Money, Money

During the course of a week, people kept talking to me about the dynamics of money, the meaning of money, and the philosophy behind it all. This was my rebuttal:

Money bewitches people. They fret for it, and they sweat for it. They devise most ingenious ways to get it, and most ingenuous ways to get rid of it. Money is the only commodity that is good for nothing but to be gotten rid of. It will not feed you, clothe you, shelter you, or amuse you unless you spend it or invest it. It imparts value only in parting. People will do almost anything for money, and money will do almost anything for people. Money is a manifestation of energy stored in its actual representation. Money is a captivating, circulating, masquerading puzzle.

Conceptually, anything generally acceptable as a medium of exchange is money. Anything that performs the function of money is money. Money is a medium of exchange, unit of account, and a store of value. As such a medium of exchange, money allows society to escape the complications of barter.

And because it provides a convenient way of exchanging goods, money allows society to gain the advantages of geographic and human specialization.

Historically, whales teeth, elephant tail bristles, circular stones, nails, slaves, cattle, cigarettes, and pieces of metal and paper have been used as media of exchange. In the United States, the debts of governments (governed by the 7 independent Board of Governors (the 12 Federal Reserve Banks of the US)) and of commercial banks and other financial institutions are used as money.

Finally, the use of money as a common denominator means that the price of each product need be stated only in terms of the monetary unit. It permits buyers and sellers to readily compare the prices of various commodities and resources. Such comparisons aid rational and reasonable decision-making.

Forrest Gump’s mother taught little Forrest,
“Stupid is what Stuped duz.”

Whelp I proclaim and add “Money is what Money does.”