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Understanding 'money'?

 
master pollinator
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Jain Anderson wrote:Moving into use is electronic 'money' (electrical accounting really). The convenience is even less burdensome than carrying a wallet with cash and change. Its also easier to 'exchange' – world wide! - by simply providing account numbers. Unfortunately, that account is subject to the whims of electricity as well as surveillance by 'authority' who oversees, approves and can REMOVE parts or all of the account without the account holder's permission.  

So is the 'burden' of having and HOLDING ones assets personally greater than the 'convenience' of electronic accounting? Only each person, or participants in an exchange, can decide.




I wholeheartedly disagree.

When you use cash there is an exchange taking place that is not easy to see, but always happens. To get something, I have to give up something! That is immediate feedback to our brain, and we have a recognition of what happened. It is Negative, Immediate and Certain. That is we immediately see we have less money, and there is no question, we no longer have what we did because we chose to spend it.

With Debit cards, there is less of acknowledgement of that. We pass them our debit card, and they pass it back, and there is a vague understanding that we have less money than what we had, but how much? When will it go through? Will our paycheck be deposited before we have no cash? So that is Negative, not so Immediate, and Uncertain.

With Credit Cards it is even worse. We hand them a credit card, and money gets taken off, but its debt, so we can keep right on using it. There is no physical loss for us, its just accrued debt...no big deal, we can always pay it off later...so we buy more stuff because there is nothing negative about the experience, it is in the future, and what the hey, we can always pay it back whenever.

One of the main reasons I use cash is because of this reason. Bankers call this "having skin in the game". It is my money, and I am giving it up, and I immediately know it. There is incredible power in knowing that.

There is nothing wrong with knowing human faults, and devising ways to circumvent them within yourself.
 
pioneer
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Travis Johnson wrote:
With Debit cards, there is less of acknowledgement of that. We pass them our debit card, and they pass it back, and there is a vague understanding that we have less money than what we had, but how much? When will it go through? Will our paycheck be deposited before we have no cash? So that is Negative, not so Immediate, and Uncertain.

With Credit Cards it is even worse. We hand them a credit card, and money gets taken off, but its debt, so we can keep right on using it. There is no physical loss for us, its just accrued debt...no big deal, we can always pay it off later...so we buy more stuff because there is nothing negative about the experience, it is in the future, and what the hey, we can always pay it back whenever.

One of the main reasons I use cash is because of this reason. Bankers call this "having skin in the game". It is my money, and I am giving it up, and I immediately know it. There is incredible power in knowing that.

There is nothing wrong with knowing human faults, and devising ways to circumvent them within yourself.



And that my friend is exactly why casinos use chips rather than money.  It makes handing it over a game, rather than losing money.  I read a really great book once that explained the amount of thought that went into using chips rather than cash in casinos, and make no mistake, the people that came up with the idea understood the psychology behind it very well.  It was a fascinating read, but the name escapes me right now.
 
Travis Johnson
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Trace Oswald wrote:And that my friend is exactly why casinos use chips rather than money.  It makes handing it over a game, rather than losing money.  I read a really great book once that explained the amount of thought that went into using chips rather than cash in casinos, and make no mistake, the people that came up with the idea understood the psychology behind it very well.  It was a fascinating read, but the name escapes me right now.



They say one of the most researched areas of our lives is the modern grocery store. They situate everything for the most advantageous profit for the store, and not the consumer.

Sadly, or not so sadly, I am no longer allowed in our local grocery store chain because I called them out on a deceptive practice that resulted in me losing $2.80. Apparently their CEO was not inclined to take my suggestion.

"Have your CEO keep my $2.80 cents. If he bends over, I am sure he can figure out where I think he should put it. In that way he can make change the next time he sneezes. I hope it is in pennies."

 
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Jain

>fiat... by decree

I don't think that's on target exactly. Money is a medium of exchange that operates by (and _must_ have) extremely widespread, almost unanimous, common agreement. I think this link "Stone Money" may explain it far better than I could. It is an invisible tool we created that works miracles; there is nothing extant or even imagined which can do what it does.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=2ahUKEwj7xbnhytDiAhUB3lQKHbaBBP8QFjAAegQIAxAB&url=https%3A%2F%2Fwww.npr.org%2Fsections%2Fmoney%2F2011%2F02%2F15%2F131934618%2Fthe-island-of-stone-money&usg=AOvVaw38kHRMbGYR1Vedq5hZRL0M

Although it may be managed by a very small group of people, it depends entirely on the trust and confidence of all, and the quick, easy interaction between it makes possible between all parties is extremely valuable to all. Which is why revelations of corruption and incompetence in the financial industry and extremely disruptive behavior from out top politicians can become so dangerous to this society. Which depends on the existence of "good" (dependable) money.



Regards,
Rufus
 
Travis Johnson
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Back in the 1800's in Maine, wooden shingles could legally be exchanged as currency.
 
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There were also wooden nickels. They had a saying, not to take wooden nickels. But now they are rare enough that I will trade you a nice metal one for every original wooden one you can come up with.
 
A lot of people cry when they cut onions. The trick is not to form an emotional bond. This tiny ad told me:
Heat your home with the twigs that naturally fall of the trees in your yard
http://woodheat.net
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