Actually Caitland, there are many who can succinctly explain money and economy clearly without ambiguity. The problem is that the vast majority are not willing to take the effort to understand.
Money and ťhe economy are different things but understanding the economy requires the acceptance of a medium of exchange which humanity universally refers to as money.
The 'value' of any currency relative to any other currency is determined by those who wish to exchange one for the other.
Your basic premise is correct. Money is purely a mental exercise of value. Thus 3000 Indonesian Rupiah is worth 1 Australian dollar (to an Australian, for example). Pretty much arbitrarily. Unless you're the Australian wishing to vacation in Indonesia. If you don't accept the premise, don't go.
On the other hand 3 $U.S. will get you 10$AUS (roughly). Purely arbitrary. Sort of. The value is determined by the market place and the market place is the economy. Exchange of goods and services. If you don't like it, you are free to leave the market. At any time. If sufficient numbers of people quit the Market, the market fails. In that respect you are also correct. We are all free to 'quit the market at any time.
But, if you quit the market the next time you want Durham wheat for your pasta, you will only be able to get it if you are in a certain area of Canada. And, unless you grow it yourself, you will need something to trade for it.
That is the economy (or market).
The problem isn't money. It is politics. Humanity has surrendered their rights to self-determination to the politicians because of expediency and (honestly speaking) fundamental laziness.
And the fundamental problem with current politics and politicians (almost universally) is a complete lack of honesty ( or perhaps integrity). Our current (severely flawed) system has evolved over centuries (millenia?) with many digressions and wanderings. Is it broken? I think so. Can we fix it? I have little hope that we can. The solution? If you can get critical mass of people to set aside their fundamental laziness and arrive at and agree to a workable alternative, in an unreasonably short time frame, yes.... or move to New Zealand (if they would have you!!).
More likely... crash and burn. And a phoenix rising from the ashes.
Its so strange that people have been trained not to understand money. Aristotle explained it pretty well, it is a social power embodied in law as an unconditional payment system. For most of civilization’s history it has played two roles:
1. An exchange medium for facilitating economic activity (it is just money)
2. An instrument of power capable of dominating the market (the hidden hand)
Well today it dominates pretty much everything including public policy. See monetaryalliance.org. We are governed by unelected power.
In this I use arbitrary as being governed by forces beyond my specific control. Unless I trade in significantly high volumes as a buyer, or seller, I accept the posted rate or I decline the trade.
Actually Caitland, there are many who can succinctly explain money and economy clearly without ambiguity. The problem is that the vast majority are not willing to take the effort to understand.
Money and ťhe economy are different things but understanding the economy requires the acceptance of a medium of exchange which humanity universally refers to as money.
The 'value' of any currency relative to any other currency is determined by those who wish to exchange one for the other.
Your basic premise is correct. Money is purely a mental exercise of value. Thus 3000 Indonesian Rupiah is worth 1 Australian dollar (to an Australian, for example). Pretty much arbitrarily. Unless you're the Australian wishing to vacation in Indonesia. If you don't accept the premise, don't go.
On the other hand 3 $U.S. will get you 10$AUS (roughly). Purely arbitrary. Sort of. The value is determined by the market place and the market place is the economy. Exchange of goods and services. If you don't like it, you are free to leave the market. At any time. If sufficient numbers of people quit the Market, the market fails. In that respect you are also correct. We are all free to 'quit the market at any time.
But, if you quit the market the next time you want Durham wheat for your pasta, you will only be able to get it if you are in a certain area of Canada. And, unless you grow it yourself, you will need something to trade for it.
That is the economy (or market).
The problem isn't money. It is politics. Humanity has surrendered their rights to self-determination to the politicians because of expediency and (honestly speaking) fundamental laziness.
And the fundamental problem with current politics and politicians (almost universally) is a complete lack of honesty ( or perhaps integrity). Our current (severely flawed) system has evolved over centuries (millenia?) with many digressions and wanderings. Is it broken? I think so. Can we fix it? I have little hope that we can. The solution? If you can get critical mass of people to set aside their fundamental laziness and arrive at and agree to a workable alternative, in an unreasonably short time frame, yes.... or move to New Zealand (if they would have you!!).
More likely... crash and burn. And a phoenix rising from the ashes.
It is not arbitrary. There has to be an agreement between buyer and seller for a trade to be carried out. This is how markets work.
Its so strange that people have been trained not to understand money. Aristotle explained it pretty well, it is a social power embodied in law as an unconditional payment system. For most of civilization’s history it has played two roles:
1. An exchange medium for facilitating economic activity (it is just money)
2. An instrument of power capable of dominating the market (the hidden hand)
Well today it dominates pretty much everything including public policy. See monetaryalliance.org. We are governed by unelected power.
In this I use arbitrary as being governed by forces beyond my specific control. Unless I trade in significantly high volumes as a buyer, or seller, I accept the posted rate or I decline the trade.