ddoubleez

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Or better asked, what does the dollar represent.....

Enter Nixon..... Praised for detaching the dollar from gold....

Surely it has to represent something... But what.....

My argument, energy.....

And if the dollar is loosing value, why?

CD

I think I almost wish it was based on gold again... of course since gold is a limited element, the price per ounce would have to be adjusted making it more expensive. (at which point Mr. T would be rich!)

But at least that way it's more stable. Right now it seems to be all over the place and that is one reason the stock market is hurting. I'm thinking that right now, the US dollar is an unsure thing (on the world market) and that in turn is causing investors to think outside of the US stockmarket and more towards gold (world market) and other currencies.

Hell, it'd be nice if our money could be backed by corrupt politicians! Cause then you'd KNOW that will forever be strong and stable!

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fmb

If I recall correctly, I think (don't hold me to this, 'cause I'm reaching here...) Roosevelt pulled us off the gold standard and started our "backed by the good faith of the US government" love of paper. As CD was alluding to (in a way), the gold standard is a serious impediment to the "amount" of currency available. For every dollar issued, there would have to be a dollars worth of gold in a federal vault...somewhere. The quantity of gold is finite; as such, the amount of wealth (national and personal) is limited. Think of the fights over this limited resource...

Dollars, euros, gold, and wealth all have equals in energy. At least, the type of wealth and its worth in whatever energy source. Our markets, and value associated with our currency (the dollar), are based on confidence in our society, nation, and economy. Lack of confidence in a single or combination of items can increase or decrease the value of our currency. This allows our dollar to fall in value while other currencies (ex. the euro) and energy (ex. petroleum, ethanol) can increase.

It's strange, but has given us great power over numerous decades.

Juan.©amaney

Ask Zimbabwe what they think cash is.

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fmb

Juan, is that before or after they hack a hand off with a machete?? I'd show them some dollars, but not having hands could impede getting to my wallet. That place is crazy; it used to be the bread basket of Africa. Now, because of some seriously screwed up policies by their retarded leader, they are a seething bottomless pit of hopelesness.

thecowboy

You're argument is energy? Really? Does anything issue not turn on energy?

fmb

Cowboy, energy is Deez mojo. Truly, to understand Deez is to know Austin Powers. And I mean know Austin Powers in the Biblical sense. Deez has some good points, but like me, he has experienced some difficulties in getting those around him to see what he has to say. I went through the same thing in my younger days; fortunately, I had someone pull me aside and give some tips on getting those around (and above me) to understand the importance of the subject to me.

Maybe I'll take Deez up on an offer to catch some ridiculously big fish (unless I would deplete the resource), drink some ice cold beer, and discuss the real quandaries of life.

No, I'll not use any petroleum products in my fishing endeavor; I plan on paddling a sea kayak or something. Maybe I'll hang a "Free Tibet" banner on an oil rig.

Yes, I'm drinking lots of cold, frothy, adult beverages. But I'm smiling.........

shiiboi

All money (whether paper currency, gold, or strings of beads) = fetish (in the religious definition, not the sexual one).

Here's how money came about:

Originally people bartered goods and services. For instance I'm a goat herder and you're a shoemaker. We agree to trade one of my goats for 20 pairs of your shoes.

The problem is that I don't need 20 pairs of shoes. So we make an agreement that I will take delivery of one pair, and you will owe me 19.

Later, I make an agreement with a rice farmer to sell me 5lbs of rice. He doesn't need a goat, but he can use a pair of shoes. We agree to exchange 5lbs or rice for 4 pairs of shoes. I tell you that 4 of the pairs of shoes you owe me are now owed to the rice farmer instead. The rice farmer only takes one pair of shoes from you and later trades the 3 pairs you owe him to a machete maker.

This barter system gets complicated very fast, with all the accounts that need to be kept. So, somewhere in the past, a group of people decided to 'pretend' that the excess value in a transaction could be stored in some other object. Money was born.

"Backing" our currency with gold or other precious metals is irrelevant. We accept 'money' (cash, gold, etc.) as having value only because we choose to. No other reason.

Krasch

Shiiboi is basically correct.

If you want a really excellent definition of what money is in the modern age, read Tom Clancy's "Debt of Honour". Not only is it a great read, but he gives a perfect explanation of our modern financial system in order to set up the plot.

ddoubleez

What do you have without energy?

And the short answer is nothing.... All matter comes from energy.... Without energy, nothing would exist....

If you give someone a dollar, what does it represent... Someone or somethings labor, or the promise of exchange for goods.......

FMOF!!!!!!!!!!!!!!!!

ddoubleez

You are correct about everything but the backing with gold being irrelivent.... In fact, people were very aprehinsive to exchange gold for currency in the history of our country.....

FattyJJ

Why is it that our dollar is not worth a dollar in some countries? Wouldnt it make world finances easier if we all used the same currency?

Juan.©amaney

Oh GOD no! If a currency was universal, everyone would flood to where the money was worth more. That's the reason why there is so much immigration to places that are opportunistic.

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CD

That and the fact that the Christians would sing bloody murder about the Apocolypse fast approaching.

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