PeakOil is You
Economics 101
Re: Economics 101
by CrudeAwakening » Fri 29 Feb 2008, 18:53:07
$this->bbcode_second_pass_quote('MrBill', 'A')ctually, I went back and re-read all the older posts and I saw your definition there. Sorry, did not mean to re-define it either. I think we are on the same page.
Yeah, I think so. It's a shame that that "Modern Money Mechanics" article you linked to isn't part of everyone's basic education.
"Who knows what the Second Law of Thermodynamics will be like in a hundred years?" - Economist speaking during planning for World Population Conference in early 1970s
-
CrudeAwakening - Tar Sands
- Posts: 834
- Joined: Tue 28 Jun 2005, 03:00:00
Re: Economics 101
by CrudeAwakening » Fri 29 Feb 2008, 19:10:43
$this->bbcode_second_pass_quote('', '')$this->bbcode_second_pass_quote('OilIsMastery', '')$this->bbcode_second_pass_quote('stu', '1'). What are the main reasons for the creation of a) paper money and b) digital money.
Currency in general was created in order to store surplus labor and life energy. Currency evolved to enable exchange of goods and to solve the problem of "double coincidence of wants". In the process, some people acquired more of it than they needed for daily subsistence, and they were able to hold latent claims on real wealth in reserve. But the "store of value" function of money has largely been eroded by inflation. Most wealthy people store this "surplus" by getting rid of their currency and converting it to other assets, be they real assets or just more fancy paper claims on real assets.
"Who knows what the Second Law of Thermodynamics will be like in a hundred years?" - Economist speaking during planning for World Population Conference in early 1970s
-
CrudeAwakening - Tar Sands
- Posts: 834
- Joined: Tue 28 Jun 2005, 03:00:00
