Used beer bottle caps, £'s and $'s made worthless by QE.
Yesterday morning on a posting linked here, I queried the value of a working man's home for which he had paid over 35 years, with the following question:
What is the home of the productive worker actually worth?
The maximum value, expressed in dollars, pounds, euros, rand, new shekels or even beer bottle caps, is of course, the amount a willing buyer is voluntarily prepared to pay to a willing seller, the last such transaction thereby becoming the going market price.
QE puts us on a trajectory where the actual number of dollars, pounds, euros, rand, new shekels or even beer bottle caps you possess, becomes an increasing irrelevance, as more and more useless, faux-used beer bottle caps are produced, reducing their value closer and closer to zero. If I can sell my home for 50,000, 100,000, 500,000 or even millions, when the value of the £ or $ is rendered worthless due to QE, the actual number of such units attained upon the sale becomes an ever greater irrelevance.
As this blog has repeatedly and consistently argued down the years, real value has to be returned for the units exchanged for a working man's labour. Gold served that function in the past, a basket of commodities and food values from the farmland yield at a nation's median latitude, could easily be computed with modern technology, even the market prices of some of the rare earth minerals making these technological advances, could now even be included in any agreed formula.
The outcome has to be, that the money received by a worker selling his home should be at least the equivalent to the thirty-five years worth of labour, (in my example) assessed against something non-inflatable by self-serving and often crooked politicians.
Ironically, removing productive land from farming, (as mentioned in my first posting of today) while allowing unlimited mass immigration, as recent British governments have achieved, while simultaneously debasing the currency, naturally hastens the moment of complete non-sustainabilty, as clearly indicated in all the news headlines of today!
QE puts us on a trajectory where the actual number of dollars, pounds, euros, rand, new shekels or even beer bottle caps you possess, becomes an increasing irrelevance, as more and more useless, faux-used beer bottle caps are produced, reducing their value closer and closer to zero. If I can sell my home for 50,000, 100,000, 500,000 or even millions, when the value of the £ or $ is rendered worthless due to QE, the actual number of such units attained upon the sale becomes an ever greater irrelevance.
As this blog has repeatedly and consistently argued down the years, real value has to be returned for the units exchanged for a working man's labour. Gold served that function in the past, a basket of commodities and food values from the farmland yield at a nation's median latitude, could easily be computed with modern technology, even the market prices of some of the rare earth minerals making these technological advances, could now even be included in any agreed formula.
The outcome has to be, that the money received by a worker selling his home should be at least the equivalent to the thirty-five years worth of labour, (in my example) assessed against something non-inflatable by self-serving and often crooked politicians.
Ironically, removing productive land from farming, (as mentioned in my first posting of today) while allowing unlimited mass immigration, as recent British governments have achieved, while simultaneously debasing the currency, naturally hastens the moment of complete non-sustainabilty, as clearly indicated in all the news headlines of today!
Labels: Beer bottle caps, QE
posted by Martin at 7:38 AM
1 Comments:
Your last paragraph sums it all up to me.
As a child I worked on several farms in and around my home city of Plymouth.
Regional spatial strategies that involved increasing Plymouth's population by 100,000, and building the required houses on the farmland I had once worked on, whilst seeing no increase in job opportunities - represented to me an absolutely insane economic model.
How can the so-termed intelligent movers and shakers in Britain have come up with such a lop-sided strategy?
Post a Comment
<< Home