Standard of deferred payment: Difference between revisions
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See [[w:standard of deferred payment]] for a detailed discussion of theory. | See [[w:standard of deferred payment]] for a detailed discussion of theory. | ||
The [[US dollar]] serves as the standard of deferred payment under [[globalization]] so far, this is called being the "[[global reserve currency]]". However, since the US dollar is not as reliable as other [[store of value]], this can be problematic and give the US government too much power: | The [[US dollar]] serves as the standard of deferred payment under [[globalization]] so far, this is called being the "[[w:global reserve currency]]". However, since the US dollar is not as reliable as other [[store of value]], this can be problematic and give the US government too much power: | ||
Through the [[bond market]], kind of a [[prediction market]] about [[currency]] value, [[financial capital]] achieves its so-called "[[spot market price]]". Very often the fate of whole countries or industries rests on this one number, as the [[commodity markets]] relate all [[natural resources]] to this value. If this is the US dollar, then, it depends on what the US decides to "protect" by enforcing [[property rights]] in. | Through the [[w:bond market]], kind of a [[prediction market]] about [[currency]] value, [[financial capital]] achieves its so-called "[[spot market price]]". Very often the fate of whole countries or industries rests on this one number, as the [[commodity markets]] relate all [[natural resources]] to this value. If this is the US dollar, then, it depends on what the US decides to "protect" by enforcing [[w:property rights]] in. | ||
Using this kind of system to set standards for deferred payment rather than something more objective like [[oil]] or [[petajoule]]s, or something more relevant to [[quality of life]] like [[free time]] or [[measuring well-being]], is considered insane by [[Greens]], who motivate most talk on [[monetary reform]]. | Using this kind of system to set standards for deferred payment rather than something more objective like [[oil]] or [[petajoule]]s, or something more relevant to [[quality of life]] like [[free time]] or [[measuring well-being]], is considered insane by [[Greens]], who motivate most talk on [[monetary reform]]. | ||