Money 101

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pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Money 101

I think it was xflies who told me I aught to know about money so, against my better judgement, I have given it some thought.

It seems that money referrs to two different entities (both fictional aberants). The first best described as doing money and the second lazy money.

Doing money is what someone does something for, like extracting oil and pumping it on to a ship, or making bread.

Lazy money just "sits" in banks (in computers) or back pockets and tells itself it has the potential (or is a promise) to do something. Someone could buy an existing house (or anything) and all that would happen is that lazy money yawned and "moved" to a different bank (although someone might write on a piece of paper that hardly counts as "doing").

Deflation is when there is less doing money and more lazy, inflation is when there is more doing and less lazy.

Doing money only exists while someone is expending effort for it. Once the human effort is expended the money becomes lazy again.

Does this distinction work? I assume it has been made before with different names. So why does lazy money matter to anyone? Is it because of the promise?

Don

 

Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
Re: Money 101

"Deflation is when there is less doing money and more lazy, inflation is when there is more doing and less lazy."

 I agree with what you are saying except that: Wouldn't the above quote be the reverse? For example, deflation is when there is more "doing" money and less lazy money as all a lot of the lazy money is being destroyed (such as we are having now). Inflation is when there is more (relatively speaking) lazy money than doing, as more unproductive money enters the system. I know that this is more complicated in what is going on at present but perhaps what you described and my comment captures some of the essence?

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: Money 101

Thanks Septimus,

Unless I am way off, I thought lazy money was being created not destroyed at the moment, partly by debt and the rest by simply being printed. Isn't that how the fed reserve has grown so huge without extra borrowing? My greatest interest is in where money interfaces with something real which seems only to be where people who believe in it are prepared to work for it in the expectation (promise) that the lazy money they get can be used to pay for other peoples' work eg; making bread.

When there is more lazy money trying to do (be spent on work) then inflation will take hold because there is a finite amount of work people are prepared to do for money but an increasing amount of money (lazy) competing for the same (or similar) work to be done.

When there is less lazy money then there is less to pay for the finite work (less work being done) so more people compete for the same money. This is whats happening now - there is plenty of lazy money but few are trying to get people to work for it. Inflation can be expected when lazy money tries to get people to do work in the presumably near future.

If lazy money is simply used to purchase work already done then nothing changes in the reality. Nor does it change when there is more or less lazy money. Only when human work is done for it does money venture anywhere near reality.

When money is exchanged for so called energy (non human) or for materials again nothing in reality changes. Just the perception of ownership - names on pieces of paper.

Don

 

EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Re: Money 101 . .PLAN B

So who's looking at other monetary systems?

After a little reading on Community Dollars, it occured to me - shouldn't there be several types of "money".

Using money on different levelas, like say, gold back government money, then there are "state dollars" and bottom line - Community dollars.

Gold backed money is exchanged for other forgiegn goods (and possibly the actual gold would change hands or if oil backed the money, then oil would change hands).

State money would be used as means to fund state projects and as payment for work done within the state (the devaluing on the money would be as the tax collection system - as state held money must be spent or devalue. State money would circulate within the state in unlimited cycles.

Finally, Community Dollars, which are worth X amount of State dollars, or X amount of "gold / oil" backed dollars.

Wouldn't this be in some fashion like the Euro where some countries kept their own monetary system?

EGP

 

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: Money 101 . .PLAN B

Hi EndGamePlayer

We have a green dollar system locally that started more than 20 years ago. Its currently failing because only some people do work while most just get into debt (sound familiar). A great idea but it relies on co-operation which is the scarcest resource at the moment.

Don

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