Currency - Tree of Souls

**Isard** · #1 10-01-2010, 07:32 PM

I'm sick to death of hearing people bitch about "paper" and humanities obsession with it. This stops now. This, is why the "paper" has value.

According to wikipedia,

Quote:

This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years.

Quote:

...the recovery of Phoenician trade in the ninth and tenth centuries BC that saw a return to prosperity, and the appearance of real coinage, possibly first in Anatolia with Croesus of Lydia and subsequently with the Greeks and Persians. In Africa many forms of value store have been used including beads, ingots, ivory, various forms of weapons, livestock, the manilla currency, ochre and other earth oxides, and so on.

And finally, the Chinese (one of the most innovative nations in the early world) created the first "paper".

Quote:

In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money, commonly known today as banknotes.

Currency - Wikipedia, the free encyclopedia

Trade evolved from "I'll trade you my cow for some tool's" to, I'll trade my cow to another for a representation of my cows value, trade this new placeholder for new tools, and other things. The paper itself is not valuable, its what it represents that is. Now in the US, we used to use the "gold standard" meaning that all currency was actually gold, every dollar in circulation had 1$ in gold stored in one of several safe-houses around the country, however, with the increase in national trade, most countries have abandoned the gold standard. Instead, the dollar now represents services rendered or goods traded.

Can we get this stickied so I never, ever, again have to explain to the uninformed why "paper" is important?

ZenitYerkes · #2 10-01-2010, 07:46 PM

What we the "humanitarians" are against is not money itself. Money is just a tool for trade, and the best to do so.

We are against trade itself, and want in return a gift economy. A generous economy based in abundance, even perceived abundance -and not selfishness and greed.

Or at least, bring back some of that selfless spirit.

**Woodsprite** · #3 10-02-2010, 12:03 AM

Mhm. Now, please explain:

What is the paper backed by?

**ISV Venture Star** · #4 10-02-2010, 12:14 AM

There was a time in Britain when all official coins had to be worth the value of the metals they were made from.

Coincraft: The Cartwheel Twopence

After this hugely unpopular coin was minted, people began to see the advantage of an official token coinage.

Sempu · #5 10-02-2010, 01:10 AM

Quote:

Originally Posted by Woodsprite

Mhm. Now, please explain:

What is the paper backed by?

Talk about a set-up

Answer: Not much. The US government has been printing money like crazy. If the US dollar weren't the world's reserve currency, it would long ago have succumbed to hyperinflation. Still might. Probably will. Some foreign rating service dropped the USA bond rating to AA recently, can't find the article. This one has some of the scary info: Obama Pays More Than Buffett as U.S. Risks AAA Rating (Update3) - Bloomberg

Bottom line: in the next few years, things are going to get uglier economically than people have seen for at least 80 years.

**Advent** · #6 10-02-2010, 03:11 AM

Well, as said, I don't like how things have turned out over the years.
Trade isn't exactly as 'fair' as people say it is.

I still like currency though. Why? Because in this day and age, you need it to survive in civilization. And you can either eat delicious roast chicken in the comfort of your home, or larvae and rodents in the forest.

**Raiden** · #7 10-02-2010, 03:18 AM

People are bitching because of the negative effects money has in general on people.

However, is is with this same money that we, if we are wise, will be able to turn the tables and try to reverse some of the trends many of us are so frustrated with.

For example, it takes money to adopt a tract of rainforest and save it from loggers, and that's a good thing.

Instead of getting angry about it, why not turn the tables and use your percieved enemy's tools against them?

**Elyannia** · #8 10-02-2010, 03:18 AM

Money buys me kittens <3

**Advent** · #9 10-02-2010, 03:52 AM

Quote:

Originally Posted by Elyannia

Money buys me kittens <3

**Woodsprite** · #10 10-02-2010, 04:11 AM

Quote:

Originally Posted by Sempu

Talk about a set-up

Answer: Not much. The US government has been printing money like crazy. If the US dollar weren't the world's reserve currency, it would long ago have succumbed to hyperinflation. Still might. Probably will. Some foreign rating service dropped the USA bond rating to AA recently, can't find the article. This one has some of the scary info: Obama Pays More Than Buffett as U.S. Risks AAA Rating (Update3) - Bloomberg

Bottom line: in the next few years, things are going to get uglier economically than people have seen for at least 80 years.

That's my point, though. If the paper isn't backed by much at all, doesn't that make it almost worthless? That is, if the paper doesn't have a standard, wouldn't that make it relatively easy to inflate? Wouldn't that explain why the U.S. dollar is worth much, much less than it was 10 years ago?

...Doesn't everyone know this?

**Isard** · #11 10-02-2010, 04:29 AM

Quote:

Originally Posted by Woodsprite

That's my point, though. If the paper isn't backed by much at all, doesn't that make it almost worthless? That is, if the paper doesn't have a standard, wouldn't that make it relatively easy to inflate? Wouldn't that explain why the U.S. dollar is worth much, much less than it was 10 years ago?

...Doesn't everyone know this?

This isn't a debate thread. Its a guide to currency. If you want to complain, please go write your congressman.