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RE: People don't understand money. We really should. We really should try to explain it super simply.

in #money8 years ago

Tx for the post dagelf. Money is a fascinating topic to discuss. In short money is the concrete representation of the abstract concept of value and value gets created by work. A fish in the sea does not have a value, but the work to catch the fish does and for that reason, the fisherman can charge a price for the fish. You buy it and eat it. The value has been destroyed, but not the fish. Therefore, money not only represents value but the tempo of value creation. If the pace of value creation goes down, there are too much money in the system, and you get inflation (need to destroy money). If the tempo of value creation is increasing, you get deflation (need to print more money). In theory, they should be in balance.

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" A fish in the sea does not have a value"

LOL. Tell that to the fish! ;)

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