as <\/span>having dollars\u00a0<\/span>in<\/span>\u00a0a bank (just as the<\/span>y think of the paper as the money). But let\u2019s drill down into that.<\/span>\u00a0<\/span>Most people know that the bank does not just put all the green pieces of paper into a vault. The bank <\/span>holds a small amount of\u00a0<\/span>paper\u00a0<\/span>cash, based on what it expects to pay during the busines<\/span>s day. The rest,\u00a0<\/span>well, the bank does something<\/span>\u2013<\/span>or<\/span>\u2013<\/span>other with them…<\/span><\/span><\/span><\/p>\n

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

Perversity: Thy Name is Dollar If you ask most people, \u201cwhat is money?\u201d they will answer that money is the generally accepted\u00a0medium of exchange. If you\u00a0ask Google Images, it will show you many pictures of green pieces of paper.\u00a0Virtually everyone agrees that money means the dollar. Image credit: Cildo Meireles Breaking Down the Dollar Monetary […]<\/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":[24143,124,303,309,7957,2069,679,839,3650],"class_list":["post-60480","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man-2","tag-central-banks","tag-fed","tag-fiat-currency","tag-keith-weiner","tag-monetary-system","tag-reserve-currency","tag-us-dollar","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60480","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=60480"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60480\/revisions"}],"predecessor-version":[{"id":60481,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60480\/revisions\/60481"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}