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Title: Opinion: Our Weird Relationship with Money Post by: SuperBazooka on September 24, 2018, 04:43:44 AM Opinion: Our Weird Relationship with Money
We all use money on a daily basis, but do you really understand how it works? This article is a little bit different from the usual, as I will propose alternative ways of valuing money and looking at the economy as a whole. If you’ve been following my latest writings, you’ll understand my views on cryptocurrency adoption depend a lot on price and the role of technology Arguably, our own understanding of money will influence how cryptocurrency develops and that is exactly the subject of our discussion today. I’m definitely interested in reading your comments down below or on Twitter; Seriously, don’t be shy, if you have insights feel free to share! Now, why are most economists ignoring the role of money in our society? They assume that it is centrally controlled by agents who make decisions on our behalf? Like allowing central banks to control interest rates by printing and selling more/less money to financial institutions? Even worse, today we endow private institutions the power to create currency: through debt. How can we bestow our financial freedom to private agents whose interests rarely align with that of the common man? https://www.ccn.com/opinion-our-weird-relationship-with-money/ Title: Re: Opinion: Our Weird Relationship with Money Post by: Hydrogen on September 25, 2018, 11:33:55 AM Quote Economics usually measures happiness with a mechanical approach. Just as in thermodynamics, we are beings converting energy into work – so logic dictates that the happiest beings are the ones who can spend less energy and create more work. In other words, the less energy you spend and the more work you get done, the happier you are. Translating work into money, we can argue that the more money you make, from each individual unit of energy spent, the happier you are. In general, the more money one has the happier that person is. But measuring economic growth by itself does not correlate to the general population’s happiness. The key metric is, of course, how much money does everyone have. It may interest you to know there is a branch of economic study known as "thermoeconomics" which is associated with points made in your(?) article. Quote Thermoeconomists maintain that human economic systems can be modeled as thermodynamic systems. Thermoeconomists argue that economic systems always involve matter, energy, entropy, and information.[3] Then, based on this premise, theoretical economic analogs of the first and second laws of thermodynamics are developed.[4] Moreover, many economic activities result in the formation of structures. Thermoeconomics applies the statistical mechanics of non-equilibrium thermodynamics to model these activities.[1] In thermodynamic terminology, human economic activity may be described as a dissipative system, which flourishes by consuming free energy in transformations and exchange of resources, goods, and services.[5][6] https://en.wikipedia.org/wiki/Thermoeconomics Both keynes and hayek are commonly cited on the topic of applying analytical frameworks to economic discussions. It is possible both keynes and hayek stances can be improved on through the utilization of thermoeconomics and less nuanced contextual approaches, which are more scientific in nature. Exchange and transmission of energy draws many parallels to exchange and transmission of money. Centuries of history and commonly held views about finance, economics and money function could be blindly to a degree. What could be required here is a different perspective which advances towards eliminating the ages old misconceptions people have about money that are blinding and prevent us from seeing things clearly. Title: Re: Opinion: Our Weird Relationship with Money Post by: omfg.xekcep on September 25, 2018, 09:38:15 PM Opinion: Our Weird Relationship with Money We all use money on a daily basis, but do you really understand how it works? This article is a little bit different from the usual, as I will propose alternative ways of valuing money and looking at the economy as a whole. If you’ve been following my latest writings, you’ll understand my views on cryptocurrency adoption depend a lot on price and the role of technology Arguably, our own understanding of money will influence how cryptocurrency develops and that is exactly the subject of our discussion today. I’m definitely interested in reading your comments down below or on Twitter; Seriously, don’t be shy, if you have insights feel free to share! Now, why are most economists ignoring the role of money in our society? They assume that it is centrally controlled by agents who make decisions on our behalf? Like allowing central banks to control interest rates by printing and selling more/less money to financial institutions? Even worse, today we endow private institutions the power to create currency: through debt. How can we bestow our financial freedom to private agents whose interests rarely align with that of the common man? https://www.ccn.com/opinion-our-weird-relationship-with-money/ When I was a student and at that period of time I did not think about how money works despite of I studied some economic disciplines in my university. Now I want to get to know more about the world economy and financial system, money, securities and how the financial world works. By the way I have made the conclusion for myself that money is the most powerful instrument for controlling and governing people in the modern world but on the other hand if we have a look at a banknote is just a piece of paper, you know, what I am talking about. Moreover any modern currency is just a believe because there are no currencies which would be supplied by any real asset like gold, crude oil, etc. My private opinion is that fiat currencies is an excellent invention for controlling and governing people. Title: Re: Opinion: Our Weird Relationship with Money Post by: Brunusmagnus on September 25, 2018, 09:49:44 PM It's an interesting vision, and the article is good.
In fact, I believe that no more than one person in a thousand is able to provide an acceptable definition of money. And in fact it is quite funny that everyone wants money but very few people know what money is, actually .... :) Title: Re: Opinion: Our Weird Relationship with Money Post by: omfg.xekcep on September 25, 2018, 10:07:20 PM The article author has focused his attention on GBP and written that GBP has lost about 93-95% of its original value for the period of 317 years. I would like to intimate you that Russian ruble has fallen in 35000 times for about the last 25 years. Unfortunately I do not have the exact information about dollar but we may see old American movies where people could buy much more than now and robbers stole 1 million of dollars from a bank and were happy but now 1 million of dollars is not quite much amount.
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