Understanding the deceptive concept of ‘VALUE’!
The one concept of Capitalism which few comprehend or understand is this concept we call VALUE. Capitalism is based upon this concept and all our money and currencies are based upon this concept. Yet, hardly anyone understands this concept and its foundation. Why? First of all we need to recognize that VALUE does not really exist within our Space/Time Universe. There is no such ‘thing’ as VALUE in nature. No material good or item of production has any inherent VALUE. Objects in nature have no value. So why is this concept so deceptive and mysterious?
Scarcity of survival needs along with ‘private property’ produces trade. Trade then creates the realization that ‘Value’ is important when we trade item(s) for item(s)! Value is inner, however, and needs a ‘proxy’!
What we do as human beings is CALL ‘that which is not’…’as if it were’. In other words we humans have created this concept called VALUE from our imagination (as if it is a real ‘thing’). The concept is totally subjective and personal, however, to each individual on our planet. Each person accepts this concept as being valid because Capitalism has created another concept called PRIVATE PROPERTY. Since this concept of ‘private property’ is so important to us for our survival and economic growth, we have INVENTED another concept which we call VALUE so that we can exchange and trade our ‘private property’. Isn’t this interesting! Our consciousness/mind produces these concepts!
Private property (this legal concept) is foundational to economics and Capitalism! What emerges after are goods/products/natural resources which we then VALUE and trade!
When we humans exchange or trade an item created from our ‘private property’ (say wheat, oats, bread, eggs, milk, etc.) we become aware that exchange demands us to negotiate. Negotiation then provides us with the need to VALUE each item(s) which we exchange/trade. So the subjective/imaginary concept of VALUE emerges from our thinking when we barter, exchange, trade, buy, sell, and invest. In reality, however, VALUE does not ‘exist’ as it is totally within our metaphysical ‘mind’. VALUE is within our ‘imagination’. The foundational concept of Capitalism is this deceptive/imaginary concept which we call VALUE. Value is totally inner and resides within our individual ‘consciousness’.
Trading and exchanging results in subjective ‘negotiation’. The concept of ‘Value’ emerges! We then settle a transaction with some invented ‘Money’ and/or ‘Currency’!
To make trade and negotiation more palatable and efficient we then INVENT money to serve as our proxy for this invisible/imaginary/deceptive concept called VALUE. The word MONEY gets invented when we find a product/good/commodity which most people within a marketplace view as a good proxy for VALUE. Money (the word) gets applied to ‘things’ like cowrie shells, beads, tobacco, copper, silver, gold, etc. and serves as our proxy for this deceptive concept of VALUE. Later we invent a ‘currency’ like a paper dollar, euro, lira, shekel, etc. to help us CALCULATE or measure this invisible/imaginary concept called VALUE. Money and a Currency unit help us solve this mystery concept which we call VALUE!
Money is invented (usually silver/gold) and then a currency (paper note) is invented for calculation of ‘Value’! In reality, all objects in nature have zero ‘inherent value’, however, we humans do invent the concept from our mind to facilitate trade!
Today, we basically do not have any ‘thing’ which can calculate ‘value’. What we do today is DERIVE ‘value’ from our mind/consciousness. We use imaginary currencies (cyber/digital currencies) to help us DERIVE ‘value’ of houses, cars, food, clothing, etc. All our assets today are given a VALUE via our imaginary cyber currencies. When we trade, exchange, buy, sell, and invest we think about VALUE and then we DERIVE a ‘number’ using a cyber/digital currency. All is subjective today as the prior proxies for VALUE (silver coins and gold coins) have been declared obsolete as official tools for calculating collateral VALUE. All our legal tender for DERIVING ‘value’ are now mostly cyber/digital currencies (with no backing or tie to a material commodity or object).
The above word should be ‘Currency’ is not real! All our currencies (today digits in cyberspace) are units for ‘deriving’ value. Historically, the word ‘Money’ has referred to some ‘thing’ or ‘object’ which comes from nature! A currency, however, is generally invented by a political institution (and becomes legal tender)!
Yes, we live in a WORLD of imagination/subjective values/cyberspace currencies. The entire financial system is now mostly an INNER system (within consciousness). Few comprehend the system or any of the above details. As people we function as if VALUE exists (we call that which is not…as if it is). We assume that our financial system is material and solid. In reality, however, our entire financial system is mostly within our IMAGINATION. Value is inner and our Cyber currencies are inner. Most people seem totally unaware of what they do and accept. Zombie consumers and zombie investors populate our planet and our trading systems. Until the emotion of confidence changes to fear, nothing is likely to change. Give this deceptive concept called VALUE some reflection! Enjoy! I am: https://kingdomecon.wordpress.com.
P.S. The nature of our imaginary financial system changes when confidence turns to fear. The emotion of ‘fear’ creates a sell, sell, sell, mentality within our trading community. Deflation then emerges with a vengeance. The Keynesian game of inflation, price increases, credit/debt accumulation, and the imaginary concept called the wealth effect…VANISH or evaporate when greed/confidence turns to ‘fear’. We could be close to a change in our collective financial emotions! Watch the markets as most are now in HUGE bubbles of imaginary ‘confidence’!