Re: 'Why does money exist?'

[bachhell]

"tokens" are not bad, it's the interest that is attached to it that is killing the country. The Federal Reserve Bank loans you that dollar and the interest must be paid back. Our national debt is what we owe the Federal Reserve Bank, which is NOT a government organization but a private bank.

[techdavey1000]

Money is basically a token for work previously done. It is far more convenient than using the barter system. Whether the money in your country is any good or not depends on what it will buy. For example if it takes a wheelbarrow full of money to buy a cup of coffee the currency has basically had it. The usual cause for this phenomenon is governments printing too many banknotes ( euphemism is Quantitative Easing) IMHO this is theft by the back door as Joe Public's savings lose value.

[kramnrublaw]

Money is the cause of almost every problem in the World. The value that is determined (by unknown sources) is why we will always have poverty and war. Money truly is the root of all evil. Human nature dictates what your value is a a human.

[kotykolter11]

i feel bad for you, you are probly so lonely. :(

[GTWCMT]

The GBP uk currency states and is signed.

" I promise to pay the bearer the sum of"

which is the value stated on the note. But do we get paid in GOLD.

Gold prices dont stays the same, so on your basis we get gold, gold prices has shot up, but I dont get more for my buck.

So shall we say. currency is a trading token for goods and services. nice and short

[TruthBeyond]

Gold standard was abandoned in the 1930's for the UK.

@Desertphile: French no longer use Franks, they use Euros (€) .

[sciencemile]

Damn, how'd they convince them to give up the Franc? :O

[OccamKant]

Also, it's easier to carry cash around than a dozen chickens with which to trade.

Not to mention the fact that if you wanted to get a pie from the baker, and all you had were chickens to trade with, if the baker didn't want any chickens your out of luck.

Cash is a generic form of good/service that is universally convertable into different forms.

[iamjackscolin]

Actually I think those bills you're holding are money.

Anything can be currency.

"Cigarettes are used as currency in prison"

[ytgv3fc7]

@iamjackscolin due to having intrinsic value (consumable item). Paper currency has no intrinsic value any more than a crayon-note saying i.o.u

[workingclassbum]

I wish I had a currency

[sy1234]

Got through 8:10 without swearing, nice work!

[rich0319726]

Thanks for another interesting video. You are entertaining and intelligent. I particularly enjoyed your videos explaining why people that claim they have invented better than perpetual motion machines, or are able to "add energy" to the universe, are wrong. Keep up the good work all around.

[legitsnipe]

Are you drunk in this video?

[Desertphile]

I am never drunk, in any of my videos: I hate the taste of alcohol.

Why do you believe it is any of your business?

[Cheesephone]

I noticed our notes are really IOUs. They all say "I promise to pay the bearer on demand the sum of ... pounds" :D

[ddtninja]

hey now. what's with the sarcasm toward "Canadian bills"? other than that, great explanation!

[redtortoise76]

Interesting stuff, few people think about or even know some of these things.

[amazingdavidman]

Every dictionary I consult disagrees with you. But, whatever.

[mobiltec]

"Every dictionary I consult disagrees with you. But, whatever."

You need to read all the definitions of the word "money". Yes in some dictionaries they define money as currency. What DP is trying to explain however is that currency and the word "money" are basically two different forms of the same thing which would be VALUE. You have horses to trade and I have chickens but you don't need chickens and I don't need horses so we use CURRENCY... That is the agreed upon standard.

[manster200673]

"What DP is trying to explain however is that currency and the word "money" are basically two different forms of the same thing"...but in all definitions of currency and money (both "official" as found in dictionaries and in popular usage) they refer to the same thing...paper money, or coins...so if someone is guilty of conflating the two, then by all means plead guilty...money and currency are the same thing.

[amazingdavidman]

they agree on his definition, but none agree that money isn't currency. just pointing out that she's not really mistaken.

[krishields]

Currency is the representation of value, not value itself. Currency is a place holder for goods and services. Goods and services are the value, which is based on supply and demand. It's still a trade system. How much value currency represents is based on how much "stuff" a country has or does not have - mostly gold or silver. It's a pitty a lot of us have to work our whole lives only to realize we still owe our services for the house we couldn't build ourselves.

[Desertphile]

"Currency is the representation of value, not value itself."

That is very well-said: thank you. Currency only has extrinsic value: money as intrinsic value.

[auchraw]

The kind of people who compile dictionaries never have ANY money.

[cubanatwinb2222]

I have to admit this has been one of my most favorite videos by Desertphile so far. :D

[idontbelievereligion]

Yeah, us Brits have Charles Darwin on our £10 notes.

[a012345]

The way it's going in US, we're going to have Kent Hovind on our's.

[ReligiouslyAtheist]

all we have is god and pagan symbols :(

[Relyt22]

mon·ey /ˈmʌni/[muhn-ee]noun, plural mon·eys, mon·ies, adjective

--noun

1. any circulating medium of exchange, including coins, paper money, and demand deposits.

So yes, currency is considered money.

[dudev]

I suppose. But dictionaries don't actually define words, they only provide the most popular and modern definitions. I think DesertPhile is technically correct, since ancient "money" was always made of precious metals like silver, gold, copper, etc. Paper "money" wasn't in general use until the 17th century. My 2 cents.

[mobiltec]

"So yes, currency is considered money."

And Jesus is considered God... Doesn't mean it's true... LOL... Currency IS a form of money. It is an agreed upon standard of trade. But currency itself can become worthless paper with nothing to back it but promises. Right now that is about all our currency is worth. Nothing. Now if you had gold in your pocket you could still buy things when currency becomes worthless.

[toppie34]

duetsch mark nor does the french frank anymore all euro's baby but good video anyway

[mikejmcc1970]

You are one odd dude...but holy FUCK are you knowledgeable. I just learned more about money in these 8 mins or so than I have in the past 38 years.

[Desertphile]

Er, ah.... thank you... um, I think..... :-)

[HotlantaAnon]

Since I have no money I feel I can give it up and trade for goods. Wanna see the goods :P

[bluecode320]

The French franc? What happened to the Euro?

[Brianswers]

So you are saying my dad lied when he said money doesn't grow on trees? :P

[idontbelievereligion]

no he's saying you're dad was telling the truth

[SamTay04]

I'm so used to seeing you do responses to creationist and free energy videos, I kind of expected you to be mean and call her a stupid wank-tard or something. :D.

[Desertphile]

Ooooh! That's a great idea--- I should have an opposite to the Creationist Training Tool, for reply videos I make about sane (i.e., not Creationist and non-free energy nuts) videos. At the moment I cannot think of anything.

[urantivirus]

mon·ey [muhn-ee] --noun

1.any circulating medium of exchange, including coins, paper money, and demand deposits.

2.gold, silver, or other metal in pieces of convenient form stamped by public authority and issued as a medium of exchange and measure of value.

3.any article or substance used as a medium of exchange, measure of wealth, or means of payment, as checks on demand deposit or cowrie.

4.a particular form or denomination of currency.

5.capital to be borrowed, loaned, or invested.

[DaveJonesBSNews]

A desert hermit with a credit card, now I've heard everything.

[Desertphile]

A credit card company would be *CRAZY* to extend credit to me! :-)

[auchraw]

I believe you can track money specifically to the accumulation of grain in early urban cultures. It was easier to move bits of useless metal around (gold and silver are pretty useless) than bags of wheat. At the same time you get literacy, numeracy, the beginnings of religion and mythology, warfare, standing armies and a priesthood with no purpose. In a hunting or herding culture wealth is meat or milk which you can't save up or barter. So no money.

[Desertphile]

That's a good point (grain). Some people used to also be paid in salt; Roman soldiers had part of their wages paid with vinegar.

[OccamKant]

Actually, early grain storage is also where accounting + currency started. They would put stuff in a pot and seal it, and in the soft clay on the outside of the pot they'd record the contents.

Then when trading, they could quickly see what was in each pot.

Then they realized it's easier to trade just a clay tablet with makings than the whole pot.

Bing - benjamins.

[auchraw]

Am I right in thinking that what was inside the pot was tokens, or money, not goods? Then they realised they didn't need the tokens, just the writing?

[OccamKant]

From my understanding, it was actual goods in the pots.

[kilroy1964]

You forgot a really big one: OIL man OIL!!!

[ILYIAB]

The money supply is a very small part of inflation. The major variables moving inflation are the cost of money (interest rates) that are based on current productivity and expected productivity.

In 1930's Germany and Zimbabwe (is it?), inflation was/is due to money supply, but we know better than that today.

[NomadSoul76]

I'm kind of surprised no one has mentioned this before.. Craigslist could be considered the hub of modern trade and barter. It's still not a huge thing, but you see people trying to trade item A for item B occasionally. Someone with an excess TV that wants a camera, someone with a car that wants a motorcycle..

I believe I've even seen people offering to trade labor in their trade for material goods.

I'd just use money.. er, currency, though. A lot simpler.

[Desertphile]

Ah, thank you. Craigslist is a damn fine attempt at barter. I saw a wood-burning water heater for sale there that I am sure many people would love to have.

[ReligiouslyAtheist]

I think he just wanted to flash his gangster roll.

[lifeisgummo]

haha

[mattblackcat]

Spoken like a true economist :-)

[tktt]

You mentioned some historical currencies that are obsolete now.

Deutsche Mark and French Franc can no longer be considered to be currency, because they have been replaced by EURO, along with many other old european currencies, and you can no longer use them to pay goods and services same way you would with current currencies...

[Desertphile]

Thank you for the correction; I am so far behind in world knowledge that I look like every other American in that regard. (WRY GRIN)

[Paxmax]

good explanation DP!! I hope they'll get it.

It isn't often one think that way of money.

[JJTecumseh87]

i meant de bunker of hippies and creationist,also retarted know it alls.I wasnt calling u a retard desetphile:)

[Energyium]

good explaination

i think you should write books

[JJTecumseh87]

desetphile u r the debunker of hippies and creationists retarted know it all bravo!!! desertphile!!!

[traog]

love the Canadian jab, made me laugh.

[mandalastar]

Very nice. I love the basic facts of life that 99% of the worlds population doesn't understand, or acknowledge. For instance, both of my bosses at work believe centripetal force is what makes people stick to the earth.

[TheStephenation]

Since when do people stick to the earth?

[LordShadrach]

I WANT THAT CASH!!!!

[SilverKytsune]

Wells Fargo card! ^^

[Paxmax]

MMmmm.... Fargo.... nice movie....

[MaskedSkeptic]

Your right on the "money"!

[nikkatnight]

"Your right on the "money"!"

Lol nice

[krishields]

What about sea shells? What can I get for my sea shells? Or better yet, my sand dollars?

[NatureLegalized]

Good explanation DP & good to have an understanding of such things :) *****

[Greyghostvol1]

Was that a prepaid debit card?

[Desertphile]

"Was that a prepaid debit card?"

More or less, yes; it is meant to act as a password-protected version of currency.

[fatefinger]

You know by saying what money and currency is might make the ron paul cult members come out from whatever rock their hiding under. I can't seem to find them anymore...

Personally I'm happy their gone but you might rile them up yet again. Don't worry just say the word anmd I'll come back to piss them off for you.

[negrosaurus]

So is there going to be a point in the future when all this inflation finally goes 'pop'? Is there going to be a point when the American dollar collapses entirely and we have to eat each other?

[Finiras]

many countries own trillions of dollars. if they'd trade their dollars for another currency, such as the euro, it's bye bye dollar. it is what has been happening over the last few years. some argue that this is why iraq was invaded: to make sure that iraqi oil is sold in dollars. Because iraq is one of the largest oil producers and other oil producing countries have incentives to use euros instead of dollars, it could start a domino effect.

[Finiras]

as long as oil is sold in dollars, countries will need large reserves of dollars, to trade for oil.

[Desertphile]

"if they'd trade their dollars for another currency, such as the euro, it's bye bye dollar."

We see that happening now; a friend of mine exchanged USA Dollars for Cayman Island currency because the dollar will take several years to recover, if it ever does. When people have little faith in currency, the currency has little extrinsic value.

[Green4321]

So I guess we should say, "Tokens can't buy happiness!"

But in my case, Money CAN! :-)

[mikemikemofo]

mmmmm euros, i mean gyros, 2 cheese enchiladas, frijoles, spanish rice.......

[h8uall66]

Was that a Wells Fargo card?

[bpabbott1st]

In addition to the value of natural resources, money represents the value of individual contribution.

[Murtage33e]

nice

[nikkatnight]

I still want to go someone live somewhere far far away, but that's probably a personal problem. :P

[nikkatnight]

"I still want to go someone live somewhere far far away, but that's probably a personal problem. :P"

The word someone is not supposed to be there. Fuck I can't even type. I'm not worthy of commenting your videos

[Edella]

"The word someone is not supposed to be there. Fuck..."

Don't sweat it. I think anyone who has posted for any length of time in these non-editable Youtube comments sections has at one time or another written some awe inspiring nonsense.

[auchraw]

Who can't edit YouTube comments? Have I got someone something no-one else has?

[Desertphile]

"I still want to go someone live somewhere far far away, but that's probably a personal problem. :P"

Perhaps so, but it can also be a sign of health. The reason why someone wants to go "far, far away" will help determine if the desire is health or not. There are damn fine reasons for wanting to get away from humanity--- the chief reason being HUMANITY IS BROKEN.

[nikkatnight]

You're so intelligent. :) I understand what you're saying. Thanks for replying to my video

[Desertphile]

I ain't intelligent: I'm just very loud and I gots me a camera. :-)

[nikkatnight]

You are soo intelligent. So so intelligent :)

[MassZombicide]

fUCK Yeah

[Largo64]

Occasionally you can trade something for something, but in general it's too cumbersome. Also, governments discourage barter, because it's too hard to tax.

[idontbelievereligion]

lol, 'you have to pay 17.5% of an oak kitchen table'

[nadiaTeeze]

another problem is some things are long lasting so perhaps you would only need from them yearly.. but they need your services weekly.

Tokens.. better then an IOU note because you can spend it in the entire community and not just with person who gave it to you.

[ricoatheist]

Do you have any extra currency laying around? I could use some.