What are prices established in??? Doesn't land for example or food have intrinsic value?? It keeps you alive, do you value life?
Value equates to desirability. And land does not keep me alive. There is plenty of land surface on Mr. Everest and it sustains very, if any, human life. There is plenty of land in Antartica (covered with sheets of ice that are miles thick, of course) which sustains very little human life. What is the value of that land?
If land possessed intrinsic value, then each acre would be priced similarly no matter where that land was geographically located. There is land that no one wants to buy for any price (times beach.. love canal.. Chernobyl) given how any value is subverted by existing liabilities to owning that land.
I hold a small position in Corel. I believe the product line they possess holds a great deal of value to the Linux OS market. However, the current market price does not reflect the value that I perceive exists there.
"Life" is an intangible quality. Was there any value in the life of Adolf Hitler or Joseph Stalin? I certainly opine that there was little of value in their "lives". On the other hand, I hold the principle of life in pretty high regard. But at times I also apply the principle of "quality of life" when it comes to deciding whether we should override natural selection in permitting deformed fetuses to be born into such a hostile world. But I'm also not a big fan of abortion. It is a difficult and contentious issue that has no intrinsic solution or answer.
All I know is that I would not want to be born into this world where I was ill equipped to deal with even the most rudimentary tasks. Again, this is just a personal value judgement on my part and not locked in stone. But it exemplifies the view that life is subject to the same value judgements as we make on other items and issues.
Value is state of desirability that is created by the owner of an asset in the minds of a potential buyer of that asset.
It fluctuates constantly based upon supply and demand.
Gold is valued each and every day along the same lines. People factor the desirability of owning gold against the potential liabilities of a decreasing role for it in the global financial system. And everytime a Central Bank opts to sell off its holding of gold due to this liability of decreasing value, the goldbugs get a GATAtude and scream conspiracy. Goldbugs seemingly hold the belief that CBs are obligated to support and subsidize their personal gold holdings by tying up huge quantities of the precious metal in their vaults.
...value of the US dollar should reside solely on the economic strength and policies
No one would disagree there...
Wanna bet? Several people have voiced just such a stance on this thread, stating the the only true money is that which is fully backed by gold.
Regards,
Ron |
