Reflections on Money
by Kianga Daverington
September 1, 2020
This essay, written by Kianga Daverington of Daverington PLLC , was originally published in January 2020. The piece as been condensed for clarity.
Money is not a physical object like a coin, a bar of gold or a dollar bill. Money is at its core, a technology. It is a human invention designed to solve a specific set of human problems. Consider money, perhaps, in a new way. Think of money as a system for capturing time.
Time is the one thing we each have that is absolutely finite. We are born, we die, and the dash in between is all the time we have.
Think of production. We can usually produce more of some good by adding people to a task (also known as “WORK”). But we are still constrained by time. Whatever we produce is still limited by the amount of humans that can be organized to go into that production. Each of us possesses a limited amount of time available to us individually, so we need to convince or coerce others to add their time to ours if we want to achieve more than we can alone.
Out of this imperative, nations are born.
The most important quality of any particular form of money is how well it preserves the value of time over time. Can you buy the same amount of stuff or more in the future than you can buy today? If yes, congratulations - your money is accumulating time for you and future generations while you relax on the beach. If it takes more and more of a unit of money to buy the same amount of time in the future, well then I’m sorry, but that unit of money is getting weaker and weaker. It’s losing value or said another way – it’s losing purchasing power. The longer you hold it, the less it buys.
In a way, by purchasing goods and services, you are purchasing time. Every product and every service requires time to make and time to deliver - your time and/or someone else’s. The price therefore reflects the collective value of all the time put in. Money is a way we exchange time and move it around from where it is valued less to where it is valued more.
This is where prosperity comes from. It comes out of how well a society, collectively and each person, spends its time. How much time is spent creating and making? How much time is spent consuming? If we make more than we consume, we have something left over called wealth. If we consume more than we make, we are left with debt. You can’t consume what you don’t have, unless someone extends credit. Where does this “credit” come from? Basically –it’s made up.
Too much credit or debt eventually collapses and everyone is mixed up in the collapse.
If we understand that a unit of money represents a unit of time, and we understand time is limited, then a unit in a system of money with unlimited supply cannot have any value. This is the problem we are facing today with the world’s money supply. The supply of money in the world is increasing exponentially as central banks create money by giving loans to national governments, which is where our money comes from.
Our entire world financial system is a powder keg of debt.
National currencies today are known as fiat money, a currency without intrinsic value that has been given its power to be used as money by a government that says it is money by regulation. Wikipedia says, “Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value.” Well said, Wiki.
A government’s job of maintaining the value of its national money boils down to a confidence game. On what basis do the people who use that government’s money believe it has value?
What happens to the money and those who hold it when the foundation of that belief begins to crumble?
WORLD YOUR WORLD
by Max Moinian
May 31, 2018
Max Moinian is an urban planner from New York, researching climate change and urban design. This work is adapted from the Future Earth Catalog, a project done for her master’s thesis at MIT.
Earlier this year I wondered how the ozone layer was doing. I remembered being terrified as a kid and constantly drenched in sunblock. “This is a completely different Earth you are growing up in,” my mom would say. And she was totally right.
Climate change is the environmental narrative of our time. It occupies the same anxiety as nuclear warfare, the population bomb, and the ozone hole. It ebbs and flows from popular consciousness with big events like the Kyoto Protocol or COP21, and with extreme weather events like hurricanes, droughts, and fires.
The problem is the ebb and flow - where does a story start and where does it end?
We hold onto shocks delivered through sensationalist media but we cannot possibly grasp stressors - the slow warming of temperature, melting of glaciers and rise of the sea. When Trump tweets “this very expensive GLOBAL WARMING bullshit has got to stop. Our planet is freezing, record low temps, and our GW scientists are stuck in ice” he reveals a common misconception.
But weather that we can see and feel is not climate. Climate is the history of weather. It exists on an expanded timescale and involves incremental change that cannot be perceived firsthand. Climate is always mediated, and it’s pattern is irregular. Dr. John Holdren says we should call it “global climate disruption” rather than “global warming,” a misleading term which suggests that the phenomenon is uniform around the world, all about temperature, and gradual.
Climate’s official story is mostly told through data by scientists, journalists, and politicians. We listen without realizing we can be storytellers ourselves. Rebecca Solnit wrote about the power of the stories we tell in her book, Hope in the Dark. “Stories trap us, stories free us, we live and die by stories.” In the helplessness of climate change, I found agency in challenging the narratives I consume. I can reflect on many stories to tell my own.
Our ability to measure and understand the past seems to be directly proportional to our imaginative capacity for the future. It is hard to be hopeful when you are told to see the world as parts-per-million of CO2. This is a really big problem. Not only are we hyperaware of our past, but we can measure our individual impacts on the future — through efforts to make the world a better place, but also through carbon footprint calculators.
We might need to ‘unlearn’ some of these climate change communication and education logics (individual consumption as parts-per-million of CO2) in order to imagine a different future. Like a process of ‘unlearning’ candy as an adult, because the ingredients are ‘bad for you,’ the current narrative of climate may be bad for our society: an ingredient list full of toxic fear, individual responsibility, and irreversible loss.
Back to my mom, who used to give kids clementines on Halloween. Although I resented her for it, I take much wisdom from it now: we might not have the future that we wanted, but we can have something different that is just as sweet.
As you click through the timeline, choose your own adventure. There is no answer, no ‘aha!’ moment, only fragments I am suggesting to be part of our cultural construction of climate. In a quest for knowledge we struggle to accept that there might not be any to find. Uncertainty is a theme here: the uncertainty of climate models, 1-in-100 year storms, how we got here, and where we are headed. But the uncertainty of our future Earth means it is somewhat up to us. This is where Solnit finds hope: “the future is dark, with a darkness as much of the womb as of the grave.”
Albert Einstein said that imagination is more important than knowledge. We have always relied on it to explain uncertainty. To bridge the gap between what we observe and what we cannot understand, through myth, fiction, and fantasy. Our cultural construction of climate is a perception that has as much to do with science fiction as the science we call fact.
Fantasies of utopia or apocalyptic doom are powerful narratives. They indulge our senses and give license to world, a verb philosopher Martin Heidegger uses to describe the continuous process of world-building, perception-shifting, and responsiveness to our own realities. To world new worlds in the time of climate change is to break the barriers of our own capacities, whether these barriers be real or perceived.
In Space Colonies, Fabian Reimann writes, “heroism is successful foolishness; and is space travel anything but government-funded foolishness?” Space exploration, in fiction and not-fiction, is hope. We stuck our flag on the moon ten years after Kennedy declared the space race. What can’t we do?
By the way, the hole in the ozone is still there, it’s just growing slower.
A revisionist history for linear thinkers who prefer not to go down cycles and spirals of internet holes uncovering stories and events, and always working backwards. Grounded in the present, rooted in the past, and ready for lift off.