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RE: Financial Crisis that is Looming on us.

in #life6 years ago

Residing the adversities of the re-structuration of the economic system in the specialization of functions, due the complexities of the processes in the economic and financial circuit, and the sense of certainty .

Money is certainly a fiction, something which per se have a almost insignificant value before the value that the system grants it. However, all institutions are a fiction; we need them because they grants cohesion, unification and order to society.

Think about it. The cows and the skills of a barber have some "intrinsic" value, however, how many beard trims or haircuts need to do the barber in exchange of some liters of milk? How could it be accounted and accumulated? How should the exchange gain be estimated according to the added value?

That is in fact the aim of a currency: give a sense of accountability and certainty of the value of the realized work, allowing people to generate a capital with sustainability. Currency is matter of fact instead of faith, where an economic contract enjoy of a credible support over time.

That is why currencies dated back to Babylonia. Without it, the development of complex economic circuits based in minor anonymous interactions would be inviable.

Therefore, you need something that could support the greatest fiction created: the society.

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