Do you understand money?
  • Do you? Have you ever been taught where it all comes from? By that I don't mean a mint or other printing press. Do you know how our money works? Who controls it? How and why its value changes?

    If you answer "No", are you curious? Or don't care as long as you can still buy shit?

    If you answer "Yes", how did you come by this knowledge? Were you taught by your family? School? Personal curiosity and a library card?
  • Yes, and all of the above. (family, school, and personal curiosity)

    My allowance growing up was about $1 every two weeks. My parents made sure I learned the value of the dollar. lol. I am quite the cheap ass because of it.
  • No, I do not truly know. Yes, I would like to.
  • it used had to do something with the gold standard
    image
  • te only thing i know about money is that without we can't do anything...so long as i get paid at the end of the week to pay my bills i personaly couldn't care
  • Yes, I know a little about it and personally I find the whole politics of money to be kind of depressing so I don't go out of my way these days to learn more about it. I guess it would be helpful though. I learned mainly through personal curiousity and through people I know who know more about money and economics than I do.
  • I know little. I know I give it to people for things I like. If I want some money now, I will have to pay more later. I know that if I save some now it grows surprisingly fast. It also tends to smell funny, although I have such I positive association with the things I like that I do not mind the sweat smell. Note to self, ask boss for more money.
  • I know some things and I don't know much... much more. There's too much to money for anyone to know everything behind it, to be realistic. To be honest, I'm sure that those who believe they do understand it (including myself) have false knowledge about some of it's characteristics and proper management in the first place.
  • We need to go back to the barter system. Money can turn into nothing very quickly. Goods or services can not.
  • Haha what, a barter system would ruin the world for a long time.

    Anyways, kind of an open ended OP. Generally speaking it's not the money itself that is a problem, it's the people and power and politics behind it. Money still holds too much political sway and is held by too few people, who thus hold the cards.
  • I know general stuff about money and I learned it from school, with classes like Accounting and Econ.
    I am not totally self-sufficient yet so I have not had to worry about money all too much. I'm sure that once I have to pay taxes and bills by myself, my interest in money and how it works will skyrocket.
  • GreyAcumen said:
    We need to go back to the barter system. Money can turn into nothing very quickly. Goods or services can not.


    I don't think there's much demand for shirtless gigolo swordsmen in a barter system. Could be wrong though.

    GEFM, it's a very open OP. I wasn't trying to take the conversation in any particular direction, just wanted to get an idea how people felt about it, and wherever the conversation goes is fine with me.
  • I'd also like to see a barter system, but imo that is for a smaller economy, there's just too many to provide for nowadays.

    Anyway I have no idea where money really comes from... like why the government can't just make some more as they need it. But thing is I don't really care. It'd be cool to hear, but I'm happy just making it and spending it, maybe saving some when I can. I can read my bills and that's more information than I want.
  • The government doesn't control the money directly, the Fed does. Introducing more money into the system has to be carefully done, if the Fed just keeps making more, than inflation sets in.

    Also, a barter system is terrible, people! It screws over poor people even more. How is an 18 year old with only a high school diploma supposed to have a service or good to barter? Money is the great equalizer; it's the same value to a billionaire as it is to a poor person (technically, of course. Relatively, not so much). It just skews the inequality even more and makes any social ladder nearly impossible to climb. Plus a barter system is horribly inefficient. How do you keep track of values and GDP and what is in circulation? It's ridiculous.
  • GoodEnoughForMe said:
    Also, a barter system is terrible, people! It screws over poor people even more. How is an 18 year old with only a high school diploma supposed to have a service or good to barter?


    Sell that booty.

    Whether it's picking up shit for old fokes or literally sellin that booty...
  • Sunflower said:
    Sell that booty.

    Whether it's picking up shit for old fokes or literally sellin that booty...


    And you get what for it, grandmas used dentures? I'd rather have a system where I can get cash for it that I can use for anything. Not some oatmeal raisin cookies or some shit. :P
  • How would any industry survive in a barter system? People working in factories don't own the products that come off the line, so anyone who owns a factory would need another source available to draw something from, with which they could then exchange for their employee's services. Say you even manage to maintain a functioning factory, how do you transport the product? How do you advertise it? How do you get each and every store owner to stock it? The amount of shit exchanging hands would be crazy, and totally unmanageable. The whole system would go tits up and collapse in a day if we went back to bartering, and we'd end up having to eat each other. The only people who would be happy would be the ultra-greeny types who think we all should go back to growing potatoes in our gardens and saying no to electricity because it harms the snails or some shit.

    Anyway I dug up some documentaries I enjoyed and found informative that attempt to explain, analyze, and offer solutions and/or alternatives. Sadly nobody mentions going back to barter guys. Even if you don't agree with some of their opinions, the point is it's getting you thinking!


    The Money Fix


    [video=youtube;TwmM5Nb6hiE]



    The Money Masters (this is a bit old now but it's a very good documentary. It is 3 and 1/2 hours long though so you have been warned!)


    [video=youtube;JXt1cayx0hs]




    Both of these documentaries go into what money actually IS, and where it came from, as opposed to what it does. Money makes the world go 'round, and knowledge is power. For your own sakes, at least take an interest! If anyone has any other good links to articles or documentaries don't be shy.
  • Zanmatsuken said:
    I know general stuff about money and I learned it from school, with classes like Accounting and Econ.
    I am not totally self-sufficient yet so I have not had to worry about money all too much. I'm sure that once I have to pay taxes and bills by myself, my interest in money and how it works will skyrocket.

    This is funny because the only part about money that I know that I dont know is when they ask you about all the different funds and stuff like that. And personally I never got interested enough to look up any more than I needed to in order to get my taxes done.
  • YAY! a 3.5 hour documentary! *SNORE* and a 1 hour one as an appetizer!
  • I know some things about how money works, I understand its value and understand that the value can change daily. However; I do not even come close to understanding how our dollar is affected by the world as a whole. I know that if a government prints more money then the value of it goes down. I am a little bit of a coin collector. It was probably the only thing I ever did with my father that I liked. So I understand very little of it that is not in the realm of collecting.

    Thanks for the vid Flibble I will give it a go later on when I have more time.
  • knowname said:
    YAY! a 3.5 hour documentary! *SNORE* and a 1 hour one as an appetizer!


    I've wasted more time than that watching Skyrim's loading screen when I fast travel. :p 4 hours is a small sacrifice for useful knowledge imo.

    jaded_sapphire said:
    However; I do not even come close to understanding how our dollar is affected by the world as a whole. I know that if a government prints more money then the value of it goes down.

    Thanks for the vid Flibble I will give it a go later on when I have more time.


    No problem, I hope they interest some people. As for the global economy and how it's all connected, I've read a lot of good articles about it over the years. If I can dig some of them up I will linky them here.
  • GreyAcumen said:
    We need to go back to the barter system. Money can turn into nothing very quickly. Goods or services can not.

    No, the barter system is inefficient. What we need is to go back to the gold standard. Either that or stop allowing the Federal Reserve inflate our money by creating it out of thin air.

    Just to clarify:
    On the gold standard, the value is basically fixed because the supply of gold is not going to fluctuate very much. Minute changes could occur if someone finds a new gold deposit. If we were running on a gold standard, we would actually experience deflation instead of inflation. For example, since 1913 the dollar has lost 98% of it's value. That also happens to be the year that the Federal Reserve was created.

    If anyone want to know more about how our money works, the following video has a lot of good information.
    http://www.youtube.com/watch?v=vowbrq_g5NM
  • Just a repost of fabledgamer's link to embed it in the thread here.


    [video=youtube;vowbrq_g5NM]
  • I know a little about it. 'Enough to be dangerous,' as the saying goes.

    I know, for instance, that while the economy's in the shitter and gold is high, I'll never have to worry about hubby losing his job (unless he tries really hard to do so, but that'd be a whole other kettle of fish).

    I also know that it's a thing that actually has little value other than what we attribute to it. Rectangles of plasticized paper and little discs of metal that are apparently worth more than actual food, water and shelter. All I know is that it's the only form of tender my landlord and grocery store will accept so if I don't provide that to them... well... I'm hooped.

    Do I care to know more? I try to find out more about it, sometimes. My lack of understanding is based on a general lack of caring until it affects me directly. Which, until I realize HOW, it does and doesn't. Sometimes, ignorance IS bliss. Otherwise I worry too much.
  • Thefabledgamer said:
    No, the barter system is inefficient. What we need is to go back to the gold standard. Either that or stop allowing the Federal Reserve inflate our money by creating it out of thin air.

    Just to clarify:
    On the gold standard, the value is basically fixed because the supply of gold is not going to fluctuate very much. Minute changes could occur if someone finds a new gold deposit. If we were running on a gold standard, we would actually experience deflation instead of inflation. For example, since 1913 the dollar has lost 98% of it's value. That also happens to be the year that the Federal Reserve was created.

    If anyone want to know more about how our money works, the following video has a lot of good information.
    http://www.youtube.com/watch?v=vowbrq_g5NM


    This is... not good. The gold standard is a train wreck and terrible idea, for a lot of reasons.

    First of all, the demand for gold is highly unstable, so supply/demand swings directly affect the price level and economic activity.

    Secondly, because the demand for money is not entirely stable, it's good to have a central bank to adjust the money supply. The lack of this is what so hamstringed Greece; they were stuck with the Euro and could not inflate their currency, and it totally bit them in the ass because they could not afford anything. If we were on gold, we could not control the money supply like that to offset swings in demand.

    Thirdly; the hoarding of gold by the French and US treasuries during the previous gold standard era was probably the single greatest cause of the Great Depression.

    Fourth, the gold standard means a fixed exchange rate, when a floating one is almost always better and more economically feasible and stable.

    Between that, and the inefficient monetary policy and letting the economy be held hostage by a single market, there isn't a whole lot left to go on that is good.

    For another part; deflation is way worse than inflation. The obvious desire is flat - no gains or losses - but the market is too complex and inefficient for that. Deflation is crippling to an economy, small inflation is harmless.

    And finally, Ben Bernake basically was the single largest contributor to the economy not being totally fucked. He practically saved the US and in turn, the global economy, by himself. If anything, the recession has shown us how successful the Fed can be. Controlling the money supply is an important part of any national economy, and the recent problems in the US and EU show that all too well.
  • Hey flibble watched those doc's you posted here and I enjoyed watching it. I like learning things that I did not know before. Once again thank you. I understand it a little more now and will have to read some books on it now to get a better understanding.

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