Jun

1

This image should match up well with the post that outlined all the money types.

Interesting how everything eventually falls back to gold, which is money (JP morgan said so) and which was outlined as the only form of money sanctioned by the constitution (specie).

And I understand that money = work done. So that money should hold the value of my work for some period of time–the longer that timeframe, the better the money in terms of purchasing power at the time of the trade of my labor for money.

The amounts of money that we talk of now–quadrillions anyone, is seemingly entropic and obscene. If the 1 trillion euro package wasn't enough, maybe the market was looking for 5 trillion to satisfy and upon hearing that number maybe that would have been the "no clothes" obscene moment when everyone would realize that debt has exceeded all expectations.

Lastly, interest can take the form of money or in goods or services as was illustrated in the book by Clausen. Loan to the camel trader secured by a ruby worth more than the loan in case of default. If loan returned on time loan is repaid with interest in coin or whatever agreed upon sum/item. Its interesting to think on these issues with base examples and then the very detailed and complicated ways that modern finance is composed. At somepoint though, every transaction has an end. Every transaction is paid back or defaulted. Every monetary vehicle either works or it doesn't. Money of any type, seashells to cents always has value (0 -?).


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