Where does money get its value from?
I really don't get it. I mean, it's just pieces of paper. On its own it has no value. So where does its value come from?
government claims on taxation
watch this video
https://www.youtube.com/watch?v=-KRi9nF8BiA
Modern currency is fiat money, it's based on faith in the government printing it.
And yes it's stupid.
>>76908998
It used to be that it was backed by gold. One dollar could be exchanged for one dollar worth of gold. Now the prices have gone way up. The money has worth because we all agree that is what it is worth.
>>76908998
same way god got his. faith.
>>76909098
Is it THAT different from shiny metals? If shit REALLY hits the fan, people could stop accepting it and just demand food and ammos instead.
>>76908998
It's just backed by faith and good will.
Oh and the entire United States military.
You know your dollar will be honored. You don't have to worry about becoming inert anytime soon.
Currently, it's agreed upon that money issued by authorities (mostly governments) is valuable because of the authorities power.
Money used to be backed by precious metals (usually gold and silver) but even those have a limited extrinsic value beyond looking pretty (excluding industrial and electronic uses).
In ancient China early currency was in the shape of knives and shovels because those items held actual value to produce something.
The main reasons it has value is that governments force people to use it as value, and if they want to sell something they pretty much have to accept money if they're a legit business. It's value is also fairly fixed, mostly by a minimum wage (and other wages relative to the minimum one)
Original paper money held value because people could change it on demand for precious metals. People used it because it was easier and safer than carrying around bags of gold. Nowadays thought the only value a 20 has is the fact that people will exchange it for what they deem is $20 worth of goods. Our modern money only has value because everybody simultaneously agrees to use it as a medium of exchange.
>>76908998
I have heard is said that American money ultimately gets its value from the threat of the use of military force.
Legitimate question that I'd rather here an "interesting' /pol/ answer to than Google:
Where do 'precious' metals get their values from?
I really don't get it. I mean, they're just shiny rocks. Save for gold and silver being electrically conductive, these metals aren't nearly as useful (generally) as things like iron or aluminum. I know they're considered to be scarce with low supply, but why have we as a world society seemingly always had this very high demand for them? Does being pretty mean that much?
>>76908998
Oil at the moment. Along with the might of the Military.
>>76908998
It's just a medium of exchange
Money is the only thing that can pay taxes.
It has a guaranteed value in thst sense.
Public transportation, postage, and other government services can only be paid in cash.
You can ensure cash has value if you force people to give it to you or face prison.
>>76910745
The government required payment in coin.
Gold was a suitable proxy for labor then because anyone, even a woman or child could go down to the river and pan for gold.
Anyone who could do productive work would be worth more than a job done by a woman or child. People worked for gold to pay taxes, and you could always find a buyer because someone else needed to pay taxes too.
>>76909058
this is literally the worst video i have ever seen on the internet
>>76909231
Okay, so where does gold's value come from?
>>76912557
Governments only taking payment in gold or silver at a fixed exchange rate.
Money is just the exchange of debt. It arises naturally as basically the trade of IOUs.
>>76912557
It's shiny and rare.
>>76913114
It also doesn't corrode or oxidize.
>tfw just read an article about Bretton Woods and it's subsequent replacement with a system based on fiat currency
Just saying, if gold was actually money, people who owned gold and gold mines wouldn't be selling it to you for currency.
Anyone who stockpiles gold has fallen victim to the greatest artificial meme since "you need to buy a diamond in order to make a marriage proposal"
>>76912268
Thank you Anon
>>76912467
because it triggers you?
>>76908998
good question
originally all money was gold and silver, this is why almost all currencies are based on units of weight,m the pound, the mark, the tholla(dollar), the baht etc
then the banks would issue receipts for money that could be traded as money, then they decided they could just issue receipts with no backing at all
gold gets its value from its rarity, and it's ability to not tarnish
>>76915817
oh, and the fact that it takes a lot of effort to make more of it
Dollars get their value because of their usefulness as a medium of exchange, the taxing power of the government, the link with oil, ect..
Gold gets its value from projection also. There is waaay more than enough Gold for all the unique industrial uses so if not for human projection its value would be hugely diminished. People will say that its inability to be created easily is also a plus but some economic thought thinks this is actually a minus. I happen to be one of them, I think an elastic currency is good.
>>76908998
You have to understand, literally nothing in the material world has any value when you dig down into definitions. If anything has real value, it will only be found in an afterlife. So you're asking a kind of children's question.
It seems like what you're really asking is why people don't all spontaneously decide that money isn't worth anything. Simple, at any given time 99% of people aren't thinking about it. Its value comes from the predictability of other people.
>>76908998
Are you for real? After World War Two when America stole all the nazi gold and locked it in Fort Knox USA offered US dollars for gold and visa versa after about thirty years of this and the Vietnam war America was bankrupt so Nixon said gold will no longer be linked to US dollars now oil will be linked to the U.S. Dollar and every nation in the world must buy their oil in U.S. Dollars... This created a blank check book for USA as long as no one started taking gold for oil..... Guess what Saddam Hussein wanted to do? Guess what Gaddafi wanted to do? Guess why Isis was created by America then forced into Syria so they could invade and force regime Change? Google petro-dollar.. And find out why the world hates America
Money should be removed from everywhere and we, as a people, should work for each other for the sake of humanity
>>76909058
THIS is the right answer. Read up on modern monetary theory, OP.
>>76916485
>we, as a people, should work for each other for the sake of humanity
Once you dismiss money because "it's just pieces of paper", you might as well dismiss human wellbeing because it's "just the brainstates of finite animals".
If you're honest, you'll keep tumbling down until either you hit something non-material, or you lose yourself in despair.
>>76909628
Actually the petro dollar system is more than likely to collapse because America is about 19 trillion in debt...
>>76908998
money is debt
>>76908998
FEDERAL RESERVE NOTE
"This note is legal tender for all debts, public and private."
How many people do you know who aren't in debt? Yeah, that's just the beginning.
>>76918849
I don't know anyone who is 19 trillion in debt.......$ 19 000 000 000 000. How you going to pay China back America?
> all these Paultards just repeating gold
The origin of all value is labor. I don't mean this in any fucking communistic way-- i mean it as a statement of fact.
At the lowest level someone did something to create value: planted a seed, dug gold out of the ground, built a house. This work in itself and the fruits of that work may not be easy to exchange so money was created-- and it can take many forms but historically it was gold or something else precious.
That is, until the rise of Usury. the lie of Usury is that it assumes money itself is the source of value, but it's just a shell game. Jews seem to like it tho.
>>76921026
By artificially inflating our currency like they do, sending their economy crashing, and then artificially deflating it :^)
>>76908998
Because everyone wants it so it can be exchanged for goods and services. You could say it's tied to government services but money.
>>76909231
>Ron Paul retard
And where goes gold get its value from?
