Geekanomics

Most of you know that I am unemployed at the moment, hence the uptick in my writing and promoting my blog. Being unemployed wasn’t my choice, it was the down turn in the economy in conjunction with the complications still ensuing from my operation back in February.

Due to my sternum not healing properly I was unable to ensure that I was able to do more strenuous work at my work, thus making me less useful at my job. Being unable to do a more thorough job made it necessary for my employer to find a more capable person, and I suspect, though I don’t know, they let my replacement go for the quiet winter months.

That being said, I have had a lot of time to consider finances, especially in light of the Christmas season being upon us. I had a theory about money and it’s worth, I explained my theory once at a job and was told that it was incorrect by an economics major. If you disagree with my theory I welcome your input, though I may not agree.

I find the value of money to be entirely theoretical. The value that we put on money is solely based on our confidence in the government and the buying power it produces. If people who have money invested in different currencies lose their confidence in the said currency, the value declines.

As an example, I will use the Canuckistan dollar, colloquially known as the Loonie. If people who invest in the Loonie lose confidence in the funds, they will wish to sell it off to purchase a more stable or higher confidence currency, say the American Buck. Because the investor is selling their Loonies for Bucks, they are subject to what Loonie buyers are willing to pay. Therefore the lowly Loonie trades at 76 cents on the Buck. If however they felt the Loonie was worth more, investors would try to buy up more Loonies and therefore would pay a higher price, setting the Loonie at a higher rate, perhaps on par with Buck.

So that being said, what the citizens of the country are subject to a lower Loonie and have to pay more for products, products perhaps from a foreign seller, America, China, or pretty much any other seller, really. They typically use a more internationally known and steady currency, like the Buck. Therefore we have to pay more for most of our non-Canuckistanny wares.

Add to the fact that most business transactions now a days are done digitally, and not a cash sale, the finances are even more theoretical. At one time most of the worlds countries currencies were backed by gold bullion, but that has changed and most countries have sold off most, if not all of their gold. Thus if everyone wanted to go to their banks and get all their “money” out of their accounts, companies included, there wouldn’t be enough cold, hard, cash to go around.

Think about it, just our governments funding for their federal plans are in the Billions of dollars, if the government were to take it and try to do only cash transactions, there probably isn’t enough money printed to cover it all, let alone what the private citizens have in the banks.

With this in mind, the money that we think we have, we really don’t, it’s all theoretical, a series of ones and zeros, a digital lie.

Perhaps this is just nonsensical ramblings. Perhaps I just a sour grapefruit for breakfast.