Stone Money-Chavanillo

Money is crazy!

Before this assignment I thought that money really meant something. After this assignment might think changed dramatically. It changed because I always thought that making more money will cause everyone to have a better salary, but I never thought that pries also will go up. Specially it could corrupt the value of money. In Milton Friedman point of view in his essay “Stone Money” he talks about the difference between the limestone wheel and the electronic banking. They are considered money because Friedman says that limestone was pass generation to generation making wealth without even touching it. While the electronic bank just click a button and they will have billions of dollars because of the central bank or federal reserve. They just trade the gold for money saving it in banks. As Friedman explains in his essay, U.S. was doing it with France in a point that in 1933 their United States gold was drowning making France banks succeed more with our gold. All because of the Stone Money.

This two are considered money because of the value is producing but the big reason is because of trade. Money, wealth, cash, value, worth, are terms that are different from each other. Wealth is not what you have and how much is what we have in stock that you don’t even touch. Cash is the dollar paper printed from the central bank. Money is the numbers of cash or electronically is what you must buy something. Money is basically the value of something you could by with. Value is what something is worth and the importance of it.

Money is a big concept especially to the islanders, German government, French bank, US treasury and Brazilians are a great example how all this people really look at what is the real concept of money. In the “NPR Broadcast.”  gives us a description on how money value depends on people. In act two of the broadcast 4 man in Brazil and the government made a lie that saved Brazil from falling apart. It had high inflation making the money not worth it anymore. Money was losing value until 4 man came up with the idea of making money with something called URV. This process led to the success and brought back the real value of money It brought back balance. What is said here is that money is valuable this day is because of the people. If people didn’t believe in it wouldn’t be money. Remember the Fed is not the federal government. They rule themselves. The government don’t need to debate how much money they should make or what to do with it. The fed doesn’t even need the approval from the president. They are their own boss. The federal reserve is known as making money out of thin air. In this time like money the 2008 fed did things that before they wouldn’t even think about doing it. At the end all financial crisis was solved by the fed, but they are also the reason why the crisis began. especially Alex Blumberg believe in this. They say that is so crazy how money is made with just clicking a button. Just of dollars are sent to banks in a quick click. Even money made in the central bank you just click a button and the machine starts working producing billions of dollars.

Like in the article “The Trouble with Trillions” it talks about how millions and billions are not value that much as before because now there are millions of people with millions of dollars and 1000 with billions. Making trillions the only high valuable money in US. At the end of the day adding just zeros is the process of making money more valuable. This is all to blame on the positional arithmetic like Daniel Rockmore as a math professional.  For him or for her just adding zeros is a way to get another order of magnitude. “For example, I think that to get 1 million in Roman numerals you’d need to string together 1,000 Ms, and to get 1 billion you’d need 1 million Ms — roughly 1,000 pieces of paper filled with Ms!” The meaning of this is that the difference between billion and trillion is just 3 zeros imaging going more than that. Just do a “flick of the wrist” At the end of  the day money is simple. It just needs to be control exactly right. This is Rockmore point of view. Money could be so confusing that in some cultures counting system goes to 1 to 2 many. Money basically has value on how much effort the humans put into it. Like in the future millions are not going to mean nothing like now they still are a big thing, but we must have in mind that the more people get more money the zeros just will keep adding.

The Yap concept is basically that to be a stable economy everyone as to be boring in the sense that we must be careful on how we produce money how lees or much the federal reserve is making. Remember they make money out of thin air in the yap concept. I believe that the yap concept is more abstract than ours because is a way of looking money in a way that we control it doesn’t control us. So, we have the mind set that the money control us, but we must have in mind that the money is valuable in this country is because of us. We are the reason why the money is very important in his economy. Having a lot of money could drown the government and the country as well as not having enough. Now that the Fed threw out a lot of money to the economy they must find a way to get it out. At the end of the day money depends on trust. If there is no trust the value of money just goes away.  The only thing we could do is just trust PhD professionals because this is how the Unites States system works.

Reference

“The Invention of Money.” This American Life, 19 Feb. 2018, www.thisamericanlife.org/423/the-invention-of-money.

“Island of Stone Money.” Milton Friedman, Feb. 1991. https://counterintuitive2015.files.wordpress.com/2015/01/stonemoneyessay.pdf

Weeks, Linton. “The Trouble With Trillions.” NPR, NPR, 22 Aug. 2011, www.npr.org/2011/08/22/139846133/the-trouble-with-trillions.

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