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Until the last century, most of the world based their economy on shiny yellow rocks. amirite?

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itsskyways avatar Money & Economics
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It's an element. Not a rock

Tomyseptics avatar Tomyseptic Yeah You Are +7Reply

The economy is still based on shiny yellow rocks, paper money just represents quantities of it.

Ajdee6s avatar Ajdee6 Yeah You Are +7Reply
@Ajdee6 The economy is still based on shiny yellow rocks, paper money just represents quantities of it.

Yes and no. We've put an exact value on those shiny rocks and created pieces of paper that represent that value. But that paper represents a lot more than just the shiny rocks. It represents all the value of everything a country has.

@The-memeboi Yes and no. We've put an exact value on those shiny rocks and created pieces of paper that represent that value...

The way I see it:

the first generation of paper notes represented the agreed upon value of the rocks owned by whoever printed the notes, the second generation of paper notes represented the agreed upon value of hypothetical rocks that only theoretically exist on paper, and the current generation of paper notes represents the quantity of rocks that are equal to the hypothetical value of everything a country (that probably didn't even print the notes) theoretically owns and produces.

I could be wrong, but I think that's pretty close.

Metal, not rock.

Now we base it on abstract numbers

And now it's completely based on paper which by itself is worthless. Worth far less than those shiny yellow rocks actually. The only reason the paper is worth anything is because we all just agree that it has value.

Today shiny vaccines

Ryanjmurs avatar Ryanjmur Yeah You Are 0Reply
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