Money for nuthin...
I'm taking a Macroeconomics class. Last week we studies the monetary system. I'm depressed now. I had an awakening; an epiphany. Money has no value. Its just paper. There is absolutely nothing backing it up other than the fact that we all agree its worth what its worth. Some countries' money has become so worthless that nobody in the country will accept it. Ecuador used US dollars when this happened. Anything a society wants to accept as money is what money is. If we collectively declare that cow shit is money our wallets are going to get really smelly!
posted by Greg at 2:39 AM
3 Comments:
Yeah, every dollar bill is basically a promise from the American Government that it will fork over the gold for that dollar at some point in time, in the future, if need be... Maybe.
But, alas, don't get depressed! The best things in life are free. (Yeah, that was deep.) And thanks for dropping by the hypergraphic blog.
Not True! The USA doesn't work on a Gold Based System, we're a consumer driven economy...
Basically, the more US Citizens are willing to spend, the more our money is worth and that is precisely why Al-Qaeda is attacking (it drives down the stock market and reduces consumer confidence so nobody will spend any money).
Yes and no Anon. We do not work on the Gold standard any more you are right. Spending is good to a point. Too much spending causes too little money and we have a case of demand pull inflation.
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