Peasants and disparity

Value

We know about saving, spending, and lending money, but what is this ethereal imaginary thing called money? It brings out the worst and best in people. It is surprising how little we need to offer, to get someone to report the whereabouts of a wanted individual. A third of a weekly wage will do it nicely. That is enough to override the concerns for the welfare of the one being sought. Money is abstract and can be created and deflated on a whim. Confidence is everything when it comes to money, businesses, and investments. How much reliance and trust we are prepared to place on the issuer of the notes, shares, and bonds. Many businesses have failed not because a lack of expected profit or because they are going through a period of poor trading, but simply because confidence in them and the management has evaporated. People can get spooked and want out, so they withdraw credit and refuse further loans. Weaker businesses have survived worse storms in more dire circumstances as people have kept their faith in the organisation.

If a forger produces a note and it goes into circulation then ends up being replaced by the central bank over time as most notes do when they get torn and crumble apart, where does the money come from? Unless someone gets stung and stuck with it the forger steals from every holder of the currency. Each unit of money is then worth a tiny bit less. Each pound, dollar, shilling is a small slice of a defined set amount of the cake. Printing more causes prices to rise to compensate.

How do you store money in a crisis? Gold’s value can fluctuate wildly, shares can all but disappear and various commodities have a limited shelf life. Cash can get quickly devalued and it is near impossible to store large sums once the system collapses. A mixed basket is an option.

How do you prove you are you? Imagine if there was a key set of people who colluded and deny any knowledge of you. Your name maybe on the property deeds and attributed to a bank account, but they could argue that you are not the Fred Bloggs on the title, as it is owned by another Fred Bloggs. Our identity is based upon people accepting and vouching for who we are. Even some genetic fingerprint can be denied as purportedly been that of your twin. How do you prove you have no twin when records have been changed?