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What's the panic? - Ed's journal
What's the panic?
OK, so the news is full of 'big financial crisis'. Y'know, as if the world had suddenly collapsed or something. I can safely tell you, that it hasn't. I'd have noticed. You see, money has no value. The reason we started making paper money in the first place, was the scrap value of coins was exceeding 'face' value.

What money is, is an agreement - if I give you a £5 note, we both agree that that has an abstract value of £5, because you can go into a shop, and _they_ will agree too, and give you £5 of goods.

But the money itself? Means nothing. An economy too, is much the same - nothing really there, but circulating currents of imaginary stuff.

An economic upturn? Well, nothing's _really_ changed - the money from the banks that have been a 'bit shakey' hasn't actually vanished or anything. It's gone from one pocket to another. In a very real sense, nothing has changed - it hasn't suddenly got harder to pull a plough. It hasn't got implicitly more difficult to build a house.

But there's rabble rabble on the news, and the stampeding herd turn it into a self fulfilling prophecy. Why? Well, there's money to be made - a bad news day is a big shift in the market, and on days like those money isn't _lost_ it _moves around_. On days like these, fortunes are made. The poker game has dealt out several strong hands around the table, and all they players are running hard trying to figure out whether they can play it, or fold.

But tomorrow, the sun will still rise, and nothing much will be different. Recessions aren't 'real' or anything, they're simply ... intervals after overwhelming hubris gets shattered, and the world goes cautious for a bit.

Enjoy it, chill out, relax. The world does not end today, and who knows? Maybe with opportunity like this, you'll see your own new options opening.
2 comments or Leave a comment
cbr_paul From: cbr_paul Date: September 15th, 2008 06:17 pm (UTC) (Link)
Reminds me of that part in Hitchhiker's Guide To The Galaxy when the unwanted ship populated by the unnecessary peoples of an old population (hairdressers, middle managers, etc) settle Earth, decide to use leaves as their currency and then set about setting fire to trees to avoid inflation! :)
warmage From: warmage Date: September 15th, 2008 06:29 pm (UTC) (Link)
Ahh yes, the Golgafrinchams from Ark Ship B.
2 comments or Leave a comment