Summations Only

Hi Buzsaw, The economic value of the dollar, in this case how much dollars are you willing to give up to buy groceries is what gives both the dollar and the groceries value in the market.It does not matter what the medium of exchange is. And you can still exchange silver for groceries, and you can still exchange dollars for silver. The fact that the value of silver goes up and down based on market value does not mean that the dollar should be forced to go up and down as well -- it has it's own value.That I should be willing to trade an apple for a pear today does not mean that I have to trade an apple for a pear tomorrow. And each change value on a daily basis compared to peaches and blueberries.The purpose of money is to have an easy to carry medium of exchange that everyone agrees on for the value compared to what they want to buy or sell at the time of the transaction.Stocks have no real value until sold or bought, which is why you only count capital gain or loss when they are sold.There is no need to set an arbitrary value on something as everything in the market has relative value based on day to day trading -- that is what economic values are all about.What is a car worth in peaches? However many peaches you can get for it.Could I get the same number of peaches in a week?If the dollar was based on peaches, what does that do to the value of my car? Does it make sense to tie the dollar value to something that fluctuates in value like peaches?Would it make sense that I sell my car for a thousand peaches and then wait six months to exchange my peaches for another car?Enjoy.Edited by RAZD, : clrty

Hi Moose, Exactly. If it had been an ipod then it would have been worth $300.It's like if I steal $300 from you, your net worth has decreased and mine has increased even though no item was bought or sold.You were willing to spend $300 for an ipod, but that doesn't mean you were willing to spend $300 on an empty box.Enjoy