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Wednesday, December 25, 2013

Why money is an illusion

Money is a human construct and therefore non-essential
Money is a human construction, when we were a neolithic non-cultured species, money was a concept yet to be conceived. Perhaps it was a random intuition that briefly and dimly flickered in the consciousness of people more concerned about what was in front of them than what could be, for better or for worse, a 'reality'.

Illusions are thought to be deceptive, misleading or misrepresentational of reality. Money is believed to be an essential necessity, and indeed, it is in the world we have created for ourselves, but it is not per se a requirement for living which is what contributes to its illusory qualities. Rather it is an a priori deduction which is a conceptual abstraction that can be actualized through a printing press, and not a definitive empirical requirement for life. 
Money is illusory because it is misperceived as absolute

In more concrete terms, look at the value of the dollar. It's not directly based on  or 'backed' by any physical collateral such as federal real estate, precious metals etc. The dollar's value is based on perceptions of its value, belief in its worth and what it represents. Currency trader's decisions aren't always, if ever based on evaluation of the dollar's actual wotrh under controlled experimental research conditions for accuracy. In other words, it's based on perceptions, beliefs, indicating financial metrics, and changes in market conditions.

In terms of human senses, money is a paper or a digital representation of wealth, but it is not wealth per se. Wealth is a subjective concept unique to individual's belief about what it means to be "wealthy". When money itself is perceived as wealth, then it has successfully created an illusion just like the flowers above aren't actually flowers, but illusions of flowers made with money and paper.

It's kind of like faith! maybe that's why it says 'In God We Trust" on the back of a dollar bill.

Image licenses: IMTFI, Creative Commons