{"id":9801,"date":"2022-11-29T13:38:51","date_gmt":"2022-11-29T13:38:51","guid":{"rendered":"https:\/\/zalatni.com\/site\/?page_id=9801"},"modified":"2022-12-02T02:42:27","modified_gmt":"2022-12-02T02:42:27","slug":"lungdam-%e1%80%80%e1%80%9c%e1%80%85%e1%80%ba-done","status":"publish","type":"page","link":"https:\/\/zalatni.com\/site\/?page_id=9801","title":{"rendered":"Lungdam – \u1000\u101c\u1005\u103a Done"},"content":{"rendered":"

No3. Lungdam – \u1000\u101c\u1005\u103a Done –> \u1000\u103b\u1031\u1038\u1007\u1030\u1038\u1015\u103c\u102f\u104d \u1014\u1031\u102c\u1000\u103a\u1011\u1015\u103a\u1037 \u101c\u1004\u103a\u1037\u1010\u103d\u1031 \u1000\u101c\u1005\u103a\u1015\u1031\u1038\u1015\u102b\u104b<\/span><\/strong><\/p>\n

\"\"<\/p>\n

There is an aphorism that states \u201cit\u2019s not getting the right answer but asking the right question\u201d that is crucial. Readers of this site are surely aware of blurbs like \u2018real money\u2019, \u2018honest money\u2019, \u2018Fiat\u2019 money, printed money, borrowed money\u2026 ad infinitum.<\/p>\n

Indeed, Aristotle named the desirable qualities of money;
\nMoney must be durable
\nMoney must be portable
\nMoney must be divisible
\nMoney must have intrinsic value
\nWhat question were Aristotle\u2019s qualities the answer to? The question \u2018what makes good vs not so good money\u2019.<\/p>\n

This question is fundamentally different from \u2018what is money\u2019. If we ask what money is better\/not so good, we assume that we already know what money is, and what money is not\u2026 a big assumption.
\nDuring recorded history, many things played the role of \u2018money\u2019 (mainly store of value and medium of exchange); cattle (pecus\u2026 Roman origin of pecuniary) salt (origin of salary) cowry shells, cacao beans, even cigarettes in POW camps during WWII\u2026 and of course Gold and Silver through the ages.
\nBut before thinking about what is better money, we need to decide what is money\u2026 bad or good\u2026 and what is not money. One way to understand this dichotomy is to study history; the history of money\u2026 and the history of real vs. fake money.<\/p>\n

Notice that cattle, salt, cowry shells, cacao beans, cigarettes, monetary metals etc. are all some kind of \u2018stuff\u2019\u2026 that is they are real items. Not a single \u2018promise\u2019 or \u2018IOU\u2019 in the bunch. On the other hand, paper \u2018money\u2019 (bank notes) is nothing but a promise\u2026 of something.<\/p>\n

To make this clear, let\u2019s simplify; consider a pound of sugar as the \u2018stuff\u2019\u2026 and an \u2018IOU a pound of sugar\u2019 as the promise. I borrow a pound of sugar from you, and give you an IOU for \u2018one pound of sugar\u2019; then the difference becomes obvious; the \u2018stuff\u2019 (pound of sugar)\u2026 and the promise\u2026 the paper IOU.<\/p>\n

So what, you say? Well, you can certainly use the sugar to sweeten your coffee\u2026 but not so much the (paper) IOU. If you hold the pound of sugar, great; you have ownership, and can put it to use; but the IOU, no way. Only if you redeem the IOU will you hold any real value.
\nNotice that the pound of sugar is an asset\u2026 no matter who holds it. On the other hand, the IOU is an asset while it is in your hand; a claim on a pound of real sugar. Crucially, from my point of view the very same IOU is a liability; after all, it is a claim on me for a real item, a pound of sugar that I have to give back to you on being presented with the IOU.<\/p>\n

The IOU is either an asset or a liability, depending on the point of view; the writer of the IOU vs. the holder. On the other hand, sugar is a \u2018pure\u2019 or \u2018real\u2019 asset; valuable no matter in whose hand it happens to reside<\/p>\n

This is what Aristotle considered \u2018intrinsic value\u2019\u2026 sugar has \u2018intrinsic\u2019 value, rather than the \u2018derived\u2019 value the IOU has. In simple words, the IOU has value only in so far as it is redeemed\u2026 and redeemable. This is often called \u2018credit risk\u2019 or \u2018counter-party\u2019 risk\u2026 the IOU is not very rugged; it will become worthless if the IOU writer defaults. Real stuff has no counter-party risk.<\/p>\n","protected":false},"excerpt":{"rendered":"

No3. Lungdam – \u1000\u101c\u1005\u103a Done –> \u1000\u103b\u1031\u1038\u1007\u1030\u1038\u1015\u103c\u102f\u104d \u1014\u1031\u102c\u1000\u103a\u1011\u1015\u103a\u1037 \u101c\u1004\u103a\u1037\u1010\u103d\u1031 \u1000\u101c\u1005\u103a\u1015\u1031\u1038\u1015\u102b\u104b There is an aphorism that states \u201cit\u2019s not getting the right answer but asking the right question\u201d that is crucial. Readers of this site are surely aware of blurbs like \u2018real money\u2019, \u2018honest money\u2019, \u2018Fiat\u2019 money, printed money, borrowed money\u2026 ad infinitum. Indeed, Aristotle named […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-9801","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/pages\/9801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9801"}],"version-history":[{"count":1,"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/pages\/9801\/revisions"}],"predecessor-version":[{"id":9802,"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/pages\/9801\/revisions\/9802"}],"up":[{"embeddable":true,"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=\/wp\/v2\/pages\/2"}],"wp:attachment":[{"href":"https:\/\/zalatni.com\/site\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}