Saturday, November 15, 2014
The Data/Time Standard replacing the replaced Gold Standard
This is an interesting discussion that I want to surface. Michael Mennies posted an article about returning to the Gold Standard. I am not an economist, but some things seem kind of obvious to me. 1) If you want to see what the world values at a certain time, follow the wars. And no, I'm not entirely sure what a data/time war looks like, but I think we can interpret government intervention into the internet as an attempt to an aging nation/state model trying to remain relevant.
Different ages in human history value different things.
In the stone age, you valued the basics for survival. Food, flint (I had much more value then), furs, etc.
That advanced to gold. It was scarce, desirable, easy to evaluate (diamonds, less so) in a marketplace and easy to store. It was a concrete tangible proof of value in a disconnected world. You could be in Baghdad, Mexico City, London or San Francisco and gold was gold. It was an element. Irreducible. You only ran into problems when you went to places that didn't value the 'yellow metal that makes white men crazy.' Then you traded in furs or gun or whatever they valued.
Then, in the industrial age, value moved to energy. Industry needs oil. When oil was perceived as scarce (or energy was perceived as scarce) we based the global economy on oil (the article skipped the Petrodollar). The big key to what the world really values is to follow warfare. When gold was valued, we had navies, battles in exotic countries, etc. When oil was valued, we fought in the Middle East. There are still lots of problems in the middle east, but you can feel the epicenter moving.That's because oil is less valuable and scarce for a variety of reasons.
We are now in the information age. Value of anything is calculated in the microsecond. It constantly shifts, but the shift creates an odd stability. Labor is only valuable because it creates physical and intellectual things that are of perceived value. War is increasingly fought in cyberspace and the ascendent companies are companies that trade in cyberspace (Apple, Google, etc.). The primary value now is Data. It tells us what product to move to what place at what time. Oil still maintains value because we have to run machines and move things, but due to fracking and alternative energy, its declining (it will be a long decline).
So I would say now that the world economy is based on exploitation of data in time. That's a very abstract thing, but think about it. I'm not sure what it evolves to with cheap/free energy, near free labor (robots) and a rising population. Obviously, some things don't go away, like the stone age stuff of needing foot and heat and shelter, but the real value is in reacting to the demands.
Here's the link that started the conversation:
http://www.financialsense.com/…/the-gold-standard-generator…
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