online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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What is Simcountry?
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What is Simcountry?

Social Security index (Fearless Blue)

Simcountry: Simcountry Bulletin Board  Social Security index (Fearless Blue)

Xeolyte Carn (Kebir Blue)

Thursday, April 14, 2005 - 10:24 pm Click here to edit this post
"shiekh, take currency out of the equation. now how do you value gold? what is it's worth in say, oil?"
That sounds suspiciously like a bartering system to me and it only serves to prove the point that money is a medium of exchange.
Money merely allows us to compare prices of goods and service to what we earn and are willing to pay.
Nobody would have the expertise to barter without money. How much gold buys 1 litre of camel's milk? (do camels even make milk? :P). It doesnt matter what youre buying the camels milk with, its worth is the same. However without money how would you know that you are getting more value out of your gold when buying camels milk than by buying it with unrefined sugar for example?
Money may be a resource or not, i personally do not think it is. But what is out of the question is saying that it has value just because its money. The only thing that gives it value is that it can be used to acquire goods and that is the only time it has value, so really money is just a standard measurement for how much something is worth, it is the gold or the unrefined sugar in my above example. Do you give other measurements value? What value does a litre have? You cant tell me because there isnt an answer.

Possibly what is confusing the issue is that people are so used to seeing money as a measurement of VALUE that they forget it is only a standard system of measurement and only a representation of the value of an item or service.

Simcountry Introduction