Reply to: Should money be based on a new standard?

[zathras]

I know little about money having never owned much of it. What I have owned is small numbers in a bank, or big numbers with a minus sign in front in the building society. Nevertheless it buys me things and get me around and from that I can estimate its true worth, but its value changes constantly and it is not easy to convert to its proper worth. Money is a bit of a meaningless quantity historically linked to bartering and to limited natural resources like Gold. It's worth is also subject to meddling with by politicians and money experts who move it around and make mistakes and get greedy.

Money is nothing more than a promise from (in the UK) the BoE to re-imburse the person presenting it.

It's value is related to what is held by the BoE on behalf of the Government. Of course if you are Gordon Brown you take a large chunk of it (Gold) and decide to sell it off at bargain basement prices. Because you do not think this is cheap enough you announce your sale beforehand; thereby ensuring it is worth even less.

It's value goes up and down when the interest rate changes because the base rate is the interest charged by the BoE - the larger the rate the larger profit and hence the money is valued more.

Ditto when productivity increases. This increases CT reciepts and therefore tax reciepts and the money available.


So the money in your pocket already has an intrinsic value.

[BrilloPad]

Is that a no vote to the Euro then?

I think it means there sahould be political union before monetary.

[NotAllThere]

- love of money.

Money is a thing, it doesn't have the emotional range to be evil.

Wasn't it some religious bloke who said that?

Try the Röntgen Standard http://www.larryniven.org/stories/roentgen.shtml

A healthy economy depends on money circulating fast. Make it radioactive and it will certainly circulate... The profession of tax collector would carry its own, well deserved penalty.

[gingerjedi]

Orbited Lave.

To be honest my usual course of action was: Take off > 180 degree turn > shoot Lave > try to survive as long as possible whilst hoards of 'rozzers' retaliated.

I was only about 12 years old so the trading aspect didn't really appeal to me.

[TimberWolf]

That explains why I never progressed from 'Mostly Harmless', I should have left my cargo on a planet and just darted around the universe instead of taking it with me.

Orbited Lave.

[gingerjedi]

Not if use use a proper physical unit. On the outward journey your money would appear to be worth less but dilate on the way back. Its proper value (measured in a frame of reference at rest wrt the Money unit) remains the same always. Intergalactic trading would ideally be done in an inertial frame, otherwise relativistic adjustments need to be taken into account.

That explains why I never progressed from 'Mostly Harmless', I should have left my cargo on a planet and just darted around the universe instead of taking it with me.

[TimberWolf]

Money and relativity...

If I took a pound and travelled away from the earth at near light speed when I returned it would still be only worth a pound …However if I left the same pound in a high interest account whilst I went on my near light speed trip I could return as a millionaire.

Boomed...

Not if use use a proper physical unit. On the outward journey your money would appear to be worth less but dilate on the way back. Its proper value (measured in a frame of reference at rest wrt the Money unit) remains the same always. Intergalactic trading would ideally be done in an inertial frame, otherwise relativistic adjustments need to be taken into account.

[gingerjedi]

Because if money were unified with the laws of physics it would always do the same amount of work and be worth the same, forever. One unit of it anyway (a slave for a day). You could also convert money directly into heat etc.

Money and relativity...

If I took a pound and travelled away from the earth at near light speed when I returned it would still be only worth a pound …However if I left the same pound in a high interest account whilst I went on my near light speed trip I could return as a millionaire.

Boomed...

[IR35 Avoider]

If you want asset-backed money, set up an investment fund, issue shares/units/notes in exchange for investment assets, e.g. shares and property. You will then have a currency that is inflation-proof and appreciates in value, even if you keep your holdings in cash under the matress.

However I'm not sure there is any point. If the British pound became worthless tomorrow it wouldn't make much difference to me, as most of my money is in real assets anyway. It would just mean that when I sold assets I would demand payment in some other currency, which I would hold for only as long as it took me to reinvest the money in some other real asset, or spend it.

[ratewhore]

Didn't Rothschild say this:

I care not what puppet is placed on the throne of England to rule the Empire, ...The man that controls Britain's money supply controls the British Empire. And I control the money supply.

Replace puppet with muppet and throne with parliament and you're not far wrong...

[TimberWolf]

You can easily do that with today's notes.

Just goes to show how little they worth then eh?

[VectraMan]

You could also convert money directly into heat

You can easily do that with today's notes.

[TimberWolf]

Where do you get this idea that money should have a constant value? What is the meaning of that idea?

You then go on to propose that money should have a constant value in terms of one commodity. What you are really saying is that the price of one particular commodity should be fixed. OK, might be nice, but in what way is that a "fix" for the "problem" of variable "value" of money?

Because if money were unified with the laws of physics it would always do the same amount of work and be worth the same, forever. One unit of it anyway (a slave for a day). You could also convert money directly into heat etc.

[Bagpuss]

Money is funny, cash is an IOU and
the majority of deposits don't exist as cash. That's why the government shat itself over Northern Rock, everyone drawing out their savings = collapse of the banking system.

Money is funny

[HairyArsedBloke]

Do you think we should return to the Gold Standard?

I don’t know anything about the gold standard, I’m afraid, but I do like little kittens. They are so soft and furry.