Is Money Real or Just A Fictional Scam?
Money is fiction, or as some people would call it “Fugazi.” It is a trick. Millions of people before us and even now have been tricked into believing that money is a real thing. Simply it is just a number in out bank accounts that we are dependent on to get through life and do the things we like and want to do. A scary concept that can happen with money is that it can just vanish and no one would know what happened to it or where it went. Money is just a manipulative scam.
In the NPR’s podcast, This American Life, Jacob was telling a story that he had had a conversation with his aunt. He asked her about where all the money went when the stock market crashed. Her answer highlighted a key point. She simply said that money is fiction. Jacob preceded to talk about the money and said that it never even existed in the first place. This happens to be the case in other places as well. In “The Island of Stone Money,” Milton Friedman visits an island in Micronesia in 1991. He states “As their island yields no metal, they have had recourse to stone; stone non which labor in fetching and fashioning has been expanded, is as truly a representation of labor as mined and minted coins of civilization. On the island of Yap that stone is equivalent to money. This exchange was called Fei, it consists of large, solid, thick stone wheels ranging in diameter. The stone like our money is also fiction. “It is a bargain, it involves the price of Fei too large to be conveniently moved, its new owner is quite content to accept the bare acknowledgement of ownership and without such mark to indicate exchange, the coin remains undisrupted on the former owner’s premises.” There was a village not far from the island where a family’s wealth was unquestioned and the family themselves have never laid eyes on or a hand on this wealth because an ancestor lost this big piece of Fei at the bottom of the ocean. The verbal agreement that took place was a big reason that the family able to stay wealthy. Milton said that “they all testified that Fei was of magnificent proportions and of extraordinary quality, and that it was lost through no fault of the owner.”
We live in a society where money is earned and we work for our money. NPR’s podcast The American Life talks about how they get paid from their employer and it goes into their checking account. They don’t give them a bunch of 100 dollar bills every week. That money is used to pay bills online and that currency is old fashioned. You don’t have to touch money or see it, it’s just information. This is just another key point and raises that question is money real and is it really even “ours”. Kestenbaum tells a story in the NPR’s Podcast The American Life highlights an example of that question. This example was money is deposited into the bank, it can be loaned out to some guy who wants to open a shoe shining business down the street. That is apparently “your” cash he is holding.
Money is what people believe it to be. At one point Brazil was at a real struggle with inflation rates and hired four economists to help out with the suffering economy. They ended up tricking tons of people in Brazil to get on board with a new virtual currency called URV’s. They used this new currency to get Brazilians to start to have belief in their money again. They did not want them to fear inflation again and make them feel secured with URV’s. Brazilians belief in this new digital currency changed the country in a positive way going forward. The “belief” that the digital currency would work and it did for them. The United States is also in a position where they are trying to get digital currency to work. Bitcoin is a new form of digital currency that has been big in the news. There is not to much belief in it right now as there are a lot of uncertainties with the new currency. In the article Bitcoin has no place in your or any portfolio by Jeff Reeves he explains that there is no true value. He calls it the “greater fool” theory. ” A Bitcoin, is simply worth whatever a random person is willing pay.” There is no real gain from it. More people will end up losing money investing in it than they will make. In addition, another article The bubble bursts on e-currency Bitcoin by Anne Renaut states “Bitcoin users can only cash out their money of other people want to buy their Bitcoin.” People want to use Bitcoin to make money one day but the issue is there is no evidence of wealth being made. Just like on the island of Yap, that family had wealth with no real proof.
In conclusion, money really is fiction. All the evidence from the podcasts and articles show that more people than we think make money out to be what they want it to be. It is a scary thing to wonder that the money in our bank accounts could quite possibly not be real at all and it is just information. It is just something we all chose to believe in everyday like people believe in religion.
1991 Island STONE Money – Hoover Institution. https://miltonfriedman.hoover.org/internal/media/dispatcher/215061/full.
Reeves, J. (2015, January 31). Opinion: Bitcoin has no place in your – or any – portfolio. MarketWatch. Retrieved September 30, 2021, from https://www.marketwatch.com/story/bitcoin-has-no-place-in-any-portfolio-2015-01-28.
Yahoo! (n.d.). The bubble bursts on e-currency bitcoin. Yahoo! News. Retrieved September 30, 2021, from https://sg.news.yahoo.com/bubble-bursts-e-currency-bitcoin-064913387–finance.html.
The invention of money. This American Life. (2018, February 19). Retrieved September 30, 2021, from https://www.thisamericanlife.org/423/the-invention-of-money.