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]]. | ||
Revision as of 21:18, 25 November 2003
Standard of deferred payment is one of the functions of money.
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 "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 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 petajoules, 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.