Sunday. Day of Recharging. Day of Rests. Day of Confusion. That’s my Sunday.
And for the rest of the world, Sunday could mean everything and also nothing. Whatever.
These last days saw me as a man losing his confidences in this world. But that’s not all. These last days also saw me as a man who thinks philosophically a lot. I have been thinking, in this philosophical term, mostly about 2 things: About how our world’s economy is basically built on intangible things and propelled forward by “inflations”, and about what if the currency of Indonesia is based purely on gold; what if our gold is not exported and turned 100% into a reseve.
Let me explain about the first: Inflation based economic growth.
Basically, economy can grow if the needs of people is limited, and if those needs are sought intensively by people, their prices will go up. Those rising prices will in the end count as economic growth, thus giving illusions that we are moving forward. Another proof that we are moving on illusion based economy is how stock market (and any other futures market) works. The rising prices are the motor of a stock market’s life, and those rising prices are mainly backed up by bullish sentiments. Do you know where the terms “bullish” comes from? It comes from how many “bullsxxxs” it takes to rise a price of a stock. In short, it takes wordsmithing and talespinning backed up by commonfolks confidence to keep a stock price rising.
The most prominent of these “bullsxxxs” boosted prices is oil price. If you’re still believing whether the war on middle east and verbal assaults on Iran are ways to keep the world’s safe, stop. Those acts done by dubya’s toyboys are done mostly to keep oil price at inflated price, and to keep the world from being a peaceful world. Peaceful is not good for economy because it will make level of certainty rising, and with high level of certainty, people’s need will be easily fulfilled, and prices will not go up easily. Remember, this is inflatory based economy we are talking about here, an economy moving forward with “higher demands yield higher prices” adagium as its main engine.
Side note: Remember, everywhere USA Army steps in, there won’t be peace, but only escalated dangers and uncertainties (Vietnam, Korea, Afghanistan, Iraq, and sadly: Indonesia).
This inflatory based economy makes me wondering: what if all gold in a country is not for sale, but stored inside a reserve, and based on the value of those reserve, money (with its printed value made as representative of the value of the gold stored) will be circulated. The money will represent real valued thing, and not intangible things. True, gold price will go up and down, and the money’s value will go up and down too. But attaching the value of gold into a money is less inflatory than attaching it to, lets say, US dollars (which is inflatory on itself).
And basing the value of a money with gold will make a true economy because a country which has no gold will try to sell something to a country which has no gold, thus creating a market which is based mainly on a real thing, not mainly based on intangible thing.
What do you think?