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Joined 2 years ago
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Cake day: June 11th, 2023

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  • What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently

    Yeah, thats the way it ought to be, its actually slightly different, and is very important in the context of what a country does to undermine it’s own currency, or even a companies director does to the value of their company.

    Value is a question of perception. How much are people/investors willing to tolerate and still perceive the value in a good or service or currency.

    Its the reason the massive quantitative easing ended up spreading so widely as a tool in the last 15 years. In the beginning it was assumed that the massive ‘money printing’ would lead to massive devaluations, which didn’t really happen as expected. Thats because the reaction in value percieptions in those currencies ended being more flexible than central bankers and economists initially feared.

    The perception of value played a role in how long it took for people in the US to recognise the real estate bubble exploding in 07-08. It plays a role in really any bubble, and is why prices drastically plummet instead of taper. The value perception changes en masse, and bang, everybody runs for the door.

    One more interesting example is the value perception comparison of essential workers in the COVID19 Pandemic compared to normal times.




  • You haven’t considered all the possible intended outcomes the participants envisage in the consumption of the icecream.

    It may generally be agreed that strawberry is best, therefore, everyone takes strawberry as their first choice until it runs out, and then maybe vanilla is eaten, the final flavour, chocolate, is finally consumed because there is no other choice and by the time you reach the chocolate all the participants, while agreeing chocolate is the worst, also now have a mild sugar addiction that requires satiation.

    In this case the work of consuming the worst flavour is postponed in favour of all participant’s greater enjoyment of earlier scoops, rather than endured as a necessary part of every scoop.

    Also scooping across the flavours spreads the chocolate across everything.

    Also chocolate doesn’t belong in icecream, it belongs in bars.

    Why yes, chocolate is my least fav! How did you guess?