by
Adam Taggart
value
by
Adam Taggart
by
Adam Taggart
On a long solo car trip this past weekend, I downloaded several podcasts to listen to as the miles passed. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is a great reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
Say Goodbye to the Purchasing Power of the Dollar
by Adam TaggartOn a long solo car trip this past weekend, I downloaded several podcasts to listen to as the miles passed. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is a great reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
by
Chris Martenson
The title of this piece is The Price of Everything and the Value of Nothing. The subtitle is Why Your Bread Is Going to Cost More. I connect these two in reflecting on my recent podcast with David Collum, in which he stated that our money has no value and that this fact is distorting everything.
What he meant was, if you take your money to the bank to deposit it, the bank offers no interest on that money, implying that money has no value to them. If they valued it or had a legitimate use for it, they would offer you something for its use. Obviously, money doesn't have zero value to the banks; they can place it on deposit with the Fed for 0.25% yearly interest. But by any historical measure, money has no value right now.
That's just what happens when any commodity – which money happens to be – becomes too abundant. It drops in price. What 0% rates on money tell us is that there's just an enormous amount of it sloshing around – and that, my dear friends, distorts everything else.
As I have said many times, when you misprice money itself, everything else becomes mispriced, too.
The Price of Everything and the Value of Nothing
PREVIEW by Chris MartensonThe title of this piece is The Price of Everything and the Value of Nothing. The subtitle is Why Your Bread Is Going to Cost More. I connect these two in reflecting on my recent podcast with David Collum, in which he stated that our money has no value and that this fact is distorting everything.
What he meant was, if you take your money to the bank to deposit it, the bank offers no interest on that money, implying that money has no value to them. If they valued it or had a legitimate use for it, they would offer you something for its use. Obviously, money doesn't have zero value to the banks; they can place it on deposit with the Fed for 0.25% yearly interest. But by any historical measure, money has no value right now.
That's just what happens when any commodity – which money happens to be – becomes too abundant. It drops in price. What 0% rates on money tell us is that there's just an enormous amount of it sloshing around – and that, my dear friends, distorts everything else.
As I have said many times, when you misprice money itself, everything else becomes mispriced, too.
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