FlyingTeaPot
Irrational Rationalist. Educated Fool.
It is a simple question. Why do we need money? What is the inherent value of money? If a bag cost 1 dollar in 1950, and the same bag costs 400 dollars today, what has the extra 399 dollars contributed to adding value to that bag? Isn't perpetual inflation a reality of the economic system we follow? Aren't the banks continually devaluing money to print even more money? When is the interest from all the principal amount owed to banks ever going to be zero? It is impossible. Banks simply have to keep printing more money to cover the interest from the principal of the previous year and so on. The value of the dollar will forever decrease until it becomes meaningless. Suppose all the value of the money in the world were centralized to one single bank, and this bank loaned out money to people at 10% interest, then how on earth are we going to repay the 10% given that earth's resources are finite? Isn't this an inherently illogical model?
Thoughts?
Disclaimer:
I have never understood what money contributes to value of items. I recently watched the three Zeitgeist movies and they concretized my ideas in a succinct manner. I don't agree with the movies on everything, but as far as the economics of it are concerned, I see very little to disagree upon.
Thoughts?
Disclaimer:
I have never understood what money contributes to value of items. I recently watched the three Zeitgeist movies and they concretized my ideas in a succinct manner. I don't agree with the movies on everything, but as far as the economics of it are concerned, I see very little to disagree upon.
Last edited: