Thursday, March 14, 2013
Money is a delusion – but a delusion that works as long as it's shared. The value of a U.S. dollar was once tied to a government guarantee that you could, at any time, exchange it for a quantity of precious metal – but since America officially abandoned the gold standard in 1971, its value is now more or less rooted in its ubiquity. If large swathes of people decided they would no longer accept it, it would suddenly be worth a lot less.
There is a story about a man who sold hot dogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television.
But enthusiastically, he sold lots of hot dogs. His sales and profit went up. He ordered more meat and got himself a bigger and a better stove.