--- aliases: [money] --- #rationality # [[Epistemic status]] #shower-thought # Money ## Origin >The government's had to use the central banks to bail them out remember banks are creating 97% of all money as debt and if this can't be paid back it can cause a systemic failure a risk of collapse of the entire global monetary system since 2008 the economy was dead but has been on life support ever since a decade of hyper low interest rates which basically made the cost of borrowing money free of caused market distortions so large that has compounded The entire problem there were short-term gains for the consequence of long term pain when private banks make risky bets and incur losses central banks can rescue them with their infinite wallet as mentioned by Fed Chairman Jerome Powell in a recent interview for CNBC s a 60 Minutes fair to say you simply flooded the system with money yes we did that's another way to think about it we did where does it come from do you just > private banks create the vast majority of money about 97% of it and they do so by creating loans which is debt the process is as simple as typing numbers into a computer banks can To an extent spend and gamble consumer deposits as they legally own it too big to fail banks are backed up by the central bank creating a moral hazard and that brings us to the final and most insane form of money creation central bank digital money the third form of money is quantitative easing or QE quantitative easing is a new form of money that was invented by the Japanese central bank in 1989 it was later popularized by the Federal Reserve in the United States during the 2008 crisis QE is where a central bank creates money in order to issue loans directly to the banking sector large corporations and most recently the public it's a way of flooding money into the economy at times of extreme events like the financial crisis of 2008 as a result of this the central bank's balance sheets have gone completely out of control in order to prop up the economy a little bit longer > ~ https://www.youtube.com/watch?v=mzoX7zEZ6h4 ## [[Biology/Evolution/Red Queen|Red Queen]] Money is like [[Emotion]]s you use it or it uses you. The more you spend, the more you need to earn, the more you need to allocate brain computing to **money**, the less you are intelligent. Money spending/earning can become a [[Biology/Evolution/Red Queen|Red Queen]] competition for the fool. [[Steve Jobs]] got it, he refused to increase his life standards despite his fortune (at least at some point, he liked nice design cars because of his passion for design, unlike most riches who merely play the [[Status game]]). ## Live below your means [[Seneca]] said >If you wish to have leisure for your mind, either be a poor man, or resemble a poor man. He resembled a poor man despite his large [[Wealth|wealth]]. ## Money is a [[Iatrogenic]] > The three most harmful addictions are heroin, [[Carbohydrates|carbohydrates]], and a monthly salary. > ~ [[Nassim Taleb|Taleb]] # Game theory >**Money** is based on two universal principles: a. Universal convertibility: with **money** as an alchemist, you can turn land into loyalty, justice into health, and violence into [[Philosophy/Epistemology/Knowledge|knowledge]]. Universal trust: with **money** as a go-between, any two people can cooperate on any project ~ [[Yuval Noah Harari]] # Ethics >I feel we should do well to follow the advice of Themistocles. Someone asked him whether he ought to give his daughter in marriage to a man who was honest but badly off or to one who was disreputable but rich. 'Personally,' he replied, '**I like a man without money better than money without a man**.' ~ [[Cicero]]