We each have things that we like to contemplate in the quiet moments, those little things that distract us when we should be focusing on something else.
I like to contemplate dooms day devices. I suppose this goes back to the first time I watched Dr Strangelove or How I Learned to Stop Worrying and Love the Bomb, which is one of my favourite movies, as well as to innumerable science fiction movies and stories.
There are different types of dooms day devices. There is the Dr Strangelove dooms day device, a collection of nuclear bombs sheathed in Cobalt Thorium G, which will detonate and cover the Earth in a life killing shroud of fall out should the Soviet Union be attacked. So, the attack us and die dooms day device.
There is also the keep me happy and fed or die dooms day device, which is the one I wish to scree a bit on today. I’m sure that it’s possible to construct a formal hierarchy of dooms day devices, but that’s a project for a rainy day. Which, given that I live in England, might be tomorrow.
The hypothesis that I would like to put forward in the following is that money is a dooms day device. This thought came to me when watching some documentaries on events that led to the financial crisis, the worst in several generations, that we are currently crawling our way out of.
Obviously, money is not an attack me and die dooms day device. But I have come to believe that money is a keep me happy and fed or die dooms day device. Money is ubiquitous in modern society. We use money as a way of avoiding barter by having a neutral means of determining value.
Don’t get me wrong. I like money. Having money makes my life easier. And given my chosen profession of teaching mathematics in a university, I would have great difficulty coming up with something worth bartering, once society crumbles and university teaching is no longer the most highly valued of professions.
So why do I think that money is a dooms day device? One reason, and this is the reasoning of an amateur, an unstudied casual reader of economics, is that we have found ourselves in the position where money seems to have gained control over us. Money seems to have the upper hand.
We live at a time when the world is changing. For the first time in human history, it seems that we have finally and completely divorced money from any physical asset. Gold still has value, and diamonds still have value, but we no longer require that our money be linked to any physical asset. This is the problem that we are working our way out of, slowly, that money is based on trust and very little else.
And so, money spirals out of control. Particularly in our current days of near 0% interest rates, where it is cheaper (for some) to borrow, and where economists and pundits periodically speculate on the next asset bubble to burst and endanger the global economy, it seems that this unlinking of money and anything physical to stand behind it might not be the best idea that we as humans have ever had.
Or perhaps I’m just learning how expensive kids can really be.
