Skip to main content

Posts

Showing posts with the label monetary

Just my thoughts #0614

Did you know that modern space rockets are influenced by Roman heritage? In other words, the size of current rockets still reflects standards set during the Roman era. Rocket components were transported by rail to launch sites and had to pass through an intermediate tunnel. It was more practical to limit the size of the rocket rather than build a new tunnel. The track width was determined by the steam locomotive, which was adapted to match the width of British wagons pulled by two horses. The width of the track is based on the hips of the two horses, which in turn are derived from the size of a Roman chariot. This phenomenon is called Path Dependency. Humans tend to stick with the past. - Joseph’s “just my thoughts”

Just my thoughts #0603

Wealth is the state of accumulating added value. Most of us consider money a tool for accumulating value, but there are many other forms in this world. However, all other values are typically expressed as ‘price,’ which is a value compared to goods in terms of money. Therefore, a preconceived notion exists that most means of accumulating value are strictly monetary in nature. Nevertheless, various tools for accumulating value are available, such as jewelry, luxury goods, bonds, and real estate. The value of goods produced by labor is referred to as ‘price.’ Labor can only be directed toward production when the price level is slightly higher than the value of money. Hence, it is normal for prices of goods to continue rising. If they rise excessively, it leads to inflation; on the other hand, if they fall below their value, it results in deflation. There is a problem between the gaps. - Joseph’s “just my thoughts”

Just my thoughts #0461

If the price of bread is one dollar, it signifies that the bread has a monetary value of approximately one dollar. Conversely, this indicates that one dollar represents the intrinsic value of the goods associated with the bread. In other words, the values of money and bread (goods) are established through mutual comparison, which also implies that they do not exist independently in the world, as they are assigned absolute values from the moment of their existence. If only comparison can be made, value can be assessed regardless of whether the comparison is mandatory or voluntary, allowing the value to be expressed as a price, which is its monetary value. This suggests that there is no absolute value in the economy, only relative value , and that all values constructed through comparison are subject to fluctuations in price . Consequently, wealth involves the act of preserving or augmenting this relative value while continually exchanging for other goods as a legitimate act of trad...