{"id":1624,"date":"2012-08-13T23:00:29","date_gmt":"2012-08-13T22:00:29","guid":{"rendered":"http:\/\/avbp.net\/?p=1624"},"modified":"2012-08-19T22:49:59","modified_gmt":"2012-08-19T21:49:59","slug":"captialsim-a-hobby-attempting-to-understand-the-role-of-money-in-capitalism","status":"publish","type":"post","link":"https:\/\/avbp.net\/?p=1624","title":{"rendered":"Capitalism a hobby: attempting to understand the role of money in capitalism"},"content":{"rendered":"
\"\"<\/a>
The conversion of capital from one form to another<\/figcaption><\/figure>\n

Continuing with my hobby: capitalism, I have come as far as defining different types of capital. Please note that I have not yet taken on the task of actually defining\u00a0capitalism. This is getting to be a life-long\u00a0hobby instead of a temporary fad.<\/p>\n

To take the analysis\u00a0one\u00a0step\u00a0further\u00a0let us consider the conversion of one form of capital from the other.<\/p>\n

Let’s start with natural capital<\/em>, encompassing soil, forest, water and minerals like iron as well. \u00a0Natural capital feeds (a) into man – made capital<\/em>, for food, water \u00a0and housing systems, for example. Man-made<\/em> capital\u00a0feeds\u00a0nutrients\u00a0back into the natural environment, to allow growth and ecological maturity (b).<\/p>\n

Human capital<\/em> includes \u00a0know-how (could be called technology) is applied to produce man-made capital like housing and transport systems \u00a0(c).<\/p>\n

Human capital \u00a0can be used to create social capital <\/em>(specialized\u00a0organisations)\u00a0that in turn can create more man-made capital (e) . Or indeed, this social capital of specialised organisations can create knowledge and increase human capital<\/em>.<\/p>\n

Now. Where does money, or the store of money called financial capital<\/em> come in?<\/p>\n

As an accounting system<\/strong><\/p>\n

According to my studies, \u00a0money should act \u00a0as an accounting system. \u00a0So you\u00a0would\u00a0think that it\u00a0would\u00a0keep track of the capital conversions, to provide an overview to ensure that capital conversions promote ecological maturity whilst ensuring a standard of living for all.<\/p>\n

Call me old-fashioned,\u00a0naive\u00a0or what, but I cannot see how money is doing that. Or if people are using money to do that. \u00a0If it were, we would be seeing the status of capital conversions and system performances\u00a0trounced\u00a0on the news regularly. We don’t. We see only\u00a0financial\u00a0measures of financial wealth, like the value of the stock market.<\/p>\n

As a medium of exchange<\/strong><\/p>\n

Here I think I see some use of money in capital conversion. As owners of “bits of capital” swap form(like using money \u00a0to buy the\u00a0expertise\u00a0of a builder who converts natural, human and man-made capital to more man-made capital) \u00a0or indeed bits of the same form (Like \u00a0a university that buys a lecturer’s services). This creates another problem, though. The way money is created as credit it is hardly a representative means of exchange. A person who borrows to build a house and then sees the house repossessed by a bank sees capital being created out of nowhere, converted to man-made capital and then the man-made capital changing hands using the money that dis not exist from the beginning.<\/p>\n

This is one of the central problems of today’s money system: it is\u00a0useless\u00a0as an\u00a0accounting\u00a0system that counts anything of real worth, and that it is at best, dysfunctional as a means of exchange if it is created as credit out of thin air.<\/p>\n","protected":false},"excerpt":{"rendered":"

Continuing with my hobby: capitalism, I have come as far as defining different types of capital. Please note that I have not yet taken on the task of actually defining\u00a0capitalism. This is getting to be a life-long\u00a0hobby instead of a temporary fad. To take the analysis\u00a0one\u00a0step\u00a0further\u00a0let us consider the conversion of one form of capital […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[31],"tags":[],"class_list":["post-1624","post","type-post","status-publish","format-standard","hentry","category-capitalism-a-hobby"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/posts\/1624"}],"collection":[{"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/avbp.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1624"}],"version-history":[{"count":4,"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/posts\/1624\/revisions"}],"predecessor-version":[{"id":1627,"href":"https:\/\/avbp.net\/index.php?rest_route=\/wp\/v2\/posts\/1624\/revisions\/1627"}],"wp:attachment":[{"href":"https:\/\/avbp.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/avbp.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/avbp.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}