Re: Re:Global Currency System

["MV" <maxv@vsnl.com>]

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> From: prakash chandrashekar
>
> I didn't understand. How does the mass-energy relationship enter into
this
debate ? What is the connection of energy in mass, with value of
products as
created by humans.
>
> A kg of mineral water costs Rs 10.
> A kg of gold costs Rs 4,00,000.
>
> They are relativistically equal in energy. So,what are you trying to
say ?
>

The value of a product is depended on how much energy
is mobilized/expended to produce it, in the eg. you have
mentioned it is obvious that water is avilable in
plenty to purify it and package it does not take too much
energy/manpower, infact most of the energy mobilization
comes at the distribution/transportation as well as the
advertising cost to sell the water, hence the price is low.

In the case of gold to produce 1 kg of gold, it takes lot of
energy both machine and manpower, hence the gold costs more.
When you think about it, whole demand supply theory is based
on this energy/effort required to aquire/create the product
concept that is why diamond is more costlier than gold it
takes even more effort/energy to mine/find diamonds.

At the time of gold based currencies there was at least an
arbitrary reference value, but now even that is not there.
This creates lot of anomaly/distortions in valuations in
International trade because the currencies are not based
on any reference value.

The energy is the best reference value because since the
time of barter system, the valuations of all products and
services are done on a subconscious level relative to the
energy mobilisation or how much work is required to make
the product or provide the service. You can think on a
concious level about the valuation process and every time
you will come to energy mobilization as the root.

Money is nothing but representation of potential to mobilise
*energy* then why don't we quantify/define it and use that
as the base for currencies?

MV.

>
> ------------- Original Message --------------
> "MV" <maxv@vsnl.com> wrote:
> In the above equation *any* process that is taken as
> standard will follow the equation
>
>   E = m (c x c)
>
> try disproving that........
>
>



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