the value of money

[HorizonHse@aol.com]

hi all,

any discussion of money is actually a discussion of value.

in the material world of this particular planet only 2 things have value: 
goods and services -- nothing else.

we can trade goods for goods, goods for services, services for goods, and 
services for services.

because we can't carry around all the goods someone might need, and because 
we might not offer the right services someone might want, we use money to  
represent the value we or someone else attach to the goods or services we 
provide.

checks take the process a step further: they represent a representation. same 
for credit cards, misnamed as they are, as they actually reduce credit when 
used rather than create it.

how do we determine the value of goods and services? simple. supply and 
demand. how much are you willing and able to pay for an item or service 
compared to someone else, given how many of the item are around or how many 
people provide the service?

i have a large collection of original, one-of-a-kind drawings, but they have 
no value because no one wants them -- the supply is limited, but the demand 
is non-existent. anyone who's been on ebay has seen supply and demand in 
action, especially when the item gets to be more than you're either willing 
or able to pay -- demand drops. it ultimately sells to someone who values it 
more than someone else.

do values change? you bet. ask anyone who owns stock right now. what is 
something worth? exactly what the seller and the buyer agree upon to complete 
the transaction. you can see this being played out right now on ebay with the 
barks oil paintings. as long as the seller values them at more than every 
potential buyer values them, they won't sell. what are they really worth? 
nothing until the seller and the buyer agree on a value.

end of seminar.

how did we get on this, anyway?

regards

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