This is not about interest or any other conventional definition. It is an attempt to figure out if TGD means anything at all by what he says, or if he is just some kind of mindless parrot.
freediver wrote on Mar 14
th, 2024 at 10:56am:
Quote:Oops...didn't agree for long: the price of the nation's currency is related to the nation's productivity.
"related" is your way of saying you do not really know what you are talking about.
The government can adjust the price of goods arbitrarily by controlling inflation. It could decide to replace the currency with an otherwise identical currency worth 100X more or 100X less. Apples could cost 10c each or $10,000,000 and it would have no effect on the economy.
thegreatdivide wrote on Mar 14
th, 2024 at 1:55pm:
freediver wrote on Mar 14
th, 2024 at 10:56am:
"related" is your way of saying you do not really know what you are talking about.
Wrong: it is my refutation of your false proposition the price of money is "entirely arbitrary".
Quote:The government can adjust the price of goods arbitrarily by controlling inflation.
More accurately, the government can use price controls to control the price of goods; or more commonly the govt. (via the central bank) can set interest rates to control inflation. In either case the price of money is NOT "arbitrary", it is related to the condition of the economy.
Quote:It could decide to replace the currency with an otherwise identical currency worth 100X more or 100X less. Apples could cost 10c each or $10,000,000 and it would have no effect on the economy.
Except if an apple cost $10 million, the economy would be f**ked; not necessarily true if the apple cost close to the unit of money.
Quote:And all of this has nothing to do with the point I am making, which you incorrectly think you are disproving. You are just too stupid to realise.
Careful ..did I mention 'mirror time'?
freediver wrote on Mar 14
th, 2024 at 2:49pm:
Quote:Except if an apple cost $10 million, the economy would be f**ked
No it wouldn't, because the price is arbitrary. An apple probably will cost that much at some time long into the future, and not because the economy is struggling, but because it is doing so well. And the prices we pay today would seem equally incomprehensible to someone long enough in the past. When the Benz Patent-Motorwagon came out, it cost US$150 - an unaffordable luxury for all but the wealthiest.
Which is entirely beside the point. If the person with the apple thinks your money has no value at all, it doesn't matter what price you offer, he is not going to exchange the apple for money. His belief literally makes your money worthless in that negotiation. This is true regardless of whether you care what he thinks. And yet somehow you come to the idiotic conclusion that whether everyone else believes the money has value is irrelevant.
freediver wrote on Mar 14
th, 2024 at 4:43pm:
thegreatdivide wrote on Mar 14
th, 2024 at 4:42pm:
freediver wrote on Mar 14
th, 2024 at 2:49pm:
Quote:Except if an apple cost $10 million, the economy would be f**ked
No it wouldn't, because the price is arbitrary.
Wrong again; in a functioning economy, the price of money must relate to the purchasing power of the average citizen's wage.
Can you give the equation? Or is it just a whole lot of arm waving?
And what do you even mean by the price of money?
thegreatdivide wrote on Mar 14
th, 2024 at 5:02pm:
freediver wrote on Mar 14
th, 2024 at 4:43pm:
thegreatdivide wrote on Mar 14
th, 2024 at 4:42pm:
freediver wrote on Mar 14
th, 2024 at 2:49pm:
Quote:Except if an apple cost $10 million, the economy would be f**ked
No it wouldn't, because the price is arbitrary.
Wrong again; in a functioning economy, the price of money must relate to the purchasing power of the average citizen's wage.
Can you give the equation? Or is it just a whole lot of arm waving?
You said it yourself: back in the day a Benz cost 150 Marks - a big sum at that time when the average wage was 50 pfennigs (or whatever), but not beyond a rich man's financial capacity.
Quote:And what do you even mean by the price of money?
The same as you, ie the exchange value of money.
Quote:And yet somehow you come to the idiotic conclusion that whether everyone else believes the money has value is irrelevant.
Your error there: you start out with "a person" who rejects your money; and turn it into "everyone" rejecting your money.
"Everyone"
won't reject the nation's money, in a functioning economy.
Your "shared belief" fallacy debunked again.
Can you give an equation for this relationship:
Quote:price of money must relate to the purchasing power of the average citizen's wage
?
Quote:The same as you, ie the exchange value of money.
Are you talking about foreign currency exchange rates? I specifically said that is not what I mean, and I am pretty sure you have no idea what you mean.
Quote:Except if an apple cost $10 million, the economy would be f**ked; not necessarily true if the apple cost close to the unit of money.
Can you explain why?
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