"What is Money?" with Joseph T. Salerno -- Ron Paul Money Lecture Series, Pt 1/3

[Realmbelli]

So boring, this is fifth grade stuff.



[RipTheJackR]

Hmm, lecture turning out to be very similar to what Karl Marx wrote in the first chapters of Capital. Science ftw.

[pipem4n]

Damn - some of this questions are so unchallenging...

[gdmellott]

He seems to ignore the speculation that can go on during a deflation episode when an economy is stressed by war or bad weather, or other major necessary resource upsetting matters. (When did Hitler start to show himself?) Anyway, if deflation is allowed then those having 'stable' commodities can out manuever those needing to sell perishable ones; leading to them to be able to become the landlords over the masses as peasant leasers.

[pipem4n]

@gdmellott Well. It was fiat wasn't it? When the Hitler etc.? So what's your point - we should use gold and silver again?

There is no pathologic accumulation of wealth in gold standard. Wealth goes to those, who are most effective in benefitting others by producing and providing what is needed. This process is always reversable. If wealthy person stops working and producing he will start to use ones gold and becomes poorer. Any questions?

[pipem4n]

And You seem to not understand, or know, what is the difference between delfation caused by fiat money contraction and falling prices caused by increasing productivity under commodity money. You may be just as smart as I am and go to:

tomwoods(dot)com / inflation

:D

[gdmellott]

Bottom line: money is a management tool that represents a benefit generated in anothers view. Since that can be an arbitrary determination, perhaps a records system of the 'benefit' kept by competing institutions of thought might better evaluate and guide people to their desired end. Beyond that it allows IOUs to function in the realm of skills and still be realistic about construction materials that cannot 'work' in an IOU realm.

[pipem4n]

No. Money doesn't represent "benefit generated" , money represents value. Start again :D

[selfridgeg]

Do see also read "The Problem with Interest".

Understanding the true way things should be done illuminates the morass of manipulation we regard as the banking and monetary system today..

[lmnopqa]

Why aren't they laughing at my jokes? :.o((

[xcvsdxvsx]

you can contract for repayment in gold, its called a gold option clause

[janc71]

According to David Graeber, in his book 'Debt, The First 5000 Years', money didn't originate from barter, but as debt (like bartaps, etc.). I can't fully graps the significance of this, but supposedly the Mengerian account on how money originated, as expressed by Salerno, is wrong. Also: watch?v=bHrAuVxodMs

What do you guys think?

[rumco]

@janc71 I think that is nonsense. Praxeology and even empiricism would deny that. Debt would not be selected as medium of indirect exchange. The current monetary system, which is debt based, only exists because of prior commodity money (gold and silver) that was gradually transferred into pure fiat by the State, with the help of legal tender and requirement to pay taxes in state currency.

Wouldn't expect much from a lefty professor of anthropology. Look up "regression theorem" by Mises.

[janc71]

@rumco I haven't finished the book yet, but what I believe he wants to say is that debt is not the end of the world, in the sence that it's a promiss that can be re-negotiated.

Nowadays there's a tendency to believe that paying your debt is something holy, but in the old days is was quite normal for a king to order a 'clean slate'. I'm not really sure if that's such a great thing though, as it would encourage people to go into debt.

Send me a PM if you want the book.

[janc71]

@janc71 Also: there has been a debate between Robert Murphy and Graeber on this issue. You can look it up on mises[dot]org.

[cowboy1165]

@runningchance You have to work on your humor, while the first part wasn't so great, the punch-line was funny as hell.

[commoninfected]

First you get the money (Fed). Then you get the power (Govt, Fed, Wall St). Then you get the women (Bill Clint et al).

[delsol7878]

What would be ideal ratio of gold to silver?

[commoninfected]

@delsol7878 After using some tricky calcumulus, the answer is 42.

[JulianBHale]

@delsol7878 Whatever the market says it is right now. There is probably no one ideal ratio, it would depend on a variety of factors, such as supply and demand, and probably would fluctuate.

[AlbertoVeronese]

a mature society should be self-deterministic!

[05121784]

Ron Paul: "I advocate for COMPETING currencies."

Let the market (individual traders) decide on which commodity of exchange to use. "Backed by the full faith and credit of the U.S. government." I.e. Isn't worth the paper it's printed on. Already printed? Not soft enough for toilet paper.

[05121784]

I really enjoy Jo Salerno! He has more fantastic lectures on MISES.ORG.

On iTunesU, try podcasts of the Mises University events (a week-long series of lectures by great LvMI professors) :D

[a4finger]

excellent lecture

[Ub3rn00berer]

Anyone else make it all the way through this video? Hell!! All the way all 3 parts?!! Yeah baby!! ROCK ON!!! Just kidding....I made it like 45 seconds and that's just cuz I was waiting on another video to load.

[EntropyPressStAt]

SEE PART 2 at /watch?v=k6gMkKmQSW4

[Canawiwi]

i hope this is what lectures in uni will be like :)

[ChemicalMikeUK]

Money is merely an intellectual tool,which is based on a collective agreement,that it has value based upon agreed factors.Since we have the ability to assign it any value we desire,(based on rules,)we can change its value at will,if it is agreed collectively to do so.In theory we could collectively rid ourselves of all debt,make purchases cheaper,& rid ourselves of poverty,merely by changing the value thru law change.Currencys could be kept temporarily artificially lower or higher for example.

[ChemicalMikeUK]

@ChemicalMikeUK if we changed the way money is valued globally not only could we avoid global economic meltdown, but probably save a lot of lives in the process.Money is a tool based on rules, not a rule based on tools. Lets stop being tools guys.

[Xasew]

@ChemicalMikeUK

Yeah, let's abolish scarcity by writing laws!

No offense, but that's pretty crazy.

[ChemicalMikeUK]

@Xasew if we are going to have a system, that system needs to work. the system is based on rules. rules which are failing us. so changing them is not so crazy. ;)

[Xasew]

@ChemicalMikeUK

You clearly said that we could rid ourselves of all debt & poverty and make our purchases cheaper "merely by changing the value [of money] through law change."

Please explain how you're going to basically conquer scarcity by changing laws. If we could change reality through legislation, we'd be gods.

[ChemicalMikeUK]

@Xasew money is not the only solution to the worlds problems,it never was, and never will be.it is only one of societys tools used for its benefit.(hope u agree)but a good economy has good rules and regs that make it operate in a way that all tiers of income prosper by.we dont have those rules yet, we operate under an imperfect system,which is why the rules need changing for the betterment of everyone,both rich and poor.resources and manufacture could be managed more efficiently too. peace :)

[AFRIKTODAY]

@ChemicalMikeUK An intellectual tool? Tell that to the colonists who used tobacco as money during the periods of settlements; or the African tribes who use cattle and iron bars that money is an intellectual tool. Money is first and foremost a " Good".!

[ChemicalMikeUK]

@AFRIKTODAY that is barter. i am referring to currency.

[AFRIKTODAY]

@ChemicalMikeUK Exactly, why didn't these " primitive" people suddently jump in on board your idea of " intellectual tool"? That's because before we achieve the stage of " money" we ought to start with barter. There is an evolutionary path that leads to the most accepted medium of exchange; the money. Currency is nothing but a " receipt" for money. There is nothing intrinsic about a piece of paper!

[ChemicalMikeUK]

@AFRIKTODAY umm.., maybe you should ask the primitives.my guess is that rome wasnt built in a day. but you missed my point. money is a merely an intellectual TOOL, a representation of value which is granted value thru rules,regulations,etc. the paper has no true value, nor do the 1's and 0's in a bank's computer. in other words its value is an 'imaginary representation of percieved value'. the stock market proves this in the way it operates. peace :)

[AFRIKTODAY]

@ChemicalMikeUK So what is exactly your point and the conclusion to your analysis about money? Money is not an intellectual tool; it is a good and a medium of exchange. This is so simple! It is not granted value through rule or regulation but through the voluntary acceptance of the exchange participant. If one individual engaged in an exchange decide to reject a given money as the media of trade for his good, the whole process of exchange collapses.

[ChemicalMikeUK]

@AFRIKTODAY you arent seeing the wood thru the trees, and yet you're kinda arguing my point. money is not the item sold, it is the fictional value given to an intellectual tool. again money does not have true value, only the value we give it (thru rules, value, etc.) like i said b4 the stock market proves that money is only worth what it is collectively accepted to be worth. i cant say it any clearer and im kinda bored of repeating myself dude, so have a nice day and nice chatting with you. :)

[moose894]

Money is not "merely an intellectual tool" since clearly it has physical... real use.

[ChemicalMikeUK]

@moose894 yes it does. i agree, as an intellectual tool. if you listen to the guy on the video he even explains this. :)

[mkucstars1]

@runningchance If wanting a country that follows the constitution is crazy, then I'm a f'ing lunatic! In fact I'm mad as hell and I'M NOT GOING TO TAKE IT ANYMORE!

Ron Paul 2012!!!

(and God bless Ron Paul, Amen)

[JD867]

Anyone wanna give me a summary? :P

[zoomee65]

Fantastic lecture

[iannetta11]

Paper has very low intrinsic value and it is not scarce. PAPER IS NOT MONEY.

[brett42092]

Here's a solid one-word answer: obsolete!

[secularenergy]

We have the technology to emerge into a post scarcity society. We will formulate a resource based economic model, which is based on the strategic access of needs and various goods produced by automated systems and optimally designed with regard to utility and sustainability. Furthermore, advanced algorithms that function on hypothesis testing will be implemented for a true democracy of ideas. NO MORE MONEY! What little actual work needed will be delegated by appropriate volunteerism.

[AFRIKTODAY]

@secularenergy Sounds like Lenine and Staline! No more money! A lot of starvation, misery, and genocides will ensue!

[secularenergy]

@AFRIKTODAY Your fear is our current reality. Careful with the prima facie associations, straw man tactics, along with the logical fallacy of circular reasoning (argument is reliant on the proposition to support the central premise). The scientific method is unbiased; designed to accept the most efficient known means in pursuit of a performance measure. There is no such thing as human nature...only human needs and behavior. Wake up, this pale blue dot we live on is both precious and fragile.

[AFRIKTODAY]

@secularenergy The scientific method is unbiased depending on the premises upon which it is applied. You can not equate human " preference" and predict their course of action. Man is unique because he can act, predictably and unpredictably. Pseudo scientific positivism has failed in economics and in all " sciences" where it has tried to use man as a guinea pig! Consequently, it is a fallacy for a bunch of pseudo scientist " Keynesians" to try to substitute their pathetic paper to GOLD!

[05121784]

@secularenergy

All models are wrong; some useful; all wrong. Non-scarcity is not reality. Ex: There can never be two of you. Your 2nd sentence describes an entrepreneur-capitalist to produce & trade. The 3rd: An elite group using math to explain our thoughts. Laughed at from genius, Murray N. Rothbard.

Who is going to MAKE the goods? Who is "we" - those formulating the desires of all individuals? Economics is the study of human action; Human Action by Ludwig von Mises.

MISES.ORG

[secularenergy]

@05121784 Abundance of human needs is a technical process (Food, shelter, water, etc). Optimal design of functional goods may be customized online and manufactured automatically (e.g.3-D printing), given a strategic access infrastructure (NO TRADE, NO PROFIT). An algorithm is NOT opinion rather a use of heuristics for the goal of the masses (e.g. peace, access abundance; true needs of all individuals). Economics comes from the Greek word meaning the management of the household.

[hazeee123]

@secularenergy Only over my dead body. Hate to break it to you but earth has limited resources, no matter the technology sooner or later we will reach it's limits, so scarcity is here to stay.

[zaxineohp]

@hazeee123 You hit upon the defintion of economics that I learned in school oh so many years ago. Economics is the study of the allocation of scarce resources.

As long as we have energy coming from the sun, the ingenuity of the people, and free markets we will survive. Nevertheless, I can't help but think there will be a population limit beyond which it will be very difficult to survive. Wealthier people have fewer children, so maybe an equillibrium will be reached.

[secularenergy]

@hazeee123 "Over my DB" Do you expect to progressively learn with an obtuse perspective? We will all expect & celebrate being wrong; realizing truth is progress & competition is waste. The fact that the earth is finite is argument for a RBE; survey resources to reference the carrying capacity. Our population is finite and many of our resources are renewable (e.g. geothermal/solar energy & H2O (w/ desalination). A culture of reason arrives at decisions progressively vs narcissistically

[manoman0]

I hear Walter Block =D

[KenMacMillan]

The name of the Japanese company he talks about is Uniqlo.

[iferraro]

The woman who introduced Dr Salerno. What's her name and is she married? <3

[ddustin2008]

I like this new wave of economist speaking up against gov't monopoly of money.. The keynesians have got to go.

[taariqq]

Before the advent of capitalism ... women were .... was that a stupid comment or what!

followed by, more wannabe comments about the football betting.

So what is it ... capitalism forced women into being anal raped and then being told that it was love making?

[Xasew]

@taariqq

You're not making any sense. Are you sure you're not misunderstanding what Salerno said?

[kolach]

That was extremely interesting, even though it would put everyone else I know to sleep, I was on the edge of my seat the whole time haha.

[n0us3rn4m3s4v41l4bl3]

Salreno was great (as always). He answers questions better than most of the Austrian school (even though the audience is too dumb to get the answer).

[tunafishjoe]

I'm excited about the next two films. Thank you Dr. Paul for sponsoring this. Thank you Dr. Salerno for your time!

[Duviewer]

Bernanke must have been one fo the "dislikes" here...

[chronofusion]

this video just made it on my favorites list.  THANK YOU MUCH. ( those who are running ron paul's website(s) )

[SuperSneakySteve]

Lydia is cute.

[TulsaOilersFan]

@SuperSneakySteve How is that the most liked comment here?

[muslimgiga]

@SuperSneakySteve hot girls are for RON PAUL!!

Problem? *troll face*

[constablekohler]

ooh what's up lydia. 

[jsem94]

Salerno is probably my favorite Austrian today.

[yakyakyak69]

Progressivism (anti-liberty "liberalism") is advocating changes or reform through GOV'T action.

Give any POLITICIAN the money & power to "redistribute & regulate" & they will ALWAYS benefit THEIR “special interest” campaign backers; Wall Street, Military-Industrial Complex, Marxist Union Bosses & Giant "Green" Corps, Big Oil etc.

Progressivism aka “Big Gov’t” CREATES Political Cronyism.

FIAT (counterfeit) debt-currency from the Fed just FUELS THE FIRE!

END THE FED!

[chronofusion]

@yakyakyak69 yeap..to further PROVE your point. w w w . apathetic - usa . com ( of course without spaces and may require flash). there ya go. cheers

[carcabe]

@yakyakyak69 Progressive means progressively more control, progressively more regulations, progressively more laws, progressively more government, progressively more bureaucrats and bureaucracy, progressively more politics into every aspect of our lives, progressively less freedom, progressively less prosperity, progressively less life, progressively less happiness. Progressive means they progressively move toward totalitarianism. It never ends.

[yakyakyak69]

@carcabe Agreed. "Progressive" = March toward ever increasing serfdom & dependance on the Globalist "puppet masters' and their crony political class puppets.

Progressives are the "useful idiots" that Marx spoke of.

Replacing Money with Debt Currency was their greatest victory to enslave us all.

Watch: "Statism's Assembly Line" here on youtube.

[RastaLulz]

Too much sense!

[ReachDeep1]

"If you don't like me watching a football game, you're gonna be someone else's wife tomorrow." LOL

[RKAddict101]

Hope a lot of Ron Paul supporters are watching this. It's essential to understand economic theory, logic, and history in order to have a correct understanding of what's going on in our country, and even the world right now.

[charmek1]

Materialistic value: commodities, space. Nonmaterialistic value: time, knowledge, creativity, good will, trust, friendlyness, intelligence, honesty.

[charmek1]

guileless

[suitabledude]

Salerno knows his shit.

[megapattyp]

WRITE VOTE RON PAUL ON EVERY BILL YOU COME IN CONTACT WITH!!!

[Apptend0]

Videos like This uploaded to Ron Paul youtube channel make me wonder if he's an Anarcho-Capitalist

[Good2BDarren]

Woah; I know that chick! Go, Lydia Mashburn!

[swiftysmithuk]

@amc664

Get back to us when you have solved the "Economic Calculation Problem".

Economic Calculation In The Socialist Commonwealth (Introduction)

watch?v=kfz-zehIagY

[Omnis2]

Ron Paul has smokin hot staffers.

[anryth]

idk why but this lecture made me think of a really old game called Diablo 2 and how a particular ring called a stone of jordan (SOJ) ended up becoming a form of currency because of its universal awesomeness for every class.

[catonalake]

@anryth makes sense ! just another way of people being creative at finding ways to barter ;)

[CLeach13]

@anryth lol gold is the real world SOJ

[duhg599]

@anryth Blizzcon is this weekend, lots of information about Diablo 3 coming out, including the in-game auction house. So if you want to see a microeconomy at work, that'll be a good place to watch.

[TheComputerEngineer]

8th

[hopaloop]

anyone else see a resemblance with Woody Allen.

[god0fgod]

Of-course providing a good with elastic prices to demand at lower prices to kill off all other competitors isn't quite as simple as that. You have to distribute and promote the goods effectively and provide enough supply. If the prices are too low and you cannot create enough stock then you'd need to raise prices.

In these markets with similar products the prices are really elastic individually as such but they are against competitive prices. People will look for the cheapest where available.

[god0fgod]

@god0fgod No idea why I felt like making that specific point.

[edenthedjguy]

I clapped at the end?! lol

[Weapon01]

I don't know "why" but as soon as I read the title, I thought of Bastiat's essay titled "What is money?:

[mersk100]

@Weapon01 I didn't listen to the whole thing, but sounded more Menger-esque, from the bits I did hear.

[IdahoDigital]

focused on the back of the guys head! Arrrgh! Be sure to check your focus settings on a test shot prior to rolling, and also don't use automatic settings for when inconsiderate people walk in front of the camera and throw off your focus.

[RonPaulFlix]

Posted on Ron Paul Flix - the Ron Paul video site - DEFEATING THE MEDIA BLACKOUT SINCE 2007!

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