Monday I see another report about a young couple that have surmounted the work trap and managed to retire by the age of forty. Well, actually, I didn’t read the article, but that is what I surmise from the headline. From the number of such headlines I would assume that it is an aspiration in the peculiar zeitgeist that passes as the modern world. Why would … [Read more...]
Debt Service
Wednesday Keith Weiner makes the interesting point that the dollar has value because, and only because, of the necessity to service debt. “The dollar does not have value because of some fragile, collective faith. The dollar has value because of the struggles of the debtors. What are you willing to sell, in order to avoid foreclosure on your house, repossession of your … [Read more...]
Real Businesses
Sunday A real business is either a response to an existing market demand, or a response to a predicted market demand. Both have the potential to create wealth. There is a third type of business. These are brought into existence in order to comply with, or avoid, regulations or taxes. Examples would be such things as tax accountants, bookkeepers, tax lawyers and … [Read more...]
Money is Not a Good 2
Tuesday Oh dear; I hate disagreeing with this man as I am a big fan of his work, but he is repeating the hoary old mantra that money is a good. It is not, was not and will never be. The ‘most marketable good’ is the best trading good, but still a good, not money. Fiat is a good, though with a value far more unstable than most goods, but a good nevertheless. Crypto … [Read more...]
Gold Derivatives
Even when Gold is not in circulation, it still performs its marketplace function as the measure of value. The only difference is that it involves an intermediary. Today we use currency – debt notes – fiat – call them what you will. This places Gold’s function one pace away from the action. Instead of measuring the value of goods directly, Gold measures the currency’s … [Read more...]