Why does money have value?

[Icedcoffeee]

Why do you follow laws: aren't they also just ink on paper?

And why would going back to the gold standard be any better? Why does gold have value?

Money is a construct, just like language, laws, customs, relationships, and pretty much anything else you can think of. It has value because we have all agreed that the dollar will be our storehouse of value and our unit of exchange.

[Tijuana]

Its only ink printed on paper, so what determines its value now that there is no gold standard thanks to Nixon?

The money has been more stable, since the end of the gold standard. Why anyone would want their currency to have the wild fluctuations that gold, and other commodities have, is beyond me.

But, the answer to your question is, it's valuable because we think it is. It's not any more complicated than that. When nation states fail, the first thing to go is the currency.

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Why do you follow laws: aren't they also just ink on paper?

And why would going back to the gold standard be any better? Why does gold have value?

Money is a construct, just like language, laws, customs, relationships, and pretty much anything else you can think of. It has value because we have all agreed that the dollar will be our storehouse of value and our unit of exchange.

Great point. Because it's shiny? Or...something? It's not even a good metal. It was pretty useless prior to it's use in electronics. Yet, it has always had value.

[Atrea]

What is with everyone parroting the, "money is just ink on paper!" line?

I can't tell you the last time I bought anything other than weed with cash money.
Don't you people use your bank cards or credit cards to pay for purchases these days like every other normal human being with access to a bank account?

Money is numbers on my screen. When my numbers read "0.00" I have no more left. It's pretty simple.
The more work I do, the more numbers appear on my screen. Also very simple.

[kail]

I know this was a troll post but I'll ask anyways.

Why does gold have value?

[Thetruth1400]

Basically because it's value is agreed upon because without it we'd go back to exchanging wares and services directly, which would be really inefficient, difficult and inconvenient. Imagine having to do every trip several times to find out what someone wants, find said something, trade something else for it, then bring it to said someone etc.

That is not to say that moving away from the gold standard was a good idea.

Pretty much this 100%

Can you imagine going to work as say a cashier in a store. What are they going to pay you with? "Ok here are your two shirts for the work you did today, enjoy that!" Better hope you can find someone that is willing to trade you that shirt for some food for the week or you're screwed. Even worse, luxuries. Want to go see a movie? "That'll be 6 oz of beans and half a chicken!"

Money is there because it has to be. We need a standard unit in which we do trades with. Without money, we're just at the whim of others for literally everything besides what we produce ourselves.

[Amalaric]

Its only ink printed on paper, so what determines its value now that there is no gold standard thanks to Nixon?

The entire world has been duped into thinking that paper has value and recently that crypto currency has value.

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I know this was a troll post but I'll ask anyways.

Why does gold have value?

Because it's rare and beautiful.

[Logwyn]

This must be a troll post.

At least they aren't asking us how to buy clothes...

[Beardless Man]

Just a form of currency. Before money was made, you traded goods or offered some service in the trade. For example, trade food for materials, and vice versa

[GreenJesus]

This must be a troll post.

It's obvious that money in the end has no value.

But it was invented as an easier means of exchanging goods. Before it, people would go to the market with whatever they were making, let's say they were making potatoes, and tried to exchange them with stuff they needed. But the receiver might not want potatoes, so the exchange can't happen.

Now with money, everyone needs money in the sense that money translates into any good the person might want. So instead of potatoes, the person goes with some money and can get anything he wants without thinking of the receiver might not need their potatoes.

I'll trade you 500 potatoes for that 4k TV.

[Elegiac]

Just a form of currency. Before money was made, you traded goods or offered some service in the trade. For example, trade food for materials, and vice versa

No, you didn't.

Credit preceded money; actual 'barter economies' as described have never existed.

[kail]

Because it's rare and beautiful.

Rare, yes. Beautiful? Subjective. Diamonds are very common, but specific cuts can be far more valuable than its same weight in gold because people want them. It's all demand and trust.

Paper money is simply trust and provides simplicity when converting one or more valuable item for another. Value (like beauty) is entirely subjective.

[Puupi]

Let's go back using squirrel skins as money like we did here in Finland not too long ago.

[hrugner]

Its only ink printed on paper, so what determines its value now that there is no gold standard thanks to Nixon?

It is guaranteed by the government's ability to punish those who won't except it. Since it has no inherent value, the currency is protected from changes in economic circumstances that cause gold, oil, electricity, and processing power, backed currencies to fluctuate; this results in a much more stable currency than if the money itself had inherent value. For example, if your economy was collapsing and your money was backed by gold, you'd need to issue an entirely new currency if gold was also failing. A further benefit is the ability to further split your currency value if you need more fluidity without worrying about hitting the value of the backing substance. If you have 40 dollar backed by 1 gram of gold and your currency isn't fluid enough for commerce you need to print more money making 60 dollars backed by 1 gram of gold. If gold is still at the 40 dollar per gram real value, then you have a rush on your backing material causing your cash value to plummet requiring more currency in circulation in order to keep the economy fluid.

[Dhrizzle]

Learn to meditate on the reflected-sound-of-underground-spirits!

This wins the thread.

[Hotmail]

Why not? Beats human trafficking.

[Belloc]

Its only ink printed on paper, so what determines its value now that there is no gold standard thanks to Nixon?

You understand, of course, that the gold standard would've gone away regardless of Nixon, right? There aren't any countries still on the gold standard -- at least, no countries worth noting.

So, tell me, if the gold standard is such a good idea, why aren't there any countries using it?

Here's a suggestion: Stop repeating bullshit you hear from other people, on talk-radio, or in bullshit news articles. Going back to the gold standard wouldn't do what you think it would.

[Louisa Bannon]

The government backs the value on the paper for payment of taxes and other private debts.

Backs it with what? Fairy dust?

To answer you question more easily, pull out any U.S. paper currency. It reads: "This note is legal tender for all debts, public, and private." Signed, Treasurer of the United States.

A federal reserve note is not the fulfillment of any kind of payment, it is itself a debt note with a promise to pay literally nothing.

I don't want to unpack this, but go back to the civil war greenback, go back to 1913 and figure it out.

And FWIW, very technical I realize, the U.S. Constitution states explicitly what the U.S. must use as currency in Art I, Sect 10. It is one of the most hard won, longest debates, of the convention. The unsung hero, Roger Sherman's most lasting contribution to a free nation. Of course, chances are fantastically good that you never heard of Roger Sherman, like ever...

Sherman was the only person to have signed all four great state papers of the United States: the Continental Association, the Declaration of Independence, the Articles of Confederation and the Constitution. But there's no reason why you would have heard of him. Thomas Jefferson said of him: "That is Mr. Sherman, of Connecticut, a man who never said a foolish thing in his life." But you probably still never heard of him.

https://en.wikipedia.org/wiki/Roger_Sherman

This stuff doesn't matter. Keep your head down. Fly low and avoid the radar. Kiss the feet of your masters.

[PC2]

For the most part it's not because we subjectively give money value. It's because small tokens objectively have a huge advantage over bartering, which is liquidity. If it were not about liquidity then there would be no need to go from coins and shells to paper and then to digital values in transistors.

[Louisa Bannon]

Are you suggesting banks can't lend money on the gold standard?...

Many states placed an interest cap of 6%. Far cry from today when basically they can come into your home, fuck your mother and make you watch.

[Hooked]

Many states placed an interest cap of 6%. Far cry from today when basically they can come into your home, fuck your mother and make you watch.

Not to mention the federal reserve can print as much money as they want without any oversight.