Editor in Chief of Forbes Magazine reaching a worldwide audience of 6 million readers. He’s the author of several books, Power, Ambition and Glory to name one. During the interview he was asked about money, politics and the financial world.
One question was presented in our discussion, what is money? Seems like a stupid question, right? His answer was that even the banks don’t know, that’s why the crisis happened. Some answers make your eyes glaze over. Money makes buying and selling easier. Bartering wasn’t efficient way back when. Imagine trying to buy iPad’s with goats, but Apple wants sheep? How would an ATM work that delivers cows? Today money is backed by gold and measures value. Just like scales measure weight, clocks measure time. Money is like a coat check. Makes investing a lot easier. Who would keep 5,000 chickens for their 401k?
Imagine if the Federal Reserve changed the clocks they way they changed the dollar? It would be chaotic! Baking a cake would be insane? Would it be an inflated minute? A New York minute? Florida minute? The Fed thinks that if they manipulate money it stimulates the economy, instead they have it backwards.
Today currency trading daily is $5.5 million. It’s uncertainty of value. Flash trading is an obsession of Wall Street. Instead of looking out 10 years, instead they look at nanosecond trading.
If you can’t trust the money, you can’t trust each other.