No matter what a monetary currency is called or how it behaves in the financial system, by definition, it can never represent any more than the value that exists on Earth.
Value is reflected by “Market Capitalization” of corporation, Roads, Bridges, infrastructure, armies, education, food, real estate, and all so-called tangible things. Intangibles such as human resources, public assets, and shared natural resources are only valuable to the extent that people depend on those resources for survival. Not surprisingly, “tangible” means all things that can be controlled and “intangible” means everything else.
However, if you look at how all value is created, it all eventually boils down to human knowledge. All control and influence over human knowledge boils down to the individual. All Value on Earth is stored between our collective ears. In order to fully assess the global financial system, there must be a corresponding global inventory of human knowledge. There is no body of any influence in the world proposing this as a means of defining solvency.
Meanwhile, the social media revolution is slowly introducing a global knowledge inventory to financial markets with effects that are becoming increasingly profound. In case you have not noticed, money no longer represents value, it represents the control of value. Social media is disrupting who, what, when, where, and how all the value can or cannot be controlled.
With every new exotic financial maneuver, the monetary currency becomes increasingly divorced from the value of human productivity. With every new advancement in social media applications, human productivity is becoming less controlled by money. Watch the news – the battle fields are all about who what when where and how someone can control what is between your ears.
Not surprisingly, governments, marketers, advertisers and even academia are the first and most public victims of losing control of their message. Their message is being re-written by forces outside their control.
This is serious – Don’t let anyone try to convince you that the value of social currency is not hedging the value of financial currency.
Today, we are on the cusp of the greatest revolution that the world has ever known. The control of money may go to the banks but the control of value will not. It will happen when people decide it will happen. Perhaps they already have…2012 anyone?